USCIB LETTER TO THE U.S. CONGRESS ON TRADE AND LABOR
September 21, 1999
Dear Congressperson:
I am writing to share the views of the members of the U.S. Council for International Business (USCIB) regarding an issue of great importance to all Americans—the improvement of workers’ rights in the global economy. As it has done in the past, our government may raise this issue at the World Trade Organization (WTO) Ministerial Meeting in Seattle November 29 through December 3. We believe that it is counterproductive to pursue discussion of this issue in the WTO. Instead we believe the United States and other WTO member governments should acknowledge the recent accomplishments of the International Labor Organization (ILO) and commit WTO members to the full, rapid and good faith implementation of the ILO Declaration of Fundamental Principles and Rights at Work to observe fundamental labor policies.
The USCIB advances the global interests of American business both at home and abroad. It is the American affiliate of the International Chamber of Commerce (ICC), the Business and Industry Advisory Committee (BIAC) to the OECD, and the International Organization of Employers (IOE). As such, it officially represents U.S. business positions both in the main intergovernmental bodies and vis-a-vis foreign business communities and their governments.
As the U.S. member of the IOE, the USCIB recognizes the importance of improved workers’ rights in the global economy and shares the legitimate concern that countries be held accountable should they allow abusive labor practices. To that end, the USCIB has worked for the past several years to strengthen the capacity of the ILO to address effectively violations of fundamental workers’ rights. The ILO’s tripartite structure, where governments, business, and labor are equally represented, as well as its expertise in labor standards, makes it the most appropriate forum to deal with these matters.
In June 1998, after eighteen months of difficult negotiations, the ILO’s annual conference adopted the Declaration of Fundamental Principles and Rights at Work and its follow-up. The ILO Declaration, if implemented properly, can be an effective alternative to using trade measures to enforce labor standards. It represents, for the first time, a political commitment by the 174 ILO member states to observe certain fundamental labor policies and rights. The follow-up consists of publicity, “sunshine,” peer pressure, and targeted technical assistance, which will publicly identify countries with serious labor problems and help resolve them. The enclosed brochure provides further information on the Declaration.
This year’s ILO conference witnessed another major milestone, the unanimous adoption of a Convention on the Worst Forms of Child Labor. This international treaty will commit ratifying countries to eliminate immediately the most egregious forms of child labor, such as prostitution, slavery, and extremely hazardous forms of work. Governments represented at the Conference declared that they would undertake speedy ratification. The USCIB supports prompt U.S. and universal ratification. A thorough tripartite review of U.S. law and practice has confirmed that U.S. ratification will not entail any changes to any state or federal labor statutes or their enforcement.
I highlight these developments in the ILO as examples of successful multilateral attempts to address pressing global needs. The ILO’s International Program for the Elimination of Child Labor has demonstrated that well-executed technical assistance programs can have a profound impact in removing children from work without harm to the children or their families.
As I noted above, the USCIB is concerned that tensions generated by debating workers’ rights at Seattle could well jeopardize important objectives in the new Round, such as further trade liberalization, as well as implementation of important existing agreements such as the discipline protecting intellectual property rights. In previous WTO Ministerial meetings in Marrakech and Singapore, U.S. attempts to initiate a WTO work on trade and labor linkages were overwhelmingly rebuffed by developing countries, which have continued to vociferously oppose any such work. In Singapore, the Ministers affirmed that ILO is the appropriate organization in which to deal with issues surrounding labor standards. Most recently, the August 17-18 G-15 Communique on the WTO Ministerial states that developing countries from Latin America, Asia and Africa “rejected any linkage between trade and core labor standards. They recalled that this issue had been finally settled in the Singapore Ministerial Declaration. They decided to resolutely oppose any renewed attempt to raise this issue in the WTO.” In short, there is no chance that developing country WTO members will agree to WTO work that could lead toward a revision of the basic WTO/GATT Agreement by introducing non-commercial issues, and making political choices about their labor regimes actionable under WTO rules.
The USCIB remains opposed to discussion of these issues in the WTO. There is no evidence to suggest that trade with countries with different standards for workers’ rights is contributing to unemployment or undermining higher standards in countries where they exist. Workers’ rights are fundamentally a domestic social policy issue, unlike trade-related subjects such as intellectual property, services and investment, which are part of the commerce between nations. Few countries are prepared to change their labor policies to conform to the standards of their trading partners. We see no role for the WTO and no purpose in analyzing this issue in the WTO, which is a trade rule-making body, and we oppose any attempt to amend WTO rules to permit the use of trade measures as sanctions against violations of workers’ rights by other countries. The enclosed set of points and a copy of testimony delivered to the Senate Finance Committee by my predecessor, Ambassador Abraham Katz, provide details of our views.
The USCIB appreciates the opportunity to present these views. My staff and I would be pleased to provide further comment and to answer questions about this issue.
Sincerely,
Thomas M.T. Niles
Enclosure:
USCIB Brochure on the ILO Declaration of Principles
USCIB Points on Trade and Workers’ Rights
Abraham Katz Testimony before the Senate Finance Committee
