IDEAS home Printed from https://ideas.repec.org/p/wti/papers/1377.html
   My bibliography  Save this paper

Pursuing Environmental and Social Objectives through Trade Agreements

Author

Listed:
  • Francois, Joseph
  • Hoekman, Bernard
  • Manchin, Miriam

Abstract

Using a large dataset covering more than 180 countries and spanning several decades, we employ a SDID estimator to identify the extent to which trade agreements incorporating non-trade provisions (labor standards, environmental protection and civil and political rights) are associated with improvements in corresponding non-trade performance indicators. We distinguish between binding (enforceable) and non-binding provisions in trade agreements, and also control for the allocation of official development assistance targeting these three non-trade policy areas. Overall, the results suggest that efforts made to date to include non-trade provisions in trade agreements have not resulted in consistent desired (better) non-trade outcomes.

Suggested Citation

  • Francois, Joseph & Hoekman, Bernard & Manchin, Miriam, 2022. "Pursuing Environmental and Social Objectives through Trade Agreements," Papers 1377, World Trade Institute.
  • Handle: RePEc:wti:papers:1377
    as

    Download full text from publisher

    File URL: http://www.wti.org/media/filer_public/04/3f/043f1df7-c213-4ae9-87e0-e06fcc6423f6/wti_working_paper_08_2022.pdf
    File Function: First version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alessandro Ferrari & Matteo Fiorini & Joseph Francois, Bernard Hoekman, Lisa Maria Lechner, Miriam Manchin, Filippo Santi, 2021. "EU Trade Agreements and Non-Trade Policy Objectives," RSCAS Working Papers 2021/48, European University Institute.
    2. Jan Pettersson & Lars Johansson, 2013. "Aid, Aid for Trade, and bilateral trade: An empirical study," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(6), pages 866-894, September.
    3. Lisa Lechner, 2016. "The domestic battle over the design of non-trade issues in preferential trade agreements," Review of International Political Economy, Taylor & Francis Journals, vol. 23(5), pages 840-871, September.
    4. Bernard Hoekman & Anirudh Shingal, 2020. "Aid for trade and international transactions in goods and services," Review of International Economics, Wiley Blackwell, vol. 28(2), pages 320-340, May.
    5. Aydin Yildirim & Robert Basedow & Matteo Fiorini & Bernard Hoekman, 2021. "EU Trade and Non‐trade Objectives: New Survey Evidence on Policy Design and Effectiveness," Journal of Common Market Studies, Wiley Blackwell, vol. 59(3), pages 556-568, May.
    6. Ryan Abman & Clark Lundberg & Michele Ruta, 2024. "The Effectiveness of Environmental Provisions in Regional Trade Agreements," Journal of the European Economic Association, European Economic Association, vol. 22(6), pages 2507-2548.
    7. Abman, Ryan & Lundberg, Clark & Szmurlo, Daniel, 2022. "Trade, Emissions, and Environmental Spillovers: Issue Linkages in Regional Trade Agreements," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322511, Agricultural and Applied Economics Association.
    8. Kailan Tian & Yu Zhang & Yuze Li & Xi Ming & Shangrong Jiang & Hongbo Duan & Cuihong Yang & Shouyang Wang, 2022. "Regional trade agreement burdens global carbon emissions mitigation," Nature Communications, Nature, vol. 13(1), pages 1-12, December.
    9. Andreas Dür & Leonardo Baccini & Manfred Elsig, 2014. "The design of international trade agreements: Introducing a new dataset," The Review of International Organizations, Springer, vol. 9(3), pages 353-375, September.
    10. Younas, Javed, 2008. "Motivation for bilateral aid allocation: Altruism or trade benefits," European Journal of Political Economy, Elsevier, vol. 24(3), pages 661-674, September.
    11. Céline Carrère & Marcelo Olarreaga & Damian Raess, 2022. "Labor clauses in trade agreements: Hidden protectionism?," The Review of International Organizations, Springer, vol. 17(3), pages 453-483, July.
