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STUDENT NO: 4132407
ANU COLLEGE OF LAW
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CAN INTERNATIONAL TRADE LAW BE USED TO PROTECT HUMAN
RIGHTS OBLIGATIONS? EXAMINING THE RELATIONSHIP BETWEEN
INTERNATIONAL TRADE LAW AND HUMAN RIGHTS AND THE
CHALLENGES BEHIND INCORPORATING HUMAN RIGHTS APPROACHES
INTO INTERNATIONAL TRADE
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INTRODUCTION
The implementation and promotion of human rights is
a frequent topic of debate. The values protected by human
rights law are generally recognised by States as
evidenced by the widespread ratification of human rights
treaties. Violations however continue to occur,1 prompting
human rights advocates to examine alternate methods of
enforcing States and individual actors to comply with
their human rights obligations.
Human rights advocates argue that World Trade
Organisation (‘WTO’) principles and obligations allow
trade agreements to interfere with and subordinate human
rights.2 Some experts however suggest that instead of
prioritising trade measures over human rights, the WTO
should use an approach that links trade with human rights
to empower international trade law with the capability to
improve human rights worldwide.3 This approach begs the
question: can international trade law and trade 1 James A Dorn, ‘Trade and Human Rights: The Case of China’ (1996) 16(1) Cato Journal 77.2 Peter Costantini, You must subordinate human rights to free trade (2001) What’s Wrong with the WTO? < http://www.speakeasy.org/~peterc/wtow/wto-hrs.htm> at June 21 2011.3 Olufemi Amao, ‘Trade Sanctions, Human Rights and Multinational Corporations: The EU-ACP Context’ (2009) 32(2) Hastings International and Comparative Law Review 379, 385.
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agreements promote human rights issues by allowing the
WTO to incorporate non-trade objectives such as human
rights into its framework?4
The aim of this essay is to examine the relationship
between trade liberalisation and human rights and
determine whether the relationship is an effective means
of endorsing a human rights approach to international
trade law. This paper will evaluate the implications and
effectiveness of using the WTO as a body for addressing
current human rights issues in four parts. Part One will
analyse the legal framework of the WTO to determine the
principal aims behind its creation and whether one of
these aims is the incorporation of free trade and human
rights. Part Two will examine the links between trade and
human rights by analysing human rights references in
trade legislation and trade references in human rights
and whether these can and should be combined to encourage
compliance with international obligations. Part Three
will then examine how the WTO could be used to enforce
human rights obligations and analysing and evaluating the
effectiveness of these in this pursuit. Part Four will 4 Ibid.
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then explore other possible approaches to using trade as
an effective tool in implementing human rights measures
to decide whether human rights law and trade law are a
compatible means in achieving the desired objectives from
combining a human rights approach to international trade.
PART ONE: ANALYSING THE ROLE OF THE WORLD TRADE
ORGANISATION
Arguments for and against free trade have existed
since the eighteenth century.5 Moral arguments in support
of free trade focus on notions that free trade is a
right, increases commerce, decreases the likelihood of
war and reduces poverty. Socio-political arguments
highlight the social and political effects of free trade,
which include political stability, national security,
human rights and environmental protection. Those against
free trade however, argue that it only benefits the
wealthy within countries as prioritising environmental
regulations, labour laws, minimum wages, safety
regulations and basic human rights can lead to costs
increases in operating within a country. 6 With such
5 Free trade debate (2011) Wikipedia < http://en.wikipedia.org/wiki/Free_trade> at June 21 2011.6 Ibid.
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arguments being thrown about, we must first analyse the
WTO legal framework and its aims and functions in order
to determine its stance on such arguments.
The WTO was established in 1994 after the conclusion
of the Uruguay round of negotiations under the General
Agreement of Tariffs and Trade (‘GATT’). The GATT was
transformed into the WTO and was established by the
Marrakesh Agreement with the principal aim of freeing up
world trade from protective barriers.7 The WTO supervises
the implementation of international rules on trade
liberalisation and also serves as a negotiating forum for
further liberalisation while its mandate extends beyond
the GATT’s into areas such as liberalisation of trade in
services as well as the protection of intellectual
property rights.8 The WTO therefore operates as the main
international arbiter on trade issues with a particular
focus on issues that arise from moves to internationalise
trade and abolish trade barriers.
The theory of comparative advantage provides the
theoretical underpinning at the heart of the WTO, which
7 Marrakesh Agreement Establishing the World Trade Organisation (15 April 1994) 1867 UNTS 3.8 Ibid.
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is the promotion of free trade – the theory that States
should concentrate on producing what they are best at to
avoid generating opportunity costs and consequent
economic inefficiency.9 The WTO was created to open up
markets and promote international trade by discouraging
protectionist measures based on the concept of free
trade. Its trading system is based on two notions: first,
removing trade protection normally enhances that domestic
and international welfare. Second, the fundamental
necessity of being able to distinguish protectionist
cheating on trade rules from various trade-impacting
policies which are purported to use aims unrelated to
commercial interests themselves, be it environment,
health and safety, or human rights.10
At the time of its creation, governments in the EC
and the United States, and members of the international
trade union movement wanted to give the WTO the power to
determine whether its member countries observed basic
human rights in labour management, along with the power
9 Sarah Joseph, ‘Human Rights and the WTO: Issues for the Pacific’ (2009) 40 Victoria University Wellington Law Review 351, 351.10 Robert Howse, ‘The World Trade Organization and the Protection of Workers’ Rights’ (1999) 3 Journal of Small and Emerging Business Law 131, 141.
