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GB.270/WP/SDL/1/1 and Corr.
270th Session
Geneva, November 1997


Working Party on the Social Dimensions of the Liberalization
of international Trade 

WP/SDL


FIRST ITEM ON THE AGENDA

Continuation of discussions concerning
the programme of work and mandate
of the Working Party

(a) Overview of the activities of other international
organizations and bodies relevant to the work
of the Working Party

Contents

Introduction

A. Principal reports and studies

B. Meetings and conferences

C. Other activities and work


1. At its previous meetings, the Working Party expressed the wish on several occasions that the Office prepare a document on the work of other international organizations and bodies concerning the social aspects of the liberalization of trade.(1)  In the light of important events which have occurred over the last year and the considerable interest of this subject, it seemed appropriate to prepare a further update on the work of other international organizations and bodies. This document has been prepared on the basis of information and studies to be found in the public domain (libraries, research centres, academic centres, databases, Internet sites) or which the Office has obtained in response to a new request sent out to a number of international organizations. Given the wealth of information, it seemed useful to prepare a more organized presentation of this work by grouping together in the first section (in chronological order) the main reports and studies dealing directly with subjects relating to the social dimension of globalization; this juxtaposition has the advantage of highlighting the different shades of opinion in the assessment of the effects of globalization. The second section mentions, also in chronological order, the different meetings and conferences which have addressed the subject of the social dimension of the liberalization of trade. The third section provides information on various activities relating to this subject.

A. Principal reports and studies

(a) Universal organizations

UNICEF: The State of the World's Children 1997

2. The United Nations Children's Fund (UNICEF) devoted its report on The State of the World's Children 1997 to child labour. According to this report, it is essential to fight against four myths concerning child labour. The first of these is that child labour is only a problem of the developing countries. UNICEF opposes this view and believes that child labour exists in most countries of the world. According to this organization, what distinguishes some countries from others is rather the nature of this work. The second myth is that child labour appears inevitably and naturally when a country is faced with the problems of poverty. Here again, UNICEF believes that this attitude benefits the champions of the status quo and emphasizes that child labour must be eliminated, independently of broader measures to combat poverty. The third myth is that child labour exists essentially in sectors where products are for export. But while these sectors are the most visible and constitute a symbol, there remain tens of millions of child workers in the non-export sectors. According to UNICEF, only 5 per cent of child workers are to be found in the export sectors. The fourth myth is that it is enough for consumers and governments to bring pressure to bear, in particular by imposing trade sanctions or establishing a boycott, for child labour to cease. UNICEF believes that this view is mistaken since it tends to suggest first of all that only the industrial countries are sensitive to this problem and thus that governments, civilian society and the media in the developing countries deliberately ignore it. In fact, and the ILO IPEC programme is quoted as an example, local organizations have been fighting against child labour for a number of years and are trying to sensitize their own population. According to UNICEF, it must also be remembered that although sanctions or boycotts may have an impact, it will be limited to the export sectors which concern only 5 per cent of child workers. Furthermore, the application of sanctions could have long-term consequences which may eventually affect the children themselves. UNICEF also mentions the experience of the Rugmark label in India and Nepal. In 1994 the Rugmark Foundation created a label certifying that the enterprises participating voluntarily in the programme produce their rugs without illegal recourse to child labour. This report also gives considerable attention to ILO activities in the field of child labour, by mentioning Conventions Nos. 29 and 138 and Recommendation No. 146 as well as the process for the preparation of a new Convention on the elimination of the most intolerable forms of child labour, referring on several occasions and describing in detail the IPEC programme or the Memorandum of Understanding signed in 1995 by the Bangladesh Garment Manufacturers and Exporters Association, the ILO and UNICEF. It also refers to the role played by the trade unions and employers' associations in the fight against child labour. Recalling the objective of the International Confederation of Free Trade Unions (ICFTU) to promote ILO Convention No. 138, UNICEF recognizes however that employers' associations for their part are unfortunately too often neglected when broad alliances against child labour are established. The report believes that collective bargaining between workers and employers plays an important role since it can lead to an improvement in the working conditions of adults and thus reduce pressure to put children out to work. Finally, UNICEF refers to the debate on the introduction of a social clause within the framework of the WTO and regional trade agreements and recalls the divergent views of the different parties.

United Nations Secretariat: Report on the
World Social Situation 1997

3. The United Nations Secretariat published its Report on the World Social Situation 1997. This report is part of the follow-up to the World Summit for Social Development and reviews the social situation in the world, in particular in the three spheres highlighted at the Summit, namely poverty, employment and social integration. In the chapter dealing with economic trends, the document refers to the process of trade liberalization which has appeared in a large number of countries. The report also points out that regional economic integration has made a substantial contribution to the growth of international trade. In the chapter on unemployment (Chapter VII), the report refers to the phenomenon of export processing zones (EPZs), in which domestic and foreign firms produce goods for export. The activities of the zones, which are generally very labour-intensive, have led to the creation of numerous jobs even if, as the report points out, these remain very precarious. It is interesting to note that in 1994 there were more than 170 EPZs established in 56 developing countries and generating directly more than 4 million jobs. According to this report, 70 to 80 per cent of the workforce used in these zones consists of women between the ages of 16 and 25. The direct and indirect impact of these EPZs on the labour market is, according to the document, attracting increasing attention. In this respect the report notes that the raw materials imported by the enterprises working in these zones are tax free, which results in a substantial loss of competitiveness for local suppliers. Some countries (Republic of Korea, Mauritius) have however managed to combine their EPZs with their industrialization process, establishing solid links between these zones and local suppliers and thus fully using the job creation potential of the zones.

ESCAP: Economic and Social Survey of Asia
and the Pacific 1997

4. The Economic and Social Commission for Asia and the Pacific (ESCAP) refers, in its Economic and Social Survey of Asia and the Pacific 1997 (page 125), to the current difference of opinion about the link between international trade and fundamental labour standards. This report examines in particular the process of the globalization and liberalization of trade. Referring to the Singapore Ministerial Conference as well as the question of trade and labour standards, ESCAP points out that this subject is a particularly sensitive one in the developing countries of Asia and that there is at present no universal agreement on a minimum body of labour standards, except for the internationally recognized ILO labour standards. According to ESCAP, the imposition of externally decided standards is legitimately considered as unjust by the exporting developing countries. The report points out that these countries have very different living standards and that there are serious difficulties in imposing respect of this kind of standards in economies with a large informal sector. The ESCAP report mentions the content of paragraph 4 of the Ministerial Declaration of Singapore and believes that the countries of Asia and the Pacific should nevertheless prepare themselves to deal with any discussion which may resume on this subject.

