Although it is not widely recognized, the effort to link labor rights to trade agreements has already gone well beyond the drawing board.
Although the issue has not gotten as
much attention as tax cuts and Social Security reform, the 2000
elections present voters with a sharp contrast on the future
of international trade agreements. Vice President Al Gore favors
addressing labor rights and the environment in trade agreements;
Texas Gov. George W. Bush calls such measures a needless bow
to protectionists. But there is far more to this issue than
campaign rhetoric would suggest. Rather than being a barrier
to free trade, the full integration of labor rights and the
environment into trade agreements may not only provide an avenue
to advance those issues around the globe, but also may be critical
to forging a domestic consensus in favor of future trade pacts.
There is fairly wide recognition that at least some environmental
issues need to be addressed in trade negotiations, especially
when international environmental agreements may conflict with
trade agreements. Labor rights, however, have been widely painted,
in discussions under the aegis of the World Trade Organization,
as a "deal breaker" that cannot be addressed in trade agreements.
This is actually an old debate. Since the creation of the world
trading system after World War II, the appropriate link between
labor standards and international trade has been debated. Many
developed countries, including the United States and the nations
of Western Europe, historically favored some linkage. Developing
countries stridently opposed it, contending that it was nothing
more than an attempt by developed countries to deny them their
rightful economic advantages. The issue still has resonance.
One of the reasons the World Trade Organization meeting broke
down in Seattle last year was that developing countries violently
opposed even the establishment of a working group to consider
the relationship between trade and labor rights.
Many opponents blasted the Clinton administration for considering
linkage. In their view, the effort was tantamount to imposing
a global minimum wage or converting the WTO into a worldwide
OSHA. In fact, the Clinton administration's objectives were
more modest. The U.S. effort in trade negotiations, with some
support from the European Union, has focused on core labor rights,
including prohibitions against slave and child labor and the
right to organize unions. The International Labor Organization
(ILO) has long recognized these basic rights, and most countries
at least claim to support them. Thus, this is not an example
of the United States trying to impose American values, but an
attempt to support universally recognized objectives.
Although it is not widely recognized, the effort to link labor
rights to trade agreements has already gone well beyond the
drawing board. During its tenure, the Clinton administration
has negotiated two trade agreements with significant labor-rights
provisions and may be on the verge of striking a third. The
North American Free Trade Agreement was actually negotiated
by the Bush administration, but upon taking office. President
Bill Clinton called for the negotiation of side agreements on
labor and the environment. The record of these agreements is
mixed, and critics have rightly pointed out that they have not
done enough to raise environmental standards and labor protections
in Mexico. That said, they have at least provided a forum for
continuing discussions of these issues and spotlighted particular
abuses.
In a more ambitious achievement, the United States recently
struck a textile trade pact with Cambodia that conditioned expanded
access to the U.S. market upon Cambodian observance of basic
labor rights. To facilitate this agreement, the ILO agreed to
monitor Cambodia's progress and report the results to U.S. officials.
It is too early to evaluate this agreement, but it includes
several features that could be a model for future agreements,
including the role of the ILO as a neutral reporter on labor
rights.
In this vein, the Clinton administration is seeking to strike
free-trade agreements with Jordan, which is said to include
significant labor-rights provisions. There appear to be an excellent
chance that negotiations could be concluded this fall, setting
up a potentially heated trade debate when the agreement comes
up for congressional approval.
These. initial, tentative steps to integrate labor rights into
trade negotiations have considerable potential. If large markets
like the United States begin to link the trade benefits they
grant to observance of basic labor rights, the working conditions
of many in developing countries could be improved. This could
likely be done without any significant disruption of commerce.
Enforcing a global prohibition against child labor, for example,
is likely to prove no greater burden upon the world trading
system than a similar ban the United States places on interstate
commerce.
Just as important, the inclusion of basic labor rights in trade
negotiations could go a long way toward reestablishing the political
consensus that has allowed the United States to pursue freer
global trade. Since World War II, the United States has led
the global effort for free trade. As last year's street demonstrations
in Seattle demonstrated, that consensus has largely disappeared.
If the United States is to again play a leadership role in expanding
trade and reaping the benefits that can flow from it, a new
consensus that explicitly recognizes the appropriate roles of
labor rights and environmental protections in trade negotiations
must be forged.
It is unrealistic to expect trade agreements to address all
labor problems around the world. Some differences are the result
of differing levels of development, and tying trade too closely
to labor rights might make it impossible to reach new trade
agreements. Linking observance of basic labor rights, however,
to access to major markets is an achievable and valuable goal.
Linking observance of such rights to international trade agreements
may also improve working conditions around the world and nurture
a political consensus on new trade agreements in the developed
world, a true win-win proposition.
Copyright 2000, Los Angeles Times
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