Mattersburger Kreis für Entwicklungspolitik
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The EU Corporate Sustainability Due Diligence Directive (EU CSDDD) represents an important new legal instrument that aims to protect human rights. The chapter examines whether the directive potentially represents an important step forward to transferring power resources within global value chains to the Global South. The paper starts by providing a brief overview of the making of the EU CSDDD. This is followed by an analysis of economic perspectives on international standards and by showing how a critical political economy perspective on global value chains and the power resources approach can be used to analyse this new binding legal instrument. Based on this theoretical framework, three possible scenarios and five entry points to increase the effectiveness of the EU CSDDD are presented. It is concluded that the effectiveness of the EU CSDDD will very much depend on whether power will be effectively transferred to workers and civil society in the Global South. Strengthening international civil society networks will be crucial for that. However, it remains to be seen whether the EU CSDDD represents a first step towards much more far-reaching international standards leading to more fundamental progressive changes in the global economy.
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Human rights, power resources, political economy, European Union, binding social and environmental standards
The paper outlines the current status of workers’ rights in international law, presents the steps taken in recent years to enforce these rights on a global level, and discusses the general challenges to their enforcement in light of new geopolitical tensions, explaining these challenges as a consequence of capitalist competition. The central thesis is that the competitive principle of capitalism has an inherent tendency to transcend borders while mobilising social forces on a national scale. Under certain conditions, such national mobilisation leads to aggressive hyper-nationalism. At the present juncture, progress towards better enforcement of workers’ rights seems to be countered by heightened distributional conflicts in the capitalist heartlands and their peripheries.
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labour standards, enforcement mechanisms, uneven development, geopolitical conflicts, friendshoring
This article examines the impact of the United States-MexicoCanada Agreement’s (USMCA’s) labour provisions, specifically the Rapid Response Labor Mechanism (RRLM), on union dynamics within Mexico’s automotive sector. Through an analysis of two case studies —the General Motors plant and auto parts manufacturer Draxton, both located in Central Mexico— we explore how the RRLM functions in the context of local power structures, global economic pressures, and the asymmetrical trade relationship between the United States and Mexico. While the RRLM has facilitated advancements, such as the establishment of an independent union at GM and subsequent improvements in working conditions, its limitations are evident in cases such as Draxton, where corporate resistance and weak institutional frameworks undermined efforts to achieve substantive reform. Using a multiscalar theoretical framework, we highlight the intersection of global governance mechanisms with local labour realities, revealing tensions between democratising union practices and the structural pressures to maintain economic competitiveness. The findings emphasise that, although the RRLM enhances the visibility of labour violations, its transformative potential is constrained by structural inequalities and localised resistance. We argue that sustainable labour reform in Mexico’s automotive industry requires bridging global frameworks with robust local strategies to strengthen workers’ capacities to challenge entrenched power asymmetries.
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Mexico, USMCA, Labour Rights, Automotive Industry, Union Representation, Multiscalar Governance
The adoption of the “Corporate Sustainability Due Diligence Directive (CSDDD)” by the European Parliament in 2024 opens up new possibilities to address human and labour rights abuses along supply chains. This article looks at the implications for the palm oil supply chain, an industry that is notorious for exploitation, land conflicts and environmental destruction. Can supply chain legislation be used to strengthen an emerging Transnational Union Network (TUN) in this sector? The article argues that in order to avoid managerial unionism that speaks on behalf of workers in the Global South, transnational information exchange is necessary to develop strategic interventions that support rather than replace grassroots struggles. Trade unions need to unlearn an NGO-type practice that focuses on a few ‘bad apples’ and instead tackle industry-wide structures of exploitation. By politicising issues such as poverty wages, gender discrimination and water pollution, the labour movement can create a new solidarity narrative of social-ecological transformation and transnationalise its strategic capacity.
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EU Due Diligence Directive, Lieferkettensorgfaltspflichtgesetz, labour movement, social-ecological transformation, palm oil, Transnational Union Network
When EU-based corporations share responsibility for violations of human rights occurring in their international supply and value chains, it raises the following question: to what degree can the victims hold them legally responsible? This article examines relevant legal hurdles for injured parties from the countries of the Global South, according to the current state of the laws, and analyses the degree to which the CSDDD, the European Union’s supply chain directive, rectifies these hurdles. Consequently, the new regulations for liability are only partly able to overcome these legal hurdles. The strength of CSDDD rests mainly in its preventive impact rather than its remedial one. Stricter regulation by EU member states, however, is possible but only time will tell if or when those actions are implemented.
Bell, Teresa/Fitzka, David (2024): Die Europäische Lieferkettenrichtlinie (CSDDD). In: Recht der Wirtschaft RdW 6, 374-377.
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Bruckner, Sarah/Kaufmann, Marieta (2020): Zeit für ein verbindliches UN-Abkommen zu Wirtschaft und Menschenrechten. Rechtsfragen und Lösungsansätze am Beispiel des Minendesasters von Mariana (Brasilien). In: Juridikum (1), 35-44. https://doi.org/10.33196/juridikum202001003401
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Jung, Peter/Schroeter, Ulrich G. (eds., 2023): Unternehmerische Verantwortung in Lieferketten. Baden-Baden: Nomos Verlagsgesellschaft. https://doi.org/10.5771/9783748914693
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Rühl, Giesela (2023): Regulierung unternehmerischer Verantwortung in globalen Lieferketten: Ein rechtsvergleichender Überblick. In: Jung, Peter/Schroeter, Ulrich G. (eds.): Unternehmerische Verantwortung in Lieferketten. Baden-Baden: Nomos Verlagsgesellschaft, 9-41. https://doi.org/10.5771/9783748914693-9
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business and human rights, liability, CSDDD, due diligence, supply and value chains