Law, labour, and legitimacy: The complexion of WTO

Abstract

The WTO as an institution was set up ‘to help trade flow as freely as possible,’ thus ensuring smooth passage towards economic globalization but, unfortunately, this has not been the case. The provisions and instrumentality of WTO have been used to scuttle the independence of developing nation-states and disempowering them economically. The fissure between the developed and the developing nations has been broadened due to the vexing issue of labour standardization that has created a major hurdle in defining and describing the ambit and access of WTO. This issue has haunted the WTO since its inception in Marrakash way back in 1994, and has been identified as the major rallying point for the developing countries from Seattle to Cancun. One of the main issues that has emerged in this conflict is the linkage between labour standards and trade. This issue has a bearing on the structural and legal foundations of the very organization (WTO). This article seeks to examine the arguments given by both sides of the debate. India for its part has played a crucial role in this global standoff by being one of the main leaders of the developing nations. Given its transitional economic status, labour standards do present it with a ‘Catch-22’ situation. One must not commit the error of considering its reasons for opposing the linkage between trade and labour standards as being the same as all other developing nations since a number of factors has resulted in India adopting this course. Certain emerging factors like the fear of Chinese goods flooding the markets and the EU and American unilateral enforcement might force India to possibly rethink its posture. To conclude, it can be stated that in this era of American unilateralism, global institutions like the WTO are faced with the risk of extinction. The tendency to promote homogenization of trade through the hegemony of WTO smacks of arrogance and unilaterism that is simply unacceptable in a plural world setting. Both sides to the conflict must necessarily make some concessions with regard to labour standards in order to prevent this from taking place. To sum up, the major issues discussed in the paper are as follows: ➢ The provisos and instrumentality of WTO have been consistently used to scuttle the independence of developing nation-states and disempowering them economically. As a result, the chasm between the developed and the developing nations is becoming wider and wider. ➢ India for its part has played a crucial role in this global standoff by being one of the main leaders of the developing nations. But, it alone can do very little to alter the hegemony and, hence, it has to form a block with nation-states placed in similar positions a la Brazil. ➢ The issue of labour standards needs to be addressed both at the level of ILO and WTO so that the member countries can arrive at a broad consensus. ➢ Efforts should be directed at addressing the ethical, environmental, and social issues along the core economic concerns in order to create a sustainable, equal world system.