Inclusive Trade: Justice, Innovation, or More of the Same?

Abstract

Inclusive trade is taking hold in various forms in international organizations and in the trade policy of national governments. Absent empirical evidence that will take time to generate, it can be difficult to assess the achievements of this new approach to trade. Nancy Fraser's three justice idioms provide a conceptual entry point for evaluating the potential of the inclusive trade agenda. Fraser argues that the contemporary global justice conversation must acknowledge claims for recognition, representation, and redistribution. Applying this conceptualization to the inclusive trade agenda shows that trade agreement provisions intended to favor women and Indigenous peoples go some distance in addressing claims for recognition and representation but accomplish less in remedying injustices associated with maldistribution. Therefore, the inclusive trade agenda does significantly advance global justice for marginalized groups, but works primarily in ways that are political and cultural, not economic.

Labour provisions in trade agreements and women's rights in the global south

“…Current evidence suggests that the established market forces have not been challenged by trade policies, in line with what Hannah et al (2022) argue 6 . Following such, the so‐called inclusive trade agenda could be described as mainly cultural and political and does not sufficiently address the problems with maldistribution of resources plaguing women in world trade (Goff, 2021).…”

“…They require parties to uphold their gender‐related regulations, such as gender equality legislation, and not loosen them for trade purposes. The current move to include them coming from the Global South is a testimony to the realisation of the structural reforms needed to make PTAs and their labour provisions work to close the economic gap between the men and women and go beyond the cultural and political imperatives that imbue the so‐called inclusive trade (Goff, 2021).…”

“…Others note positive effects of free trade on women, including generating economic growth, bringing better economic opportunities and political participation, prohibition of forced labour and, ultimately, progressive social reforms (Richards & Gelleny, 2007). 1 Yet this debate remains largely inattentive to various institutional factors that might moderate the effects of trade liberalisation on women (notable exceptions being Goff, 2021 and Hannah et al, 2022). Importantly, most trade liberalisation today occurs bilaterally, as countries join preferential trade agreements (PTAs), following the stalling of the Doha Round at the World Trade Organisation (WTO).…”

Export product quality and inclusivity in developing countries

“…In fact, trade inclusivity has been approached in the literature from different perspectives. These include reducing between‐country trade inequality, including by enhancing the participation of weakest economies in international trade (Garcia‐Algarra et al., 2020), making global trade inclusive for smaller sellers and firms, including small and medium size enterprises (e.g., Goff, 2021; Hui, 2019), as well as whether the participation in international trade, notably through trade policy liberalization and trade openness, has help improve inclusive growth and development (e.g., APEC, 2015; Bacchetta et al., 2019; Dollar & Kraay, 2002; Engel et al., 2021; Kang et al., 2017; UNECLAC, 2014; UNESCAP, 2009, 2013; Winters, 2014; WTO, 2016; WTO and World Bank, 2015). None of these studies has considered the concept of “inclusivity” from the perspective of a concomitant increase in the real per capita income and reduction in within‐country income inequality and poverty.…”

“…Investigating the effect of export product quality on inclusivity amounts to examining whether participation in international trade, including from the export side, is inclusive, that is, whether it helps simultaneously improve the real per capita income, reduce income inequality, and reduce poverty. Therefore, the present analysis pertains to the strand of the literature on trade inclusiveness (e.g., Bacchetta et al., 2021; Goff, 2021; Hui, 2019; Kang et al., 2017; UNECLAC, 2014; UNESCAP, 2013; WTO, 2016).…”