Labour Rights in Global Trade: The Lost Consensus

Abstract

The article explores the relationship between trade practices and labour rights throughout the history of the 20th century and demonstrates that the lack of mention of labour standards in the GATT rules was neither natural nor inevitable. Beginning with the laissez-faire era, it illustrates how unregulated competition created harsh working conditions and prompted early demands for international labour rules. It then examines the role the ILO was expected to play within the planned International Trade Organization under the Havana Charter, where fair labour standards were recognized as essential to prevent social dumping. The Charter’s failure left international trade without this social dimension. The paper argues that the later emergence of labour clauses in free trade agreements and GSP schemes simply reflects the intrinsic connection between labour standards and fair trade.