The Social Clause
52. In its present form the G.A.T.T. (General Agreement on Tariffs and Trade) has given insufficient attention to the causes and effects of changing world trade patterns. The major theme of the treaty and of the organisation has been that if all barriers to trade were to be reduced, there would be an automatic improvement in world living standards and employment as production shifted to the lowest cost source for any particular product. However, this theme cannot deal with the problem of trade becoming increasingly dominated by large multinational enterprises, where the speed of technological change outpaces the rate at which resources, both of capital and labour, can be shifted to alternative uses.
53.
The T.U.C. and I.C.F.T.U. believe that the G.A.T.T. should be reformed to build the primary objectives of increased living standards and full employment, set out in the preamble of the Treaty, into its detailed operation. For countries with established industries this will mean the linking of trading measures to an active employment policy. Governments, with the assistance of G.A.T.T., should anticipate trends in trading patterns and promote the transfer and retraining of workers for alternative employment.
54. In countries benefiting from the relocation of production facilities the expansion of exports should be directly linked to improvements in social standards. As trade expands, governments should provide parallel improvements in social conditions. In a number of countries, of which the
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British Crown Colony Hong Kong is a prime example, trade is highly developed but the standard of social services, conditions at work and in some cases freedom of association are inferior. The G.A.T.T. should not protect companies and governments that abuse basic human rights set out in U.N. resolutions and in I.L.O. instruments, but should seek guarantees that all G.A.T.T. signatories should observe a high standard of social conditions.
55. In particular, Article XX, which allows trade restrictions to protect the health and safety of consumers, should be amended to allow trade restrictions on goods which are produced by dangerous methods. Progress by some Governments in reducing the danger to workers has been undermined by the transfer of production to countries with lower or non-existent, safety standards. Either a ban in trade in such products or provision for G.A.T.T. signatories to restrict imports produced by dangerous methods would go a long way toward eliminating this form vi international competition. The first step is for G.A.T.T. to establish co-operation with the International Labour Organisation and the World Health Organisation and draw up a "black list" of the most dangerous products and production processes.
56. Ensuring that social objectives come to the fore in the operation of the G.A.T.T. will be the function of a new Tripartite Committee on Trade and Employment, as proposed by the I.C.F.T.U. This body should have the functions of producing regular reports on employment and trade, supervising the proposed new machinery for improving, and protecting social conditions, employment and health and safety, and suggesting further amendments to the G.A.T.T. on social matters.
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