Trade and Labor Standards

Abstract

There is a wide disparity of views on issues of international labor standards. The purpose of this paper is to explore these different views and the available options for addressing the issues involved. We conclude that there is no convincing case for incorporating labor standards into the WTO and into U.S. trade agreements. The surest way to improve labor standards is instead for the United States and other industrialized countries to maintain open markets and to encourage the growth of their developing country trading partners. Steps should also be taken to support the activities of the International Labour Organization to provide inducements and technical assistance to help developing countries raise their labor standards.

JEL Classification: F10, F14, J21