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to bestow sanctions upon these members if they did not
comply. References to these rights included the rights of
freedom of association, the right to organise and bargain
collectively, non-discrimination in the work place,
freedom from child labour and freedom from slavery.11
Their arguments for endorsing human rights strategies in
the WTO was that WTO principles were not incompatible
with other goals contained in other international
agreements and that, even though the WTO was established
for the principal purpose of developing trade by reducing
the obstacles between its members, its goals, especially
those aimed at non-discrimination, were not incompatible
with other goals in other international agreements that
many WTO parties had signed and ratified.12
Other WTO members however argued that the WTO should
not be legally or philosophically equipped to arbitrate
on such matters and that any of these concerns should be
left to the International Labour Organisation (‘ILO’).
They argued that substantiating international trade on
11 Richard Broinowski, ‘Delinking Trade from Human Rights: The Australian Approach’ (1997 / 1998) 45 Australian Rationalist 47, 48.12 Andres Felipe Celis Salazar, ‘Can WTO Members Rely on Non-WTO to Justify A Violation of WTO Law?’ (2007) 10 International Law: Revista colombiana de derecho internacional 341, 343.
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non-trade-related matters such as rights of workers, is
detrimental to the promotion of welfare-enhancing free
trade, that it is hostile to the economy of developing
countries since increased export trade is one of the best
ways of improving their economy, that the WTO’s legally
defined trade policy measures would be incapable of
dealing with complex social concepts and finally that the
argument for workers’ rights is simply disguised
protectionism. They substantiated this argument with the
following conclusion: if the WTO linked human rights to
trade that it would neither serve trade nor human rights
interests and thus be detrimental to the WTO’s principal
purpose of trade liberalisation.13
Herein lies the difficulty for those wishing to use
the WTO as a means for strengthening the relationship
between human rights and trade. If establishing a link
between human rights and trade by endorsing a human
rights approach when considering trade liberalisation
issues were a key issue of the WTO, then the parties
would have expressly indicated that in the treaty text.
Because WTO legislation does not contain these express 13 Broinowski, above n 11, 48.
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references, the prevailing view is that the ILO or other
human rights bodies are the principal means for dealing
with human rights or labour standards. The WTO was
established for the purpose of liberalising trade –
therefore this should take priority over other issues to
satisfy its principal goal.14
CRITICISMS AND CONFLICTS BETWEEN WTO PROVISIONS AND HUMAN
RIGHTS LAW
The resistance to provide the WTO with human rights
responsibilities, has created a multitude of criticism
about the WTO’s stance on human rights – namely that the
WTO enshrines commerce as a higher value than other more
fundamental “human” values. Despite its potential to have
profound effects on their livelihoods, WTO members are
rarely well informed of the negotiating process within
the WTO. Those who are detrimentally affected by WTO
rules rarely, if ever, have access to procedures of
redress after a state’s accession. Furthermore, as the
negotiation process is dominated by free trade and
commercial values, these values will likely be
14 Salazar, above n 12, 350 – 351.
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prioritised when they conflict with or diverge from
values such as environmental interests or human rights.15
Those against empowering the WTO to ensure
compliance with human rights through trade argue that
focusing on workers’ rights within a domestic context can
be interpreted as disguised protectionism. Opponents
however, state that protectionism violates human rights,
as it is an act that deprives individuals of their
autonomy by empowering governments who do not take
individual rights into consideration.16 Proponents for
human rights and trade links also argue that trade
liberalisation posits a close link between increasing
economic freedom and securing human rights by reducing
government power, which in turn leads to personal freedom
and encourages moral government. Free markets that are
founded on consent and private property encourage
individual responsibility, self-esteem, social mobility
and tolerance, all of which are fundamental tenets of
human rights and democracy. Moreover, economic
liberalisation breeds political liberalisation. As
15 Joseph, above n 9, 353.16 Dorn, above n 1.
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markets spread, people acquire more wealth and gain
interest in participating in political discourse and
protesting their property. They conclude that free
markets therefore provide a basis for political regimes
that are more oriented towards human rights and thus more
likely to implement and protect them.17
Those who deplore the lack of human rights
references in the GATT and its disregard by the WTO argue
that the WTO’s basic principles of most-favoured nation
status18 and blindness to production and processing
methods19 prohibit distinguishing among trading partners
because of bad human or labour rights records. Any
attempts to ban importing goods made from child labour
would violate the GATT because child labour is viewed as
a production method instead of a physical property of the
product.20 They also argue that WTO treaties and their
interpretations subordinate values such as environmental
sustainability, public health, consumer and worker safety
and freedom of labour and human rights in order to
17 Ibid.18 General Agreement on Tariffs and Trade 1994, Agreement Establishing the WTO, Annex 1A, 1867 UNTS 187, Art. 1.19 Ibid.20 Costantini, above n 2.
