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Trade and Labour

The International Labour Organisation (ILO) is the specialised United Nations (UN) agency with responsibility for setting, promoting and monitoring international labour standards. The 1998 ILO Declaration on Fundamental Principles and Rights at Work covers internationally agreed "core labour standards" on freedom of association and the right to collective bargaining, the elimination of discrimination in employment and the elimination of forced and child labour. Under the Declaration, all Member States are obliged to respect, promote and realise these rights whether or not they have ratified the related ILO Conventions.

There have been calls by some countries to introduce labour standards into the World Trade Organisation (WTO). The argument has been that trade sanctions should be used as a way of pressurising countries to comply with internationally agreed labour standards, which would protect workers from exploitation. However, many other countries, including most developing countries, fear that such regulations would amount to protectionism. Indeed trade sanctions against the formal export sector may, for example, simply displace children into the informal sector where conditions are typically worse, or into unemployment and even greater poverty.

The 1996 WTO Ministerial Conference in Singapore identified the International Labour Organisation (ILO) as the most suitable forum to deal with labour issues. The WTO 4th Ministerial in Doha in November 2001 reaffirmed the declaration made at the Singapore Conference concerning the competency of the ILO and noted its work on the Social Dimensions of Globalisation.

The UK rejects a sanctions-based approach in this area, and will continue to oppose and reject any initiative to use labour rights for protectionist purposes. Whilst recognising that the ILO is the most appropriate forum for dealing with labour issues, the UK has worked to develop a consensus that labour standards should be promoted through all the relevant multilateral organisations - the ILO, the WTO, the World Bank and UNCTAD. We will continue with this approach (for example,we are seeking formal reciprocal observership between the ILO and WTO).

The Government lead on this issue is with the Department of Work and Pensions and the Department for Education and Skills.

Contact:

Annette Grunberg
Europe and World Trade
Tel: 0207 215 6467
Fax:0207 215 2235
Email:annette.grunberg@dti.gsi.gov.uk