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Exhibit 1

OMNIBUS TRADE AND COMPETITIVENESS ACT OF 1988

(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES -

(14) WORKER RIGHTS - The principal negotiating objectives of the United States regarding worker rights are -

(A) to promote respect for worker rights;
(B) to secure a review of the relationship of worker rights to GATT articles, objectives, and related instruments with a view to ensuring that the benefits of the trading system are available to all workers; and
(C) to adopt, as a principle of the GATT, that the denial of worker rights should not be a means for a country or its industries to gain competitive advantage in international trade.

Exhibit 2

EXPORT EXPANSION
AND RECIPROCAL TRADE AGREEMENTS ACT OF 1997

SEC. 2. TRADE NEGOTIATING OBJECTIVES.

(a) OVERALL TRADE NEGOTIATING OBJECTIVES - The overall trade negotiating objectives of the United States for agreements subject to the provisions of section 3 are -
(5) to address those aspects of foreign government policies and practices regarding labor, the environment, and other matters that are directly related to trade and decrease market opportunities for United States exports or distort United States trade.

(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES -
(7) WORKER RIGHTS AND ENVIRONMENTAL PROTECTION - The principal negotiating objectives of the United States regarding worker rights and protection of the environment are, through the WTO -

(A) to promote respect for internationally recognized worker rights, including with regard to child labor;
(B) to secure a review of the relationship of internationally recognized worker rights to the provisions, objectives, and instruments of the WTO with a view to ensuring that the benefits of the trading system are available to all workers;
(C) to adopt, as a principle of the World Trade Organization, that the denial of internationally recognized worker rights should not be a means for a country or its industries to gain competitive advantage in international trade;

The United States will also seek to establish in the International Labor Organization a mechanism for the systematic examination of, reporting on, and accountability for the extent to which member governments promote and enforce core labor standards.

SEC. 7. DEFINITIONS AND CONFORMING AMENDMENTS.

(a) DEFINITIONS. - For purposes of this Act:

 (1) The term "core labor standards" means -

(A) freedom of association;
(B) the right to organize and bargain collectively;
(C) a prohibition on forced labor;
(D) a prohibition on exploitative child labor; and
(E) a prohibition on discrimination in employment.

(4) The term "internationally recognized worker rights" has the meaning ascribed to that term in section 507(4) of the Trade Act of 1974, as amended.


Exhibit 3

RECIPROCAL TRADE AGREEMENT AUTHORITIES ACT OF 1997
U.S. House of Representatives

SEC.2.TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES

(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES -

(7) LABOR, THE ENVIRONMENT, AND OTHER MATTERS - The principal negotiating objective of the United States regarding labor, the environment, and other matters is to address the following aspects of foreign government policies and practices regarding labor, the environment, and other matters that are directly related to trade.

(A) To ensure that foreign labor, environmental, health, or safety policies and practices do not arbitrarily or unjustifiably discriminate or serve as disguised barriers to trade.
(B) To ensure that foreign governments do not derogate from or waive existing domestic environmental, health, safety, or labor measures, including measures that deter exploitative child labor, as an encouragement to gain competitive advantage in international trade or investment. Nothing in this subparagraph is intended to address changes to a country's laws that are consistent with sound macroeconomic development.

(c) INTERNATIONAL ECONOMIC POLICY OBJECTIVES -

(1) IN GENERAL - The President should take into account the relationship between trade agreements and other important priorities of the United States and seek to ensure that the trade agreements entered into by the United States complement and reinforce other policy goals. The United States priorities in this area include -

(C) promoting respect for worker rights and the rights of children and an understanding of the relationship between trade and worker rights, particularly by working with the International Labor Organization to encourage the observance and enforcement of core labor standards, including the prohibition on exploitative child labor; and

Exhibit 4

THE RECIPROCAL TRADE AGREEMENTS ACT OF 1997
U.S. Senate

SEC.2.TRADE NEGOTIATING OBJECTIVES OF THE UNITED STATES

(b) PRINCIPAL TRADE NEGOTIATING OBJECTIVES - The principal trade negotiating objectives of the United States for agreements subject to the provisions of section 3 include the following:

