Labor Rights and International Economic Law: A Multilevel Approach

The interplay between labour standards, global economic governance, and international competition forms a critical nexus in contemporary debates on globalisation. This research project explores the pressing issue of workers' rights within the broader context of international economic law, particularly focusing on the tensions between developed and developing nations. The study takes a multilevel approach to analyse how disparities in labour standards influence global economic dynamics and policy-making.

In many developing countries, labour standards remain critically low. Workers often face poor wages, inadequate protections, and limited access to collective bargaining. Meanwhile, in developed nations, the pressure of competition with low-wage economies intensifies, leading to significant political and economic challenges. The erosion of manufacturing bases and the associated rise in structural unemployment have become defining concerns in these economies. This phenomenon is starkly illustrated by the European Commission's 1994 White Paper, Growth, Competitiveness, and Employment. The paper identified the emergence of industrialised nations with significantly lower labour costs as a primary factor undermining the competitiveness of European markets and exacerbating high structural unemployment within the European Community.

The research examines this complex dynamic by addressing three core themes. First, it investigates the relationship between labour standards and economic competitiveness. The project evaluates the extent to which lower labour costs in developing countries attract foreign investment and foster industrialisation, while simultaneously disadvantaging higher-cost economies. Second, it scrutinises the effectiveness of existing international labour regulations, such as those championed by the International Labour Organization (ILO), in mitigating these inequalities. The study assesses the capacity of such frameworks to harmonise labour standards across nations without stifling economic growth in developing regions.

The third theme explores the role of international economic law in shaping labour policies. Trade agreements, global supply chains, and multinational corporations are increasingly influential in determining the labour conditions under which goods and services are produced. The research considers whether mechanisms such as trade-labour linkages or labour provisions in free trade agreements could serve as tools to promote fairer global labour standards. Moreover, it analyses the potential for multilateral institutions, such as the World Trade Organization (WTO), to integrate labour rights into their frameworks without compromising their core trade objectives.

By adopting a multilevel perspective, the project bridges the gap between local, national, and international dimensions of labour governance. It highlights how globalisation exacerbates existing inequalities while simultaneously creating opportunities for regulatory innovation and international cooperation. The study employs a combination of legal analysis, economic modelling, and case studies to provide a comprehensive understanding of the challenges and opportunities in this field.

The findings of this research aim to inform policy debates on achieving a balance between competitive economic advantage and the protection of workers' rights. Ultimately, the project seeks to contribute to the development of more equitable and sustainable approaches to global economic governance, ensuring that the benefits of globalisation are shared more inclusively across societies.

This multilevel exploration of labour rights and international economic law not only addresses a pressing global challenge but also underscores the importance of integrating social justice into the framework of global economic governance.

Research Team

Prof. Dr. Pedro Infante Mota

Prof. Dr. Miguel Moura e Silva

Prof. Dr. Rute Saraiva

Prof. Dr. Paulo Alves Pardal

Patricia Bastos

Salvador Laurino

Prof. Dr. Filipe Vasconcelos Fernandes

Márcio Bobik

António Chuva (Maputo University)