India, Indonesia caution against trade-labor link<\/p>\n
NEW DELHI (AFP): Indian Prime Minister P.V. Narasimha Rao and
\nIndonesian President Soeharto yesterday cautioned against western
\nattempts to link international trade with labor standards in the
\nchanging global economy.<\/p>\n
They spelled out their stand on the first day of a conference
\non labor in the Indian capital where a message by Soeharto was
\nread out to delegates from nearly 80 developing countries.<\/p>\n
The \"social clause\" proposed by the United States and other
\nwestern countries to the multilateral trade agreement to govern
\nlabor standards is expected to dominate the five-day meeting
\nstaged by the Non-Aligned Movement.<\/p>\n
Such a clause could provide for the restriction or prohibition
\nof imports from countries or industries, which do not adhere to
\nstipulated labor standards, hurting the exports of developing
\nnations.<\/p>\n
\"Upgrading labor standards is an ongoing process in many
\ndeveloping countries,\" Rao said in his opening speech to
\ndelegates. \"But it is a different matter when trade policy is
\nlinked to labor standards.\"<\/p>\n
Trade policy should not be made an instrument to dictate
\nlabor standards, the 73-year-old Indian premier said.<\/p>\n
He said the issue should be governed by the code set out by
\nthe International Labor Organization rather than the multilateral
\ntrade agreement, and called for \"non-coercive compliance to
\nlabor standards.\"<\/p>\n
Soeharto<\/p>\n
Soeharto, chairman of the Non-Aligned Movement, said in the
\nmessage read out by Indonesian Minister for Manpower Abdul Latief
\nthat a trade-labor linkage could \"directly or indirectly reduce
\nthe export of developing countries.\"<\/p>\n
He urged developing nations to forge a common stand and to
\nstrive to improve the life of their workers so the issue will not
\nbe used as a \"pretext in limiting our participation in world
\ntrade.\"<\/p>\n
Participants in the Uruguay Round of trade negotiations, which
\nled to the formation of the World Trade Organization, have left
\nthe issue of the \"social clause\" open.<\/p>\n
Advocates of the clause say it is needed for \"social progress\"
\nkeeping pace with economic progress and that industrial countries
\nwould otherwise be seen as collaborating in the exploitation of
\nworkers in developing countries.<\/p>\n
It is also designed to ensure a level playing field so
\ndeveloping countries do not gain an unfair trade advantage
\nthrough cheap labor, they say.<\/p>\n
Developing nations have argued that the advantage is tilted
\nheavily in favor of rich countries because of superior
\ntechnology, economies of scale and access to finance and
\nmarketing.<\/p>\n
The enforcement of the proposed social clause would only make
\nthird world producers more uncompetitive and reduce employment,
\nthey say.<\/p>\n
\"The waking up of the Asian giants would seem to be causing
\nuneasiness in the competitive world consequent on which new forms
\nof readjustment of economies are being advocated by the affluent
\npart of the world,\" said Indian Labor Minister P.A. Sangma.<\/p>\n
Heribert Maier, deputy director general of the International
\nLabor Organization, said both developed and developing nations
\nneeded to respect fundamental labor standards.<\/p>\n
\"No country should accept, or be seen, building its
\ncompetitive advantage on the basis of a less than fair treatment
\nof its workers,\" Maier said in his speech, calling for a
\nconsensus on the dispute.<\/p>\n
Delegates to the conference, which ends Monday, will also
\ndiscuss issues such as the world trade scenario, employment
\ntrends in developing countries, strategies for creating jobs and
\nthe impact of economic reforms on labor.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/india-indonesia-caution-against-trade-labor-link-1447893297",
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