What are the issues facing the WTO today?

Question

What are the issues facing the WTO today?

Answer 1

The question of whether or not the WTO should establish a multilateral agreement on labor standards is one of the most controversial issues facing the WTO today. Labor organizations all over the world argue that WTO rules permit the exploitation of labor, the degradation of the environment, and the undermining of national regulations designed to protect the health and safety of citizens.

Within the WTO, the debate revolves around questions of whether the WTO is the appropriate institution for enforcing labor standards, and what impact such standards would have on the comparative advantage of countries that depend on labor-intensive industries. The 1996 Ministerial Declaration stated that the WTO would work with the International Labor Organization (ILO) to establish and enforce core labor standards to be applied to WTO member nations. But beyond that, the WTO has left labor off the negotiating agenda altogether, arguing the labor standards go beyond its scope.

ILO Core Standards

The ILO was the first to establish a set of four labor standards that are applicable universally. Freedom from forced labor and freedom from discrimination are enforced on a global level, however, freedom of association and collective bargaining, and prevention of child labor are far more controversial. Developing countries argue that some forms of child labor are essential to the survival of extremely poor families that rely on the income generated by every family member. These countries fear that permitting the creation of unions will cause multinational companies who are interested in investing in countries with low labor costs and low labor activism to disinvest.  Economists are still debating what the net effect of legalizing unions and outlawing child labor will have on the growth of these countries.   While most of the 177 ILO member countries enforce these core standards, many of the developing countries are wary of making a legal commitment to upholding labor standards through the WTO.

Enforcing Labor Standards in the WTO

The US, the EU, and Canada contend that the only way to ensure that countries uphold labor standards is with the threat of economic sanctions by the WTO.  They also believe that incorporating labor issues into the WTO broadens support for and reduce criticism of the WTO.  Yet there is currently no framework for enforcing labor standards in the WTO: the GATT does not mention violation of core labor rights as a basis upon which countries may raise barriers to trade against an offending country. However, some countries have cited Article XX of the GATT in defense of sanctions, arguing that unsatisfactory labor standards threaten "public morals" and "human life and health." They have also cited Article XXIII on dumping, asserting that inferior labor standards constitute "social dumping."

Answer 2

WTO will have to respect the sustainable development.