Trade agreements significantly shape domestic labor policies by establishing standards that may influence wage levels, working conditions, and job security. Such agreements often include provisions regarding labor rights, which can compel nations to enhance protections for workers or even exploit lower standards to attract investment. This dynamic creates a complex interplay where global competition pressures local industries to optimize costs, sometimes at the expense of labor rights. Consequently, policymakers must balance international commitments with the need to protect their workforce, leading to heated debates about the adequacy of labor regulations in a globalized economy.