[Congressional Record Volume 140, Number 45 (Thursday, April 21, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 21, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
              WORKER RIGHTS AND LABOR STANDARDS TRADE ACT

                                 ______


                       HON. GEORGE E. BROWN, JR.

                             of california

                    in the house of representatives

                        Thursday, April 21, 1994

  Mr. BROWN of California. Mr. Speaker, I rise in strong support of the 
Worker Rights and Labor Standards Trade Act (H.R. 4721) which was 
introduced by my colleague, Congressman Pete Visclosky yesterday.
  This bill calls upon President Clinton to mobilize the necessary 
international support for the establishment of a GATT working party to 
immediately begin examining the relationship between trade and basic 
worker rights and labor standards for the people who make the goods and 
provide the services in international commerce. It also calls for 
mobilizing the requisite international support to establish a standing 
committee in the newly proposed World Trade Organization to develop 
recommendations to link respect for internationally recognized worker 
rights to the conduct of international trade.
  As the chronology following this statement amply demonstrates, Mr. 
Speaker, linking respect for fundamental worker rights and labor 
standards to trade is not a new or radical idea. Several U.S. 
Presidents, Republican and Democrat alike, have raised this policy 
question at the GATT in different ways repeatedly for nearly 40 years. 
Other national governments have also called for positive action on this 
longstanding and growing trade problem.
  I am heartened that President Clinton has personally committed his 
administration to forging an international consensus to link trade 
liberalization to international respect for basic worker rights such as 
freedom of association and the right to organize and bargain 
collectively. During his official visit to Europe last January, the 
President stated, ``I see this whole worker rights issue as more a 
function of the global economy and one that will help us to build up 
ordinary citizens everywhere, which I think should be our ultimate 
objective.''
  Surely, if the trading nations can agree upon legally binding 
agreements in the Uruguay round to protect intellectual property rights 
and to prevent capital subsidies, then civilized societies should also 
agree to protect the basic rights and labor standards of working people 
everywhere in the conduct of international trade.

        Historical Chronology of GATT Inaction on Worker Rights

       1947--Preamble to the GATT provides that relations among 
     countries ``the field of trade and economic endeavor should 
     be conducted with a view to raising standards of living and 
     ensuring full employment''.
       The GATT incorporates by reference Article 7 of Chapter II 
     of the proposed International trade Organization Charter: 
     ``The members recognize that measures relating to employment 
     must take fully into account the rights of workers under 
     intergovernmental declarations, covenants, and agreements. 
     The members recognize that all countries have a common 
     interest in the achievement and maintenance of fair labor 
     standards related to productivity, and thus in the 
     improvement of wages and living standards as productivity may 
     permit. . . .''
       1951--In his first State of the Union Address, President 
     Eisenhower identified labor standards as one of the most 
     important issues to be dealt with during renewal of the 
     Reciprocal Trade Agreements.
       1953--U.S. negotiators informally proposed adding the 
     following labor standards provision to the GATT; ``The 
     Contracting Parties recognize (1) that all countries have a 
     common interest in the achievement and maintenance of fair 
     labor standards related to productivity, and thus in the 
     improvement of wages and working conditions as productivity 
     may permit, and (2) that unfair labor conditions (i.e. the 
     maintenance of labor conditions below those which the 
     productivity of the industry and the economy at large would 
     justify), particularly in production for export, may create 
     difficulties in international trade which nullify or impair 
     benefits under this Agreement. In matters relating to labor 
     standards that may be referred to the Contracting Parties 
     under Article XXIII they shall consult with the International 
     Labor Organization.''
       1954--The U.S. Commission on Foreign Economic Policy urged 
     that no tariff concessions be extended on ``products made by 
     workers receiving wages which are substandard in the 
     exporting country.'' The term ``substandards'' was defined as 
     wages for a specific commodity that were substantially below 
     accepted standards in the exporting country.
       1964--Informal, exploratory discussions were held between 
     U.S. Labor Department officials and ranking officials of the 
     GATT and the ILO concerning international fair labor 
     standards in conjunction with the Kennedy Round of 
     Multilateral Trade Negotiations.
       1971--The Commission on International Trade and Investment 
     Policy, appointed by President Nixon, recommended that the 
     U.S. support the development and adoption of a multilateral 
     code pertaining to fair labor standards.
       1974--The Congress enacted a provision in the Trade Act of 
     1974 calling upon the President to seek various revisions in 
     the GATT including ``the adoption of international fair labor 
     standards and of public petition and confrontation procedures 
     in the GATT.''
       In its report to accompany this provision, the Senate 
     Finance Committee stated: ``The Committee believes that 
     international fair labor standards and procedures to enforce 
     them should be established. The Committee is including in 
     this bill certain measures to assist in the economic 
     adjustment which may be necessitated by increased imports. It 
     believes, however, that additional steps are needed which 
     would lead to the elimination of unfair labor conditions 
     which substantially disrupt or distort international trade. 
     The international trading community should seek to develop 
     principles with respect to earnings, hours and conditions of 
     employment of workers, and to adopt public petition and 
     bargaining procedures.''
       1978--The Office of the U.S. Trade Representative created 
     an interagency group to explore issues pertaining to 
     international fair labor standards during the Tokyo Round of 
     Multilateral Trade Negotiations. Some discussions and 
     consultations were held with foreign governments. Ultimately, 
     U.S. policy-makers failed even to have fair labor standards 
     added to the agenda of the post multilateral trade 
     negotiations work program of the GATT Consultative Group.
       1980--The Report of the Independent Commission on 
     International Development Issues (the Brandt Commission) 
     concluded: ``Exports that result from working conditions 
     which do not respect minimum social standards relevant to a 
     given society are unfair to the workers directly involved, to 
     workers of competing Third World exporting countries and to 
     workers of importing countries whose welfare is undermined. 
     They are also unfair to business concerns and countries which 
     encourage social progress. Just as developing countries 
     concern themselves with the industrial adjustments of other 
     countries, so their own domestic industrial conditions will 
     increasing become a matter of international concern and 
     review.''
       1988--The Congress enacted into a law a provision as part 
     of the Omnibus Trade and Competitiveness Act that makes 
     worker rights a principal U.S. negotiating objective in the 
     Uruguay Round of Multilateral Trade Negotiations. 
     Specifically, it calls upon U.S. negotiators to the GATT:
       ``(A) to promote respect for worker rights;
       ``(B) to secure a review of the relationship of worker 
     rights to GATT articles, objectives, and related instruments 
     with a view to ensuring that the benefits of the trading 
     system are available to all workers; and
       ``(C) to adopt, as a principle of the GATT, that denial of 
     worker rights should not be a means for a country or its 
     industries to gain competitive advantage in international 
     trade.''
       1993--President Clinton notifies the Congress that 
     agreement has been reached in the Uruguay Round of 
     Multilateral Trade Negotiations, but no mention of worker 
     rights.