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maximise trade.21 Furthermore, nearly all WTO decisions
have gutted democratic restrictions on trade, which have
lead to lower standards of consumer and environmental
protection, public health and human rights.22 They argue
that the WTO weakens the power of citizens to defend
human and labour rights through domestic government
policies, even arguing that widespread government
sanctions against South Africa during its Apartheid
system would probably have been illegal under the WTO.23
Even intellectual property, which is regulated by the
WTO’s TRIPS agreement can be used to enforce restrictions
on trade via copyrights and patents through claims of
encouraging innovation and exclusively benefitting
wealthy nations and transnational enterprises at the
expense of poorer nations.24
The argument for those who favour a human-rights-
before-trade approach is that the current system of
global trade and investment rules has failed because it
21 Ibid.22 Peter Costantini, What’s Wrong with the WTO? (2001) What’s Wrong with the WTO? < http://www.speakeasy.org/~peterc/wtow/index.htm> at June 21 2011.23 Costantini, above n 2.24 Costantini, above n 22.
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has weakened the bargaining power of workers everywhere
by undermining national regulations to protect workers’
rights and public health and thus exacerbating growing
inequality worldwide.25 Human rights advocates frequently
condemn the WTO’s current system of prioritising trade
liberalisation over other international law issues such
as these. The question for those wishing to strengthen
and promote the relationship between international trade
law and international human rights law is: is a rules-
based global trading system that protects workers’
rights, human rights, the environment, public health and
consumer protection feasible?
PART TWO: ESTABLISHING LINKS BETWEEN TRADE AND HUMAN
RIGHTS
The links between international human rights law and
international trade law have been the subject of much
focus in recent years. Debates about their similarities,
differences and coherence are creating international
tension; especially for those States and individuals who
believe that the WTO’s principal objective is trade
liberalisation only. Despite these conflicting views, the25 Costantini, above n 2.
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links between the two bodies of international law are
constantly endorsed and reaffirmed26 and attempts to
promote their links continue to gain strength. On June 22
2011, the UN Human Rights Office of the High Commissioner
released a statement declaring that in an unprecedented
move the United Nations Human Rights Council has endorsed
a new set of Guiding Principles for Business and Human
Rights which aim to provide – for the first time- a
global standard to prevent and address the risk of
adverse impacts on human rights linked to business
activity.27 Furthermore, Michelle Bachelet released a
statement on June 16 2011 on the Adoption of the ILO
Convention and Recommendations on Decent Work for
Domestic Workers in which she describes the convention as
“precedent-setting” for its sole focus on domestic work
and its definition and praises it as a tool for ‘laying
out human rights standards for domestic workers in the
context of the decent work agenda, within which to act as
26 Gillian Moon, ‘A Light in a Dark Place? Human Rights and International Trade Law’ (2006) 9(2) Balayi: Culture, Law and Colonialism 58, 58.27 UN Human Rights Office of the High Commissioner, ‘New Guiding Principles on Business and Human Rights endorsed by the UN Human Rights Council’ (Press Release, 22 June 2011).
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committed governments, responsible employers and
workers.’28
The stimulus for these attempts to create legal
instruments by linking international standards of human
rights law and trade law arises from their common origin
and shared objectives. Both international trade law and
international human rights law originated and entered the
arena of public international law at the same historical
point. Both were considered essential components of the
international strategy devised in the final days of World
War II to prevent future world wars. Because of the
similarities of their origins, connections are frequently
pointed out by those wishing to show instances where the
WTO can, or has the potential to negatively influence the
implementation of human rights.29 The United Nations High
Commissioner for Human Rights argues that human rights
law should be extended and reconceived to include the
kinds of market freedoms protected by WTO law as economic
rights within human rights law. By citing factors such as
28 Michelle Bachelet, ‘ Statement by UN Women Executive Director Michelle Bachelet on the Adoption of the ILO Convention and Recommendations on Decent Work for Domestic Workers’ (Press Release, 16 June 2011).29 Moon, above n 26, 58.
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similarities of objectives, scope and terminology, the
common status of human rights and trade law as bodies of
international public law provide opportunities to examine
how the two types of law could be integrated to form a
more coherent relationship.30
LINKING THE SIMILARITIES BETWEEN INTERNTIONAL HUMAN
RIGHTS LAW AND INTERNATIONAL TRADE LAW
In its preamble, the Marrakesh Agreement, which
established the WTO, included not only free trade as its
objective but also referred to human rights and social
issues, such as raising the standards of living, ensuring
full employment, sustaining development and protecting
the environment.31 This is an example of one of the first
attempts to establish a link between human rights law and
trade law.
International trade law and human rights law entered
the body of public international law at the same
historical point and were both considered a vital element
in securing international peace and security in
30 Ibid.31 Marrakesh Agreement Establishing the World Trade Organization, 1867 UNTS 154.
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international relations after World War II for the
prevention of future world wars.32
The core principle of the notion of free trade
promoted by the WTO is the principle of non-
discrimination, which is enshrined in all WTO
agreements.33 The principle of non-discrimination is
equally fundamental in human rights law. The Human Rights
Committee has declared it is ‘a basic and general
principle relating to the protection of human rights’
which is not only present in the United Nations Charter
but also the Universal Declaration of Human Rights, the
ICCPR, the ICESCR and is reiterated in most of the major
human rights treaties.34 The United Nations take this
analysis of the linkage between the two one step further
by stating that ‘the realms of trade, finance and
investment are in no way exempt from human rights
obligations and principles.’35 Those human rights 32 Moon, above n 26, 59..33 Gudrun Zagel, ‘The WTO and Trade-Related Human Rights Measures: Trade Sanctions vs. Trade Incentives’ (2004) 9 Austrian Review of International and European Law 119, 125.34 International Covenant on Civil and Political Rights, opened for signature 19 December 1966, 999 UNTS 171 (entered into force 23 March 1976), General Comment No 18, para.1.35 Office of the High Commissioner for Human Rights, Human Rights as the Primary Objective of Trade, Investment and Financial Policy, Sub-Commission Resolution 1998/12.
