This study examines labor standards enforcement and compliance in two Asian economies
(Bangladesh and Cambodia) that have amongst the lowest labor costs in the world but are
experiencing strong pressures to improve the price competitiveness of their textile and garment
exports. Analysis of survey, focus group, and inspection data indicate differing trajectories in
compliance with basic labor standards. While extremely low wages and poor working conditions
have persisted in Bangladesh, compliance has begun to improve in Cambodia following a trade
agreement with the United States that linked positive trade incentives with labor standards
enforcement. These contrasting experiences suggest that in less developed countries
governments consider trade-linked schemes to achieve improvements in working conditions
without hindering export growth or job growth.