A LAST-MINUTE deal on a hard-fought paragraph concerning labour standards - code words for child labour and sweat shop conditions - enabled ministers from 128 countries meeting in Singapore to sign a far-reaching declaration yesterday laying the framework for more liberalised trade into the next century.
An eleventh-hour initiative in the form of an agreement to boost the world's 48 poorest countries also helped ensure passage of a ministerial declaration that brought the week-long inaugural meeting of the World Trade Organisation to a successful conclusion.
"I regard it as astonishing that we've been able to bring together such a diverse group of countries and get agreement on a text that is not just papering over the cracks but genuinely important," European Trade Commissioner Sir Leon Brittan told a news conference.
US President Mr Bill Clinton telephoned acting trade representative Ms Charlene Barshefsky to congratulate her on the US achievements at the conference - especially the information technology agreement (ITA) which will eliminate tariffs on hundreds of global technology products by the year 2000.
But the United States and a number of European countries failed to get agreement on linking trade with labour standards. Their strategy was aimed at focusing on the employment of an estimated 250 million children, mainly in "Third World countries, and the resulting trade advantages enjoyed by the employers of cheap labour.
Developing nations - led by India, Pakistan, Malaysia and Egypt - had fought any interference by the WTO in the area of workers rights, arguing that it would undermine the comparative advantage they enjoy in world trade through low wages.
The issue dominated back-stage negotiations during the week-long meeting, with the Americans making clear they could not return to Washington without its inclusion in the final declaration. In the end the document did mention labour standards, but only to affirm that they were a matter for the Geneva-based International Labour Organisation (ILO).
The 15 EU countries split on the issue, which developing nations saw as a protectionist measure by the United States.
Ireland wanted a working group set up to consider the linkage between trade and labour standards as a human rights issue.
An Irish official said the inclusion of the issue was important as it sent a political signal that core labour standards were an important issue. It would act as a stimulus to the ILO to act - because failure to do something in the ILO would bring it back to the WTO in two years.
The Minister for Tourism and Trade Mr Kenny, who described the WTO conference as a "major success in maintaining the momentum for liberalising world trade", said the compromise defused a row which for years has overshadowed the process of liberalising world trade".
The paragraph on labour standards in the declaration said: "We renew our commitment to the observance of internationally-recognised core labour standards. The International Labour Organisation is the competent body to set and deal with these standards, and we affirm our support for its work in promoting them. We believe that economic growth and development fostered by increased trade and further trade liberalisation contribute to the promotion of these standards. We reject the use of labour standards for protectionist purposes and agree that the comparative advantage of countries, particular low-wage developing countries, must in no way be put into question. In this regard, we note that the WTO and the ILO secretariats will continue their existing collaboration."
The eight-page declaration forms a blueprint for the future agenda of the WTO, including working groups to study the links between trade, competition and cross-border investment.
"We regard the conference as having been a huge international success which has given vital boost to the strength and profile of the World Trade Organisation" Sir Leon said.
The inclusion of labour standards in the declaration forced the abrupt suspension of both houses of the Indian parliament yesterday.