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obligations and principles include labour standards,
labour conditions, environmental policies and access to
life-saving drugs. Even Article 55 of the UN charter is
evidence that its human rights goals of higher living
standards, full employment and economic development are
shared by those who created the preamble to the GATT.
Human rights and liberal trade rules, including
those of the WTO, are based on the same values. These
include individual freedom and responsibility, non-
discrimination, rule of law, the freedom of access to
courts and adjudication of disputes, the promotion of
social welfare through peaceful cooperation among
citizens and parliamentary approval of domestic and
international rules.36 Human rights are also to be
understood generally to encompass not only the rights
contained in the “International Bill of Rights” but also
basic standards, as protected by the International Labour
Organisation (ILO). The links between international trade
law and international human rights law are often used by
NGOs, scholars and the United Nations to substantiate a
36 Ernst-Ulrich Petersmann, ‘The WTO Constitution and Human Rights’ (2000) 3(1) Journal of International Economic Law 19, 19.
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case for linking human rights to international trade
within the context of the WTO as an inevitable expansion
of the WTO trade mandate. The UN has called on the WTO to
shift to a human rights based approach to international
trade citing the links mentioned above, by arguing that
the promotion and protection of human rights law over all
other regimes of international law is a basic and
fundamental principled that should not be departed from.37
Human rights advocates also argue for inclusion of human
rights considerations in the international trade regime
because they believe that these links between
international trade and human rights are a legitimate and
necessary linkage within the WTO. Failure to do so will
only increase disregard for human rights – especially in
the domain of labour rights.
HUMAN RIGHTS AND THE WTO
The WTO does not explicitly take human rights
considerations into account in multilateral trade
liberalisation. The GATT lacks express references to
human rights considerations with the exception of the
37 Tatjana Eres, ‘The Limits of GATT Article XX: A Back Door For Human Rights?’ (2003-2004) 35 Georgetown Journal of International Law 597, 600.
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reference in the preamble of the Marrakesh Agreement that
established the WTO. This sole reference conceives of
trade liberalisation as a means to an end, which is the
fulfilment of basic human values, which include ‘Raising
standards of living, ensuring full employment …’38
Although these expressions provide a contextual
basis for precise human rights implications, they do not
trump the widespread belief among WTO members that human
rights considerations are not within the realm of the
WTO. Because of this, difficulties in achieving a global
consensus have forced the issue off the WTO agenda,
leading to debates between scholars and human rights
lawyers about whether a link exists between international
trade law and international human rights law and if so,
how trade liberalisation can be made compatible with
human rights in order to use one to enforce the other.39
IS TRADE A HUMAN RIGHT?
The WTO was established for the specific purpose of
liberalising trade with the commonly held view that this
issue prevails over others when presented with a conflict
38 Marrakesh Agreement Establishing the World Trade Organisation (15 April 1994) 1867 UNTS 3.39 M. Rafiqul Islam, International Trade Law of the WTO (1st ed, 2006) 534.
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of laws.40 In terms of international rules such as human
rights, the current argument is that if other issues
prevailed then this would have been expressly indicated
by participating parties in any relevant treaty texts. So
what is the relationship of trade within an international
law arena? Is it an inherent part of an individual’s
property rights and a civil right that should be
protected as a fundamental human right and what evidence
of this is there in international texts?41
Proponents who argue for the use of trade to advance
human rights claim that free trade is a human right as it
rests on an individual’s rights to life, liberty and
property. When these rights are denied, they rob an
individual of one or more freedoms.42 Express references
to a “right to trade”, however, do not appear in any
documents of key international institutions.
TRADE REFERENCES IN INTERNATIONAL TREATIES
We therefore need to find references within human
rights instruments where trade can have an effect on 40 Salazar, above n 12, 350 .41 Dorn, above n 1.42 Ibid 78.
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labour, environment and legal representation rights,
especially as a majority of countries are parties to at
least one human rights treaty such as the Convention on
the Rights of the Child (‘CROC’), the Convention on
Elimination and Discrimination Against Women (‘CEDAW’)
and the “International Bill of Rights” which consists of
the International Covenant on Civil and Political Rights
(‘ICCPR’) and the International Covenant on Economic,
Social and Cultural Rights (‘ICESCR’). One example of
this is the right to health, which features in the UDHR43
and the ICESCR44 and was encroached upon in the Thai
Cigarettes case45, the Hormone Beef case46 and the Asbestos case47, in
addition to the TRIPS Agreement, which also impedes on
this right by preventing poor people from accessing
affordable medicines and generic drugs because of their
protection under intellectual property rights.
Signatories to these treaties are legally bound to take
measures that respect, protect and fulfil human rights
43 GA Res 217A (III), UN Doc A/810 (10 December 1948), Article 25.44 Opened for signature 16 December 1966, 999 UNTS 3 (entered into force 3 January 1976), Article 12.45 WTO Doc WT/DS10/R – 37S/200 (1990) (Report of the Panel).46 WTO Doc WT/ DS26/ R/ USA (1997) (Report of the Panel). 47 WTO Doc WT/ DS135 / R & WT / DS135/R/Add.1 (2000) (Report of the Panel).
