Social clauses link to trade:
protectionism in new guise


PROTECTIONISM HAS ONCE AGAIN reared its ugly head in various international forums in the guise of social clauses that would be inserted into International Trade Agreements with the effect of restricting exports of developing countries that cannot match the rigid standards of these social clauses.

The ASEAN countries have responded accordingly and consolidated their opposition in all international forums to any linkage between international labor standards and trade.

At the Second Informal ASEAN Labour Ministers' Meeting (ALMM) held in Hanoi earlier this year, Thailand reported that it had reiterated the ASEAN stand on this issue during the 267th and 268th Session of the International Labour Organization Governing Body.

In the same ILO forum, Thailand also reaffirmed ASEAN's commitment to improving the economic and social well-being of workers and the promotion of respect for labour standards. At the same time, Thailand stressed ASEAN's view that moral suasion and technical cooperation were more effective in getting countries to adhere to these standards than trade sanctions.

Earlier, at the 11th ASEAN Labour Ministers' Meeting held in Bangkok last year, the Ministers had resolved to continue to oppose any such linkage in all international forums. They stressed that such a linkage would seriously undermine the economic growth of developing countries. The issue of international labour standards, the said, should be discussed in the International Labour Organization, the competent body to deal with the issue, and not in trade forums.

They also pointed out that many of the ILO Conventions which ere formulated decades ago have become outdated and do not reflect the actual social and economic conditions of ILO Member States. They therefore urged the ILO to review the international labour conventions including the so-called fundamental workers' rights Conventions.

On the proposal to link labour standards to trade during the World Trade Organisation Ministerial Conference in December 1996, Singapore told the Second Informal ALMM that a consensus had been reached which stipulated that the comparative advantage of countries, particularly low-wage developing countries, must not be called to question and that the use of labour standards for protectionist purposes should be rejected.

Singapore also reported that in recognition of ILO as the competent body to set labour standards, it was agreed that the WTO would not undertake further work on linking labour standards with trade.