Australia, the "Social Clause" and the ILO

Abstract

The debate over the links between labour standards and trade policy remains controversial. Consequently, proposals for the World Trade Organisation to develop a “social clause” in multilateral agreements have foundered, as have suggestions of a “social label” within the International Labour Organisation. Australia, under both Labor and Liberal/National governments, has joined its ASEAN neighbours in arguing that the most appropriate forum for action on labour standards is the ILO. Yet the Coalition government has significantly downgraded Australian participation in the ILO. In examining Australia's approach this paper discusses recent policy changes and continuities. Current policy is obviously related to domestic political, philosophical and legislative considerations. However, the approach is also consistent with a general withdrawal from multilateralism in foreign policy, and with an attempt to quarantine human rights from trade issues. An assessment is offered of the ramifications for Australia's capacity to advance industrial relations matters at the international level.