I. Introduction

A. Trade and social issues

International trade agreements have numerous – but also sometimes conflicting – effects on the ability of countries to protect social values, including labour and environmental standards and human rights. The preamble of the WTO Agreement claims as one of its primary objectives the ‘raising [of] standards of living’, and it is widely recognized that, as said by the World Commission on the Social Dimension of Globalisation, ‘wisely managed, [the global market economy] can deliver unprecedented material progress, generate more productive and better jobs for all, and contribute significantly to reducing world poverty’. But as this very statement recognizes, the potential of trade liberalization to improve social protections does not always translate into actual improvements.

This is for several reasons. At a general level, trade can lead to increased efficiencies, with benefits for the environment, governments and consumers. But increased export opportunities can also put pressure on local environments and people living on land coveted by exporters. There are also costs for any country pursuing a policy of trade liberalization. Liberalization leads to unemployment and reduced income in inefficient sectors and, while this is supposed to be only a short-term problem, structural adjustment has proven to be a challenge even for the wealthiest of countries. Legally, it is relevant that these negative effects can disproportionately affect minorities and women, who are specially protected by international human rights treaties. The trilateral relationship between intellectual property, trade and social protection is also complex. Intellectual property protections can promote trade in goods and services containing intellectual property, thereby enabling individuals to enjoy the fruits of their labours. But the very same protections can also hinder a country's ability to meet its social objectives, as the debate on TRIPS and essential medicines has amply demonstrated.

Government efforts to achieve social protection in other countries can also impact on trade. Market access restrictions, whether unilateral or agreed (and this by no means excludes some degree of coercion), are frequently applied to products from countries involved in human rights abuses, as well as to products from countries that do not comply with environmental or public morals norms. They may also be applied to protect high domestic standards of social protection (to prevent so-called ‘social dumping’).