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Pros and Cons of Linking Trade and Labor Standards

In: The Political Economy of Policy Reform: Essays in Honor of J. Michael Finger

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  • Drusilla K. Brown
  • Alan V. Deardorff
  • Robert M. Stern

Abstract

This paper addresses the debate over whether labor standards ought to be linked to trade policy, specifically by being included in the World Trade Organization and becoming subject to trade sanctions. We first try to put the debate into context by reviewing the issues and the events that have led to the current situation. We next turn to the arguments in favor of putting labor standards into the WTO, then address the arguments against doing so. Finally we offer our own advice to developing countries as to the position that they should take in this debate, and how more broadly they should deal with this and other issues in multilateral trade negotiations.
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Suggested Citation

  • Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2004. "Pros and Cons of Linking Trade and Labor Standards," Contributions to Economic Analysis, in: The Political Economy of Policy Reform: Essays in Honor of J. Michael Finger, pages 25-42, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:ceazzz:s0573-8555(04)70001-2
    DOI: 10.1016/S0573-8555(04)70001-2
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    References listed on IDEAS

    as
    1. Alan V. Deardorff & Robert M. Stern, 2002. "What You Should Know About Globalization and the World Trade Organization," Review of International Economics, Wiley Blackwell, vol. 10(3), pages 404-423, August.
    2. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "U.S. Trade and Other Policy Options and Programs to Deter Foreign Exploitation of Child Labor," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 18, pages 689-743, World Scientific Publishing Co. Pte. Ltd..
    3. Nuno Limão, 2018. "Trade policy, cross-border externalities and lobbies: do linked agreements enforce more cooperative outcomes?," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 9, pages 257-281, World Scientific Publishing Co. Pte. Ltd..
    4. Kyle Bagwell & Robert W. Staiger, 2001. "The WTO as a Mechanism for Securing Market Access Property Rights: Implications for Global Labor and Environmental Issues," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 69-88, Summer.
    5. Drusilla K. Brown, 2000. "International Trade and Core Labor Standards: A Survey of the Recent Literature," Discussion Papers Series, Department of Economics, Tufts University 0005, Department of Economics, Tufts University.
    6. Deardorff, A.V, 1990. "Should Patent Protection Be Extended To All Countries?," Working Papers 259, Research Seminar in International Economics, University of Michigan.
    7. Alan V. Deardorff, 1990. "Should Patent Protection Be Extended to All Developing Countries?," The World Economy, Wiley Blackwell, vol. 13(4), pages 497-508, December.
    8. repec:bla:reviec:v:10:y:2002:i:3:p:404-23 is not listed on IDEAS
    9. Drusilla Brown & Alan Deardorff & Robert Stern, 1998. "Trade and Labor Standards," Open Economies Review, Springer, vol. 9(2), pages 171-194, April.
    10. Drusilla K. Brown, 2001. "Labor Standards: Where Do They Belong on the International Trade Agenda?," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 89-112, Summer.
    11. Ignatius J. Horstmann & James R. Markusen & Jack Robles, 2001. "Multi-Issue Bargaining and Linked Agendas: Ricardo Revisited or No Pain No Gain," NBER Working Papers 8347, National Bureau of Economic Research, Inc.
    12. Nirvikar Singh, 2004. "The Impact of International Labor Standards: A Survey of Economic Theory," International Trade 0412007, University Library of Munich, Germany.
    13. repec:fth:michin:259 is not listed on IDEAS
    14. Drusilla K. Brown & Alan V. Deardorff & Robert M Stern, 2001. "Child Labor: Theory, Evidence, and Policy," Working Papers 474, Research Seminar in International Economics, University of Michigan.
    15. Richard B. Freeman, 1995. "Are Your Wages Set in Beijing?," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 15-32, Summer.
    16. Spagnolo, G., 1999. "Issue Linkage, Delegation, and International Policy Cooperation," Cambridge Working Papers in Economics 9913, Faculty of Economics, University of Cambridge.
    17. Brown, D.K. & Dearorff, A.V. & Stern, R.M., 1993. "International Labor Standards and Trade: A Theoretical Analysis," Working Papers 333, Research Seminar in International Economics, University of Michigan.
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    Cited by:

    1. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    2. J. M. Cardebat & Alexandru Dumitrescu, 2013. "Social responsibility of countries and their international trade: A gravitational approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(2), pages 234-252, March.
    3. Darlene C. Chisholm & George Norman, 2002. "Spatial Competition and Demand: An Application to Motion Pictures," Discussion Papers Series, Department of Economics, Tufts University 0216, Department of Economics, Tufts University.
    4. Jean-Marie Cardebat & Alexandru Dimitrescu, 2011. "Social Responsibility of the countries and their international trade : A gravitational approach," Larefi Working Papers 201102, Larefi, Université Bordeaux 4.

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    JEL classification:

    • F1 - International Economics - - Trade

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