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.