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Trade, Labor and Environment
The Truth About Trade, Labor and the EnvironmentThe relationship between trade liberalization, labor and the environment is a complex one that goes far beyond the narrow debate about whether labor and environmental standards should be enforceable through trade agreements and trade sanctions. What is oftentimes lost in the discussion is the positive role that trade plays in raising living standards and, therefore, labor and environmental standards worldwide. As the World Bank and others have documented, increased economic growth and a growing middle class enable and increasingly motivate developing countries to improve labor and environmental standards. As well, since World War II, the liberalization of trade has produced a six-fold growth in the world economy and a tripling of per-capita income, and enabled hundreds of millions of families to escape from poverty and enjoy higher living standards.As efforts continue to link trade, labor and environmental issues, it is critical that the positive relationship between trade liberalization, labor and environmental standards be recognized and incorporated into this policy debate. Proposals that would impede trade liberalization and economic growth must, therefore, be seriously questioned, as having a negative effect on the very labor and environmental objectives that are also being pursued.
Benefits of Trade AgreementsTop Facts:U.S. trade agreements promote much-needed economic opportunities in developing countries that help raise living standards for workers in those countriesU.S. trade agreements promote economic opportunities for U.S. industries and workersThe negotiation of U.S. trade agreements has helped promote substantial improvement in many countries' labor lawsFor the last 20 years, American companies with global operations:Accounted for a substantial portion of all U.S. research and development, capital investments and exportsPurchased most of their supplies from U.S.-based suppliers Paid higher wages to American workers than companies with purely domestic operations
Recent Publications
III-10-Labor and Environmental Issues.pdf
III-11-Addressing Concerns about Trade.pdf
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