In turn, this is seen as leading to cross-border relocation of businesses as well as downward pressures on labour standards. Canada's position is that foreign investors must conform, along with Canadian firms, with all domestic laws and regulations. Consumers are also expressing concern about the working conditions under which consumer products for sale in Canada are made. The government is also being asked to consider what role it can play in specific proposals aimed at improving labour practices at home and internationally such as sector-based codes of conduct and labelling schemes. The 1998 ILO Declaration of Principles and Rights at Work and its follow up procedures to review progress in implementation and promote respect for these standards is considered a major achievement in establishing guidelines for the implementation of a set of global labour standards, but only a first step in understanding and dealing with the social dimensions of globalization.
Trade takes place in a complex social and economic environment.
Analysis and understanding about this relationship, and specifically about the role of international and domestic norms and standards and the trading system, is essential. Work is underway in the ILO to examine the effects of globalization and trade liberalization from the perspective of labour markets and other social indicators in a variety of economies. While globalization appears to pose significant challenges in the economic an social spheres, no country is prepared to reject further trade liberalization. These developments, and discussions at the March 1999 WTO High Level Meeting on Trade and Development, indicate that we need to develop a forum where developed and developing countries can come as equals to exchange experiences and policy choices on the common burden of adjustment to the globalized world. In preparation for the Seattle WTO ministerial meeting, all WTO governments arereviewing the effectiveness of current approaches and considering what needs to be done to reduce tensions and further knowledge and understanding of this complex area.