Why Human Rights Impact Assessments (HRIA) Are Essential for Trade Agreements

Trade agreements can generate growth and development, but they can also deepen inequality, undermine public services, and erode public trust if their social impacts are ignored. A new guide published by the Friedrich-Ebert-Stiftung (FES) Geneva Office sets out how human rights impact assessments (HRIAs) are a critical tool for designing trade agreements that are sustainable, equitable, and politically legitimate.

In Assessing Human Rights Impacts of Trade Agreements: Why it matters - and how to do it authors Caroline Dommen and Martin Browne explain how applying a human rights framework can help governments anticipate and avoid adverse impacts of trade rules, while strengthening policy coherence and public support.

Combining legal analysis with practical guidance, the publication:

• explains in an accessible format why trade rules can affect access to health, food, work, and to public services,
• brings distributional and social impacts into the assessment of trade agreements, and
• provides a clear step-by-step methodology for conducting human rights impact assessments before, during, and after trade negotiations.

International trade brings significant benefits, yet it is increasingly recognised that the possible losses resulting from new trade agreements can be serious, unevenly distributed, and long-lasting – both within and between countries. It is precisely in this context that the authors argue that human rights impact assessments are a valuable tool for governments and policymakers to safeguard policy space, manage risks, and enhance the legitimacy and long-term sustainability of trade outcomes.

Designed as a hands-on guide, the publication offers practical guidance for stakeholders on how to apply human rights impact assessment, throughout the trade negotiation process, whether as a standalone or as part of other social or sustainability impact assessments.

“Human rights impact assessments (HRIAs) of trade agreements can be a valuable tool to design trade agreements for societal benefit. This Guide demonstrates that such assessments are both highly desirable and easily doable. While substantively rigorous, this short Guide offers practical advice on HRIAs and includes links to rich and diverse resources. This should be a must-read for trade negotiators.”

Rashid Kaukab, Senior Expert International Trade and Environment Negotiations

Interview with the authors:

Trade agreements are often presented as technical economic instruments. Why do their human rights impacts matter, in particular today?

Caroline Dommen (CSD): All economic policy, including trade policy, should result in overall improvement in welfare. Trade instruments affect economic activity, providing opportunities for some people and losses for others. If some people keep benefiting disproportionately from trade agreements, while others lose out, that is a human rights-inconsistent outcome which undermines efforts in favour of improvements in living standards worldwide. 

Martin Browne (MB): Today, in an interconnected world, increased trade opens up opportunities to capitalise on the promise of growth to more fully realise the rights of everyone to share in the benefits of development. Inclusion, participation and non-discrimination in trade are vital for strengthening the legitimacy of economic policy and increasing popular buy-in.

What unique perspectives do human rights impact assessments reveal that can otherwise be overlooked?      

CSD: They shine the light on impacts on people who are often forgotten in trade policy, such as informal workers, peasants, women or indigenous groups. 

MB: Human rights impact assessments specifically prompt the meaningful participation of individuals and groups that are not commonly involved in standard stakeholder engagement processes. HRIAs also urge different ministries to engage cooperatively as the rights that might be affected stretch across different government departments.

Some policymakers see human rights as a constraint on trade negotiations. How does a human rights approach actually strengthen trade outcomes?

MB: Anticipating potentially adverse human rights impacts before or during negotiations can yield better outcomes that enjoy broader popular support. A tailored trade agreement can also contribute to fulfilling other complementary national priorities by ensuring policy coherence. Finally, a human rights impact assessment can be used as an evidence base to help resist the imposition of unfavourable terms.

If trade negotiators or governments take away just one practical lesson from this guide, what should it be?     

CSD: It is worth asking who, within your country, are most vulnerable to economic policy changes and how the trade agreement or trade measure you are considering is likely to affect them.

MB: This guide should prompt reflection of whether development is benefiting all, and generate discussion about the most effective measures to facilitate truly inclusive and sustainable development.

DOWNLOAD THE PUBLICATION

Printed copies can be picked up at the FES office (Chemin du Pommier 42, 1218 Le Grand-Saconnex)