not really the case
fact is the US still manufactures more product and provides more high end services than any other country in the world .. most manufacturing here is highly automated and done in an energy efficient way .. we still have a fairly well educated and hard working labor pool, who are not making any more, in real terms, than they were 20 years ago
so labor costs are not the biggest factor ..
let's look at China or India, much of the labor is still hand work, so while cheaper, it might take 10 or 20 or 50 people to do the same job a computer controlled machine does in the US, Japan or some European counties
to make an item in China, on average, takes 3 times the energy it does in the US, because we have a fairly efficient infrastructure in terms of transportation, electrical, natural gas, etc. compared to China
The bigger difference is overall taxation and government regulation, including environmental regulation, product safety, work place safety standards and the cost of compliance for all this (sometimes reasonable) law
what needs to be addressed is the ability of these multinational corps, mostly based in US, Europe and Japan to operate in countries where the people of a country are basically slave labor working under unsafe conditions .. it is NOT fair trade to produce a product for the world market where the worker is subject to 70+ hours per week, oppressive and/or dangerous working conditions on wages that pay little more than the cost of food and clothing
A cost for being in the WTO, should be a tax based on a world minimum wage and complying with certain work place standards, those receipts should go to the very poorest of countries, directly to the people there locally, for food, sanitation, health and infrastucture
my guess though, would be that the countries like China would, to the minimum necessary, improve conditions and wages at home, before paying a tax destined for a poor African or South American country, however the net effect would be a move towards a more equitable fair trade of goods and the movement of capital a bit more towards the workers
you'd not see a big increase in cost of goods, because really, the cost of labor is no longer the largest factor in the manufacture of most goods