ISSUE 09, SEPT 2010 Manila, Philippines

Labor and Employment Implications of a Cooperation and Development Agreement: The Case of the RP-EU Partnership and Cooperation Agreement
State-to-state relations are now defined by a new factor, which is labor. Labor has gained the status of an equally important agenda item in any political and economic discourse or dialogue between and among governments, whether dealt as a separate or a cross-cutting issue. In the context of the renewed Philippines-European Union (RP-EU) relations, labor is treated as a crucial aspect of cooperation running through trade and investment, political and economic development concerns. With the conclusion of the RP-EU Partnership and Cooperation Agreement (PCA) on June 3, 2010 in Brussels, a comprehensive framework of cooperation, with people component and human rights provisions, is set to govern the relations of EU and RP in the 21st century milieu. The RP-EU Partnership and Cooperation Agreement and its Guarantees The concluded RP-EU PCA graduates from the obsolete ECC-ASEAN Cooperation Agreement. It contains provisions for cooperation and dialogue in the areas of human rights, trade and investment, migration, education, employment and social affairs, climate change, health, anti-terrorism, investments, information and communications technology (ICT), and transport, among others. The DOLE involvement in the PCA negotiations is spread in the whole spectrum of issues covered by the PCA, be it political, trade and investment or economic development cooperation. It was tasked to chair the Labor and Migration Cluster and to negotiate for the three (3) articles on labor. On Migration and Development, the cooperation focuses on the following areas: 1. 2. 3. 4. 5. 6. Push-pull factors of migration; Protection and rights of migrants and refugees; Integration of lawfully residing non-nationals; Establishment of an effective and preventive policy against irregular migration; Return of irregular migrants under humane and dignified conditions; Issues in the fields of visas and security of travel documents as well as border management; Policy Prescriptions A Strategy for Cooperation and Development Agreements: the Case of the RP-EU PCA 7. 8. Labor provisions should be embedded in all Cooperation and Development Agreements; Establishment of a mechanism to consult all concerned sectors/stakeholders; Research support to negotiators. Migration and development concerns including social protection and integration of migrants; and Admission and readmission of irregular migrants.

On Employment and Social Affairs, the article speaks of cooperation in the field of: 1. 2. 3. 4. 5. 6. employment and social affairs, including skills development; protection of the rights of migrants with reference to the Migration Article; health and safety at the workplace; gender equality; decent work; fair trade and globalization.

On Maritime Labor, Education and Training, the article counts on both parties to cooperate in the field of: 1. 2. 3. 4. 5. maritime labor, education and training, terms and conditions of work of seafarers, seafarers personal safety and protection, occupational safety and health, and addressing piracy and terrorism at sea.

Labor and Employment Implications of the RP-EU PCA While the PCA is not a free trade agreement, it is believed to bolster the political and economic relations between the Philippines and the European Union. It does not

This paper was written by Stephanie B. Tabladillo, research specialist at the Institute for Labor Studies.
ISSUE 9 Labor and Employment Implications of a Cooperation and Development Agreement: RP-EU PCA

specify trade concessions by either party but lays down a broad framework of cooperation between the two parties. Two points are being considered in concluding the RP-EU PCA: a) the institutionalization of how the EU grants overseas development aid; and b) the PCA as a necessary step before a free trade pact. A Strengthened Partnership/Linkage with the EU. EU is a major trade and investment partner of the Philippines. In recent years, the EU has been competing with Japan and US in foreign direct investments into the Philippines. In terms of exports, the EU has been the second largest export market of the Philippines by absorbing 19% of Philippine exports. On the EU exports side, the Philippines is a small but fast growing market for the EU. RP and EU relations in terms of development cooperation have also stepped up as testified by the EC-Philippines Strategy Paper 2007-2013 and the Multi-Annual Indicative Programme approved by the European Commission on March 2002. The Programme sets out a five-year strategy for the Commissions financial assistance to the Philippines. EU Becoming a Popular Destination of Overseas Filipinos. Opportunities for employment in the EU are also

forthcoming as EU member states are struggling with their shrinking population. Its population is aging so fast, it needs young newcomers to fill the gaps. The PCA Embodying Decent Work Principles and EUs Migration Policies. Migration is regarded as an opportunity for the European Union, as well as a challenge. Thus, EUs migration strategy covers policy areas such as labor market needs, demographic changes, the integration of immigrants into increasingly multi-cultural and multi-ethnic societies and the fight against irregular immigration, while at the same time ensuring a secure environment for the free movement of its citizens. Conclusion One key development in policy setting is the appreciation that the best interest is to give primary consideration to labor and employment concerns to the overall framework of trade and non-trade arrangement which would translate into its being part and parcel of any deal or agreement, or in the agenda of any policy dialogue which may either be political, economic or developmental in nature.

Figure 1.0 Consultative Mechanism: An Illustration

ISSUE 9 Labor and Employment Implications of a Cooperation and Development Agreement: RP-EU PCA