The Pakistan Accord: Textual Changes between the 2023 and the 2026 Agreements

The brand and labor negotiators who worked on the renewal of the Pakistan Accord agreed to renew it without any changes to the program or the obligations of the signatories. The text of the new agreement is, therefore, almost identical to the text of the original. The following is a summary of the only changes between the original text and the renewal text:

• The term of the new Pakistan agreement is shorter than the original: it is for one year. It then renews automatically for three more years, with signatories having the right to opt out at the time of renewal. The purpose of the one-year term is to align the Pakistan agreement with the renewal cycle of its parent agreement, known as the International Accord for Health and Safety in the Textile and Garment Industry. The text has language changes to reflect the above.
• The dispute resolution process for the various Accord agreements is binding arbitration. The renewed Pakistan agreement retains this mechanism, while incorporating a different set of internationally recognized rules for the arbitration process. The purpose of the change is to streamline arbitration. No university licensee has ever been involved in an Accord arbitration, and it is very unlikely that this will occur. There has only been one arbitration case in the Accord’s 12-year history.
• Under the renewed agreement, the fee for brand signatories increases by 10%, to reflect cost increases since the original agreement was signed. Most university licensees pay the minimum fee, which is now $2,750 annually. Any small licensee that considers this modest fee too burdensome can ask the Accord for a lower fee.

Here is a slide presentation, prepared by the Accord for signatories, that enumerates these modifications to the text and provides other relevant information.