Ryan Casey, 7th grade Brown Deer Middle School, Wisconsin Imagine being four years old and getting sold into child labor by your father for twelve dollars. You would be forced to work sixteen hours a day in a carpet factory. This case may seem unrealistic, but it does happen. Poverty stricken countries often use child labor. Poor parents allow or force their children to work. Child workers are easily intimidated and do not object to their environments. As a result, children in many countries are exploited. Ending child labor will not be easy. Independent nations demand that we respect their culture. They may not see child labor as a problem. Therefore, child labor abuse calls for government policy. The U.S. should not trade with countries that use child labor. If the foreign countries lose a major group of consumers for child produced goods, they will be forced to stop using child labor. Write your U.S. senator or congressman, urging them to enact laws that restrict trade with countries that exploit children. If enough people do this, it might scare U.S. companies that have their products produced in those countries. To ignore this tells the world that child labor is okay. It is not.1a

 

2. Description

According to the International Labor Organization, there are approximately 211 million working children worldwide between the ages of 5 and 14. Of this figure, 8 percent of the working children are in Latin America and the Caribbean, 23 percent are in Sub-Saharan Africa, 6 percent are in the Middle East and Northern Africa, and a disturbing 60 percent are in Asia.1b

South Asia has one of the most rapidly growing populations in the world yet it is also among the poorest. The World Bank (2000) reports that one in five people in South Asia lives below the international poverty line of US$1 per day. As a result, many children are forced to work in order to bring in a supplemental income for their families. Bangladesh holds less than 2 percent of the world population yet also harbors 5 percent of the world’s working child populace. The reasons for such a disturbing statistic regarding child labor in Bangladesh include:

Supply Factors: Approximately 55 million people in Bangladesh live in abject poverty.1 As mentioned above, this is the foremost factor contributing to child labor. It may seem peculiar that parents would make their children work, but in fact the desolate education system is to blame. Poor parents do not comprehend the value of sending their children to school instead of working because they themselves are not educated. The long-term economic results of a proper education are overlooked for the short-term profits of child labor.2 Additional reasons for child labor are domestic or regional pandemic or shock. Examples of this include the rapid spread of HIV/AIDS and other diseases, economic crisis, and natural disasters.2a Often times these situations will produce displaced children and orphans who, having no alternative and not knowing any better, resort to labor to support themselves. These children end up working in extreme conditions in hazardous positions.

Demand Factors: Child labor is cheap. One factory manager was quoted regarding the employment of children, saying: "Ten to twelve-year-olds are the best. They are easier to control, not interested in men, or movies, and obedient." Yet he fails to mention that children are not unionized and that they will agree to work for 500 taka (US$12) per month when the minimum legal wage for a worker is 930 taka.3 It seems to follow, then, that if the same work done by an adult can be done by a child working for less money, then logically the business will hire the child. This argument is not the most valid since it proves that children are not actually needed instead of adults to do work.3a Due again to the lack of education, children do not know any better and end up working under the most extreme and hazardous conditions.

USAID (2000) reported that “of the estimated 16 million children in Bangladesh aged 10 to 14, over 6.8 are working children.” Of this quantity of children, 41 percent are girls.4 Though the International Labor Organization (ILO) has set forth specific rules and regulations regarding child labor, they are far from being properly enforced.

Perhaps the most significant organization in fighting this disconcerting problem is UNICEF, which became involved as a result of the Harkin’s Bill (1993) which banned the import of commodities into the United States produced with child labor. This bill was mainly focused on the garment industry, which is one of the leading exports of Bangladesh. As a result of the Harkin's Bill, thousands of children were taken out of the garment factories, but instead of going to school, many children entered more hazardous industries such as stone crushing, steel hustling, and prostitution.5 Here the vicious circle of child labor becomes apparent. UNICEF is currently working with the Government of Bangladesh and several businesses to end child labor. The primary task that UNICEF has embarked upon is to take children out of the workforce and put them in school. However, according to a study that UNICEF conducted regarding the willingness of children to attend school:

"In the opinion of many people, all children should be in school until they are 15 or 16 years old. But what if the schools are very few, and very poorly equipped? And what if many families are so poor that even the small amounts earned by children are essential to pay for the basic necessities of living? What about children who have lost one or both parents? With whom do they live? Even where non-governmental and other organizations have established schools in low-income residential areas, there are distressing numbers of children who simply cannot afford to go to them. Others seemingly want to work, or at least feel mature doing the same work as adults."6

In this same study, interviews were conducted with children to determine whether they truly would prefer to attend school rather than go to work every day. Here are three examples of how children responded:

Thirteen year old Taslima began working in a garment factory when she was nine years old. She wanted nothing more than to go to school in the morning to study Bangla, mathematics, and English, then she would go to work in the afternoon. Taslima said that by pursuing an education she could learn to count and write letters while also learning about music.

