Labor Provisions in Bilateral Investment Treaties: Global Practices, Normative Conflicts, and the U.S. 2012 Model Bit

Kaiwen Li

doi:10.5281/zenodo.15534630

Authors

Kaiwen Li University of Glasgow, Glasgow, UK Author

DOI:

https://doi.org/10.5281/zenodo.15534630

Keywords:

labor provisions, BITs, arbitrability, public interest, U.S. Model BIT

Abstract

This article systematically examines the integration of labor provisions into bilateral investment treaties (BITs), analyzing their historical evolution, normative conflicts, and legislative models. Focusing on the 2012 U.S. Model BIT as a paradigm shift, it argues that labor clauses symbolize the "socialization" of international investment law but risk exacerbating North-South inequities. Drawing on 150 BITs (2000–2020) and 20 arbitration cases, the study reveals that 78% of labor-related disputes involve developing countries, underscoring systemic power imbalances. The 2012 U.S. Model BIT's exclusion of labor disputes from arbitration, while innovative, may inadvertently act as a disguised trade barrier by limiting developing countries' ability to challenge restrictive labor measures that effectively disadvantage them in international trade. The findings advocate for flexible models that balance sovereignty, investor rights, and labor welfare.

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