AMERICAN BUSINESS OPPOSES TRADE SANCTIONS TO ENFORCE WORKER RIGHTS -- U.S. COUNCIL EXPLAINS.

NEW YORK, NY--(BUSINESS WIRE)--Jan. 17, 1995--American business opposes the use of trade sanctions to intervene in the internal affairs of other countries on worker rights issues as a form of protectionism that puts the open global trading and investment system at risk.

The United States Council for International Business today issued a statement, which explains why American companies believe trade sanctions are inappropriate measures to enforce worker rights, and which includes recommendations to address this issue in various fora such as hemispheric trade negotiations.

In the U.S. Council's view, such policies threaten to do major damage to business interests in emerging markets around the world. The Statement includes the following recommendations:

For hemispheric trade negotiations -- there should be no labor provisions in trade agreements themselves nor any other mechanism to make labor standards trade actionable;

For multilateral fora, including in the WTO, and generally -- the U.S. should not advocate trade measures to enforce worker rights, which would change basic obligations under GATT/WTO; the U.S. Council does support analytical work on the relationship of trade and worker rights in the OECD and ILO.

In bilateral and multilateral efforts -- the U.S. Council urges non-confrontational approaches to improve labor standards. Multilateral efforts should be centered in the International Labor Organization (ILO).

The U.S. Council advances the global interests of American business both at home and abroad. As the representative of U.S. business in the International Organization of Employers (IOE) and in the International Labor Organization (ILO), the U.S. Council is the lead business organization on international labor policy. As the representative of U.S. business in the Business and Industry Advisory Committee (BIAC) to OECD, and the International Chamber of Commerce (ICC), the U.S. Council represents the views of American business on trade and worker rights in the OECD, GATT/WTO, and the United Nations and its agencies. -0-

(Statement available from the U.S. Council)

CONTACT: U.S. Council for International Business

Amanda Tucker, 212/354-4854

or Joseph Gavin, 202/371-1316