Labour Standards and WTO : a New Form of Protectionism

Abstract

The paper attempts to explore the implications of introducing a non-trade issue like labour standards into the trade agenda. It argues that the moral or humanitarian arguments are quickly picked up by labour and trade lobbies because it is a convenient manner of camouflaging the 'real' or 'core' motivation, which the paper asserts is a new form of protectionism. Studies have suggested that withdrawing the children from the work force may in fact disadvantage them. Moreover, child labour is only one aspect of labour standards and conveniently, issues such as collective bargaining appear to be ignored when talking about labour standards.

This paper suggests that competition against imports from low wage economies is the prime motivation behind raising the issue of labour standards (i.e., child labour) and insisting on its inclusion in the trade agenda. There will be increasing pressure not only at WTO Sessions but also through domestic legislation as is evidenced in the case of the US and the EU. Developing country delegations need therefore to be well prepared when the stage is set for Seattle Part II.