Labor Standards

Abstract

The WTO is virtually silent on labor issues. The single exceptionis article XX (e) of the GATT which permits but does not requirecountries to exclude goods made by prison labor.1 Should this silencebe broken? In recent years there has been increasing pressure toextend WTO obligations to include minimum labor standards in someform. The idea is extremely controversial, with fault lines betweenNorth and South, between business and labor, and between advocatesof free trade and groups with humanitarian and human rights interests.2This chapter attempts to sort out the issues and analyze the meritsof including labor standards in the WTO. To accomplish this PartII provides a brief description of the evolution of the issue andthe types of labor standards that might be included. Part III presentsfive arguments for inclusion. Part IV explores the economics of laborstandards should they find their way into the WTO, and Part V elaborateson certain practical difficulties. Part VI draws conclusions. Toanticipate, I find the case for inclusion of labor standards in theWTO to be dubious, and suggest that other avenues for labor protectionwould be more productive.