UNDP: Human Development Report 1997

5. The Human Development Report 1997 of the United Nations Development Programme (UNDP) devotes a full chapter (Chapter 4) to the links between globalization and poverty. According to this report, globalization offers major opportunities, but only if it is managed with greater care and takes greater account of fairness at the world level. Although globalization has helped reduce poverty in some developing countries with strong economies it has also created "losers" and the gap between these two groups has widened. Thus, with 10 per cent of the global population, the least advanced countries today account for only 0.3 per cent of world trade, i.e. twice as less as 20 years ago. In the same way, the price of commodities, expressed in real terms, is currently 45 per cent below what it was on average in the 1980s and the terms of trade have deteriorated by 50 percentage points to the detriment of the least advanced countries over the last 25 years. The report also highlights the fact that the average tariffs imposed on imports by the industrial countries from the least advanced countries is 30 per cent above the world average. Finally, it points out that subsidies and barriers on textile goods in the industrial countries have led to an annual loss of around 60 billion dollars in export earnings for the developing countries. The Human Development Report 1997 calls for a more effective control of globalization at the national and international levels, which requires in particular more favourable conditions of market access for the poor countries, especially in the sphere of agricultural exports. The document also calls on all the major international economic and financial bodies to improve the formulation of their policies towards the globalization process. At the national level, the report states that the poor countries can quickly achieve the equivalent of several decades of development if they manage to combine their low wage levels with basic education, technical skills and export-driven growth, within the framework of the rapid opening up of world markets.

IMF: The Effect of Globalization on Wages
in the Advanced Economies

6. The International Monetary Fund (IMF) published two working documents which are particularly relevant to the Working Party. The first, entitled The Effect of Globalization on Wages in the Advanced Economies, examines the effects of globalization on the labour markets of the industrial countries and is one of the basic documents used for the May 1997 edition of the World Economic Outlook devoted to globalization and its opportunities and challenges.

IMF: International Labour Standards and
International Trade

7. The second IMF document, entitled International Labour Standards and International Trade, analyses the debate on the link between labour standards and international trade and explains in particular how pressure from the international community for the harmonization of labour standards has appeared at a time of considerable growth in trade between countries with very great wage differences. According to this document, a distinction must be made between labour standards concerning fundamental human rights and those related more generally to conditions of work.

8. The main conclusion of this study concerns the need to avoid envisaging the establishment of trade sanctions designed to force countries to respect labour standards. On the contrary, a commitment to respect, on a voluntary basis, fundamental labour standards appears desirable. The ILO's role is here strongly emphasized. Endorsement by transnational enterprises of codes of conduct and a greater awareness of production conditions by consumers are also considered preferable to acts of coercion. The author of this study believes that economic growth -- encouraged by the development of international trade -- is the surest means of disseminating labour standards in the developing countries.

IMF: World Economic Outlook, May 1997

9. In the May 1997 edition of the World Economic Outlook, the IMF examines the link between wages and trade and analyses to what extent the growth of international trade, including in particular the low labour cost developing countries, has contributed to the decline and growing inequality of wages as well as the increase in unemployment noted in some industrial countries. According to the IMF, the effects of trade on wages and employment in the industrial countries, if not non-existent, are however fairly negligible. This organization notes in particular that imports by the industrial countries of low labour cost products from the developing countries are too low to have any significant impact in this sphere. The increase in wage inequalities noted over the last two decades in the industrial countries is above all the result of technological progress which benefits skilled workers to the detriment of poorly skilled labour. The IMF believes that any policy to limit the effects of globalization will also limit its benefits, in particular regarding the reduction in the price of imports or the increased circulation of capital and technological innovation flows between countries. It would be preferable to put an end to the structural rigidities of the labour market, thus enabling it to adapt to technological change and external competition. In this sense, the role of education and vocational training is considered essential. Finally, the IMF insists on the need to establish social safety nets for persons in difficulty so that they do not become marginalized, although such measures should not make workers and enterprises any less determined to adapt to economic changes. In the October 1996 edition of the World Economic Outlook, the IMF also pointed out that countries with a flexible labour market would be in a better position to profit from the gains from the liberalization of trade and would suffer smaller costs than countries with rigid labour markets.

10. In reply to a letter from the Office, the IMF stated that it gave great attention to the effects of the economic reforms and, in particular, the liberalization of trade on employment and poverty. The IMF had already presented at the annual meeting of the IMF and the World Bank (23-25 September 1997, Hong Kong, China) a report on the liberalization of trade within the framework of the IMF programmes. This report entitled Trade liberalization in fund-supported programmes reviews the factors affecting the pace of the liberalization of international trade and mentions in particular the effects of this liberalization at the social level.

United Nations Secretariat: World Economic
and Social Survey 1997

11. The United Nations Secretariat also presented in July 1997 its publication entitled World Economic and Social Survey 1997. According to the survey, growth in international trade was much less strong in 1996 than it had been in the two previous years (4.6 per cent compared to approximately 10 per cent in 1994 and 1995). It also points out that during the last decade, the share of trade in the GNP dropped in 44 of the 93 developing countries studied. As regards a number of African countries, the survey states that the substantial increase in the volume of commodity exports recorded in 1996 did not lead to a comparable increase in earnings from these exports, since there had been a drop in the price of these products on the international market and thus a deterioration in the terms of trade.

World Bank: Should core labour standards
be imposed through international trade policy?

12. In August 1997 the World Bank published a consultant's report entitled Should core labour standards be imposed through international trade policy? (cf. Policy research working paper No. 1817, August 1997).(2)  This report examines in detail to what extent the respect of core labour standards should be imposed within the framework of international trade policy. After developing a series of econometric models for determining whether the non-respect of core labour standards in the export sectors of the developing countries improves the competitiveness of these countries on the export markets, the report concludes that the non-respect of these standards tends to diminish rather than improve competitiveness, in particular due to the distortion effects resulting from weak labour standards. In other words, the concerns of the industrial countries in this respect vis-à-vis the developing countries are, according to the report, largely unfounded, except in the case of child labour. The document states that the particular case of child exploitation may result in an increase of exports in high labour-intensive sectors. It refers on a number of occasions to ILO action. According to the conclusions of this report, the possible application of international trade sanctions may prove counter-productive in as far as it would harm those individuals it is supposed to help and would not allow the proposed objectives to be obtained. The introduction of a social clause to guarantee the respect of core labour standards in the WTO regulations would also have negative consequences on the international trading system since it would result in trade restrictions. Other approaches, in particular the establishment by the industrial countries of compensation programmes to eliminate poverty and improve access to education could prove much more effective and less costly than trade restrictions. Finally, the report emphasizes the possibility of strengthening the monitoring and reporting procedures of the ILO to ensure greater respect of internationally recognized labour standards. The recommendations conclude with the following sentence: "If the WTO is not the appropriate international organization to address trade-related problems in labour standards, an important question is how the ILO could be strengthened in its monitoring and reporting of violations of core labour standards."

