The WTO and Trade-Related Human Rights Measures: Trade Sanctions vs. Trade Incentives

Abstract

One of the main reproaches against the WTO is that it does not allow for the enforcement of human rights through trade measures. The article analyzes legal, economic and political aspects of trade sanctions and trade incentives respectively. Whereas the WTO legal order hardly permits trade sanctions to enforce human rights, it allows to apply trade incentives conditioned on human rights. This result corresponds to the result of the economic and political analysis. Therafter, trade sanctions do not have positive effects on the human rights situation in the target country, whereas trade incentives are a viable instrument to address human rights issues. The result of the analysis is that the WTO is not opposed to meaningful trade instruments to address human rights concerns.

Keywords: Trade sanctions, trade incentives, human rights, WTO

JEL Classification: F20, K33