Different forms of standards and regulations may be applied to arbitrarily or unjustifiably discriminate between countries or to restrict international trade.
Non-discrimination is the main principle on which the rules of the multilateral trading system are founded.
For example, with regard to the environment, this principle prevents the abuse of environmental policies and their use as
protectionism in disguise. It ensures that national environmental protection policies cannot arbitrarily discriminate between foreign and domestically made products, or between products imported from different trading partners.
(adapted from the World Trade Organization (WTO),
WTO Rules and Environmental Policies: Other Relevant WTO Texts, visited 2009-10-08)
North-South Debate
With regard to labour regulation, the viewpoint of many developing countries is that the labour standards stance of many developed countries is merely another form of protectionism against their exports and, as such, an obstacle to their much-needed economic development. There is a suspicion, for example, that at least some of the lobbies in developed countries are pressing for international agreements on a minimum wage in order to lessen the low labour cost advantages of developing countries. By incorporating such labour standards criteria into the WTO framework, developed countries could possibly use trade regulations to enforce
indirect protectionism.
(adapted from Dicken, P.,
Global Shift: Reshaping the Global Economic Map in the 21st Century, 4th ed., New York: Guilford Press, 2003, p. 593)
"The governments of many countries in the southern hemisphere felt that imposing labour standards would put a brake on their exports and serve as a kind of
disguised protectionism for richer countries."
(International Confederation of Free Trade Unions (ICFTU),
People Should be Served by the Economy, 2000, visited 2009-10-08)
"[…] some Third World governments argue that national development policy has priority over international requirements. The importance of foreign investment for national development results in demands for ‘competitive' labor market structures, where wage levels, labor conditions, and labor institutions have to adapt to the level of Third World economic ‘realities.' Industrializing countries' governments, and several others, are not convinced of the necessity for a social clause in trade.
Disguised protectionism is the most common argument used against such a proposal."
(Tsogas, G.,
Labor Regulation in a Global Economy, London: M.E. Sharpe, 2000, p. 12)
"Key clauses in agreements (such as GATT Art. 20) specifically allow governments to take action to protect human, animal or plant life or health. But these actions are disciplined, for example to prevent them being used as an excuse for protecting domestic producers —
protectionism in disguise."
(World Trade Organization (WTO),
The WTO does NOT Dictate to Governments on Issues such as Food Safety, and Human Health and Safety. Again Commercial Interests do NOT Override, visited 2009-10-08)
