Washington, D.C. — The Trump administration’s retreat from international labor cooperation is weakening global labor standards, reducing the United States’ influence abroad, and making it harder for American workers and businesses to compete on a level playing field, according to a new analysis from the Center for American Progress.
The Trump administration owes roughly $300 million in outstanding dues to the International Labour Organization (ILO). The group has warned that budget shortfalls will require cost-cutting measures, many of which will undermine the competitiveness of U.S. companies and American workers.
“The Trump administration’s weakening of the ILO harms the interests of workers here at home and abroad,” said Ryan Mulholland, senior fellow at CAP and author of the analysis. “It will make it harder to root out instances of forced labor from the global economy, weaken enforcement of health and safety standards, and make workers looking to unionize less safe. What is more, it will make it harder for high-standard American companies to compete on fair terms.”
The analysis details the consequences of the United States’ pullback from the organization, including:
- American workers could face unfair competition from countries with lower labor standards. The ILO’s principles on collective bargaining, forced labor, child labor, discrimination, and workplace safety have served as a baseline for labor provisions in nearly every subsequent U.S. trade agreement. If the United States gives up influence over the development of those standards, lower standards could make it harder for U.S. workers to compete fairly.
- Efforts to combat forced and child labor may be undermined. The organization helps define, monitor, and address forced labor in global supply chains and works with countries to eliminate child labor. Weakening those functions could allow lower-cost producers relying on abusive practices to gain an advantage over U.S. companies that follow higher standards.
- U.S. trade agreements already depend on the ILO’s work. Several ILO factory-monitoring programs are required under existing U.S. trade agreements, including the Trump administration’s recent agreements with Malaysia, Vietnam, and Cambodia. Cuts to the ILO and other international labor programs across the U.S. government could make those commitments more difficult to monitor and fulfill.
- The United States risks having less say over new rules governing the global economy. The ILO is leading the development of international standards related to the platform economy, artificial intelligence, and workplace health and safety. American companies operating abroad may still have to comply with standards adopted by other countries even as diminished U.S. participation gives the United States less influence over how those standards are written.
Read the analysis: “The Trump Administration’s Abandonment of the ILO Harms Workers Both at Home and Abroad” by Ryan Mulholland
For more information or to speak with an expert, please contact Christian Unkenholz at [email protected].