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Incorporating labour standards in trade agreements: protectionist ploy or legitimate trade policy issue?

Author

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  • Samira Bakhshi
  • William A. Kerr

Abstract

The relationship between labour standards in developing countries and trade flows has become a major trade policy issue with efforts in some developed countries to have labour standards provisions included in multilateral and regional trade agreements. This has been fiercely resisted by developing countries. Central to the argument is the degree to which low or poorly enforced labour standards affect comparative advantage. This paper finds limited evidence that only some labour standards – degree of unionisation and forced labour – have a small impact on a country's international competitiveness. Given this result, the question of how to include labour standards in international agreements is discussed.

Suggested Citation

  • Samira Bakhshi & William A. Kerr, 2008. "Incorporating labour standards in trade agreements: protectionist ploy or legitimate trade policy issue?," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 1(4), pages 373-391.
    • Handle: RePEc:ids:ijtrgm:v:1:y:2008:i:4:p:373-391
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    Citations

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    Cited by:

    1. repec:ilo:ilowps:470016 is not listed on IDEAS
    2. Haberli, Christian. & Jansen, Marion. & Monteiro, JoseĢ-Antonio., 2012. "Regional trade agreements and domestic labour market regulation," ILO Working Papers 994700163402676, International Labour Organization.
    3. Sangeeta Khorana & Nicholas Perdikis & May T. Yeung & William A. Kerr, 2010. "Bilateral Trade Agreements in the Era of Globalization," Books, Edward Elgar Publishing, number 13719.
    4. Kerr, William A., 2010. "Environmental Tariffs: Will They Be Captured by Protectionists?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 11(2), pages 1-13, July.
    5. Robertson, Raymond, 2020. "Pioneering a New Approach to Improving Working Conditions in Developing Countries: Better Factories Cambodia," IZA Discussion Papers 13095, Institute of Labor Economics (IZA).
    6. William A. Kerr, 2010. "What is New in Protectionism? Consumers, Cranks, and Captives," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 5-22, March.
    7. Smyth, Stuart & Kerr, William A. & Phillips, Peter, 2010. "The Incompatibility of Science and Trade at the International Level," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188113, International Consortium on Applied Bioeconomy Research (ICABR).

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