Social Concerns in Free Trade Agreements

There is no doubt that we live in a world in which national economies are increasingly interdependent. This implies that non-compliance with labour standards in one country can have repercussions for other countries, in the form of shifting investments and weakening regulations. When in the 19th century, for the first time, the idea to limit working hours was launched, it was clear from the beginning that this could be done only at an international level, because otherwise any reduction effected in only one country would be to the advantage of the others. To put it briefly, in a non-protectionist economy, labour standards cannot be guaranteed only in one country. This is because mutual recognition of labour standards makes countries more self-confident, reduces customs duties, breaks down barriers and makes for fairer competition between companies of different countries.