Pursuing Environmental and Social Objectives through Trade Agreements

Francois, Joseph; Hoekman, Bernard; Manchin, Mirjam; Santi, Filippo (20 November 2022). Pursuing Environmental and Social Objectives through Trade Agreements (WTI Working Paper Series 08/2022). Bern: World Trade Institute

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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.

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