Labor and environmental standards are significant in international trade because they determine working conditions and wages, and sustainability efforts in developed and developing nations. However, these criteria have issues that affect global trade. If countries raise labor and environmental standards, the U.S trade with developing states will experience certain effects.
Issues
Labor standards in global trade focus on making work easier for labourers. Unfortunately, issues arise due to differences in standard of living between developed and developing countries. In the latter, workers lack crucial labor protections like a safe and healthy workplace (Barry & Reddy, 2008). What’s more, poor and weak labor standards are enforced, leading to low wages. Labor advocates suggest that raising these standards may help improve working conditions and fairness.
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Protection of the environment is the main focus of environmental standards in trade internationally. However, improper regulation of increased business and growth of economies is among the issues that propel ecological damage. Countries may fail to enforce the necessary protections to continue attracting foreign investors that want sites with lower production costs. As a result, they stimulate long term consequences. Rise of environmental standards can have a significant impact on sustainability efforts and reduce harm upon surroundings.
Effects of Raised Standards
While improving labor standards helps industrial and developing country workers, they affect U.S trade with less-developed nations. It may have to restrict imports from such affected countries if they violate labor protection standards (Barry & Reddy, 2008). This could be a negative effect if the imports are crucial or cheaper. Raising environmental standards will also adverse effects, especially if the U.S or other nations tend to subsidize harmful production levels to improve global trade.
Conclusion
Transnational trade participators seem to undermine the power of Environmental and labor principles, which explains why many do not uphold them. If they are raised, U.S trade with developing nations will decrease. This result will motivate countries to improve working conditions and consider environmental sustainability.
Reference
Barry, C., & Reddy, S. (2008). International trade and labor standards: A proposal for linkage . Columbia University Press.