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and ensure that they do not undermine the ability of
other countries to comply with their human rights
obligations.48 Without an express reference to trade, this
is presently the best way to implement trade-related
human rights measures.
CURRENT HUMAN RIGHTS ENDORSEMENT STRATEGY OPTIONS
Opponents of incorporating human rights style
legislation into trade agreements or endorsing a human
rights approach to free trade argue that current
international human rights measures are more than
suitable, but is this view accurate? Although
international human rights instruments generally ensure
compliance through monitoring, and in some cases through
individual complaints mechanisms, there are no strong
enforcement measures, let alone trade measures, to make
states comply with international standards.49 Because of
this, it is suggested that linking human rights to trade
agreements would be an effective way to compel States to
meet their human rights commitments as well as ensuring
48 International Covenant on Economic, Social and Cultural Rights, opened for signature 16 December 1966, 999 UNTS 3 (entered into force 3 January 1976), Article 2(1).
49 Zagel, above n 33, 124.
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that private actors such as corporations do not violate
human rights.50 The theory behind this is that endorsing
the use of trade agreements for compliance with
international obligations provides extra guarantees for
human rights and would signal to States that they would
lose numerous trade benefits if they fail to prevent
human rights violations in their State.51
USING TRADE TO DEAL WITH HUMAN RIGHTS ABUSES
The relationship between human rights and the WTO
has generated different positions. Human rights advocates
argue that WTO agreements hinder the ability of States to
achieve objectives such as human rights and that the WTO
system makes it harder for States to meet their
obligations under the Universal Declaration of Human
Rights to respect, protect and promote human rights.
Opponents however argue that the WTO system has a strong
and effective dispute resolution mechanism while the
international system of human rights does not. Some argue
that WTO rules give precedence to trade over human rights
issues. Others defend the WTO system arguing that the
50 Amao, above n 3, 394.51 Ibid 417.
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WTO’s function is to govern trade and not human rights
issues.
Incorporating human rights into trade measures can
have a powerful effect. For example the right to life and
the right to health can be found enshrined in human
rights treaties and impose on States an obligation to
make sure that this accessible to all their citizens. One
way of doing this is to ensure access for all to
affordable medicines by preventing intellectual property
rules from infringing on human rights requirements.
Incorporating human rights and trade would compel
governments to take into account their human rights
obligations not only at an international level, but
domestically when drafting and implementing bilateral
trade agreements by, for example, ensuring that third
parties like the pharmaceutical industry do not exert
pressure on trade negotiations. Furthermore, States that
have signed but not ratified human rights treaties would
be bound from engaging in acts that would defeat the
object and purpose of human rights.
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Trade measures are a powerful tool. After the use of
force, they are perhaps the most effective means by which
one state can impose its will on another.52 The concept of
trade supporting the advancement of human rights can be
demonstrated in various ways. For example, it increases
economic growth and leads to higher standards of living,
thus having the effect of taking people out of poverty.
Liberalising barriers to the trade in services also has
the ability to enhance movement of labour from one
jurisdiction to provide greater opportunities to exercise
the right to work. It is possible that justifying
measures on the basis of human rights treaties (even
those of almost universal acceptance) might well be
defeated by countries that are not party to them.
Moreover there is unlikely to be any human rights treaty
to which all WTO members are a party.53 This provides the
perfect impetus to integrate human rights and trade in
order to strengthen an international commitment to human
rights norms. The question now is, is the WTO willing to
accept the challenge and take up the offer?
52 Jenny Schultz and Rachel Ball, ‘Trade as a Weapon? The WTO and Human Rights-Based Trade Measures’ (2007) 12 Deakin Law Review 41, 43.53 Ibid 57.
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PART THREE: WHAT IS THE MOST EFFECTIVE WAY TO ENFORCE
HUMAN RIGHTS THROUGH TRADE: WTO OPTIONS
The aim of trade-related human rights measures is to
improve the human rights situation by prohibiting or
restricting economic relations. Attempts to integrate
human rights into liberal trade law have faced
considerable adversity. Suggestions of introducing a
human rights clause into the WTO agreement, or that WTO
meetings and dispute settlement proceedings be open to
the public have all been rejected.54
The most controversial question is whether trade-
related measures are a feasible instrument to improve
human rights. When analysed from an ethical point of
view, trade measures such as prohibiting products made
from child labour appear justified. When analysed from
an economic point of view however, they do not, as
measures like trade sanctions often have side effects
that ultimately harm the people whose human rights
situation they are attempting to improve.55
54 Petersmann, above n 54, 19.55 Zagel, above n 33, 120.
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Human rights advocates continue to argue that trade
is an appropriate instrument to advance human rights and
generally identify two ways in which human rights could
be used by the WTO to do this. The first is to reform WTO
rules and restructure and apply them in such a way that
human rights aims and objectives are promoted by linking
international trade and human rights regimes. The second
is to question the extent to which the current trade
regime can be used to promote or at least not undermine
the enjoyment of human rights.56 We therefore need to
examine three issues: first, whether the WTO can become a
body for addressing human rights issues by analysing
possible trade-related human rights measures; second,
whether a human rights approach to trade is a feasible
way of using trade measures to solve human rights
violations and third, if this approach is feasible, what
is the most effective way of using trade and the WTO to
endorse a human rights approach for those countries whose
human rights are at risk.57 The two most endorsed options
56 Schultz and Ball, above n 52, 42.57 Zagel, above n 33, 119.
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for this are economic sanctions and the WTO’s general
exception clause.