World Bank: Global Economic Prospects 1997
and the Developing Countries

13. The World Bank has just published (September 1997) its report entitled Global Economic Prospects 1997 and the Developing Countries. This report examines the characteristics of the process for the integration of developing countries into the global economy, and in particular as regards the globalization of production. Although the World Bank concludes that the benefits of liberalization largely outweigh its possible costs, this document nevertheless analyses in detail the social costs of these adjustments and the measures to be taken to deal with such consequences. According to the World Bank, globalization not only offers tremendous opportunities for the developing countries but poses very important political challenges for the governments concerned, in particular as regards the evaluation of the adjustment costs which the liberalization of foreign trade implies for each country. The Bank also believes that the liberalization of trade and the growing participation in world trade of countries with a plentiful supply of unskilled labour (in particular China and India) should result in a drop in the prices of high labour-intensive goods, thus creating a certain tension on the wages of unskilled labour of some countries with a similar capitalistic structure. However, the report points out that these countries could defuse these tensions by choosing to speed up the liberalization of their trade, a policy which according to the Bank would tend to benefit, first of all, the most plentiful production factor (unskilled labour). According to the document, the long-term effects of the liberalization of trade on employment, wages and incomes should be very positive. In order to be effective, this liberalization of trade would, however, have to be accompanied by major redeployments from one sector to another. The report notes, in particular, that workers in local industries faced with this greater competition risk finding themselves temporarily unemployed. The Bank believes that governments can limit the consequences of this liberalization process, in particular by establishing a certain macroeconomic stability and encouraging greater flexibility in the labour market.

UNCTAD: Trade and Development Report, 1997

14. The Trade and Development Report, 1997 examines the link between globalization, growth and distribution and devotes part of its Chapter III to the link between surplus labour, growth and income equality. Emphasizing the growing insecurity at the world level regarding employment and incomes, the Secretariat of the United Nations Conference on Trade and Development (UNCTAD) refutes the idea that the search for greater income equality requires a move from an import substitution economy to an export development policy, proof of which it says can be seen in the income inequality existing in some countries of South-East Asia. Referring to the process of the liberalization of the economy, the report emphasizes the fact that the growing wage gap between skilled labour and unskilled labour is not only a problem to be found in the industrial countries but is becoming a global phenomenon. Thus according to UNCTAD, wage inequality has increased in most developing countries which have rapidly liberated their trade. According to UNCTAD, a training and education policy must be developed to prevent the risks of a shortage of skilled labour which only results in greater differences in terms of wages. This organization also notes in its report that the share of revenue attributable to capital has increased in comparison to that of labour. Finally, UNCTAD believes that the integration of the economy should be achieved through a carefully graduated liberalization and that it is important to adapt this process to the strength of a country's economy and institutions.

UNCTAD: The Least Developed Countries 1997 Report

15. The Least Developed Countries 1997 Report refers in particular to the possible impact of the agreements of the Uruguay Round on the agricultural sector of the least advanced countries. Despite the concessions made within the framework of the Uruguay Round Agreement on Agriculture (URAA), an analysis of the impact of this agreement on the export of commodities -- which remains the essential component of agricultural exports from the least advanced countries -- seems to indicate that the effects of this agreement are likely to be modest.

(b) Other intergovernmental organizations

OECD: Employment Outlook 1997, July 1997

16. The Ministers of Labour of the Organisation for Economic Co-operation and Development (OECD) were scheduled to meet on 14 and 15 October 1997 to discuss questions focusing on two issues: improving the functioning of the labour market and preserving social cohesion. Within this framework, the OECD presented in July 1997 its report entitled Employment Outlook 1997. This report analyses in particular the reasons for the deterioration in the situation of unskilled labour which can be observed in the industrial countries. It eliminates as a possible cause competition from low-wage countries. The analysis of nine OECD countries over the last two decades shows in fact that even if there has been a drop in prices, imports from low-wage countries have had a very modest impact on unskilled jobs in these nine countries and an even more modest effect on wages. According to the OECD, it is mainly technological progress which, spreading very rapidly in all the countries, has resulted in a deterioration of the situation of unskilled labour in all sectors at the same time.

17. The OECD study on Trade, Employment and Labour Standards, published in 1996 has already been the subject of analysis in a document placed before the Working Party at the 267th Session of the Governing Body.(3) 

(c) Regional organizations

European Commission: Report on the work conducted within
the OECD, ILO and WTO on the link between international
trade and social standards, June 1997

18. The European Commission sent two reports to the Council on 2 June 1997, within the framework of the scheme of generalized tariff preferences. In these reports, the Commission summarizes on the one hand the work carried out by the OECD, the ILO and the World Trade Organization (WTO) on the link between international trade and social standards and on the other, the work undertaken by the International Tropical Timber Organization (ITTO), the OECD and WTO on the relationship between international trade and the environment. The report on the link between international trade and social standards estimates in particular that so far, the application of a possible social clause has been essentially considered in terms of either trade policy or human rights, but not within the framework of development policy which is that of the GSP. According to the Commission, there is thus nothing in the international debate on the social clause which should prevent the European Union from pursuing its policy of encouragement within the GSP framework. In this connection, the Bulletin of the European Union points out that "Examination of these reports by the Council, like the preparation by the Commission of a proposal to encourage the developing countries to comply with ILO and ITTO rules, is a condition of both the social clause and environmental clause which will take effect in the framework of the GSP from 1 January 1998. These clauses will enable additional preferences to be granted to countries which comply with ILO rules on social legislation and ITTO rules on respect for the environment".

B. Meetings and conferences

(a) Universal organizations

UNCTAD: Inter-agency seminar on the effects of the globalization
and liberalization of the economy on poverty, April 1996

19. At the end of last year, UNCTAD published the results of an inter-agency seminar which was held in Geneva in April 1996. This seminar examined the effects of the globalization and liberalization of the economy on poverty. Fourteen agencies of the United Nations (including the ILO), the World Bank, the IMF and the WTO participated in the seminar. Its conclusions and recommendations indicate that the process of globalization and liberalization are likely to have an unequal impact on poverty from one country to another. The participants also estimated that the benefits from the globalization and liberalization of the economy are likely to accrue to persons close to the poverty threshold rather than those in extreme poverty. They recommended that the trade liberalization policies should be prepared and implemented with careful attention in order to avoid any negative impact. Since unbridled liberalization could result in an increase in income inequalities, measures to ensure some balance in the redistribution of benefits should also be integrated into the economic decisions on globalization and liberalization. The importance of the training and education of persons in situations of poverty was emphasized, and the participants believed that they would encourage the mobility of labour considered indispensable when liberalization measures are adopted. Finally, they stressed that current knowledge about mechanisms determining the positive or negative effects of globalization and liberalization of the economy on poverty remains fairly limited.

