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Trade & Labour - Coggle Diagram
Trade & Labour
International Labour Organization
policy
agreement on labour standards in the Conventions or Recommendations with 2/3 majority
Conventions are legally binding, recommendations are not
patchwork of conventions
compliance
ensured through
Voluntarism
Peer pressure
Tripartism
.
Trade-off between substance regulations and degree of compliance
Reporting still required even if convention not adopted by state
organization
International Labour office
Governing body (executive organ, 56 members) with regular meetings; monitoring functions
International Labour conference
Principle of Tripartism
employer representatives
labour group representatives
government representatives
complaint structure (Art. 24, 25, 33)
Complaints submitted by member states, worker or employer group or ILO governing body
Investigated by "Commission of Inquiry" -> report
Ultimate action: sanctions or expulsion
basic information
185 members
Nobel Peace Prize in 1969
origins
1919 in the context of League of Nations
specialized agency UN since 1946
World Trade Organization
historical origins
Bretton Woods Conference 1944
failed to establish ITO bc. disagreement liberalization
1947 General Agreement on Tariffs and Trade
negotiation rounds
Geneva 1947
Annecy 1949
Torquay 1950-51
Geneva 1956
Kennedy round 1964-67
Geneva 1960-61
Tokyo round (1973-79)
Uruguay round 1986-94
Doha round (160 participants)
failure to reach agreement to continue negotiations
Increasing bilateral trade agreements
.
objectives
regulating international trade to decrease trade limiting practices
trade benefits for all partners
specialization
large-scale production
avoid protectionism (crises 1920s and 1930s)
importance
rule-setting function
transparency: fixed and public import tariffs
99% of import tariffs of developed countries under WTO rule
court-like dispute settlement for complaints
97% of world trade between WTO members
structure
decision-making by consensus
small secretariat (600 members)
general council = trade officials, meeting in different settings
ministerial conference = highest decision-making organ with annual meetings of trade ministers
purely intergovernmental
membership
IOs with observer status
21 observer states
164 member states
agreements
Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)
Rules on agricultural trade and subsidies (agriculture is not part of GATT)
General Agreement on Trade in Services (GATS)
Trade dispute resolution process
General Agreement on Tariffs and Trade (GATT)
bound tariffs
coverage
99% of all imports affluent countries
73% of all imports developing countries
categorization of goods by World Customs Organization (WCO)
ceilings for import taxes on specific goods
legally binding
amended through negotiations
Most-favored Nation Principle (Art. 1)
includes any advantage, favour, privilege (not only tariffs)
Most conflicts WTO are breach of MFN
best agreement with another country serves as standard for agreement with other countries
simplifies the global trade system
leads to lower import tariffs
National Treatment (Art 3.)
"The products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favourable than that accorded to the like products of national origin.”
prohibits discrimination between domestic and imported goods
condition: 'like' product
Exceptions
Regional trade agreements (e.g. NAFTA, EU, CETA, TTIP)
Balance-of-payments: measures to safeguard external financial situation
Security exceptions: protect essential national security interests
temporary waivers
General exceptions: necessary measured to protect human, animal or plant life/health
Compliance
sources of non-compliance
political opportunism (e.g. domestic interests): protect important domestic sector/company
Free-riding through unilateral non-tariff barriers
dispute settlement
is DSM dead?
suspended since 2019 (US refuses reappointment of Judges)
alternative mechanism: 2020 Declaration of EU, China, Canada, South Korea, Brazil, New Zealand, Chile, Mexico, Singapore and Uruguay
1) first attempt of bilateral resolution
2) complaint to the WTO
3) WTO appoints a panel of three trade experts to write a report
4) The complaining and accused country can go into appeal to the Appellate Body
5) Second appeal possible: DSB approves or rejects the report. Decision is legally binding.
6) In case of non-compliance, economic sanctions allowed
Criticism
WTO fails to address agricultural subsidies
WTO rules ignore environment and labor-related issues
WTO excludes goods of the poorest countries
contributed to the decline of wealth in the Global South
Lack of transparency in "green room negotiations"
Seattle protests of 1999: anti-globalization movement
WTO contributes to growing inequality
TRIPS licensing of medicines