Purpose and evidence base

This briefing note synthesises evidence from the 2026 Asia-Pacific EBMO Survey on Labour, Trade and Responsible Business Conduct, alongside enterprise surveys and studies conducted through ILO development cooperation projects. It incorporates relevant ILO project evaluations and a review of regional engagement with enterprises and employer and business membership organisations (EBMOs). The note complements the International Organisation of Employers (IOE) 2026 guidance regarding social clauses in trade agreements by presenting regional evidence on how changing labour and responsible-business expectations are experienced in Asia and the Pacific, identifying practical support needs for the region.

The operating environment is changing

National labour law and effective labour administration remain the foundation for labour standards. However, these are increasingly complemented by voluntary frameworks, enterprise commitments, and trade-related requirements. As of February 2023, 113 regional trade agreements containing labour provisions covered more than 140 economies, with over half concluded during the preceding decade. These agreements operate alongside national approaches, creating additional commercial and operational considerations for internationally connected enterprises. The primary challenge for businesses is implementation: translating overlapping requirements into workable management and supply chain systems.

Bilateral trade agreements and conditional market access

Labour provisions in European Union (EU) trade agreements have evolved from promotional commitments to enforceable state-to-state commitments. Agreements with Singapore and Viet Nam contain dedicated chapters on internationally recognised labour rights, while negotiations for the EU-Indonesia Comprehensive Economic Partnership Agreement, finalised in September 2025, contain enforceable commitments on labour and climate matters. Under the EU Generalised Scheme of Preferences Plus (GSP+) system, beneficiary governments must report on 27 international conventions. EBMOs can use these mechanisms to consolidate enterprise experience and help members distinguish government commitments from operational requirements.

Domestic trade enforcement and import controls

The United States increasingly uses domestic legislation, such as Section 307 of the Tariff Act of 1930 and the Uyghur Forced Labor Prevention Act, to address forced-labour risks. In practice, this requires importers to provide detailed supply-chain evidence and traceability documentation. In March 2026, the Office of the United States Trade Representative (USTR) initiated 60 investigations under Section 301 regarding trading partners’ enforcement of forced-labour prohibitions. By July 2026, the USTR announced final actions involving tariffs of 10 or 12.5 per cent across these 60 partners. Additionally, the EU Forced Labour Regulation, prohibiting products made with forced labour from the EU market, will apply from 14 December 2027.

Regional agreements: enforcement and cooperation

Regional models vary in their approach. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) requires parties to maintain internationally recognised labour rights, subject to dispute-settlement mechanisms. Conversely, the Indo-Pacific Economic Framework for Prosperity (IPEF) treats labour rights as a component of supply chain resilience, focusing on cooperation, technical assistance, and institutional dialogue through its Labour Rights Advisory Board. These differing models require EBMOs to build capacity to understand policy developments and help members identify practical implications.

Trade-related requirements interact with wider business regulation

In Japan, the 2022 Guidelines on Respecting Human Rights in Responsible Supply Chains encourage enterprises to undertake human rights due diligence (HRDD). Similarly, the Republic of Korea’s 2023–2027 national action plan addresses business and human rights. OECD accession processes in Indonesia and Thailand further reinforce this trend, as labour standards become part of a wider governance system influencing competitiveness and investment.

What this means for enterprises
Evidence points to a consistent pattern where national obligations and commercial expectations interact. A survey of 36 electronics manufacturers in Viet Nam found that customer expectations drive improvements beyond national law, though enterprises face challenges in traceability and labour-risk assessment. Research in Pakistan indicated contradictory pressures: buyers expect higher compliance and traceability while simultaneously requesting price reductions despite rising costs. Smaller enterprises (SMEs) face particular difficulty interpreting changing requirements and accessing specialist expertise.

The role of EBMOs

EBMOs have a strategic role in combining policy intelligence with practical services. They can translate complex requirements into diagnostics, templates, and peer learning. The EBMO value proposition includes policy intelligence, practical enterprise services, sector coordination, and evidence-based representation. This involves monitoring developments across multiple ministries, including trade, investment, and finance, and ensuring business experience informs policy design.

Building the capabilities EBMOs will need

The 2026 Asia-Pacific EBMO Survey reveals that 96 per cent of respondents say these issues matter to their members, and 81 per cent report rising business pressure. However, 53 per cent identified funding as a barrier and 47 per cent cited staff capacity constraints. To meet demand, EBMOs need to develop technical depth across labour standards and supply chain management, adaptable service designs, and sustainable financing models that combine membership value with fee-based services.

Conclusion

While national laws remain the foundation, trade agreements and voluntary frameworks increasingly shape enterprise decisions. EBMOs must combine policy intelligence with practical support to help members navigate these changes. National apex and sectoral EBMOs have complementary roles in translating international expectations into workable industry solutions.