Social clause
Social clause: short for the question of whether trade penalties in the form of WTO measures should be able to be applied to member countries found in breach of internationally agreed labour practices. The aim of a social clause would be to improve labour conditions in exporting countries by permitting sanctions against exporters who fail to observe certain minimum labour standards formulated by the International Labour Organization (ILO). There is no agreement yet on its feasibility or desirability, though similar measures have been discussed for well over a century in other forums. It was discussed in December 1996 at the WTO Singapore Ministerial Conference where ministers agreed that labour standards were a matter for the ILO. It is worth recalling, though, that the 1954 international sugar and tin agreements contained, for example, a "fair labour standards" clause which sought to ensure that labour engaged in the production of the commodity concerned would enjoy fair remuneration, social security benefits and other satisfactory conditions. The 1976 World Employment Conference held that the competitiveness of imports from developing countries should not be achieved at the expense of fair labour standards. Four years later, the first Brandt Report also recommended that fair labour standards should be internationally agreed to facilitate trade liberalization. The International Coffee Agreement of 2001 contains a clause promoting improved standards of living for populations engaged in the coffee sector. See also child labour, Convention Concerning the Prohibition and Immediate Action for the Elimination of the Worst Forms of Child Labour, international commodity agreements, trade and labour standards and workers rights.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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