ECONOMIC SANCTIONS
With the prohibition of the use of force to enforce
international law under the United Nations framework,
trade sanctions have emerged as one of the most coercive
means available to enforce international law, especially
international human rights norms.58 Economic sanctions can
be authorised in two ways; either as economic sanctions
by the UN Security Council within the system of
collective security under Chapter VII of the UN Charter,
or imposed unilaterally. The UN Security Council has
imposed economic sanctions in the past against Iraq,
Sierra Leone, or Somalia.59 Gross violations of human
rights were specifically targeted by sanctions against
Haiti, Rwanda and Congo. Although such provisions would
constitute discriminatory trade restrictions under WTO
law, as they are banned under Articles I and XI GATT,
Article XXI(c) GATT allows deviation from GATT
58 Amao, above n 3, 382.59 Zagel, above n 33, 121.
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obligations in order to pursue a member State’s
obligations under the UN Charter.60
Unilateral economic sanctions are often used as an
example of how trade is a legitimate means to fight human
rights abuses such as child or slave labour. Examples of
their success include the fight against Apartheid in
South Africa61 and in the fight against human rights
violations arising from trade in “conflict diamonds.”62
Those who oppose the use of sanctions however, argue that
they in themselves are not human rights neutral and often
fail in their objective. International human rights
treaties do not contain any references allowing trade
sanctions as a way of enforcing compliance with human
rights norms63 and opponents argue that their use can lead
to further exacerbation of the violation of rights such
as the right to life, the right to freedom from inhuman
or degrading treatment, the right to an adequate standard
of living, food, clothing, housing and medical care.64
60 Ibid.61 Schultz and Ball, above n 52, 71.62 Ibid.63 Schultz and Ball, above n 52, 72.64 Ibid.
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The case for whether economic sanctions should be
used to enforce human rights revolves around two
questions. First, are they legitimate? Second, are they
effective?65 Sanctions would be legitimate for preventing
trade with an enemy in circumstances where trade would
directly enhance the military’s capability and ultimately
lead to a situation where the enemy could use this to
harm another country’s citizens. Banning the importation
of goods made from slave labour or prison labour, or by
those who have been wrongly imprisoned is another
legitimate use, as is protecting the rights of minors by
preventing the importation of goods made from child
labour. Perhaps the most legitimate use of trade
sanctions though would be against the abuse of
intellectual property rights.66 Intellectual property is a
private property right, widely governed by the WTO
through its TRIPS agreement and would be a legitimate
pursuit through banning the importation of pirate
software and entertainment discs. Moreover, using
sanctions to enforce compliance with copyright laws could
65 Dorn, above n 1.83.66 Ibid.
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be supplemented by providing multilateral agreements with
other States to protect intellectual property rights and
encourage non-members to become a party to the WTO.
The question of their effectiveness however is less
clear. In order for sanctions to be truly effective, a
State requires the near unanimous support of its major
trading partners, the need for the target country’s
government to prioritise the implementation of its
citizens’ human rights, and for the benefits of the
sanctions to the countries implementing the sanctions
exceed the costs. There are also other potential problems
with the effectiveness of trade sanctions. First, the
violating country can circumvent sanctions by finding
substitutes of new supply sources for the sanctioned
goods. Sanctions can also fail to have an impact on
countries whose political regime displays an extensive
lack of regard for the human rights of its citizens, as
was the case with Iraq, and who also lack fundamental
aspects for a successful trade boycott, such as freedom
of the press. When sanctions occur in such cases, it is
generally the poorest and most defenceless in these
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countries that suffer the most from economic sanctions.
In contrast the political elite, who are generally
responsible for the human rights violations in the first
place are likely to be unaffected by the negative effects
of the sanctions and can use sanctions as a tool to
incite opposition against the sanctioning country.
Product based sanctions can also have carry over effects.
Banning the importation of goods made from child labour
could force children into other dangerous forms of work
such as prostitution, or leave them without enough money
to live. The list goes on.67
The detrimental effects, particularly on human
rights, means that economic sanctions have the ability to
do more harm than good. The Committee on Economic Social
and Cultural rights outlined some of these detrimental
effects on human rights in General Comment 8:
While the impact of sanctions varies from one case to another,
the Committee is aware that they almost always have a dramatic
impact on the rights recognized in the Covenant. Thus, for
example, they often cause significant disruption in the
distribution of food, pharmaceuticals and sanitation supplies,
jeopardize the quality of food and the availability of clean 67 Dorn, above n 1, 77.
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drinking water, severely interfere with the functioning of
basic health and education systems, and undermine the right to
work. In addition, their unintended consequences can include
reinforcement of the power of oppressive elites, the emergence
of a black market and the generation of huge windfall profits
for the privileged elites which manage it …and restriction of
opportunities to seek asylum or to manifest political
opposition. While the phenomena mentioned … are essentially
political in nature, they also have a major additional impact
on the enjoyment of economic, social and cultural rights.68
The Preamble to the Marrakesh Agreement, which
established the WTO, states that the trade system should
be ‘conducted with a view to raising standards of living…
ensuring full employment…and allowing for the optimal use
of the world’s resources in accordance with the objective
of sustainable development.’69 Economic sanctions however,
antagonise the governments in the sanctioned country and
radicalise those in power, thus destroying their
objective of advancing human rights. As these arguments
show, they are not an efficient trade-related human
68 The Committee on Economic Social and Cultural Rights, UN Doc. E/C. 12/1997/8, (1998) General Comment 8, Paragraph 9.69 Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations,opened for signature 15 April 1994, 1867 UNTS 14, Preamble.
