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Working Paper Labor Rights and International Trade : A Developing-Country View June 01, 1987

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Series No. 8707

Working Paper Labor Rights and International Trade : A Developing-Country View #Labor-Management Relations #General(Other)

June 01, 1987

  • KDI
    Funkoo Park
Summary
The notion of incorporating labor rights in trade policy is, to
the eyes of the developing countries, a revival of the old pauper
labor argument. Low wages of the developing country is a
source of comparative advantage and cannot be a ground for
unfair trade practice. Intensifies efforts for trade/worker rights
linkage will undermine not only the export capabilities of the
NICs but also the trade and growth prospects for the late
coming LDCs. It is free trade through which workers in
developing countries as well as developed countries can benefit.

In terms of implementation of the labor rights clause within
the trade policy, as is laid out in the GSP, feasibility of
maintaining fairness would be very difficult because of the
problems related to its definitions and possibilities of
arbitrariness in its application, Effort sto improve labor standards
of the workers world-wide on international level could be made
by the ILD and its International Labor Code through pressures
and technical guidance.

Asian NICs including Korea have performed successfully in
expanding employment and raising the living standards of
workers in their development process. Behind this performance is
the fact that their labor market policy has been maintained
flexible abiding excessive institutional interventions. Appropriate
labor market policies for developing countries burdened with
economic growth and employment generation should be carefully
sought after to balance the long term growth objectives and the
demands of the workers.
Contents
Ⅰ. Introduction
Ⅱ. Overview of Labor Rights in U.S. Trade Policy
Ⅲ. Labor Rights/Trade Linkage : LDC's Perception
Ⅳ. Labor Conditions in Developing Countries : An Alternative
View
Ⅴ. The Korean Case
Ⅵ. Concluding Remarks
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