Trade's Social and Environmental Costs

Critics of trade liberalization have long warned of a "race to the bottom," in which competition for foreign investment and export markets pressures governments to weaken labor protections, keep wages low, and limit union rights in order to remain internationally competitive. The International Labour Organization (ILO) has established core labor standards, covering freedom of association, the elimination of forced and child labor, and non-discrimination, that it urges all member states to uphold regardless of trade commitments, though the ILO itself has limited enforcement power and these standards are not directly binding under WTO rules.