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rights measure in the fight to implement change in
countries with poor human rights records.
ARTICLE XX
WTO members must ensure that their national trade
regulations comply with GATT principles. There is
however, a way for those who wish to use GATT provisions
to protect the international human rights regime and
justify unilateral trade-restrictive measures to enforce
human rights, and that is through Article XX.
Article XX GATT is the general exception clause,
which provides an exhaustive list of public policy
reasons that a Member may invoke to justify a violation
of a WTO obligation. Those relevant for trade-related
human rights measures are the protection of public
morals,70 the protection of human, animal or plant life or
health,71 measures relating to prison labour72 and the
conservation of exhaustible natural resources.73 As well
as fulfilling the requirements of the specific policy
goals, the protective measure must comply with the
70 General Agreement on Tariffs and Trade 1994, Agreement Establishing the WTO, Annex 1A, 1867 UNTS 187, Article XX(a).71 Ibid, Article XX(b).72 Ibid, Article XX(e).73 Ibid, Article XX(g).
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general requirements of the Article XX chapeau: namely,
the non-discrimination principle that is enshrined in all
WTO agreements, and must not be a disguised restriction
to international trade.
It is important to note that Article XX is a general
exception clause and not a human rights or social clause,
which is one of the reasons that human rights proponents
argue for incorporating specific legislation for labour
rights and human rights into the WTO. Human rights
violations however can still fall under this exception.
Articles XX (a), (b) and (d) provide members with
possible exceptions to invoke justification for trade-
related human rights measures by giving members the
option of three different objectives. Under Article XX(a)
the measure must ‘protect public morals’. Under Article
XX(b) the measure must ‘protect human, animal or plant
life or health while Article XX(d) can be used to ensure
‘secure compliance with laws or regulations’. Further
legal bases for implementing trade-based social and human
rights measures also exist under Article XX(e), the
prison labour exception or Article XX(g) for measures
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relating to the conservation of exhaustible natural
resources. Until now, exceptions (a) and (e) have rarely
been applied or mentioned in any of the reports of the
Dispute Settlement institutions. Articles XX(b) and XX(g)
however have frequently been invoked to justify
environmental or public health measures.
The key to using Article XX to justify intervention
for human rights protection is to determine which rights
are in jeopardy and justify it by creating a link between
the either the product or the process used for the
product. For example, paragraph (e) allows measures
relating to the ‘products of prison labour’ and covers
measures directed at goods produced by prison labour.
This exception could also be extended to include workers
situations that involve slavery. Another potential
example includes the public morals exception in paragraph
(a), which could be used to ban pornographic material
produced from the abuse of women or even children.
Paragraph (a) is of vital importance to those wishing to
use the WTO to invoke compliance with international human
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rights norms for the production of goods that have
involved a violation of public morals.
Article XX(b) is also important to those wishing to
use trade to enforce human rights because it allows
measures necessary to protect human life and health. Not
only does it protect human life, but it also can be
extended to encompass justification of public health
measures as an aspect of the human rights to health, such
as those in the Asbestos case74 where it was argued that an
import ban of substances containing asbestos was a
justified measure to protect public health.75 This
paragraph could also be used to justify trade measures
against products arising from extremely dangerous working
conditions. Article XX(g) can also use these types of
extensions as it calls for the protection of living and
non-living natural resources and could be invoked as an
exception to protect the right to food as was seen in the
US Shrimp case.76
74 European Communities – Measures Affecting Asbestos and Asbestos-Containing Products,WTO Doc WT/ DS135 / R & WT / DS135/R/Add.1 (2000) (Report of the Panel).75 Ibid. 76 WTO Doc WT / DS58/R (1998) (Final Report).
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The problem with invoking Article XX is that it
contains two requirements. It is not enough to justify
its use under an enumerated exception – it must also
satisfy the general affirmative requirements in the
chapeau of Article XX – namely that it not be applied in
a discriminatory way or as a disguised restriction on
trade. Therefore, in order to invoke this exception, a
Member must show a connection between the targeted
product and the risk in order to prove a nexus between
the measure and the policy objective in order to maintain
consistency with the GATT’s object and purpose.
Measures invoked under articles XX (a) and (b) must
also pass a “weighting and balancing test”, which
evaluates a series of factors to determine if a measure
is necessary to achieve the intended outcome. Such
factors include the importance of the interest or value
protected by the measure, the extent to which the measure
achieves its intended goal and the trade impact the
measure would have. If there are no measures available
that are consistent with WTO rules then the least trade-
restrictive means possible must be applied. Here lies the
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difficulty. If an import restriction is the least
restrictive measure, then not only could it further
deteriorate the situation for those concerned but also
prove ineffective.
The requirements to bring an action under Article XX
for a human rights violation are cumbersome and
demonstrating that the requirements of the chapeau have
been met is a difficult task. WTO Dispute Settlement case
law has a history of showing a restrictive attitude
towards environmental matters and public health
concerns.77 Attempts to impose sanctions for human rights
violations will most likely be viewed as discriminatory
and lack justification meaning that exceptions invoked
under Article XX requirements will most likely fail.
