Abstract

A transatlantic trade agreement between the United States and the European Union must contain a strong labor chapter protecting workers' rights and social standards. Any agreement should aim to reduce inequality by ensuring that benefits of expanded trade flow to everyone, not only to wealthy elites. To this end, a labor chapter should prevent the us-style deregulation and anti-trade union practices from penetrating Europe. Moreover, any investor-state provision should not allow investors to challenge labor laws and social protection measures. In sum, a transatlantic trade agreement must create a dynamic of upward harmonization of standards, not a race to the bottom.