FAO: Rome Declaration and Commitment 4 of the
Plan of Action (food and international trade)
World Food Summit, November 1996

20. The World Food Summit was held between 13 and 17 November 1996 at the headquarters of the Food and Agricultural Organization of the United Nations (FAO) in Rome (Italy). At the Summit, the Heads of State and Government present adopted the Rome Declaration on Food Security and the Plan of Action of the World Food Summit. The subject of food and international trade was a matter of intense discussion at the Summit. In the Rome Declaration, the Heads of State and Government agreed that "trade is a key element in achieving food security" and undertook to ensure "that food, agricultural trade and overall trade policies are conducive to fostering food security for all through a fair and market-oriented world trade system". This last passage of the Rome Declaration also constitutes Commitment 4 of the Plan of Action. In the text accompanying this commitment, it is stated that trade "has a major bearing on access to food through its positive effect on economic growth, income and employment". This text also states that trade policies should promote the objectives of sustainable growth and food security. Three objectives are established: (1) to meet the challenges of and utilize the opportunities arising from the international trade framework established in recent global and regional trade negotiations; (2) to meet essential food import needs, considering world price and supply fluctuations and taking especially into account food consumption levels of vulnerable groups in developing countries; (3) to support the continuation of the reform process in conformity with the Uruguay Round Agreements, particularly article 20 of the Agreement on Agriculture.

United Nations Organization: Adoption of the "Agenda for
Development", United Nations General Assembly, June 1997

21. The United Nations General Assembly met on 20 June 1997 to adopt the Agenda for Development. This initiative launched by the previous Secretary-General of the United Nations was the subject of a long negotiation process within the General Assembly ad hoc working party set up in December 1994. The text of the Agenda for Development mentions in particular the globalization process, pointing out that the strengthening of interdependence between States has accelerated the international impact of decisions of a macroeconomic kind and hence, their effects on the world economy as a whole. According to this text, this phenomenon has major consequences on developing countries, which have been particularly affected by globalization.(4)  The section devoted to economic change mentions amongst other matters international trade and commodities. Recalling that the integration of all countries into the international trade system is far from having been achieved, the text points out, however, that "the expansion of developing countries' markets appears to be creating a virtuous circle in which mutually beneficial liberalization of trade and investment can become major means for generating the resources necessary for development". The Agenda for Development also insists on the need to promote the greater integration of African countries and the least advanced countries in the international economic system. Efforts must be made to apply fully the provisions expressly dealing with the least advanced countries, in particular those contained in the Marrakesh Agreements. It is also desirable for the developed countries to open up their markets more to commodities and to provide a favourable response to the requests for technical assistance to diversify the exports of the developing countries which are heavily dependent on the export of a restricted number of products. The Agenda for Development recommends exploiting the possibilities of trade between the countries of the South by means of trade promotion campaigns, the preparation of payment agreements and the development of trade information. While regional integration trends are encouraged, it is however pointed out that they should be open to the outside world and support the multilateral trade system. It is also pointed out that the efforts made at the national level to combat poverty as well as unemployment and to promote the social integration may also draw benefit from regional cooperation. Finally, the text emphasizes that "the international community should support LDCs so that they benefit fully from the results of the Uruguay Round and to mitigate any adverse effect of the Final Act" (paragraph 196).

World Bank: World Bank policy concerning child labour -
Board of Executive Directors, June 1997

22. The question of child labour and its potential link with the liberalization of trade has been the subject of particular attention by the World Bank over the past year. Thus in June 1997, the Bank's Board of Executive Directors examined, on the basis of an internal document, the policy of this organization concerning child labour. The World Bank pointed out that this theme will be more and more regularly examined within the framework of the dialogue which it is pursuing with each of its member States. This institution also pointed out that it will in future increasingly favour development projects which seek to reduce the exploitation of children by work and that it would like to strengthen its relations with the ILO in this sphere.

ECOSOC: Substantive Session, July 1997 -- High level
segment on fostering an enabling environment for
development: financial flows, including capital flows;
investment; trade

23. The high level segment of the substantive session of the Economic and Social Council of the United Nations (ECOSOC) for 1997 was devoted to "fostering an enabling environment for development: financial flows, including capital flows; investment; trade". The report of the Secretary-General(5)  was prepared by the Secretariat of the United Nations, in collaboration with the Secretariat of UNCTAD and the World Bank. The ILO, IMF and the WTO as well as other international organizations also contributed to the preparation of this document. The document broadly describes the globalization process and expresses concern at the growing marginalization of Africa and the least advanced countries. It also points out that this situation is due in particular to the deterioration in the terms of trade affecting these countries within the framework of their trading activities and examines how a greater coherence between development aid, trade policies and investment policies can be achieved. Paragraph 29 of the document refers to the declaration adopted by the WTO Ministerial Conference (Singapore, 9-13 December 1996). The report emphasizes that the ministers present opposed the use of labour standards for protectionist purposes and that the comparative advantage of low-wage countries should not be called into question. It was, however, desirable for a dialogue to be established between the groups of countries with divergent positions on the subject. According to the document, this dialogue should enable more coherent policies to be promoted in order, in particular, to reduce unemployment, both in the developed and in the developing countries. In paragraph 69, the report of the Secretary-General states that a number of trade matters which have an impact on development should be studied by the WTO in the future, such as for example the search for wider access to international markets for developing countries in keeping with their comparative advantages, the undue use of anti-dumping measures or the erosion of generalized tariff preference measures.

24. The conclusions adopted on the subject of the high level segment(6)  contain in particular a section on trade and commodities (section G). This document calls on all countries to implement the Marrakesh Declaration, and also states that they should undertake to liberalize their trade policy as well as their investment policy. It points out that the application of possible unilateral measures for protectionist purposes should be avoided (paragraph 41). Finally, the conclusions adopted refer to the strengthening of the trading capacities -- in particular as regards exports -- of the least advanced countries as well as the broadening of their access to global markets.

