ABSTRACT

While there might be two categories of labour provisions in an international investment arrangement (IIA, including BITs and investment chapter or provisions in FTAs), i.e. provisions on movement of natural persons and provisions on protection of labour rights (labour standard), this chapter focuses on the latter. It first surveys different types of labour standard in IIAs that involve Asian countries and explores the key normative components thereof. Through vertical analysis of normative evolution of labour standard from Multilateral Investment Agreement Draft (1995–1998)to current IIAs such as the TPP, this chapter identifies possible reasons for linkage between labour standard and IIAs that involve Asian countries and explains factors that lead to the trend of being stricter. Based on these, the chapter reflects upon the role of labour standard in international investment regime and its potential influence on other investment rules. It finds positive roles of labour standard in strengthening equality, fairness and legality of international investment regime on the one hand; and on the other hand, difficulties arising from fragmentation of interpretation criteria, conflicts between the social regime and the investment regime, dilemmas in the application of dispute settlement procedures and remedy measures. With this analysis, the chapter evaluates the possibility of linkage between labour standard and Free Trade Area of the Asia-Pacific (FTAAP)investment provisions and concludes with recommendations that will better respond to social concerns in Asian international investment regime.