Social Subsidies
Social Subsidies : It is claimed that these occur when governments permit the existence, particularly in export industries, of labour standards lower than those applied internationally, or if they do not enforce their own standards. The perceived resulting lower operating costs of enterprises benefiting from these practices are seen as an indirect export subsidy. Analysis tends to indicate, however, that lower labour standards have little effect on export competitiveness and, indeed, that they may impede it. Nor is the concept of social subsidies an accepted part of the trade policy vocabulary. See: Core labour standards; Social clause; social dumping; Trade and labour standards
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