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Books > Business & Economics > Economics > Labour economics
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Reconciling International Trade and Labor Protection - Why We Need to Bridge the Gap between ILO Standards and WTO Rules (Hardcover)
Loot Price: R2,674
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Reconciling International Trade and Labor Protection - Why We Need to Bridge the Gap between ILO Standards and WTO Rules (Hardcover)
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Over the last two decades or so, a number of developing countries
have become important suppliers of manufactured goods. A good deal
of these goods are produced under extremely poor working
conditions, incompatible with the fundamental rights and freedoms.
However, WTO rules do not allow restrictions on imports of such
goods, and the ILO hardly ever sanctions violations of
international labor standards. On the one hand, this leaves
exporting countries free to compromise on labor protection in order
to enhance their competitiveness on foreign markets. On the other
hand, importing countries are obliged to keep their markets open
for goods produced under substandard labor conditions. This gives
rise to the question of whether the rules of the multilateral
trading system should be linked to international labor standards.
This study argues that there are two trade-related reasons for
establishing such a link. The first one is commonly referred to as
social dumping. GATT rules enshrine the principles that should
govern international trade: fairness and responsibility. These
principles should also apply where trade meets labor protection.
Exporting goods made under substandard labor conditions is unfair
and distorts trade. It would therefore be consistent to make social
dumping actionable. The other reason concerns the responsibility of
importing countries. Increased imports of goods produced under
substandard labor conditions are an incentive for the exporting
country to produce more goods under the same labor conditions, and
ship them to the same importing country. This results in a
proliferation of violations of labor standards, for which the
importing country shares the responsibility. There is a need to
adopt a link between trade and labor standards enabling the
importing country to cap imports in order to escape the blame.
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