(15) REGULATORY COMPETITION - The principal trade negotiating objectives of the United States regarding the use of government regulation or other practices by foreign governments to provide a competitive advantage to their domestic producers, service providers, or investors and thereby reduce market access for United States goods, services, and investment are -

(B) to prevent the use of foreign government regulation and other government practices, including the lowering of, or derogation from, existing labor (including child labor), health and safety, or environmental standards, for the purpose of attracting investment or inhibiting United States exports.

Nothing in subparagraph (B) shall be construed to authorize in an implementing bill, or in an agreement subject to an implementing bill, the inclusion of provisions that would restrict the autonomy of the United States in these areas.

(c) INTERNATIONAL ECONOMIC POLICY OBJECTIVES DESIGNED TO REINFORCE THE TRADE AGREEMENTS PROCESS-

(1) IN GENERAL - It is the policy of the United States to reinforce the trade agreements process by -

(C) promoting respect for workers' rights, by -

(i) reviewing the relationship between workers' rights and the operation of international trading systems and specific trade arrangements; and
(ii) seeking to establish in the ILO a mechanism for the systematic examination of, and reporting on, the extent to which ILO members promote and enforce the freedom of association, the right to organize and bargain collectively, a prohibition on the use of forced labor, a prohibition on exploitative child labor, and a prohibition on discrimination in employment; and


Exhibit 5


GENERALIZED SYSTEM OF PREFERENCES
Title V of the Trade Act of 1974, as amended

SEC.502. DESIGNATION OF BENEFICIARY DEVELOPING COUNTRIES

(b) COUNTRIES INELIGIBLE FOR DESIGNATION. -

(2) OTHER BASES FOR INELIGIBILITY. - The President shall not designate any country a beneficiary developing country under this title if any of the following applies:

(G) Such country has not taken or is not taking steps to afford internationally recognized worker rights to workers in the country (including any designated zone in that country).

Subparagraphs (D), (E), (F), and (G) shall not prevent the designation of any country as a beneficiary developing country under this title if the President determines that such designation will be in the national economic interest of the United States and reports such determination to the Congress with the reasons therefor.

(c) FACTORS AFFECTING COUNTRY DESIGNATION. - In determining whether to designate any country as a beneficiary developing country under this title, the President shall take into account-

(7)whether or not such country has taken or is taking steps to afford to workers in that country (including any designated zone in that country) internationally recognized worker rights.

SEC.507. DEFINITIONS.

For purposes of this title:

(4) INTERNATIONALLY RECOGNIZED WORKER RIGHTS. - The term "internationally recognized worker rights" includes -

(A) the right of association;
(B) the right to organize and bargain collectively;
(C) a prohibition on the use of any form of forced or compulsory labor;
(D) a minimum age for the employment of children; and
(E) acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and health.

Section 6.

THE URUGUAY ROUND AGREEMENTS ACT
(as amended)

SEC.131. WORKING PARTY ON WORKER RIGHTS

(a) IN GENERAL. - The President shall seek the establishment in the GATT 1947, and, upon entry into force of the WTO Agreement with respect to the United States, in the WTO, of a working party to examine the relationship of internationally recognized worker rights, as defined in section 502(a)(4) of the trade Act of 1974, to the articles, objectives, and related instruments of the GATT 1947 and of the WTO, respectively.

(b) OBJECTIVES OF WORKING PARTY. - The objectives of the United States for the working party described in subsection (a) are to -

(1) explore the linkage between international trade and internationally recognized worker rights, as defined in section 502(a)(4) of the Trade Act of 1974, taking into account differences in the level of development among countries;
(2) examine the effects of international trade of the systematic denial of such rights;
(3) consider ways to address such effects; and
(4) develop methods to coordinate the work program of the working party with the ILO.