25. The high level segment also included a round table, gathering together the delegations and officials of the main international, financial and trade institutions, the Director-General of the IMF, the Director-General of the WTO, the Secretary-General of UNCTAD as well as the Vice-President of the World Bank. During the dialogue with delegations, the subject of labour standards within the framework of the liberalization of international trade was raised by several delegates as well as by the WTO and UNCTAD. On each occasion, reference was made to the ILO and to the decisions and recommendations of the Singapore Ministerial Conference.

WTO: General Council, July 1997 -- Implementation
of paragraph 4 of the Singapore Ministerial
Declaration and relations with the ILO

26. The WTO Secretariat pointed out that the questions of relations between this organization and the ILO had been raised at the last meeting of the WTO General Council held on 16 July 1997 in Geneva. Some delegations had asked the Director-General of the WTO what the situation was regarding collaboration between these two organizations, in particular within the framework of paragraph 4 of the Singapore Ministerial Declaration. He was also asked whether the WTO had received information concerning ILO activities relating to labour standards. The Director-General replied as follows:

On the question of the continuation of the existing WTO Secretariat collaboration with the ILO, as in the past, this relationship involves first, the WTO Secretariat's participation in meetings of ILO bodies, second, exchange of documentation, and third, informal cooperation between the ILO and the WTO Secretariat. With respect to the participation of the WTO Secretariat in meetings of ILO bodies, the WTO is regularly invited to attend meetings of the ILO Governing Body and its committees, subcommittees and working parties, in an observer capacity. Representatives of the WTO Secretariat regularly attend, for example, the Working Party on the Social Dimensions of the Liberalization of International Trade. The most recent meeting was in March this year. The WTO Secretariat was present for the entire session of the recent International Labour Conference in June. As far as the exchange of documentation is concerned, following a request from the ILO, the WTO Secretariat provided the ILO Working Party on the Social Dimensions of the Liberalization of International Trade with the statements made by WTO members at the Singapore Ministerial Conference. Finally, informal cooperation between the two Secretariats continues as it has in the past. I maintain friendly and cooperative relations with Mr. Hansenne, as I do with other heads of international organizations, and the Director of the relevant WTO division and his staff keep up regular contact with ILO staff. In response to the second part of the question, I should note that -- as Members are no doubt aware -- a good deal of the ILO's work deals in one way or another with various aspects of labour standards in general and of core labour standards in particular. Much of the documentation involved is in the public domain, and readily available in hard copy or on the Internet. The most recent specific information we have is found in the Report of the Director-General of the ILO to the International Labour Conference, which covers core labour standards among other issues. Mr. Hansenne was kind enough to send me a copy of his Report personally, and I understand it is also freely available on the Internet. In conclusion, let me assure Members that in continuing our existing collaboration with our friends at the ILO, as mandated by Ministers, my colleagues and I keep firmly in mind and are guided by the points on which Ministers agreed in Singapore concerning this issue.

WTO:UNCTAD:ITC: -- High-level Meeting on
Integrated Initiatives for the Least Developed
Countries, October 1997

27. In accordance with the recommendations made at the Singapore Ministerial Conference, the WTO, UNCTAD and the International Trade Centre planned to hold on 27 and 28 October 1997 in Geneva, along with the World Bank, the IMF and the UNDP, a High-level Meeting on Integrated Initiatives for the Least Developed Countries. The ILO should, at all events, attend this meeting as an observer. The preparatory process of the meeting had allowed participants to agree on working methods. The meeting should thus take the form of two round tables on the themes of "Building the 'capacity to trade' in least developed countries" (theme A), and "Encouraging investment in least developed countries" (theme B). Item 4(a) of the agenda should also allow initiatives to be made to improve market access for the least developed countries and to diversify their export production. Finally, item 4(b) should also allow participants to adopt an integrated framework for technical assistance to help the least advanced countries develop and improve the nature of their trade-related activities. The replies received as of 20 September 1997 to the letter of invitation indicated that the 48 least advanced countries would be represented at the ministerial level.

(b) Other intergovernmental organizations or structures

Summit of the Group of 15 (November 1996):
Position on the subject of trade and international
labour standards

28. The Sixth Summit of the Heads of State and Government of the member countries of the Group of 15 (Algeria, Argentina, Brazil, Chile, Egypt, India, Indonesia, Jamaica, Malaysia, Mexico, Nigeria, Peru, Senegal, Venezuela and Zimbabwe) met between 3 and 5 November 1996 in Harare (Zimbabwe). The central theme of this Summit was "The current international training system and prospects for the promotion of trade among developing countries". In their communiqué, the Heads of State and Government said in particular that the question of the links between trade and fundamental labour standards should not be included on the agenda of trade negotiations. In their view only the ILO, by virtue of its mandate, should deal with this question.

OECD Council, May 1997: Position concerning
the respect of internationally recognized labour
standards and paragraph 4 of the Singapore
Ministerial Declaration

29. The OECD ministers met on 26 and 27 May 1997 in Paris (France) within the framework of the OECD Council. In this communiqué, they reaffirmed their conviction that the globalization process offers real opportunities for improving standards of living in their respective countries. This communiqué states that the question of the liberalization of international trade was examined during this Council. The ministers thus renewed their commitment to respect internationally recognized labour standards and rejected the use of these standards for protectionist purposes as agreed in the Singapore Ministerial Declaration. As regards employment and social cohesion, the ministers recognized that inequalities have increased, in particular as a result of unemployment and the deterioration in the situation of unskilled labour. They expressed their concerns about the increase in income inequalities and emphasized the need to fight against long-term unemployment and social exclusion.

G8 Summit (June 1997)

30. The Heads of State and Government of the eight countries of the most industrial countries (G8) met between 20 and 22 June 1997 in Denver (United States). A communiqué adopted by the Heads of State and Government of the G8 referred to the globalization process under way, and pointed out that a greater opening up of markets and greater integration into the international economic system offer opportunities for greater prosperity for all countries. The communiqué also stated that measures to expand the availability of education and vocational training and improving the responsiveness of labour markets were necessary. The Heads of State and Government also referred to the holding this autumn in Japan of the conference on employment and welcomed the proposal by the United Kingdom to host a conference of G8 ministers responsible for finance and social affairs early next year on growth, employability and inclusion. Recalling the commitments made at the Lyon Summit for a new partnership for development, the Heads of State and Government of the G8 reiterated their objective to help African countries progressively integrate themselves into the international economic system. They recalled in this connection that access to the markets of the G8 countries was vital for the countries of sub-Saharan Africa and undertook to promote this access. They also mentioned the role which the WTO should play on behalf of the developing countries and in particular African countries, and that the latter should be the main beneficiaries of the Plan of Action for the least advanced countries adopted at the Singapore Ministerial Conference. In this connection, they also mentioned the organization in October 1997 by the WTO, UNCTAD and the ITC of a High-level Meeting on Integrated Initiatives for the Least Advanced Countries. Finally, they encouraged the African countries to take measures towards the liberalization of trade at the regional and international levels.

