In 2002, the ILO published a report on economically
active children. The ILO counted cases of “child
labor” that were:
Under the Minimum Age
As defined by national legislation, in accordance with
accepted international standards
Hazardous to children
Threatened physical, mental, or emotional well-being
“Worst forms of child labor”
Slavery, debt-bondage, forced labor, illicit activities
The ILO Study Found:
246 million child laborers
Between the ages of 5-17
Where does most child labor occur?
Trade & Interdependence
Increased in 1990s
Wealthy
nations
Middle
East
Avg annual export growth (%)
Latin
America
E. Asia
S. Asia
World
Average annual growth of exports compared to GDP (%), 1990-1999
9
8
7
6
5
4
3
2
1
0
Avg annual GDP growth (%)
Preparing Tobacco Leaves, Laos, 2000
Photo courtesy of International Labor Organization
Cut Flowers
Children work in parts of flowergrowing industries of Ecuador and
Colombia
U.S. flower imports in 2002:
$231 million from Colombia
$86 million from Ecuador
Bananas
Child labor is widespread on
banana plantations in Ecuador
U.S. banana imports in 2002:
$271 million from Ecuador
Vanilla
34% of children age 10-14
work in Madagascar,
mostly in agriculture
U.S. vanilla bean imports in 2002:
71% ($115 million) from Madagascar
Cocoa
An estimated 15,000
trafficked children work on
cocoa and coffee
plantations in Cote d’Ivoire
U.S. cocoa imports in 2002:
$246 million from Cote d’Ivoire
Fishing Platform Worker, Indonesia, 1995
Photo courtesy of David Parker
Shrimp
13% of children age 10-14
work in Thailand; some
have been trafficked to
work in the fishing industry
U.S. shrimp imports in 2002:
25% from Thailand
Stitching Soccer Balls, Pakistan, 1998
Photo courtesy of the International Labour Organization.
Making Surgical Instruments, Pakistan
Photo: Ron Ceasar
Surgical Instruments
Children make up 31% of the
workforce in surgical
instrument manufacture in
Sialkot, Pakistan
U.S. imports of medical equipment in 2002:
$29 million from Pakistan
Mine Worker, Colombia, 1996
Photo courtesy of International Labor Organization
Gold
Children as young as six work in
hazardous conditions in goldmining regions of Peru
U.S. gold imports in 2002:
$131 million from Peru
Tourism, Waiter
Photo courtesy of David Parker
Child Laborers Rescued from Benin and
Returned Home to Nigeria in 2003
Photo: Erick-ChristianAhounou/AP
World Trade Is Increasing
More regional trade agreements came into force in the 1990s than ever before
90
82
80
70
60
50
40
30
30
20
14
10
10
3
0
1950-59
1960-69
1970-79
1980-89
Source: World Development Report 1999
1990-98
Global Production Systems
Reorganize the Labor Market
Communications Technology
Transportation
Global Investment and Trade
Transnational Corporations Are
Multinational Employers
Intel Manufacturing - 2002
Wafer
Fabrication
Systems
Manufacturing
Board
Manufacturing
Assembly and
Testing
U.S.
U.S.
Malaysia
Malaysia
Ireland
Philippines
Israel
China
Costa Rica
Hourly compensation for production workers in manufacturing
(U.S. dollars, 2002)
United States
Brazil
Canada
Mexico
Australia
Hong Kong SAR
Israel
Japan
Korea
New Zealand
Singapore
Taiwan
Austria
Belgium
Denmark
Finland
France
Frmr W.Germany
Germany
Ireland
Italy
Luxembourg
Netherlands
Norway
Spain
Sweden
Switzerland
United Kingdom
Nations’ Wages
and Working
Conditions Vary
Widely
0
50
100
150
US Wage = 100
International Children’s Rights:
ILO Convention 138:
Minimum employment age of 15 years old
(allows 14 in some cases)
ILO Convention 182:
Prohibition of “worst forms” of child labor
UN Convention on the Rights of the Child:
Protection from economic exploitation
Protection from hazardous work
Access to health care
Right to education
International Core Labor Standards
Rights to:
• A free choice to join a union and collective
bargaining
• Reject all forms of forced or compulsory
labor
• Work free from discrimination
• Reject child labor
-ILO Declaration on Fundamental Principles
and Rights at Work, adopted June,1998
Why Does Child Labor Continue?
