International Business Law & Institutions
TOPIC 2: FREE AND FAIR TRADE I: SAFEGUARDS AND EMPLOYMENT
Trebilcock and Howse, chs. 9 and 16
Wallach & Sforza, chs. 6 and 7.
Ruggie, J. G. (1994), “Trade, Protectionism, and the Future of Welfare Capitalism” Jl. Int. Affs. 48: 1-11.
GATT Exceptions: Safeguards, including discussion of Hatter’s Fur case , and Certain Motor Vehicles
etc, US Intl Trade Commission (1980), from Stephan, Wallace & Roin, International Business &
Economics (Michie, 1993) pp.674-685
US International Trade Commission, Portable Electric Typewriters from Singapore (1993)
WTO, Appellate Body, Report on Korea - Definitive Safeguard Measure on Imports of Certain Dairy
Products, [edited by SP] 1999
WTO, Agreement on Trade-Related Investment Measures , TRIMs
WTO, Panel Report on India - Measures Affecting the Automotive Sector [edited by SP] Dec. 2001
WTO, Press Release on Trade and Labour Standards,and extract from Singapore Ministerial Declaration,
International Labour Organisation, International Labour Standards and Human Rights
ILO Declaration on Fundamental Principles and Rights at Work, June 1998
Third World Intellectuals, Statement Against Linkages: Challenging Linkages of Trade to Non-Trade
Issues (Nov. 1999) Economiquity (Jaipur)
James Howard (ICFTU), Counter-Statement: Conclusions are Flawed and Seriously Inadequate, (Nov.
1999) Economiquity (Jaipur)
WTO Agreements on Safeguards, Interpretation of Article VI, and Rules of Origin (available @website)
WTO Panel Report, Argentina – Safeguards Measures on Peaches (2003) edited version @website
Review of annual reports under the follow-up to the ILO Declaration on Fundamental principles and
Rights at Work, Part I: Introduction by the ILO Declaration Expert-Advisers to the compilation of
annual reports, ILO Document GB.277/3/1, 277th Session, Geneva, March 2000. @website
Cable, V. (1996). “The New Trade Agenda: Universal Rules amid Cultural Diversity.” International Afairs
Hizon, E. M. (1995). “The Safeguard Measure/VER Dilemma: The Jekyll and Hyde of Trade Protection.”
Northwestern Journal of International Law and Business 15: 105.
Miranda, J., R. Torres, et al. (1998). “The International Use of Anti-Dumping 1987-97.” Journal of World
Trade 32: 5.
Charnovitz, Steve (1994) “The WTO and Social Issues” 28 JWT 17-33
Hepple, Bob. Labour Laws and Global Trade. Oxford: Hart, 2001.
Hepple, Bob (1997) “New Approaches to International Labour Regulation” Industrial Law Journal 26(4):
Charnovitz, Steve (1997) , “Trade, Employment and Labour Standards” 11 Temple Intl & Comp L.J. 131
Leary, Virginia A. (1996) `Workers' Rights and International Trade: The Social Clause (GATT, ILO,
NAFTA, US Laws)', in J. Bhagwati and R. E. Hudec (eds.) Fair Trade and Harmonization:
Prerequisites for Free Trade? Vol. 2 Legal Analysis (MIT), pp. 177-230.
Sengenberger, W. and D. Campbell, Eds. (1994). International Labour Standards and Economic
Interdependence. Geneva, International Institute for Labour Studies.
OECD (1996). Trade, Employment, and Labour Standards. Paris, Organisation for Economic Cooperation
Charnovitz, S. (1995) “The Influence of International Labour Standards on the World Trading Regime: An
Overview.” International Labour Review 126:565.
Ehrenberg, D. S. (1995). “The Labor Link: Applying the International Trading System to Enforce
Violations of Forced and Child Labor.” Yale Journal of International Law 20(2): 361.
Diller, J. And Levy, M. (1997) “Child Labour, Trade, and Investment: Towards the Harmonization of
International Law” (91) AJIL 663
Valticos, N (1983) Droit International du Travail.
Javillier, J-C. (1994) “Pragmatism and Daring in International Labour Law” International Labour Review
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Quarterly 40: 649.
Greenaway, D. & Milner, C. (1995) “The World Trade System and the Uruguay Round: Global
Employment Implications” International Labour Review 134: 497-517.
Why does Ruggie say that free trade was never a mandate of the GATT, and is this accurate?
Is the WTO a free trade or a mercantilist organization?
Explain the conditions which must be satisfied before a country can validly take advantage of
the `escape clause’ of art. XIX of the GATT. Were the `grey-area measures’ negotiated
between states a violation of the letter or spirit of the GATT? What type of safeguards may
validly be introduced, and what procedures satisfied? What is the relationship between
GATT Art. XIX and the WTO’s Safeguards Agreement? Is it significant that the latter does
not contain an `unforeseen developments’ clause, and what is the importance of this
requirement? What is the meaning of the requirement that the serious injury must result from
a GATT obligation? Describe circumstances under which you think safeguards measures may
be valid under the WTO.
Compare the provisions of GATT art. XIX with those of art. VI (anti-dumping). Why should
a state take action against an importer who is making products available more cheaply than
local producers? Is such action justifiable when, as in the US Electric Typewriters case, the
local producer is a subsidiary of a foreign firm, and the imports come from a foreign
subsidiary of a domestic firm? What if each firm is assembling its products using mainly
components sourced from an affiliate in its home country? Consider the relationship between
the definition of which are "domestic producers" suffering damage from "foreign producers"
for the purposes of either anti-dumping or safeguards measures, and the Rules of Origin used
in deciding the application of non-preferential or preferential tariffs. Is the test of `last
substantial transformation' one that could be workable and defined in sufficient detail? Why
has the harmonisation of rules of origin required by Pt IV of the WTO Agreement on Rules of
Origin taken so long?
Are any performance requirements for foreign-owned investments still permissible under the
TRIMS? Why are ‘local content’ or ‘export’ requirements considered contrary to arts. III and
XI of GATT under the TRIMs Agreement? Are such requirements still valid if made as a
condition for obtaining investment incentives (e.g. grants, or tax benefits)? What is the
relationship of the TRIMS agreement and the GATT? What kind of measures may be
contrary to TRIMS that are valid under the GATT?
What is the case for and against linking trade access to observance of international labour
standards? Should this be limited to core standards, and if so what rights should be
considered as core? Consider these issues from the point of view of both relatively low-wage
and relatively high-wage countries. Can a member state of the WTO justify refusing to import
goods which have been produced in violation of labour standards required by the exporting
country and by international treaty obligations, e.g. products made by child labour? Would it
be more effective to introduce trade sanctions for the violation of ILO labour standards, rather
than introduce a ‘labour clause’ into the WTO? Would such sanctions create a conflict with
WTO obligations, and if so which should prevail, legally? In what sense might a trade linkage
create a problem of `contamination' of other issues such as human rights, and can a form of
linkage be constructed which avoids this?
How effective are the mechanisms for ensuring adherence to and compliance with ILO labour
standards? What is the likely impact of the Declaration on Fundamental Principles and its
Follow-Up? What are the reasons for the opposition by many to the use of trade sanctions to
enforce labour standards, and was the Declaration a satisfactory response to them?
SP Sept. 2003