Concepts of Fairness in the Global Trading System

Abstract

We first discuss why fairness is a condition of the agreements among governments that form the global trading system. We then suggest that fairness can best be considered within the framework of two concepts: equality of opportunity and distributive equity. We thereafter discuss what these mean as applied to market access and its supporting rules as well as to dispute settlement and trade remedy measures. Finally, we make some comments about fairness in the Doha Development Round. Copyright 2007 The Authors Journal compilation 2007 Blackwell Publishing Ltd

Free Trade Agreements and Governance of the Global Trading System

“…A test of the difference is that it acts as such in trade negotiations. 4 Relatively low utilisation rates have also been found among developing countries participating in the General System of Preferences (Brown and Stern, 2007). costs for the exporter that outweigh the benefit.…”

The Multilateral Trading System

“…The right to organize and a safe workplace are both on most lists of labor standards, but they might also be regarded as human rights. 15 For more on labor standards, see Brown and Stern (2007).…”

The Cooperation Argument for Fairness in International Trade

“…Nevertheless, it remains true that, if ideas of fairness are seriously and persistently violated, the cooperation on which the system rests will be threatened and the system thereby undermined. 13 International [trade] agreements require the agreement not just of the rich countries, but also of the poor, and if the citizens of democratic poorer countries believe that they are being unfairly treated, they will refuse to agree or comply. 14 The lesson of the recent heroic exercise to gain congressional approval of the Uruguay Round Agreement, including the provisions establishing the WTO, is that any rules-based approach to international trade is unlikely to be durable unless, in the end, it is able to…”