•
•
•
•
•
•
Poverty & unemployment
Lack of access to education
Weak laws or law enforcement
Repression of worker rights
National debt burdens
Intense global competition
How does trade affect these factors?
Competition Increasing for All Workers
“Competition among firms . . .
becomes competition among
labor located in different
countries.”
-Rubens Ricupero, Secretary General,
UN Conference on Trade & Development
What do current trends in
globalization mean for workers?
WTO
•Job Creation
•Poverty Reduction
•Lower Prices
•Promote Global
Peace
AFL-CIO
•“Race to the Bottom”
•Unemployment
•Increased Income Inequality
•Political and Economic
Instability
Trade and Globalization:
Contradictory Effects on Child Labor
GLOBAL COMPETITION
TRADE RULES
WORLD BANK AND IMF
Global Trade Offers New
Promise and Opportunities
I wanted this job because I saw the WTO
as a way of lifting living standards for
working people everywhere. . . Prosperity
and peace – that to me is what the
multilateral trading system can bring
about.”
Mike Moore
Director-General WTO 1999
Of each dollar generated
in the Global Economy . . .
High-income
countries receive
80 cents
Source: Oxfam, Rigged Rules and Double Standards (2003), 67
Low-income
countries receive
3 cents
1990s Human Development Crisis:
Standards Deteriorating in Many Countries
number of countries deteriorating in:
60
54
37
40
21
21
20
14
12
0
Economic
growth
Income
poverty
Hunger
Child
mortality
Primary
enrolment
HDI = “Human Development Index”
Source: Human Development Index, 2003, UNDP
http://hdr.undp.org/hdr4co/presentations/7
HDI
“Obstacles to economic progress”
2003 UN Human Development Report:
• Geographic factors (location, climate,
natural disasters)
• Debt burdens
• Conflict and violence
• Unfair trade rules
Source: UNDP, http://hdr.undp.org/hdr4co/presentations/21
Poor Countries Depend on Single Exports
The example of the “Coffee Crisis”
• In four African countries, coffee accounts for over 30% of export
revenues—in Burundi the figure is 79%
• In Central American countries, up to 10% of people directly
depend on coffee for their livelihood.
And Suffer When Commodity Prices Decline
$1.40
Coffee price/lb
$1.20
• World market prices paid
to coffee growers hit 100year lows in 2001
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
1980
1990
2000
2001
Export “Dumping” Depresses Prices
2002 Exports from
U.S.-based Companies
Wheat
Soybeans
Corn
Cotton
Price compared to
cost of production
43% below cost
25% below cost
13% below cost
61% below cost
Rice
35% below cost
International Core Labor Standards
Rights to:
• A free choice to join a union and collective
bargaining
• Reject all forms of forced or compulsory
labor
• Work free from discrimination
• Reject child labor
-ILO Declaration on Fundamental Principles
and Rights at Work, adopted June,1998
First U.S. Federal
Child Labor Law
Keating-Owen Act (1916-1918)
Prohibited from crossing state
lines:
• Goods made in factories
employing children under 14
• Products from mines employing
children under 16
International Trade Organization
• Proposed UN Agency after WWII
ITO
• Draft negotiated by 50 nations
• Set rules on trade, labor,
investment, services
• Failed ratification by
national legislatures in
1948
ITO
General Agreement on Tariffs and Trade
(GATT) 1946-1994
• Temporary multilateral
agreement on tariff reductions
–> permanent after ITO failed
• No labor standards language,
except for prohibition on
prison labor
ITO
ITO
From ITO to GATT to the WTO
1947: GATT temporary agreement among
23 ITO nations
ITO
1948: GATT becomes permanent
ITO
1948-1994: GATT grows to 135 nations
1986-1994: GATT members draft the WTO
in “Uruguay Round” of trade talks
World Trade
Organization
• 146 member countries
• Collection of 20+ trade treaties
• Since 1995, sets and enforces global trade
rules
“Its main function is to ensure that trade
flows as smoothly, predictably and
freely as possible.”
WTO Structure
MINISTERIAL CONFERENCE
Every 2 months
Member Nation
Ambassadors
GOODS COUNCIL
(GATT, AoA, etc.)
