Supply chains are being reshaped by digital and green transitions and geopolitical shifts. This evolving landscape necessitates rethinking the trade-labour relationship to improve labour standards and foster inclusivity. This white paper, part of the Trade and Labour programme jointly run by the World Economic Forum and the Thinking Ahead on Societal Change (TASC) Platform at Geneva Graduate Institute and funded by the Laudes Foundation, combines extensive desk research and over 50 stakeholder interviews, to examine the trade-labour nexus. It highlights progress and ongoing challenges and emphasizes the critical role of policy tools like multilateral instruments, regional trade agreements and corporate due diligence frameworks in enhancing labour outcomes. As globalization continues to influence job creation and working conditions, this paper stresses the need for fair benefit distribution and social justice. It calls for stronger collaboration between trade and labour communities to harness trade’s potential in creating better labour outcomes amid a rapidly changing global landscape.