International trade agreements influence domestic labor policies by establishing standards that shape workplace regulations and employment practices. Agreements may include provisions for labor rights, minimum wage standards, and worker protections, encouraging a race toward improving labor conditions in member countries. Conversely, trade agreements can sometimes lead to job displacement in certain industries due to increased competition, prompting governments to adjust their domestic labor policies to mitigate adverse effects on workers. Overall, these agreements have significant implications for how labor is regulated and protected domestically.