GENERAL COUNCIL
DISPUTE RESOLUTION BODY
TRADE POLICY REVIEW BODY
SERVICES COUNCIL
(GATS)
Every 2 years
Member Nation
Ministers of Trade,
Finance, Ag., etc.
INTELLECTUAL PROPERTY
COUNCIL
(TRIPS)
WTO on Labor Standards
Resolved:
“that the ILO should remain the
supranational agency charged with
developing and monitoring core labor
standards.”
-WTO Ministerial Meeting, 1996
PROPOSAL:
Pass national law banning imports of
goods made with child labor.
PROBLEM:
Under WTO rules, such a law could be
challenged by other WTO members as
an unfair barrier to trade.
Rules for Today’s Global Economy
Trade Rules
WTO
Labor Standards
ILO / UN
OECD
Regional &
Bialateral Trade
Agreements
?
Campaigns for Global Labor Standards
Demanding a Social Clause
in Trade Rules
Working Toward Ratification
and Enforcement of
Convention 182
Millennium Development Goals
Campaigns to Publicize
Goals
Campaigns to Increase
Aid & Make Trade Fair
Calls for Fair Trade Rules
AN INTERFAITH STATEMENT ON
INTERNATIONAL TRADE AND INVESTMENT
Interfaith Working Group on Trade and Investment 05/16/01
PRINCIPLES:
1. International trade and investment systems
should respect and support the dignity of the
human person, the integrity of creation, and
our common humanity.
U.S. Trade Representative
(USTR)
Robert Zoellick
Appointed USTR in 2001
U.S. Trade Act of 2002
New language directs USTR to:
• “promote respect” for childrens’ rights
and core labor standards
• ensure existing laws are not weakened
• promote ratification of Convention 182
on the worst forms of child labor
U.S.-Chile & U.S.-Singapore Agreements
*First agreements
negotiated under
Trade Act of 2002
Required reports to Congress from USTR
documented Chile and Singapore’s child
labor laws and participation in ILO projects.
Generalized System of Preferences (GSP)
Since 1984, U.S. offers trade benefits to
developing countries who “take steps to afford
internationally recognized worker rights,”
including:
• Freedom of association
• Right to organize and bargain collectively
• Freedom from coerced labor
• Minimum age for employment of children
• Minimum wage, hours of work, safety, etc.
GSP Petitions
• Can be filed by any
“interested party”
• Nearly 100 filed to date
• 73% filed by unions or
AFL-CIO
When used to demand change,
respect for rights “appears to have
improved” 58% of time
GSP & Child Labor
In 1996, U.S. revoked Pakistan’s GSP
benefits for:
• Surgical instruments
• Sporting goods
• Hand-knotted carpets
NAFTA Labor “Side Agreement”
North American
Agreement on Labor
Cooperation (NAALC)
• Commits NAFTA countries to enforcing
domestic labor laws
• 20 complaints filed to date have resulted in
consultations, joint programs, and public
seminars
NAFTA & Child Labor
One NAALC child labor case filed in 1998:
• Florida vegetable
growers charged
child labor in
Mexico created
“unfair competition”
Boy in a lettuce field, Hidalgo, central Mexico
• Case was dropped
before completion
Photo by Jack Kurtz
U.S.-Cambodia Textile Agreement
Since 1999, links
U.S. textile import
quotas to
improvements in
Cambodian labor
standards.
Garment Workers at a Union Meeting, Cambodia
Photo: Solidarity Center
U.S. agrees to import more from Cambodia if ILO
reports show improvements in garment factories.
U.S.-Cambodia Agreement & Child Labor
October, 2003, ILO report documented:
• “only two minor
incidents” of child
labor (14-year-olds
recruited to work)
• 13 out of 61
factories “did not
adequately verify
the age of workers”
Wearvel Textile Co., Cambodia
Photo: ILO, http://www.ilo.org/public/english/region/asro/bangkok/ability/pic11.htm
U.S.-Jordan Free Trade Agreement
Since 2000, requires U.S.
and Jordan to:
• Enforce domestic
labor laws
• AND recognize core
international labor
standards
Textile weaving workshop, Jordan
Photo courtesy of the: ILO,
Labor provisions appear in body of text (not as
side agreement).
