WTO needs new labor, environment rules-Clinton, Obama

[Omaha Steve]

http://www.reuters.com/article/latestCrisis/idUSN29194762

Fri Feb 29, 2008 1:41pm EST

By Doug Palmer

WASHINGTON, Feb 29 (Reuters) - Democratic presidential candidates Hillary Clinton and Barack Obama, in a pair of newly released statements, have said they want stronger labor provisions in world trade agreements -- a demand long resisted by developing countries who fear it could backfire on them.

The candidates' stance raises a potential new problem for the six-year-old Doha round trade talks, which European Union Trade Commissioner Peter Mandelson already warned on Friday faced a "high risk of failure."

Developing countries have opposed including labor provisions in world trade agreements. They fear such provisions could be used by rich countries as an excuse to block imports.

"The labor issue has always been very controversial" in the World Trade Organization, said Ed Gresser, director of the Progressive Policy Institute's trade and global markets project.

"That's one of the reasons there isn't a labor mandate in the Doha round. (Developing countries) have always resisted it," he said.

Former President Bill Clinton caused an uproar at the World Trade Organization's failed 1999 meeting in Seattle when he said labor provisions should be included in trade pacts.

FULL story at link.