On How the Human Rights Framework Can Contribute to Inclusive Trade Agreements

Abstract

There is a growing willingness to include inclusivity and sustainability provisions in trade agreements. This has gone hand-in-hand with a new trend in trade policy circles to acknowledge the differential impacts of trade. These developments offer an unprecedented opportunity to deepen reflection about ways of anticipating what possible impacts of new trade agreements might be, how to avoid adverse impacts, and how to design flanking and mitigating measures. This article considers the pertinence of a human rights-based approach for identifying economic, social and environmental impacts. Noting that discussion about human rights in the trade context has been hampered by misunderstandings, the article clarifies the legal basis for undertaking human rights impact assessment (HRIA) and what a human rights approach can achieve. It demonstrates that the function of HRIA goes beyond determining impacts of trade rules on human rights, to be a tool for ascertaining whether trade is fulfilling its intended societal functions. The article draws on a recent ex ante assessment of the European Free Trade Area (EFTA)-Mercosur trade agreement (EMFTA) to illustrate how HRIA methodology can be applied. Referring to this and other HRIAs, it concludes that human rights-based methodologies are well-suited to assess potential impacts of planned trade agreements, and that such assessment is a promising route towards trade agreements that are inclusive, robust, and supportive of the Sustainable Development Goals (SDGs). International trade, trade negotiations, Mercosur, EFTA, inclusive trade, human rights, impact assessment, sustainability impact assessment