    12. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    13. Ryan Abman & Clark Lundberg, 2020. "Does Free Trade Increase Deforestation? The Effects of Regional Trade Agreements," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(1), pages 35-72.
    14. Hoekman, Bernard & Santi, Filippo & Shingal, Anirudh, 2023. "Trade effects of non-economic provisions in trade agreements," Economics Letters, Elsevier, vol. 226(C).
    15. Sara McLaughlin Mitchell & Paul R. Hensel, 2007. "International Institutions and Compliance with Agreements," American Journal of Political Science, John Wiley & Sons, vol. 51(4), pages 721-737, October.
    16. Aaditya Mattoo & Nadia Rocha & Michele Ruta & Aaditya Mattoo, 2020. "Handbook of Deep Trade Agreements," World Bank Publications - Books, The World Bank Group, number 34055.
    17. Hofmann, Claudia & Osnago, Alberto & Ruta, Michele, 2019. "The Content of Preferential Trade Agreements," World Trade Review, Cambridge University Press, vol. 18(3), pages 365-398, July.
    18. Dür, Andreas & Baccini, Leonardo & Elsig, Manfred, 2014. "The design of international trade agreements: introducing a new dataset," LSE Research Online Documents on Economics 59179, London School of Economics and Political Science, LSE Library.
    19. Bernard Hoekman & Hugo Rojas-Romagosa, 2022. "EU Trade Sustainability Impact Assessments: Revisiting the Consultation Process," Journal of International Economic Law, Oxford University Press, vol. 25(1), pages 45-60.
    20. Baghdadi, Leila & Martinez-Zarzoso, Inmaculada & Zitouna, Habib, 2013. "Are RTA agreements with environmental provisions reducing emissions?," Journal of International Economics, Elsevier, vol. 90(2), pages 378-390.
    21. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    22. Gabriele Spilker & Tobias Böhmelt, 2013. "The impact of preferential trade agreements on governmental repression revisited," The Review of International Organizations, Springer, vol. 8(3), pages 343-361, September.
    23. Jonas AISSI & Rafael PEELS & Daniel SAMAAN, 2018. "Evaluating the effectiveness of labour provisions in trade agreements: An analytical and methodological framework," International Labour Review, International Labour Organization, vol. 157(4), pages 671-698, December.
    24. Marco Bronckers & Giovanni Gruni, 2021. "Retooling the Sustainability Standards in EU Free Trade Agreements," Journal of International Economic Law, Oxford University Press, vol. 24(1), pages 25-51.
    25. Hollingsworth, Alex & Wing, Coady, 2020. "Tactics for design and inference in synthetic control studies: An applied example using high-dimensional data," SocArXiv fc9xt, Center for Open Science.
    26. Hollingsworth, Alex & Wing, Coady, 2020. "Tactics for design and inference in synthetic control studies: An applied example using high-dimensional data," SocArXiv fc9xt_v1, Center for Open Science.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Basak Bayramoglu & Estelle Gozlan & Clément Nedoncelle & Thibaut Tarabbia, 2025. "Trade Agreements and Sustainable Fisheries [Accords commerciaux et pêche durable]," Working Papers hal-04101044, HAL.
    2. Qifei Chen & Yanzhi Shen, 2024. "Deep trade agreements and services trade: An analysis based on service trade provisions," The World Economy, Wiley Blackwell, vol. 47(7), pages 2909-2946, July.
    3. Hoekman, Bernard & Santi, Filippo & Shingal, Anirudh, 2023. "Trade effects of non-economic provisions in trade agreements," Economics Letters, Elsevier, vol. 226(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hoekman, Bernard & Santi, Filippo & Shingal, Anirudh, 2023. "Trade effects of non-economic provisions in trade agreements," Economics Letters, Elsevier, vol. 226(C).
    2. Stender, Frederik & Vogel, Tim, 2023. "What role for aid for trade in (deep) PTA relations? Empirical evidence from gravity model estimations," IDOS Discussion Papers 13/2023, German Institute of Development and Sustainability (IDOS).
    3. Damian Raess & Andreas Dür & Dora Sari, 2018. "Protecting labor rights in preferential trade agreements: The role of trade unions, left governments, and skilled labor," The Review of International Organizations, Springer, vol. 13(2), pages 143-162, June.
