The US has urged the World Trade Organisation (WTO) ministerial conference in Seattle to initiate a work programme to address issues related to labour standards.
A recent US communique on the subject has said, "We are at the forefront in attempting to forge an international understanding on the relationship between foreign trade and labour standards. We believe that as we negotiate to expand our trade opportunities, we also must ensure that workers in all countries are among the beneficiaries of international trade."
While the US is taking a tough stand on the issue, the European Union (EU) is taking a passive stand and is pressing for "more progress within the International Labour Organisation (ILO) on the observance of core labour standards, especially regarding the implementation of the ILO declaration of fundamental principles and rights at work." It has also reiterated that enhanced co-operation between the WTO and ILO secretariats -- which respects the distinctive rules and competence of each institution -- should also be pursued in line with the Singapore ministerial declaration.
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The community is already operating an incentive scheme whereby the developing countries that are eligible for generalised system of preferences (GSP) can obtain extra benefits if they demonstrate that they meet the core conventions on labour.
The US, however, wishes to ensure that the ILO works closely with the WTO to ensure "banning forced labour and exploitative child labour, guaranteeing the freedom to associate and bargain collectively and eliminating discrimination in the workplace".
Experts are of the view that attempts to include trade and labour in the agenda for new negotiations in a proposed round could lead to the failure to launch a new round. "This is a likely reason why the EU is not pushing strongly for this since it does not want to see a situation where countries fail to agree on the launch of a new round," explained officials in India.
In fact, strong resistance from developing countries during the Singapore ministerial meet had ensured just a mention of the subject in the declaration, a situation the US was not happy with.