Unfortunately, the majority of measures used to
enforce human rights law on a trade basis would not fall
within the range of policies designed to serve the policy
objective and would run the risk of appearing
protectionist in their application. The above analyses
highlight the lack of foresight of the GATT drafters to
77 United States – Import Prohibition of Certain Shrimp and Shrimp Products, WTO Doc WT/ DS58/AB/R (1998) (Report of the Appellate Body).
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consider these issues and prove that there is a current
inability to reconcile the WTO system with international
human rights law. Human rights advocates must therefore
find other more effective measures if they wish not only
to make trade and human rights compatible but also
effective.78 Using the WTO as a mechanism as a means to
improve human rights violations through trade law is
possible, but as we have seen, ineffectual and, more than
likely, unsuccessful.
PART FOUR: POSSIBLE WAYS TO IMPROVE THE RELATIONSHIP
BETWEEN TRADE LAW AND HUMAN RIGHTS LAW
Despite the many advantages of linking trade and
human rights and using the WTO to enforce their
implementation, the difficulties outweigh the advantages.
States are currently at liberty to draft human rights
legislation in free trade agreements at a domestic level,
but not at an international level. Calls to amend current
WTO agreements are countered with the argument that the
WTO is a trade organisation and not an organisation to
78 Sarah H. Cleveland, ‘Human Rights Sanctions and International Trade: A Theory of Compatibility’ (2002) 5(1) Journal of International Economic Law 133, 189.
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enforce human rights.79 Human rights monitoring is the
responsibility of UN human rights organisations and any
human rights concerns should be presented at the relevant
forum.80
Taking all these arguments and factors into
consideration, the one question left now is: how could
the WTO approach the issue of human rights obligations
and implementation under the current circumstances?
FEASIBLE APPROACHES WITHIN THE WTO TO HUMAN RIGHTS
While suggestions abound that human rights issues
should either be addressed to human rights bodies or left
to the ILO, there are still several ways States can
ensure human rights compliance at a State level.
Incorporation of human rights standards in trade
agreements is unavailable at an international level, but
incorporating human rights aspects into technical
assistance programs, especially for developing countries,
could serve as a starting point, as these programs are an
79 Zagel, above n 33.80 Ibid.
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important part of WTO work. Incorporating human rights
standards directly into access to WTO benefits81 or WTO
membership for those who are not WTO members could act as
an incentive for States to comply with their human rights
obligations. The WTO could also avoid the negative
aspects of trade measures against human rights violations
by conducting a human rights impact assessment of its
decisions and rules.82
In contrast to trade sanctions, an alternative and
probably the most effective option at this point would be
trade incentives, which have the benefit of providing
incentives instead of coercion. The EU has an extensive
history of adding human rights clauses to cooperation
agreements with third countries in an attempt to improve
measures through voluntary compliance and thus provide a
reward of trade preferences. Unlike trade restrictions,
trade aspects have positive advantages. First, they do
not infringe on another state’s sovereignty and do not
interfere with internal affairs. Second, trade incentives
are more efficient at targeting a population’s needs,
81 LAWS 8229 Overhead: Trade and Human Rights.82 Zagel, above n 33.
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especially when they are combined with technical
assistance and programs to promote the awareness for
human rights and change of the human rights situation in
the target country.83
These are all viable methods within the realm of the
WTO but they are still no substitute for express
references and mainstreaming of human rights norms into
WTO trade agreements. Those wishing to pursue human
rights goals must therefore use other means if they wish
to vigorously pursue compliance with human rights norms,
as current trade measures do not have enough impact for
this goal.
CONCLUSION
The relationship between human rights and trade
remains one of the most contentious issues faced by those
participating in today’s world trading system.84 Social
justice and human rights concerns regarding the WTO are
real and substantial.85 Improving human rights situations
from an economic view would be a prudent long-term
investment that would increase social standards by 83 Ibid 33.84 Howse, above n 10, 131.85 Joseph, above n 9, 352.
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limiting work hours, increasing social benefits and
providing education opportunities for workers. This in
turn would attract foreign investors, as the country’s
productive capacity comprising labour forces who enjoy
basic human rights and social standards, would rise and
therefore ultimately increase economic performance and
produce long-term economic rewards.
Raising human rights standards only works when a
country’s public and private actors are involved to make
feasible programs to satisfy a country’s needs. Trade-
related human rights measures permitted by the WTO
presently are not sufficient for improving a country’s
human rights situation, nor do they protect the economy
of the State imposing the sanction. These measures must
be strengthened if there is any hope of integrating human
rights norms into international trade in order to improve
international compliance with human rights norms and
strengthen the current links between international trade
and human rights. It is not enough to leave human rights
monitoring to the UN human rights bodies and the ILO.
Current trade measures are an inappropriate means to
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achieve human rights goals, so the WTO must integrate
human rights aspects into its framework and work together
with UN human rights bodies and other organisations to
set standards and monitor the implementation of human
rights if it wishes to stay loyal to its purpose of
encouraging free trade in order to improve the living
standards for citizens.
Examining the relationship between trade and human
rights is an ideal way to elaborate approaches to
mainstreaming human rights in the WTO and incorporating
them into their legislation and dispute settlement
actions. Until this is done, the improvement of human
rights standards will remain a distant and desirable goal
- one that is unachievable through current trade measures
and unsupported by the WTO.
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