Social clause

Within the context of international trade, a social clause is the integration of seven core ILO labour rights conventions into trade agreements.

Core labour standards would be inserted into an article within the WTO Agreements which could be a more viable option than amendment of the Agreements themselves. If a member state violated the social clause, the breach could become subject to WTO scrutiny, through the usual WTO dispute settlement provisions (provided provision is made for this when inserting a social clause). As a result of dispute settlement proceedings, the DSB could, at the request of the complaining party, recommend that retaliatory trade measures be taken against the offending country.

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