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Social Clauses in Trade Agreements: Implications and Action Points for the Private Sector in Developing Countries20 January 2021, GenevaSubmitted by Gaia Grasselli, Jarrod Suda and Anna Liz ThomasTo :International Organisation of Employers (IOE) Avenue LouisCasa 71, 1216 Cointrin, GenveAll projects prepared and published by TradeLab law clinics and practica are done on a pro bono basis by students for research purposes only. The projects are pedagogical exercises to train students
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How to fill out social clauses in trade

01
Identify the social issues relevant to your trade partnership, such as labor rights, environmental sustainability, or community impact.
02
Research applicable laws and regulations that govern social clauses in your region.
03
Develop clear and measurable objectives for the social clauses, specifying what you aim to achieve.
04
Draft the social clauses, ensuring they are specific, enforceable, and aligned with your trade agreements.
05
Consult with stakeholders, including employees, suppliers, and community representatives, to gather input and ensure buy-in.
06
Review and revise the clauses as necessary based on feedback and changing circumstances.
07
Include social clauses in all relevant contracts and agreements, making them legally binding.
08
Monitor compliance and impacts of the social clauses regularly, adapting them as needed to improve effectiveness.

Who needs social clauses in trade?

01
Businesses aiming to enhance their corporate social responsibility (CSR).
02
Governments seeking to promote fair trade practices and protect labor rights.
03
Organizations that advocate for sustainable development.
04
Consumers who prefer ethical products and want to ensure companies adhere to social standards.
05
Trade unions and worker advocacy groups looking to safeguard labor rights.
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Social clauses in trade refer to provisions included in trade agreements that require the parties to adhere to certain labor rights and social standards, such as workers' rights, labor conditions, and the prohibition of child labor and forced labor.
Typically, companies engaged in international trade are required to comply with social clauses. This may involve manufacturers, exporters, and importers, depending on the specific trade agreement and jurisdiction.
To fill out social clauses in trade, organizations must review the specific requirements outlined in the trade agreement, gather necessary documentation demonstrating compliance with labor standards, and complete any forms or reports as mandated by the trade authority.
The purpose of social clauses in trade is to promote fair labor practices, protect workers' rights, and ensure social responsibility among trading partners by linking trade benefits to compliance with established labor standards.
Information that must be reported on social clauses in trade typically includes details about compliance with labor laws, certifications of labor practices, audits of working conditions, and any instances of labor violations or corrective actions taken.
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