Rakib is a 10 year old boy who began attending school after he lost his job at a garment factory for being underage. He is motivated to study because, “If I study, I’ll get a good job. I will be able to help my mother.”

Shilpi is a 14 year old girl working as a helper in a garment factory. Her job is to fold shirts produced en masse by machine operators, and she earns 400 taka per month (1 taka = US$.02). Though she would like to attend school, earning a living is her priority: “I have to take care of myself. How can I study?” 6a

3. Related Cases

Dr. David Parker © 1993

Child Labor Cases:

Chocolate and Slavery: Child Labor in Cote d'Ivoire

Kathy Lee Gifford & Sweat Shops Allegations

Nike Shoes and Child Labor in Pakistan

RUGMARK & Child Labor

Sweet Oranges?

Geographic Cases:

The Grameen Bank and Nutrition of Women in Bangladesh

Trafficking:

Nepal Sex Trade

Philippines and Human Traffic

Russia's Prostitution Trade

Russian Mail Order Bride

The Trafficking of Nigerian Women into Italy

Women Trafficking from Thailand to Japan

4. Author and Date:

Mercedes A. Torres: April 9, 2003

II. Legal Clusters

5. Discourse and Status: Disagreement and in progress.

6. Forum and Scope: WTO and multilateral

After looking at several disputes and issues in the World Trade Organization (WTO), it was apparent that the case for child labor in the garment industry of Bangladesh could also be included. The issue of liberalizing trade has historically run into difficulties in clothing and textiles. The sector has been run by a series of regimes starting with the Short Term Cotton Arrangement in 1961, then the Long Term Cotton Arrangement from 1962 to 1973, and the subsequent Multifibre Arrangement from 1974 to 1994. After more than three decades of increasingly complicated systems, Ministers decided to include the textile sector within the scope of the Uruguay Round multilateral trade negotiations in 1986. “Seven years of complex and difficult negotiations resulted in the Uruguay Round Agreement on Textiles and Clothing which forms part of the global, single undertaking making up the whole package of results from the Uruguay Round.”7

There are many issues which surround the textile industry, especially when it comes to child labor. The South Asian country of Bangladesh has traditionally been reliant upon child labor in the garment industry for several reasons, the most obvious being that it is less costly to employ children. Textiles – especially clothing - have dominated Bangladesh’s exports: combined share grew from 70.4% in 1992 to 83.5% in 1998.8 Thus employing children will also lead to a higher annual GDP. In addition, Bangladesh has preferential access to the markets of the United States and the European Union. Today this has become somewhat of a problem because under GATT 1994 it was decided that preferential access will be phased out by 2005. Heavy reliance upon a limited number of products is detrimental to the economy of Bangladesh. Though already in slight competition with other Asian countries, after 2005 Bangladesh is in danger of being drowned by the competition. It can be deduced therefore that a major issue that can and will hinder the growth of the Bengali economy is the weak infrastructure of the country.

In the Agreement on Textiles and Clothing in the Final Act of the Uruguay Round in 1994, efforts were made to secure the eventual integration of the textiles and clothing sector into the GATT. It also focused on the phasing out of MFA restrictions and the implementation of this Agreement on Textiles and Clothing. The Textiles Monitoring Body (TMB) was established to supervise the implementation of the agreement to ensure that all members are abiding by the explicit rules. As stated in a WTO report: "It monitors actions taken under the agreement to ensure that they are consistent, and it reports to the Council on Trade in Goods which reviews the operation of the agreement before each new step of the integration process. The Textiles Monitoring Body also deals with disputes under the Agreement on Textiles and Clothing. If they remain unresolved, the disputes can be brought to the WTO's regular Dispute Settlement Body."9 Comprehensive reports are submitted to the CTG annually regarding the progress and status of the ATC. The objective of this agreement is that quotas will come to an end by 2005 and “importing countries will no longer be able to discriminate between exporters.”10