(c) REPORT TO CONGRESS . - The President shall report to the Congress, not later than 1 year after the date of the enactment of this Act, on the progress made in establishing the working party under this section, and on United States objectives with respect to the working party's work program.

Exhibit 7

SEVEN CORE ILO CONVENTIONS ON WORKERS' RIGHTS

Abolition of Forced Labor Convention, 1957 (No. 105); adopted by the United States

Discrimination (Employment and Occupation) Convention, 1958 (No. 111); approved by TAPILS

Freedom of Association and Protection of the Right to Organize, 1948 (No. 87)

Right to Organize and Collective Bargaining Convention, 1949 (No. 98)

Forced Labor Convention, 1930 (No. 29)

Equal Renumeration Convention, 1951 (No. 100)

Minimum Age Convention, 1973 (No. 138)


ADDRESSING CONCERNS ABOUT PROTECTION FOR
WORKERS' RIGHTS

INTEREST CHARTS

To facilitate the development of a negotiating strategy, I have created the attached charts showing the interests of all significant parties to the issue: the White House and the Office of the U.S. Trade Representative, the Republican-controlled Ways and Means and Finance committees, House Democrats, the U.S. business community, and organized labor groups. These charts outline the interests, options, best alternative to a negotiated agreement (BATNA), and objective criteria for each of these parties.

PREFERRED OUTCOME

Address the concerns of House Democrats about protection for workers' rights in a way that will 1) allow Democrats to end their opposition to (if not support) legislation for renewed trade negotiating authority, and 2) take into account the interests of the Republican-controlled Congress.

 

THE WHITE HOUSE/OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE:

INTERESTS

OPTIONS

BATNA

OBJECTIVE CRITERIA

1998 Trade Policy Agenda;

rising living standards;

achieve consensus, political support for trade liberalization;

listen to concerns; confront fears of trade liberalization;

advance worker and environmental standards around the world;

expect labor standards to improve as economies develop;

advance the global discussion on basic labor standards;

respect for basic human rights;

avoid protectionist attitudes;

Establish "global social label" to guarantee internationally-traded goods are produced under humane conditions;

Strictly enforce the factors affecting country designation for GSP program;

Raise questions concerning labor standards during proceedings of Trade Policy Review Body;

Establish working party in WTO to examine relationship of internationally recognized worker rights to the articles, objectives, and related instruments of the WTO;

Achieve agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

Increase technical assistance to clear path to improvement;

Adopt Declaration on Core Labor Standards;

Develop strengthened ILO supervisory mechanisms to monitor universal compliance;

Pursue campaign for ratification of all seven core ILO Conventions on workers’ rights by all countries;

Democratic Agenda: Social Security, health care, Medicare, minimum wage, teachers;

make side deals with legislators on other interests (log-rolling);

lead efforts on Democratic Agenda: Social Security, health care, Medicare, minimum wage, teachers;

assist Democrats in upcoming elections;

withhold support for AFL-CIO’s legislative agenda;

Establish "global social label" to guarantee internationally-traded goods are produced under humane conditions;

Disregard business interests, etc. and strictly enforce the factors affecting country designation for GSP program;

Raise questions concerning labor standards during proceedings of Trade Policy Review Body;

Achieve agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

Continue efforts to establish working party in WTO to examine relationship of internationally recognized worker rights to the articles, objectives, and related instruments of the WTO;

Adopt Declaration on Core Labor Standards;

The work of the President’s Apparel Industry Partnership (AIP);

Section 502 of the Trade Act of 1974, as amended (GSP Program);

WTO Trade Policy Review Body;

Section 131 of the Uruguay Round Agreements Act, as amended;

OECD Report: "Trade, Employment, and Labor Standards";

Current resource allocations of the ILO for technical assistance;

ILO Constitution and 1995 World Summit for Social Development in Copenhagen;

Freedom of Association supervisory mechanism;

The work of the Tripartite Advisory Panel on International Labor Standards;

 

 

REPUBLICAN-CONTROLLED WAYS AND MEANS AND FINANCE COMMITTEE:

