Social Clause 2


Social Clause 2 :

The aim of a social clause would be to improve labour conditions in exporting countries (members of the World Trade Organization – WTO) by permitting sanctions against exporters who fail to observe certain minimum labour standards formulated by the ILO. There is no agreement yet on its feasibility or desirability, though similar measures have been discussed for well over a century in other forums. It was discussed in December 1996 at the WTO Singapore Ministerial Conference, where ministers agreed that labour standards were a matter for the ILO. It is worth recalling that the 1954 international sugar and tin agreements contained, for example, a “fair labour standards” clause which sought to ensure that labour engaged in the production of the commodity concerned would enjoy fair remuneration, social security benefits and other conditions. The 1976 World Employment Conference held that the competitiveness of imports from developing countries should not be achieved at the expense of fair labour standards. Four years later, the first Brandt Report also recommended that fair labour standards should be internationally agreed to facilitate trade liberalization. The International Coffee Agreement of 2001 contains a clause promoting improved standards of living for populations engaged in the coffee sector. See: World Trade Organization (WTO)

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