The Case of Labor Provisions in Latin American Preferential Trade Agreements

ABSTRACT Labor provisions in preferential trade agreements are becoming increasingly relevant, yet research has predominantly focused on global trends and developed economies. In Latin America, scholars have focused either on country‐specific analyses or on individual agreements, resulting in a fragmented approach. The objective of this article is to identify the determining factors that explain the depth of labor provisions in Latin American preferential trade agreements. We conduct a cross‐sectional analysis, employing linear regressions on data from 114 preferential trade agreements signed 1990–2015. Our research delves into government political orientation, trade union participation, informality rates, and intra‐industrial competition to provide a comprehensive analysis. Our findings reveal that interactions among freedom of association and wage bargaining, regime type and stability (rather than political orientation), and trade openness and intra‐industrial competition shape the depth of labor standards in preferential trade agreements in Latin American countries. These findings highlight the relevance of regional approaches in contrast with global studies.