The European Union (EU) has pursued reforms to strengthen the effectiveness of Trade and Sustainable Development (TSD) chapters in its free trade agreements (FTAs) since 2017. The labor dispute with Korea under the EU–Korea FTA served as a test case for this objective. The Panel of Experts held that Korea violated its obligations regarding freedom of association while satisfied with the obligation to ratify ILO core conventions. This article appraises the dispute’s outcome to assess the extent of the EU’s success in advancing labor rights through trade instruments and the implications for its ongoing TSD reform. It argues that the case reflects the EU’s strategic use of TSD provisions to promote labor standards and recalibrate its enforcement approach. However, given the evolving direction of TSD reforms and the design of recent FTAs, the recurrence of a similar labor-related dispute appears unlikely in the near future.

I. Introduction
II. The EU–Korea Labor Dispute: Legal Review
    A. Jurisdiction of the Panel
    B. First Complaint: The Obligation to Respect, Promote andRealize the Principle of Freedom of Association
    C. Second Complaint: The Obligation to Ratify the ILOConventions
    D. Critical Assessments of the Outcomes
III. Implications of the EU–Korea Labor DisputeCase’s Outcome
    A. Implications for the EU’s Reform Process
    B. Prospects for Future Recourse under the TSD Chapter
IV. Conclusion

• Thi Trang Ngo(Lecturer of International Law at the Diplomatic Academy of Vietnam)