The fair trade-free trade debate: Trade, labor, and the environment

Most free traders see recent demands that trade be linked to compliance with environmental and labor standards as motivated by the desire to protect jobs at home against increased competition from the Third World and view many fair traders as protectionists masquerading as moralists. The idea of a b...

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Bibliographic Details
Published in:International review of law and economics 1996-03, Vol.16 (1), p.61-79
Main Authors: Howse, Robert, Trebilcock, Michael J.
Format: Article
Language:English
Subjects:
Compliance
Environmental regulations
Fair trade
International
Labor standards
Protectionism
Trade policy
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Summary:Most free traders see recent demands that trade be linked to compliance with environmental and labor standards as motivated by the desire to protect jobs at home against increased competition from the Third World and view many fair traders as protectionists masquerading as moralists. The idea of a blanket prohibition of trade sanctions to affect other countries' policies is suggested and a more subtle legal and institutional approach to the relationship between trade, environment and labor rights is advocated. A normative framework for disaggregating and evaluating fair trade claims relating to labor and environmental standards is proposed. In particular, a critical distinction is drawn between claims that trade measures should be used to attain a specific non-trade goal or vindicate a specific non-trade value, and arguments for a level competitive playing field, evening the odds, or establishing fair rules of the game that are internal to the trading system.
ISSN:0144-8188
1873-6394
DOI:10.1016/0144-8188(95)00057-7