    4. Céline Carrère & Marcelo Olarreaga & Damian Raess, 2022. "Labor clauses in trade agreements: Hidden protectionism?," The Review of International Organizations, Springer, vol. 17(3), pages 453-483, July.
    5. Caroline Bertram & Hermine Coppenolle, 2024. "Strengthening the Paris Agreement through trade? The potential and limitations of EU preferential trade agreements for climate governance," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 24(4), pages 589-610, December.
    6. Ryan M. Abman & Clark C. Lundberg & John McLaren & Michele Ruta, 2023. "Child Labor Standards in Regional Trade Agreements: Theory and Evidence," NBER Working Papers 30908, National Bureau of Economic Research, Inc.
    7. Basak Bayramoglu & Estelle Gozlan & Clément Nedoncelle & Thibaut Tarabbia, 2025. "Trade Agreements and Sustainable Fisheries [Accords commerciaux et pêche durable]," Working Papers hal-04101044, HAL.
    8. Kolcava, Dennis & Nguyen, Quynh & Bernauer, Thomas, 2019. "Does trade liberalization lead to environmental burden shifting in the global economy?," Ecological Economics, Elsevier, vol. 163(C), pages 98-112.
    9. Jacopo Timini & Nicola Cortinovis & Fernando López Vicente, 2022. "The heterogeneous effects of trade agreements with labour provisions," The World Economy, Wiley Blackwell, vol. 45(9), pages 2820-2853, September.
    10. Di Ubaldo, Mattia & Gasiorek, Michael, 2022. "Non-trade provisions in trade agreements and FDI," European Journal of Political Economy, Elsevier, vol. 75(C).
    11. Brandi, Clara & Schwab, Jakob & Berger, Axel & Morin, Jean-Frédéric, 2020. "Do environmental provisions in trade agreements make exports from developing countries greener?," World Development, Elsevier, vol. 129(C).
    12. Mattoo,Aaditya & Rocha,Nadia & Ruta,Michele, 2020. "The Evolution of Deep Trade Agreements," Policy Research Working Paper Series 9283, The World Bank.
    13. Esteban Colla‐De‐Robertis & Rafael Garduno Rivera, 2021. "The effect of a free trade agreement with the United States on member countries' per capita GDP: A synthetic control analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1129-1145, August.
    14. Naoto Jinji & Xingyuan Zhang & Shoji Haruna, 2022. "Deep Integration, Global Firms, and Technology Spillovers," Advances in Japanese Business and Economics, Springer, number 978-981-16-5210-3, June.
    15. Alessandro Ferrari & Matteo Fiorini & Joseph Francois, Bernard Hoekman, Lisa Maria Lechner, Miriam Manchin, Filippo Santi, 2021. "EU Trade Agreements and Non-Trade Policy Objectives," RSCAS Working Papers 2021/48, European University Institute.
    16. Christoph Mödlhamer, 2020. "Innovativeness and the design of intellectual property rights in preferential trade agreements: A refinement of the North–South explanation," Journal of International Business Policy, Palgrave Macmillan, vol. 3(4), pages 329-348, December.
    17. Matteo Fiorini & Bernard Hoekman, 2020. "EU services trade liberalization and economic regulation: Complements or substitutes?," The Review of International Organizations, Springer, vol. 15(1), pages 247-270, January.
    18. Mulabdic, Alen & Rotunno, Lorenzo, 2022. "Trade barriers in government procurement," European Economic Review, Elsevier, vol. 148(C).
    19. Suttner, Stefan, 2023. "Issue linkage and trade policy uncertainty: Evidence from trade preferences for developing countries," FAU Discussion Papers in Economics 07/2023, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    20. Peter H. Egger & Filip Tarlea, 2021. "Comparing Apples to Apples: Estimating Consistent Partial Effects of Preferential Economic Integration Agreements," Economica, London School of Economics and Political Science, vol. 88(350), pages 456-473, April.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wti:papers:1377. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Morven McLean The email address of this maintainer does not seem to be valid anymore. Please ask Morven McLean to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/wtibech.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.