Grades and standards in the context of international trade : Some ethical considerations

Abstract

Grades and standards in the context of international trade : Some ethical considerations. Grades and standards for both domestic and international trade are based in part on beliefs about the purpose of commerce, its contribution to the public good, and general principles on which specific exchanges should be either permitted or restricted. These beliefs form the basis for ethical arguments about grades and standards. Two general types of argument have formed a dual ethical rationale for liberalization of trade restrictions and expansion of global trade. On the one hand, libertarian arguments stress the freedom or right of individuals to dispose of legally acquired property however they see fit. Libertarian arguments rule out restrictions on personal freedom except under conditions of exit and consent. On the other hand, utilitarian arguments stress the social benefit of free trade and utilize economic analysis to demonstrate that relatively open trading systems lead toward efficient use of society's total resources. These two rationales can come into conflict over grades and standards, however. The utilitarian rationale provides a basis for standards aimed at insuring health and safety that can conflict with libertarian belief that individuals should be at liberty to choose which risks to run, and which to avoid. Standards intended to support culturally based food practices become especially controversial, especially when they are negotiated at an international level. While utilitarians may be willing to use scientific risk assessment to predict actual benefits and risks of a given standard, libertarians may regard nationally based cultural food standards as intricate systems of exit and consent. If so they will object to international standard setting based on benefit-risk calculation, and will insist on procedures that leave opportunities for exit and that involve citizens in the active procurement of consent.