Trade and Employment

Trade and market openness have been drivers for better economic performance, job creation, innovation and societal progress. Global trade has contributed to creating jobs in developed and developing economies and has lifted hundreds of millions of people out of poverty. Due to the Covid-19 pandemic and its impact on employment, the current challenges confronting trade underline the need for international cooperation, effective multilateralism, and robust investment frameworks to enable enterprises to create more and better jobs.

Why is trade relevant for business?

Trade is a driver for competition, productivity, and innovation and allows societies and businesses to take advantage of lower prices, better products and services and increased choices. However, recent times have witnessed increasingly vocal criticism of globalisation and free trade, giving rise to protectionist sentiments and measures threatening to undermine the multilateral trading system. The stakes are high because of the importance of trade for growth, jobs and development. Business needs to increase its support for a global system of rules-based free trade in general and the WTO in particular, as well speak up for national frameworks conducive to harnessing the benefits that trade offers.

How does IOE's work on Trade and Employment enhance the agenda for business? 

IOE has launched the Business Coalition for Trade, Employment & Sustainable Development to promote and coordinate the efforts of Employer and Business Membership Organisataions (EBMOs) and companies of all sizes and characters to support employment growth and sustainable development through trade underpinned by multilateral rules, as well as to strengthen dialogue between the business and the WTO and other international trade organisations. Concretely, the Business Coalition for Trade, Employment & Sustainable Development focuses on: 

• Strengthen and coordinate the efforts of EBMOs of all sizes and characters and companies to support trade integration to create and retain employment and promote sustainable development.
• Engage constructively and pro-actively in the WTO reform process to strengthen this employment angle in trade developments. 
• Build the capability of EBMOs and companies on trade and employment-related matters.
• Exchange ideas and knowledge on trade-related matters and their impact on employment and sustainable development.
• Facilitate ongoing and regular dialogue between WTO/other international trade organisations and businesses with this approach. 
• Inform business of latest trade-related economic developments with an impact on employment.

IOE also strongly engages particularly on issues linked to social clauses in trade agreements, responsible business conduct in supply chains and improving national frameworks for trade, employment, and sustainable development.