INTERESTS

OPTIONS

BATNA

OBJECTIVE CRITERIA

free trade purists opposed any reference to labor standards;

only issues directly related to trade should be covered by fast-track procedures;

opposed to using trade sanctions for non-trade issues;

those particular aspects of practices and policies regarding labor, environment, and other matters that are themselves directly related to trade and serve as trade barriers or distortions to trade;

Any side agreements that the President may enter, using his executive authorities, with respect to such matters would be subject to normal legislative procedures;

opposed to the possibility of lowering U.S. standards;

fast-track legislation should not cover proposals that may change U.S. labor law;

rising living standards;

achieve consensus, political support for trade liberalization;

avoid protectionist attitudes;

1998 Trade Policy Agenda;

listen to concerns; confront fears of trade liberalization;

assist organized labor through Trade Adjustment Assistance and through increased economic growth through liberalized trade;

include provisions on the ILO; proffered the ILO’s standards and supervisory mechanisms as the way to deal fairly with labor conditions

Establish "global social label" to guarantee internationally-traded goods are produced under humane conditions;

Strictly enforce the factors affecting country designation for GSP program;

Raise questions concerning labor standards during proceedings of Trade Policy Review Body;

Establish working party in WTO to examine relationship of internationally recognized worker rights to the articles, objectives, and related instruments of the WTO;

Achieve agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

Increase technical assistance to clear path to improvement;

Adopt Declaration on Core Labor Standards;

Develop strengthened ILO supervisory mechanisms to monitor universal compliance;

Pursue campaign for ratification of all seven core ILO Conventions on workers’ rights by all countries;

make side deals with legislators on other interests (log-rolling);

maintain opposition to ANY reference to labor standards;

attempt to reduce influence of organized labor through restrictions on spending by unions;

assist Republicans in upsetting incumbent Democrats in upcoming elections;

oppose President’s ability to strictly enforce the factors affecting country designation for GSP program;

do not allow President to increase technical assistance;

oppose strengthened ILO supervisory mechanisms to monitor universal compliance;

oppose campaign for ratification of all seven core ILO Conventions on workers’ rights by all countries;

frustrate Democratic Agenda: Social Security, health care, Medicare, minimum wage, teachers;

withhold support for AFL-CIO’s legislative agenda;

The work of the President’s Apparel Industry Partnership (AIP);

Section 502 of the Trade Act of 1974, as amended (GSP Program);

WTO Trade Policy Review Body;

Section 131 of the Uruguay Round Agreements Act, as amended;

OECD Report: "Trade, Employment, and Labor Standards";

Current resource allocations of the ILO for technical assistance;

ILO Constitution and 1995 World Summit for Social Development in Copenhagen;

Freedom of Association supervisory mechanism;

The work of the Tripartite Advisory Panel on International Labor Standards;

 

 

HOUSE DEMOCRATS:

INTERESTS

OPTIONS

BATNA

OBJECTIVE CRITERIA

Our first step in reaching new trade agreements must be to require that all signatories enforce their basic laws;

The only truly effective way of dealing with this issue is being able to resort to trade sanctions if all else fails;

avoid "race to the bottom";

avoid job loss;

keep developing nations from lowering labor standards to "win in the global marketplace"

enforcement of domestic labor laws by trading partners; respect for worker rights and labor standards;

protect workers’ interests: better conditions, higher wages, relative job security, health care, pension benefits, safety

higher standards of living for all workers; raise living standards around the world

core labor standards: freedom of association, the right to organize and bargain collectively, non-discrimination in the workplace, and a prohibition on exploitive child labor and forced labor

listen to concerns; confront fears of trade liberalization;

"global social label" to guarantee internationally-traded goods are produced under humane conditions;

Strictly enforce the factors affecting country designation for GSP program;

Raise questions concerning labor standards during proceedings of Trade Policy Review Body;

Working party in WTO;

Agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

Increase technical assistance to clear path to improvement;

Declaration on Core Labor Standards;