So what of a case in the WTO regarding regulations put on the import of garments made with child labor from Bangladesh? The precedent for this is the Harkin’s Bill – set forth by UNICEF in 1993 - which put a ban on the import of products into the United States made with child labor. Hypothetically, a case could be made if the following premises ring true:
• since regulations have been put upon child labor, production has fallen dramatically within the garment industry
• annual GDP has fallen due to the implementation of a minimum wage for children and a limited number of hours children are allowed to work per week
• the economy of Bangladesh was more stable under the MFA and a demonstrated weakness has been prevalent under the Agreement on Textiles and Clothing

In general, the parties involved in this dispute are the Governments of Bangladesh and the United States, Bengali children, and consumers worldwide. If the economy of Bangladesh is suffering due to the agreements made in the WTO, the country will soon be witness to inflation and children will be forced into labor anyway, thus beginning the a vicious circle of disputes.

 

http://www.cia.gov

a. Geographic Domain: Asia

b. Geographic Site: South Asia

c. Geographic Impact: Bangladesh

10. Sub-National Factors: no

11. Type of Habitat: tropical

IV. Trade Clusters

12. Type of Measure: Import Ban

13. Direct v. Indirect Impacts: Direct

14. Relation of Trade Measure to Environmental Impact

a. Directly Related to Product: yes, textile

b. Indirectly Related to Product: no

c. Not Related to Product: no

d. Related to Process: yes, Children's Rights

15. Trade Product Identification: textiles/garments

16. Economic Data:

Indicator	Quantitiative Data	Qualitative Data
direct employment in textile industry	2.75 million people; 45% of total employment of industrial sector; +65% of total export earnings (1998)	contribution to economic development of Bangladesh is immense
demand for garments	US imports $1.7B p/y from Bangladesh	GoB requested a 30% increase in quota access to US textile market
US cotton exports to Bangladesh	approx. 124,000 bales p/y; 23% of Bangladesh’s cotton imports (1996/97)	Bangladesh relies on US for regular shipments
US exports of Pima	approx. 70,000 bales p/y; market share of 90%	n/a
child labor population	GoB estimates 6.3M working children aged 5 to 14, of which 1.9M are below age 10	alarming amount even after quotas and restrictions; discrepancy with underestimation b/c risk of violating int’l. agreements
export drives	2700 factories	safety standards are ignored
US quotas	-10% in 2003	decrease due to excessive exports in 2002; Canada will lift quotas in 2003

11

The information available regarding imports and exports in the garment industry within the past decade proffers reliable data. From this information it is obvious that this industry has historically been one of the largest contributors to the total export earnings of Bangladesh and also to the gross domestic product of the country. The Multi- Fibre Arrangement gives information about specific textiles (cotton shirts, dresses, etc.), which may or may not be pertinent to this case. Given this data, the magnitude of child labor in the garment industry is recognized. The quantitative statistics of the exact amounts are difficult to pinpoint only because several organizations have different figures.

17. Impact of Trade Restriction: low

18. Industry Sector: Textiles

19. Exporters and Importers: Bangladesh and United States

Main exporter - Bangladesh

Main importer - United States

V. Environment Clusters

25. Culture: no

26. Trans-Boundary Issues: no

27. Rights: yes

28. Relevant Literature

1a http://www.unicefusa.org/childlabor/essays.html#essays

1b Castro, Charita L. "U.S. Department of Labor International Child Labor Program: Action Programs & Data Collection Efforts." Presented to the School of International Service, American University: 4 April 2003.

1 http://cwa.tnet.co.th/boolet/Bangladesh.htm

2 http://cwa.tnet.co.th/boolet/Bangladesh.htm

2a Castro, Charita L. "U.S. Department of Labor International Child Labor Program: Action Programs & Data Collection Efforts." Presented to the School of International Service, American University: 4 April 2003.

3 http://www.newint.org/issue292/thank.htm

3a http://cwa.tnet.co.th/boolet/Bangladesh.htm

4 http://www.usaid.gov/bd/files/child_labor.pdf

5 http://cwa.tnet.co.th/boolet/Bangladesh.htm

6 http://www.unicef.org

6a http://www.unicef.org

7 http://www.wto.org/english/tratop_e/texti_e/texti_e.htm

8 http://www.wto.org/english/tratop_e/tpr_e/tp132_e.htm

9 http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm4_e.htm

10 http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm4_e.htm

11 http://globalmarch.org/worstformsreport/world/bangladesh.html