Bal Harbour, FL
The 1995 deficit in goods is setting a new record. That deficit demonstrates the failure of government trade policy with its adverse impact on the jobs and incomes of American workers.
Enforcement of Trade Agreements
The U. S. Trade Representative's office has set up a permanent unit at USTR devoted exclusively to monitoring all U.S. trade agreements and implementing U.S. trade laws and pushing for compliance by foreign governments. Diligent monitoring and aggressive enforcement of all U.S. trade agreements by USTR are critical steps in the right direction.
Worker Rights and Trade
History tells us that trade unions through collective bargaining and government through adequately enforced labor laws are necessary to insure that increased trade really does lead to higher standards of living for all workers. To bring reality to the concept of internationally-recognized worker rights, a variety of policies should be pursued.
Worker rights must be made a principal trade negotiating objective of the United States, and this country must insist in all trade negotiations that worker rights provisions are necessary if agreements are to be reached. Those provisions must include the prohibition of forced labor, guarantees on freedom of association and the right to organize and bargain collectively, as well as nondiscrimination in employment. Rules should also be established to insure a safe and healthy workplace, prevent child labor, and establish appropriate standards concerning hours of work.
The Administration must redouble its efforts to make worker rights part of the World Trade Organization program of work. We therefore call on the Administration to reiterate its commitment toward creating a working party on International Labor Standards at the Ministerial meeting in Singapore later this year.
While workers are affected by the full range of issues addressed by the proposed Free Trade Area of the Americas (FTAA), the AFL-CIO believes that it is most important for the second Western Hemisphere Trade Ministerial, to held in Cartagena, Columbia on March 21, 1996, to place worker rights and labor standards at the heart of the FTAA process. Economic integration must go beyond a narrow focus on business interests and directly address the needs and aspirations of workers throughout the Hemisphere.
To this end, the U.S. government should insist that any ministerial declaration affirm that respect for and strengthening of worker rights and labor standards are essential to the success of Hemispheric economic integration and that such rights and standards must be considered and included in any negotiations. It is particularly important for the Declaration to establish a formal inter-government working group on this question to examine the ways and means for incorporating basic rights and standards in the FTAA.
The Asia-Pacific Economic Cooperation (APEC) Osaka Ministerial last year produced an Action Agenda to serve as the blue print to achieve free trade in the Asia-Pacific region. Part two of the agenda defines work to be undertaken collectively by working groups in 10 areas, including human resource development. Unfortunately, the APEC list of priority items to address human resource needs does not mention internationally recognized worker rights. The AFL-CIO recommends that the action agenda of the upcoming ministerial in Manila include a commitment by APEC countries to promote and recognize worker rights.
The Administration must fully utilize the worker rights provisions present in existing law, including Section 301 of the 1988 Trade Act, the Generalized System of Preferences, the Overseas Private Investment Corporation, the Caribbean Basin Initiative, and requirements that worker rights be supported in the operations of the international financial institutions.
MFN Status for China
The Executive Order outlining conditions for renewal of U.S. most-favored-nation (MFN) trading status for China in 1994 explicitly stated that the trading privileges would not be renewed unless the Secretary of State could determine that "extension (of MFN) will substantially promote the freedom of emigration objectives of section 402 of the (1974 Trade) Act; and China is complying with the 1992 bilateral agreement between the United States and China concerning prison labor." Furthermore, China was to have made "significant progress with respect to the following:
- Taking steps to begin adhering to the Universal Declaration of Human Rights;
- Releasing and providing an acceptable accounting for Chinese citizens imprisoned or detained for the nonviolent expression of their political and religious beliefs, including such expression of beliefs in connection with the Democracy Wall and Tiananmen Square movements;
- Ensuring humane treatment of prisoners, such as by allowing access to prisons by international humanitarian and human rights organizations;
- Protecting Tibet's distinctive religious and cultural heritage;
- Permitting international radio and television broadcasts into China."
Despite the fact that these conditions were not met, the Administration decided to renew the MFN status in May, 1995. The U.S. trade deficit will total $35 billion in 1995, second only to Japan.
The AFL-CIO calls upon the Administration and the Congress not to renew most-favored-nation status for China. The United States should no longer support the Chinese government's repression of its own citizens.
The AFL-CIO supports the efforts of the Administration to deny China World Trade Organization membership until it meets appropriate trade and human rights standards.