Strengthened ILO supervisory mechanisms to monitor universal compliance;

Campaign for ratification of all seven core ILO Conventions on workers’ rights by all countries;

"Blue 301" – legislation that would allow for trade actions when another country doesn’t enforce its labor laws;

Minimum international labor standards;

respect for core worker standards;

strengthening of worker rights and labor standards;

harmonize labor standards upwards;

Enforce core labor rights with trade sanctions;

woo enough Republicans to join Democrats to form a majority;

achieve progress on labor through bilateral and regional agreements;

make side deals with legislators on other interests (log-rolling);

woo enough Republicans to join Democrats to form a majority;

complicate already difficult task of obtaining renewed trade negotiating authority;

derail President’s Trade Policy Agenda;

frustrate Republican Agenda;

frustrate Business Agenda;

INSIST on addressing labor standards in trade negotiations;

support President’s efforts to establish "global social label" to guarantee internationally-traded goods are produced under humane conditions;

support President’s efforts to strictly enforce the factors affecting country designation for GSP program;

support President’s efforts to raise questions concerning labor standards during proceedings of Trade Policy Review Body;

support President’s efforts to achieve agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

support President’s efforts to continue efforts to establish working party in WTO to examine relationship of internationally recognized worker rights to the articles, objectives, and related instruments of the WTO;

support President’s efforts to adopt Declaration on Core Labor Standards;

 

 

The work of the President’s Apparel Industry Partnership (AIP);

Section 502 of the Trade Act of 1974, as amended (GSP Program);

WTO Trade Policy Review Body;

Section 131 of the Uruguay Round Agreements Act, as amended;

OECD Report: "Trade, Employment, and Labor Standards";

Current resource allocations of the ILO for technical assistance;

ILO Constitution and 1995 World Summit for Social Development in Copenhagen;

Freedom of Association supervisory mechanism;

The work of the Tripartite Advisory Panel on International Labor Standards;

 

 

 

U.S. BUSINESS COMMUNITY:

INTERESTS

OPTIONS

BATNA

OBJECTIVE CRITERIA

free trade purists opposed any reference to labor standards;

only issues directly related to trade should be covered by fast-track procedures;

opposed to using trade sanctions for non-trade issues;

those particular aspects of practices and policies regarding labor, environment, and other matters that are themselves directly related to trade and serve as trade barriers or distortions to trade;

Any side agreements that the President may enter, using his executive authorities, with respect to such matters would be subject to normal legislative procedures;

opposed to the possibility of lowering U.S. standards;

fast-track legislation should not cover proposals that may change U.S. labor law;

rising living standards;

achieve consensus, political support for trade liberalization;

avoid protectionist attitudes;

1998 Trade Policy Agenda;

listen to concerns; confront fears of trade liberalization;

assist organized labor through Trade Adjustment Assistance and through increased economic growth through liberalized trade;

include provisions on the ILO; proffered the ILO’s standards and supervisory mechanisms as the way to deal fairly with labor conditions

Establish "global social label" to guarantee internationally-traded goods are produced under humane conditions;

Strictly enforce the factors affecting country designation for GSP program;

Raise questions concerning labor standards during proceedings of Trade Policy Review Body;

Establish working party in WTO to examine relationship of internationally recognized worker rights to the articles, objectives, and related instruments of the WTO;

Achieve agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

Increase technical assistance to clear path to improvement;

Adopt Declaration on Core Labor Standards;

Develop strengthened ILO supervisory mechanisms to monitor universal compliance;

Pursue campaign for ratification of all seven core ILO Conventions on workers’ rights by all countries;

maintain opposition to ANY reference to labor standards;

attempt to reduce influence of organized labor by supporting restrictions on spending by unions;

assist Republicans in upsetting incumbent Democrats in upcoming elections;

oppose President’s ability to strictly enforce the factors affecting country designation for GSP program;

oppose increase in technical assistance;

oppose strengthened ILO supervisory mechanisms to monitor universal compliance;

oppose campaign for ratification of all seven core ILO Conventions on workers’ rights by all countries;

frustrate Democratic Agenda: Social Security, health care, Medicare, minimum wage, teachers;

frustrate AFL-CIO’s legislative agenda;

