Workday Minnesota: The new generation of free trade deals Under GATS, another country could challenge Minnesota's (or another state's) prevailing wage law if it prevented a construction firm from that country from winning a government contract here. The WTO would set up a tribunal of three "trade experts" to decide the case. They would meet in secret. If it was Minnesota's prevailing wage law at issue, the State of Minnesota would have no right to argue its case before the tribunal unless invited into the case by the Bush administration.
If the tribunal ruled that our prevailing wage law was a violation of GATS, the United States would have two options. It could pay, via trade sanctions, the country that brought the complaint for the value of any contracts denied due to the prevailing wage law. Or it could use all means at its disposal to force Minnesota to repeal our prevailing wage law. Since the Bush administration has already shown its hostility to prevailing wage, it is not hard to imagine which course would be taken.