31. During the Summit, the Trade Union Advisory Committee (TUAC) of the OECD made a statement which noted in particular:

The global economy can only function with domestic support: that support, along with support from multinational institutions, will erode unless policy-makers at all levels address the concerns of working people and demonstrate that the multilateral system can deliver economic and social progress.

(c) Regional or subregional organizations

SELA: Latin American Council, October 1996 --
High-level meeting on the process of the
globalization and liberalization of the
economy and regional integration

32. The Permanent Secretariat of the Latin American Economic System (SELA) organized a high-level meeting on the process of the globalization and liberalization of the economy and regional integration during the 22nd Ordinary Meeting of the Latin American Council which was held in October 1996 in Montevideo (Uruguay). The President of Uruguay, the Secretary-General of UNCTAD, the Deputy Director-General of the WTO, the Secretary-General of the Latin American Integration Association (ALADI), the Secretary-General of the Caribbean Community (CARICOM) and the Permanent Secretary of SELA participated in this dialogue. Three main questions were raised during the debates: What should be the response to the process of globalization and liberalization under way? How, within the framework of a globalized economy, can the risks of the marginalization of the weakest be reduced? What is the role of trade and regional integration in the face of these challenges?

ALADI: Meeting of October 1996 -- Meeting
to examine the implementation of the Uruguay
Round and the functioning of the WTO

33. The Secretariat of the Latin American Integration Association (ALADI), in cooperation with SELA and the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), organized on 21 October in Montevideo (Uruguay) a meeting to examine the implementation of the Uruguay Round and the functioning of the WTO. This meeting gathered together high government officials responsible for trade policy within the Latin American region. Reference was made in the document which served as a basis for the discussion to the link between trade and labour standards. ILO initiatives in this sphere are mentioned in particular the activities of the Working Party on the Social Dimension of the Liberalization of International Trade. This document also notes the initiatives to set up a working party on the subject within the WTO.

APEC: Ministerial Meeting, November 1996 --
Activities relating to the analysis of labour markets
within APEC

34. During the Eighth Ministerial Meeting of the Asia-Pacific Economic Cooperation (APEC) (22-23 November 1996, Manilla, Philippines), participants studied the activities of the Working Party responsible for human resources development (HRD) and noted with interest the results of the Meeting of the Ministers responsible for human resource development of the different APEC countries (January 1996, Manilla, Philippines), the main subject of which was "Preparing the APEC workforce for the twenty-first century: Transition and challenges". This last meeting reaffirmed the importance of the analysis of labour markets in APEC countries, and the need to strengthen this kind of activity within the Working Party on HRD. In particular, it was decided to set up amongst APEC members a Labour Market Information Network (LMI). This network will promote joint studies as well as the establishment of a database on labour markets, labour standards, migrant workers, the situation of local employment and labour legislating in the region. A LMI subgroup has been set up within the framework of the Working Party on HRD to enable information to be exchanged on labour markets in the APEC countries.

MERCOSUR: Meeting of the Social and Economic
Forum of MERCOSUR, November 1996 --
Discussions on a possible Charter of Workers'
Fundamental Rights

35. The Social and Economic Forum of the Southern Common Market (MERCOSUR), with each delegation comprising an equivalent number of representatives of workers and employers, met for the second time on 30 October and 1 November 1996 in Rio de Janeiro (Brazil). The participants decided to set up three working groups with each responsible for several themes. These include in particular the promotion of employment, safety and health at the workplace, labour relations, health, education, and the preparation of a Charter of Workers' Fundamental Rights. As regards this last point, a Charter of Fundamental Rights of MERCOSUR was proposed in December 1993 by the workers' organizations of the member countries, even before the establishment of the Social and Economic Forum. This draft Charter recognized the right of workers to free circulation, fundamental rights of the person (in particular the right to a job or the right to vocational training), collective rights (freedom of association, collective bargaining, right to strike, etc.) and the right to social security. The draft also proposed a procedure for monitoring the application of this Charter. This proposal has not yet been adopted but is still being studied in the Forum and Subgroup 10 (issues relating to employment, social security and labour) of MERCOSUR.

Economic and Social Committee of the European Union,
February 1997: Opinion on the proposal for a Council
Regulation suspending the GTP for Myanmar

36. On 27 February 1997 the Economic and Social Committee issued an opinion approving without reserve the Commission proposal and asking it to keep a close eye on the activities of multinational companies based in the European Union which could benefit, albeit indirectly, from forced labour practices and could, by their investments, support the Government in power in Myanmar.(7) 

Council of the European Union, March 1997:
Withdrawal of access to GTP from Myanmar

37. The Council of the European Union (EU) met on 24 March 1997 and decided, following proposals from the European Commission, to withdraw provisionally access to generalized tariff preferences (GTP) from Myanmar in the industrial and agricultural sectors because of the practices of forced labour used in this country, and until such practices have ceased.(8)  Conventions Nos. 29 and 105 of the ILO are mentioned in the Council's decision. This is the first case of a withdrawal of access to the GTP for reasons relating to the violation of human rights.

ANASE: Meeting of the Labour Ministers of ANASE (April 1997) --
Link between labour standards and international trade

38. The Ministers of Labour of the member countries of the Association of Nations of South-East Asia (ANASE) met on 22 and 23 April 1997 in Hanoi (Viet Nam) and reaffirmed their opposition to the establishment of any link between labour standards and international trade. They believed that the question of labour standards should be debated within the ILO.

European Parliament/Latin American Parliament Meeting,
May 1997: Debate on globalization and regional integration

39. The European Parliament organized, together with the Latin American Parliament, the XIIIth EU/Latin America Interparliamentary Conference between 19 and 23 May 1997 in Caracas (Venezuela). One of the subjects discussed at this conference was the role of members as regards globalization and regional integration. The possible consequences of these phenomena on labour markets and the workers themselves were raised by the members present.

SAARC Summit, May 1997: Position concerning
the link between social considerations and trade

40. The Ninth Summit of the Heads of State and Government of the member countries of the South Asian Association for Regional Cooperation (SAARC) took place between 12 and 14 May 1997 in Malé (Maldives). In their declaration, the Heads of State and Government expressed their concerns about the rising protectionist pressures to link in particular for political reasons the import of goods from the developing countries to social and environmental considerations or human rights. The Heads of State and Government reaffirmed their commitment to promoting a non-discriminatory international economic system ensuring the integration of the developing countries into the global economy and allowing a genuine distribution of the fruits of liberalization. They also appealed to the developed countries to reduce their trade restrictions, which have a negative impact on access by the developing countries to world markets.

