Sweatshops - Page 3


© Jason Gottlieb
Page 3
Unfortunately, the United States is not doing very much in this regard. It seems that the only answer that Congress espouses is protectionist tariffs. For example, the executive branch has consistently waived its annual review for Indonesia's qualification for the Generalized System of Preferences (GSP), a system that creates more beneficial trade conditions. This waiver has ensured rather favorable trade benefits on the condition that Indonesia clean up its act. Representative Sherrod Brown of Ohio argued in a hearing of the House of Representatives' Subcommittee on Asia and the Pacific this past May that there should be GSP review, implying that when Indonesia failed, protectionist tariffs would be applied.

However, these sorts of tariffs will not improve the lots of the workers. The only way they could is if the increased price in America alone causes consumers to buy other brands, thus harming the industries in question to the point that Southeast Asian governments involved lead to heightened pressure on companies. Given the relative lack of brand choice, the existence of markets other than the United States, and the fact that Americans buying $125 sneakers would probably be willing to pay $130, this rosy result is unlikely. And unless the industries in question were absolutely devastated, the only result would be worse conditions for local workers, who would be the first to suffer layoffs and wage cuts in tougher economic times.

The Clinton Administration formally delinked human rights and Most Favored Nation (MFN) trade status (which all but a handful of states enjoy), signifying that the United States has realized the futility of attempting to enforce labor standards with protectionism. Yet this step alone leaves a sour taste: what else is America doing to raise those standards? With an American penchant for cheap goods shared amongst voters and politicians alike, there is a definite danger that the issue will be ignored, and American pressure for more protective laws in Southeast Asia will remain weak.

Southeast Asian governments, for their part, can pass and enforce those more protective laws on their own initiative. There is an understandable reluctance to do so, since some nations have enjoyed tremendous economic development on the backs of its workers. But workers will not remain docile forever, and unrest (with a significant labor component) has already cost one leader, Indonesia's Suharto, his job. Unfortunately, until Indonesia's other economic problems get sorted out, a revolving door leadership will probably not help factory conditions.

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