‘Labour standards’ has become a key term in modern international trade vocabulary. The broad objectives of this paper are to highlight the implications of the labour-trade linkage through the labour GSP concessions received by Sri Lanka and to highlight the issues of the GSP scheme in a descriptive analysis. The structure of this paper comprises of two parts. Sections 2 and 3 constitute Part 1, which deals with the labour-trade linkage at a global level, while Part 2, consisting of sections 4-8, addresses the linkage in the context of Sri Lanka.