In broad terms, a successful compromise will probably need to require that the President put labor and environmental policies on the trade negotiating table whenever he determines that they have implications for U.S. trade interests, but not require him to bring back to Congress agreements containing labor and environmental provisions. The Senate Finance Committee is soon expected to take up a draft fast-track bill that is the product of extensive consultation with labor, business, and environmental groups. If these groups and their congressional allies will reciprocate the Finance Committee's constructive approach, fast-track could be approved this year. Although the AFL-CIO's official position remains quite tough, some labor leaders have proposed new rules for the WTO and regional trade agreements that would improve labor protections without harming business or developing country interests. These proposals should be incorporated in fast-track negotiating objectives.
Business also needs to be more flexible.
Like the people they employ, exporting and import-competing U.S. firms, in particular, could benefit from higher standards in developing countries. With or without fast-track, the United States can join other countries in efforts to reconcile trade with labor and environmental goals. These efforts deserve stronger support from free-trade supporters in Congress. The United States is also pursuing initiatives, like global negotiations on fishery subsidies, that simultaneously promote trade and environmental goals. Increased trade policy dialogue between international business and labor could be especially important, but that dialogue will ultimately be more productive if it includes developing country perspectives.