ABSTRACT
Effortstoincludeasocialclauseatmultilateralleveldatebacktothe creationoftheBrettonWoodssystemandinstitutionsintheaftermath ofWorldWarILTheHavanaCharteroftheproposedInternationalTrade Organization{ITO)recognized,inArticle7ofChapterII,theimportanceoflaborstandardsininternationaltrade:
Themembersrecognizethatmeasuresrelatingtoemploymentmusttake fullyintoaccounttherightsofworkersunderintergovernmentaldeclarations,covenants,andagreements.Themembersrecognizethatallcountrieshaveacommoninterestintheachievementandmaintenanceoffair laborstandardsrelatedtoproductivity,andthusintheimprovementof wagesandlivingstandardsasproductivitymaypermit.(WorkerRights News1994)
TheITOnevermaterializedasenvisioned,largelybecausetheU.S. Congressfailedtoratifyit.The"transitionalarrangement"thatwasleft initsplace(i.e.,theGeneralAgreementonTariffsandTrade[GATT]), wasintendedtobenotaninternationalorganization,butmerelyamultilateraltradeagreement.TheGATTwassignedonOctober30,1947, asatreatywithintheITOframework.Subsequently,whentheITOfailed,
the GATT was transformed into an institutional framework, which, nevertheless, lacked internal regulation for its activities and operational procedures as well as resources and secretariat. However, the GATT incorporated the commercial policy provisions of the Havana Charter of the ITO (Chapter IV). In that way, the GATT contained only general language in its preamble but one explicit reference to labor standards in trade: Article XX( e) permits contracting parties to take measures to restrict "products of prison labor."
