International Labor Standards And International Trade

Document Type

Article

Publication Date

12-1-1997

Published In

Staff Studies For The World Economic Outlook

Abstract

This paper reviews the controversies regarding linkage of international trade and labor standards. Pressures for international harmonization of labor standards arise in the context of increased trade between countries with large disparities in wages, and also reflect the history of labor standards. A critical distinction is made between standards related to fundamental human rights and those related to employment conditions. The main conclusion is that trade sanctions to enforce labor standards should not be an option, but that international agreements on core labor standards, with voluntary compliance, may, apart from being worthwhile on ethical grounds, defuse calls for protection. [JEL: F13, J30]

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