19 June, 2009
Too often governments prioritise the interests of TNCs over the interests of workers, which is particularly apparent when it comes to questions of trade. Not surprisingly the current world trading system continues to demonstrate its inability to tackle the issue of sustainable development and address the needs of workers worldwide. Trade unions energetically oppose the current proposals for further liberalisation of trade in manufactured goods, because these would undermine prospects for progress in many developing economies and weaken labour relative to multinational capital in developing and developed economies. While multilateralism is in crisis, there is a proliferation of bilateral and regional trade agreements that, in most cases, have been negotiated without any trade union consultation and input.
Unfair trade practices and the resistance of governments to incorporating core labour standards in an enforceable manner in trade and investment agreements are intensifying current strains in the multilateral system. Trade can be an engine for economic and social development, but for this to happen current policies and practices must be fundamentally changed. Violations of core labour standards are not only an affront to human rights, but also an economic distortion. They are no different than the distortions caused by unfair subsidies or violations of intellectual property rights, which are subject to WTO sanctions.
China's growing participation in international trade has increased competitive pressures on workers in both developed and developing countries, and breaches of core labour standards. In particular, the development impact of China's involvement in Africa and Latin America, driven by a need to access energy and mineral resources to feed its rapid industrialisation, has become a major source of concern, as has its currency policy.