 

 

 

The work of the President’s Apparel Industry Partnership (AIP);

Section 502 of the Trade Act of 1974, as amended (GSP Program);

WTO Trade Policy Review Body;

Section 131 of the Uruguay Round Agreements Act, as amended;

OECD Report: "Trade, Employment, and Labor Standards";

Current resource allocations of the ILO for technical assistance;

ILO Constitution and 1995 World Summit for Social Development in Copenhagen;

Freedom of Association supervisory mechanism;

The work of the Tripartite Advisory Panel on International Labor Standards;

 

 

ORGANIZED LABOR GROUPS:

INTERESTS

OPTIONS

BATNA

OBJECTIVE CRITERIA

avoid "race to the bottom";

avoid job loss;

keep developing nations from lowering labor standards to "win in the global marketplace"

enforcement of domestic labor laws by trading partners; respect for worker rights and labor standards;

protect workers’ interests: better conditions, higher wages, relative job security, health care, pension benefits, safety

higher standards of living for all workers; raise living standards around the world

core labor standards: freedom of association, the right to organize and bargain collectively, non-discrimination in the workplace, and a prohibition on exploitive child labor and forced labor

AFL-CIO’s legislative agenda: raise minimum wage; Long term goal: require employers to pay at least 75 percent of health insurance premiums; after years of building support; "how things ought to be"; Support for bills that require employers with more than 50 workers to offer pensions and bar companies from paying part-time workers less an hour than full-time workers for equivalent work

listen to concerns; confront fears of trade liberalization;

"global social label" to guarantee internationally-traded goods are produced under humane conditions;

Strictly enforce the factors affecting country designation for GSP program;

Raise questions concerning labor standards during proceedings of Trade Policy Review Body;

Working party in WTO;

Agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

Increase technical assistance to clear path to improvement;

Declaration on Core Labor Standards;

Strengthened ILO supervisory mechanisms to monitor universal compliance;

Campaign for ratification of all seven core ILO Conventions on workers’ rights by all countries;

Minimum international labor standards;

respect for core worker standards;

strengthening of worker rights and labor standards;

harmonize labor standards upwards;

Enforce core labor rights with trade sanctions;

threaten to withdraw support in the November elections from any members of Congress who back the President

woo enough Republicans to join Democrats to form a majority

achieve progress on labor through bilateral and regional agreements

INSIST on addressing labor standards in trade negotiations;

complicate already difficult task of obtaining renewed trade negotiating authority;

frustrate Republican Agenda;

frustrate Business Agenda;

assist with Democratic Agenda: Social Security, health care, Medicare, minimum wage, teachers;

assist Democrats in upcoming elections;

support President’s efforts to establish "global social label" to guarantee internationally-traded goods are produced under humane conditions;

support President’s efforts to strictly enforce the factors affecting country designation for GSP program;

support President’s efforts to raise questions concerning labor standards during proceedings of Trade Policy Review Body;

support President’s efforts to achieve agreement within OECD that there is a mutually supportive relationship between core labor standards and economic development and trade;

support President’s efforts to continue efforts to establish working party in WTO to examine relationship of internationally recognized worker rights to the articles, objectives, and related instruments of the WTO;

support President’s efforts to adopt Declaration on Core Labor Standards;

The work of the President’s Apparel Industry Partnership (AIP);

Section 502 of the Trade Act of 1974, as amended (GSP Program);

WTO Trade Policy Review Body;

Section 131 of the Uruguay Round Agreements Act, as amended;

OECD Report: "Trade, Employment, and Labor Standards";

Current resource allocations of the ILO for technical assistance;

ILO Constitution and 1995 World Summit for Social Development in Copenhagen;

Freedom of Association supervisory mechanism;

The work of the Tripartite Advisory Panel on International Labor Standards;

 

 

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