OAS: Meeting of the Ministers of Trade of the OAS (May 1997) --
Position of the Ministers of Labour and the Ministers of Trade
concerning the link between fundamental labour standards and
trade and paragraph 4 of the Singapore Ministerial Declaration

41. The Ministers of Labour of the member countries of the Organization of American States (OAS) made a joint declaration during the Third Meeting of Ministers of Trade of these countries (May 1997, Belo Horizonte, Brazil). The OAS pointed out that this declaration supersedes the preliminary report which the Ministers of Labour had addressed to the Ministers of Trade during their previous meeting (March 1996, Cartagena de Indias, Colombia). The Ministers of Labour referred to the Declaration and Plan of Action of Buenos Aires adopted in October 1995 during the 10th Inter-American Conference of Ministers of Labour as well as the activities of the Working Group on economic integration and its impact on labour and migration movements. They also mentioned the need to respect the fundamental labour standards established by the ILO, within the framework of the process of continental integration. They also reiterated the suggestions made to the OAS Ministers of Trade during their previous meeting. These suggestions are set forth in detail in the previous document on the subject.(9)  In their declaration, the Ministers of Labour reaffirmed their support for the Singapore Ministerial Declaration, in particular paragraph 4 referring to fundamental labour standards and the respective role of the ILO and the WTO in this sphere.

42. During this same meeting, the Ministers of Trade decided not to discuss the subject of fundamental labour standards. On the other hand, they took note, in their joint declaration, of the declaration of Ministers of Labour and reaffirmed their support for paragraph 4 of the Singapore Ministerial Declaration.

APEC: Meeting of the Ministers of Trade of APEC, May 1997 --
Position of the Ministers of Trade concerning the integration of
the least advanced countries into the international trade system

43. The Ministers of Trade of the member countries of APEC met in May 1997 in Montreal (Canada). In particular, they examined the evolution of international trade, together with the Director-General of the WTO, and gave their support to the efforts for the integration of the least advanced countries into the international trading system, in accordance with the Singapore Ministerial Declaration.

San José Summit (May 1997): Position concerning human rights
(Universal Declaration of Human Rights) and workers' rights
(ILO Constitution and Conventions)

44. The Heads of State of the member countries of the Central American Common Market (except Panama), the President of the Dominican Republic, the Prime Minister of Belize and the President of the United States met in May 1997 in San José (Costa Rica) and issued a declaration reaffirming their commitment to the respect of human rights, as set forth in the Universal Declaration of Human Rights as well as workers' rights, as enshrined in the Constitution and Conventions of the ILO. They also recognized in their declaration the role played by employment in the economic integration process of the continent. The Department of Labor of the United States expressed its intention to invite, before the end of 1997, the Ministers of Labour of the countries concerned to a review of the implementation of the commitments entered into at San José.

Summit of the Rio Group, August 1997: Reference to the
employment and trade policies in the final Declaration of the Summit

45. The Heads of State and Government of the member countries of the Rio Group (Argentina, Brazil, Bolivia, Colombia, Chile, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay, Venezuela, a country from Central America (rotation) and a country from the Caribbean (rotation)), met in August 1997 in Asuncion (Paraguay). In their Final Declaration, they insisted that trade should not be linked to labour or environmental policies. In the view of the group, the WTO was the appropriate forum for dealing with questions linked to trade, and the ILO for discussing labour issues.

MERCOSUR: Meeting of August 1997 of Sub-Working group 10
(matters related to employment, social security and labour)
of MERCOSUR -- Discussions on a possible Social Charter

46. The ILO participates regularly in the meetings of Sub-Working group 10 and its committees, the most recent of which was held between 18 and 22 August 1997 in Montevideo (Uruguay). So far, one of the most decisive results of this subgroup has been the preparation of a multilateral agreement on social security within the Southern Common Market. This agreement is currently being studied by MERCOSUR. Another subject of interest within the subgroup is the proposal by Argentina for the setting up of a system of occupational relations within MERCOSUR. If agreement is reached between the different member countries of MERCOSUR, this system would comprise a protocol associated with the Treaty of Asuncion, the Treaty which set up MERCOSUR. This protocol should determine the commitments, rights and obligations of member countries as regards occupational relations, employment and migrant workers. Of the commitments to be undertaken by member countries, mention can be made of the need to respect certain internationally recognized labour rights such as the abolition of forced labour, freedom of association, the right to collective bargaining or the prohibition of work by minors. This initiative is considered as the first stage of a process leading to the adoption of a Charter of fundamental workers' rights. In this respect, several draft texts for the MERCOSUR Social Charter have either been proposed (Argentina, Uruguay) or are being drawn up by other member countries (Brazil, Paraguay). These various projects should shortly be examined by the workers' and employers' organizations of each country and subsequently presented within subgroup 10 as tripartite national proposals.

C. Other activities and work

(a) Universal organizations

WTO: Plan of Action for the least advanced countries

47. The member States of the World Trade Organization (WTO) also adopted in Singapore a Plan of Action on behalf of the least advanced countries. One of the major objectives of this plan is to ensure that all these countries participate fully in the activities of the organization. The WTO is responsible in particular, in close cooperation with UNCTAD and the ITC, to provide technical assistance to these countries enabling them to develop expertise in the sphere of trade policies. A programme to strengthen Bangladesh's integration into the world economic and trading system was launched on 23 September 1997 by these three organizations, along with the UNDP and ESCAP. This programme will be examined during the high-level meeting organized on 27 and 28 October 1997. Other programmes are being prepared in Cambodia, Gambia and Madagascar.(10) 

UNCTAD: Study on regional and subregional
integration experiences of developing countries

48. The United Nations Conference on Trade and Development (UNCTAD) presented in June 1997 a document(11)  which reviews regional and subregional integration experiences of developing countries and mentions in particular their cooperation in the sphere of trade. Referring to the rapid progress of the regional and subregional integration process, UNCTAD believes that this phenomenon is due in part to fear by the developing countries of being marginalized on global markets. The emergence of regional economic areas including the main trading powers in the world has also caused apprehension amongst developing countries about the consequences which this might have for entry conditions for these markets. This study also emphasizes the limited progress achieved in preferential trade liberalization and the effect of this lack of progress on the trading performances of African countries.