U.S.-Jordan Agreement & Child Labor
Since signing 2002 trade agreement:
• U.S. & Jordan pledged
not to use trade
agreement to enforce
labor standards
• U.S. funded ILO child
labor project in Jordan
Queen Rania of Jordan Visits the ILO, 2002
Photo courtesy of ILO
U.S.-Chile & U.S.-Singapore Agreements
Since 2003, commit countries to:
• “promote respect” for
international core
labor standards
• enforce existing
domestic labor laws
US & Chile’s Chief Negotiators
Conclude Agreement, 2003
Photo: Chile-U.S. Free Trade Agreement Research Photos
“In both the Chile and Singapore agreements, only
one single labor rights obligation—the obligation for
a country to enforce its own labor laws—is actually
enforceable through dispute settlement.”
“Under the Chile and Singapore FTAs, a country that
is challenged for failing to enforce its existing labor
laws could simply weaken or eliminate those laws to
avoid dispute settlement.”
-USTR Labor Advisory Committee
on Chile and Singapore Agreements
Free Trade Area
of the Americas (FTAA)
Scheduled for completion in 2005:
• includes 34 countries in
Americas
• draft labor standards
chapter may or may not
be included
Using Customs to Combat Child Labor
1930: U.S. Tariff Act prohibits importing goods
made with prison or indentured labor
1997: Congress specifies the Act should include
“forced or indentured” child labor
1999: Executive Order directs government
agencies to ensure they purchase no
goods made with “forced or indentured”
child labor
Fair Trade Products
• Products certified
based on labor and
minimum price
criteria
• Certified coffee, tea,
chocolate, and
bananas available
so far
RUGMARK
• Label granted only to
licensed, inspected
rug makers
• Licensing fees fund
education and
rehabilitation
programs
Solidarity Across Borders
2001 Campaign to support Mexican garment workers
2002 Campaign to support Ecuador’s banana workers
Hauling bananas from the fields
to the packing plant, Ecuador
Photo courtesy of David Parker.
Harvesting Bananas, Ecuador
Photo courtesy of David Parker.
Low Wages Contribute to Poverty for
Ecuador’s Banana Workers
Average Monthly Pay in Banana
Exporting Nations
$500
$250
$200 $175
$135
C
ol
om
bi
a
P
an
am
a
C
os
ta
R
ic
a
H
on
du
ra
s
G
ua
te
m
al
a
E
cu
ad
or
$500
$450
$400
$350
$300
$250
$200
$150
$100
$50
$0
$56
Ecuador’s Banana Workers
Lack Union Protections
Unionization Levels in
Banana Exporting Countries
90%
90%
90%
80%
70%
60%
40%
50%
40%
30%
20%
7%
1%
10%
ua
do
r
Ec
on
du
ra
s
H
ic
a
R
os
ta
C
Pa
na
m
a
C
ol
om
bi
a
0%
During 20 Years of Structural Adjustment,
As Wages Fell, State Health and Education
Spending Declined in Ecuador
Household average income
1980: $200
1993: $80
Health and education spending
1980: 38% of the national budget
2000: 11% of the national budget
Ecuador’s Child Labor Laws Lack
Adequate Enforcement
Ecuador’s Law Establishes:
•
•
Minimum working age of 15
No hazardous work for children under 18
But according to a U.S. State Department
Report on Ecuador, in 2002:
“The Ministry of Labor and the Minors’ Tribunals
fail to enforce child labor laws, and child labor is
prevalent.”
Ecuador’s Exports Boosted by
Low Production Costs
Costs of banana production (1997)
Ec ua do r
C o s ta R ic a
C o lo m bia
J a m a ic a
S t. Vinc e nt
S t Luc ia
Ivo ry C o a s t
Gre na da
Do m inic a
M a rtinique
0
100
200
300
400
500
600
700
800
D o llar s p er t o n
Ecuador is Leading Banana Exporter
Percent share of world banana exports, 2000
50
40
30
20
10
Ec
ua
do
r
Co
sta
Ric
a
Ph
ilip
p in
es
Co
lom
bia
Gu
ate
ma
la
Pa
na
ma
Co
te
d'I
vo
ire
Ca
me
roo
n
Ho
nd
Wi
ura
nd
wa
s
rd
Is l
an
ds
Ot
he
r
0
Source: FAO statistics, unctad.org/infocomm
U.S. & EU Import Most Bananas
Percent share of world banana imports, 2000
50
40
30
20
10
e
Re
st
of
Wo
r ld
Source: FAO statistics, unctad.org/infocomm
Ch
il
Po
lan
d
nti
na
Ar
ge
Ca
na
da
Ru
ss
ia
a
Ch
in
Ja
pa
n
EU
U.
