Humanizing Trade: A North American Perspective in the Making

Abstract

Free trade agreements (FTAs) generally face strong opposition from trade unions. Free trade favors enterprises while labor supports the bulk of adjustment costs of a globalization process that lacks adequate regulation. National markets have been increasingly confronted with free trade and increased competition from abroad. While this can stimulate growth, investment, and productivity, growing trade and investment flows have also been accompanied by negative effects on employment, wages, and working conditions. Globalization and the dismantling of welfare states have reduced the bargaining power of the workforce and generally benefited employers; this is illustrated by the shrinking gross domestic product (GDP) share of wage-salaries relative to the GDP share of profit, as well as by an increasing economic insecurity for workers around the world. Although many workers in high-productivity sectors have benefited from globalization, optimism regarding the social cost of globalization has receded (GLG 2007; Roach 2007).