ECLAC: Activities concerning the link between
intraregional trade and conditions of work

49. The Division of International Trade, Transport and Finance of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) is responsible for the implementation of Subprogramme 17-2 entitled "Integration, open regionalism and regional cooperation". The strengthening of the link between intraregional trade and conditions of work as well as the promotion of the social dimension of integration processes, in particular as regards employment, social security, education, training and migrations, is included on the agenda of this subprogramme. Subprogramme 10 of ECLAC devoted to subregional activities in Mexico and Central America for 1998-99 will give special attention to the convergence between social policy and globalization. The effects of the different integration processes on employment and labour standards will be a focus of the concerns of this subprogramme, as well as the impact of globalization in such spheres as social security, human resource development and migratory movements within the subregion. As regards activities linked to international trade, the ECLAC subprogramme will give particular attention to the participation of small and medium-sized enterprises in the trade flows of the countries.

50. ECLAC pointed out that it had published in 1997 a study in two volumes entitled Aspectos sociales de la integracion. The first volume refers in particular to the different social clauses existing within the framework of Latin American integration agreements. The second volume focuses on the link between globalization, trade agreements and development in Latin America.

FAO: United Nations Organization for Food and Agriculture

51. The FAO said that it had recently carried out two studies analysing the implications of the Uruguay Round Agreements as regards food security in the countries of southern Africa. A study on the relationship between export gains due to the liberalization of markets and food security was scheduled for 1998. Several FAO technical assistance projects have also examined the liberalization of trade and its consequences on food security.

WHO: World Health Organization

52. According to the World Health Organization (WHO) the links between public health action and international trade are clear and quantifiable. For this reason the organization would like to see agreements concerning the health sector concluded within the framework of free trade agreements. The WHO collaborates with the WTO and participates as an observer in the work of the WTO Committee on Sanitary and Phytosanitary Measures as well as in that of the Committee on Technical Barriers to Trade. The role of the FAO/WHO Codex Alimentarius Commission as regards health standards for food products is also mentioned in the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.

IOM: International Organization for Migration

53. In March 1997 the IOM launched a project entitled A new regime for Orderly Movements of People. The objective of this project is to develop a migratory regime to improve the management of migratory flows and ensure that these movements are useful for all the parties concerned. This project will also propose a series of measures concerning in particular the protection of migration workers.

(b) Regional and subregional organizations

North American Agreement on Labor Cooperation:
Commission for Labor Cooperation --
Study on plant closings and labor rights

54. On 9 June 1997 the Commission for Labor Cooperation published the results of a special preliminary study under the North American Agreement on Labor Cooperation (NAALC) entitled Plant closings and labor rights. At the request of the Ministerial Council (made up of the Secretary of Labor of the United States, the Secretary of Labour and Social Security of Mexico and the Minister of Labour of Canada), the Secretariat of the Commission analysed the repercussions of plant closings and threatened closings on the principle of freedom of association and the right of workers to organize in the three signatory countries of the NAALC. This study, commissioned by the ministers, is part of a plan of action established during the ministerial consultations held at the request of Mexico in 1995 respecting the sudden closure (by the Sprint company) of a telemarketing enterprise of San Francisco just before a vote on the subject of representation. Under the NAALC, the Trade Union of Workers in the Telephone Sector of Mexico lodged a complaint with the National Administrative Office of the Ministry of Labour of Mexico. This complaint resulted in ministerial consultations between the United States and Mexico, in which Canada took part. This report describes the protection provided by the labour legislation of each of the three countries concerning the closing or threatened closing of plants to prevent unionization. It then describes the way in which the laws have been applied over the last ten years. At the end of the study, it is proposed that other questions should be studied in greater detail, in particular the improvement of information and codes of conduct on the closing of plants and labour rights to which enterprises doing business in North America should adhere. These are models adopted by the United States, Mexico and Canada, and prepared by the OECD and the ILO (reference to the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy).

55. The Commission stated on 18 September 1997 how it planned to measure the effectiveness of the NAALC and to examine the situation regarding cooperation between the three countries in this sphere. It also informed the Office that it had published recently several studies, including: North American Labor Markets: A Comparative Profile (published in September 1997) and Preliminary report on industrial relations laws in the United States, Canada and Mexico (published in January 1997). Other studies will be published shortly.

APEC: Asia-Pacific Economic Cooperation --
Projects concerning labour markets within APEC

56. APEC stated that a project to strengthen the regional labour market was being implemented in two phases. The first concerned the creation of a database on the regional labour market and the second the carrying out of studies on the labour market (a study is planned on temporary migrant workers within APEC). Another project examines the occupational skill standards in force in APEC countries and explores the possibility of the mutual recognition of skills within APEC. In 1998, APEC will also carry out two projects, the first dealing with the links between paid and unpaid work within the framework of the formulation of human resource development policies; the second will consist of a study of wage levels and labour productivity in the member countries of APEC. These two projects should be completed by the end of 1999.

CACM: Central American Common Market --
Draft resolution to establish common labour 
legislation within the CACM

57. The Central American Parliament (PARLACEN), a body of the Central American Common Market (CACM), examined in 1997 a draft resolution to establish common labour legislation within the six countries. This project is still being examined and in the event of adoption, will also have to be ratified by the governments and parliaments of the member countries.

ECOWAS: Economic Community of West African States --
Technical cooperation project in the sphere of training
in international trade

58. A technical cooperation project in the sphere of training in international trade for the member countries of the Economic Community of West African States (ECOWAS) was launched in July 1996. This project is financed by the European Commission and implemented by ECOWAS and UNCTAD (TRAINFORTRADE programme). Its objective is to develop the skills of managers in the countries of West Africa and to increase the role of these countries in regional and global trade. The officials responsible for trade policies at government level as well as those in the private sector concerned by foreign trade will be the direct beneficiaries.

Geneva, 21 October 1997.


 1. Documents GB.267/WP/SDL/1/3, GB.265/WP/SDL/1/3 and GB.262/WP/SDL/Inf.2.

2. Policy research working paper No. 1817, Aug. 1997. This document also contains some developments on the subject of freedom of association which will undoubtedly result in observations by the competent services of the Office.

3. Document GB.267/WP/SDL/2.

4. Document A/AC.250/1 (para. 7).

5. Document E/1997/67.

6. Document E/1997/L.56.

7. Bulletin of the European Union, 1/2, 1997, point 1.3.62.

8. Council Regulation No. 522/97/EC.

9. GB.267/WP/SDL/1/3, para. 65.

10. UNCTAD Press Release TAD/INF/2719, 26 Sep. 1997.

11. Regional experiences in economic integration process of developing countries, document UNCTAD/ITCD/TSB/1.


Updated by VC. Approved by NdW. Last update: 26 January 2000.