S.
A.
0
International Banana Markets:
Real Wholesale Prices Declining
Banana market prices, 1960-2000 (cents per pound)
Source: UNCTAD Commodity Price Bulletin, unctad.org/inforcomm
International Banana Markets:
Low Retail Prices
Banana retail prices, 1990-2000 (dollars per kg)
Source: FAO statistics, unctad.org/inforcomm
International Banana Markets:
Five Companies Control Trade
Percent share of world banana trade, 1999
50
40
30
20
10
bo
a
No
Fy
ffe
s
te
le
Do
De
lM
on
Ch
iqu
ita
0
International Banana Markets:
Workers Reap Few Profits
Average distribution of profits from an Ecuadorean
banana exported to the EU
Plantation
workers: 1%
Supermarket
40%
Importing/
ripening
8%
Plantation
owner: 3%
Exporting
company
Shipping 10%
EU duty and
licenses
23%
15%
Actually, during the nineties the
international banana market has
been extremely influenced by the
developments of the EU Banana
Regime and the following dispute and
agreement at the WTO, which have
filled the market with uncertainties
and limited the actions of the different
banana market operators.
-UNCTAD
International Banana Markets:
Small Countries Depend on Bananas
Percent of 2000 export income dependent on bananas
50
40
30
20
10
or
ua
d
Ec
Ri c
a
Co
st a
St
.L
uc
ia
0
Source: UNCTAD, unctad.org/inforcomm
Banana Trade, 1975-1993
“Dollar”
bananas
U.S. banana imports
• No tariffs or quotas
• Most imports from Central,
Latin America
UK &European banana imports
• Tariff & quota preferences to former
Caribbean & African colonies in many
countries (UK, France, Italy, etc.)
• Some imports from Latin America
(e.g., to Germany)
1993: EU “Banana Regime”
• EU creates complex tariff & quota system for bananas
• Continues preferences to former Caribbean & African colonies
• Quotas limit imports from Latin American countries
Challenge to EU Trade at WTO
“Dollar”
bananas
?
EU
“Banana
Regime”
1994: U.S. & Ecuador argue EU trade discriminates
against Latin America and U.S. companies, and that EU
must open its markets to more “dollar” bananas.
WTO Rulings on Banana Trade
1997: WTO rules in favor of U.S. / Ecuador
Æ EU accepts slightly more Latin American
bananas & raises Ecuador’s quota
1999: WTO authorizes U.S. / Ecuador to impose
sanctions against EU
Æ EU agrees to lift all banana quotas by 2006
Impact of WTO Rulings
“Dollar”
bananas
Since 2001, Ecuador’s banana exports to EU have
increased, while Caribbean exports are on the decline.
International Banana Charter
1998 International Banana Conference
IUF & EUROBAN
Steps toward “sustainable banana economy”:
• Social & environmental clause in WTO
• Collective bargaining
• Corporate codes of conduct
• Fair trade
• Reform of EU “Banana Regime”
International Support for Ecuador’s
Banana Workers
Research
Which stores sell Bonita?
Letter-Writing Campaign
Over 4,000 Letters to Noboa
1000 Letters to Costco
Congressional Delegation
Speaking Tour
Bonita workers visit U.S. Cities
Protest
Thousands Protest FTAA Meeting in Ecuador
Linking Labor Standards to
Trade Benefits
Due to child labor and worker rights abuses,
U.S. Trade Representative delayed trade
benefits for Ecuador in 2002
In response, Ecuador’s government
• raised the minimum employment age to 15
• promised to
– Improve child labor law enforcement
– Review labor laws
– Investigate violence against workers
Fair Trade Bananas
• Fair wages and working
conditions certified by Fair Trade
groups
•Bananas grown in Ghana, Costa
Rica, and Windward Islands
• So far, imported and sold in UK
and parts of Europe