Early this year, Boeing (BA ), Caterpillar (CAT ), and others explored linking labor rights to trade pacts. One idea: Instead of trade sanctions, companies that violate labor laws could be fined. Unions, congressional Democrats, and even moderate Republicans might go along.
Mainstream environmental groups will continue to push the U.S. to go along with Kyoto. To diffuse tensions, institutions such as the IMF and the World Trade Organization might find a way to incorporate environmental standards into global trade pacts.
G-8 leaders in Genoa agreed to pursue debt relief for poor countries. They also put up an initial $1.3 billion to help combat AIDS and other diseases. More such steps would help ease protests.