Trade Policy and Public Goods

Abstract

The World Trade Organization (WTO) was formed in 1994 as the first multilateral trade organization with enforcement authority over national governments. A country's domestic standards cannot be more restrictive than international standards for trade. WTO seeks to “harmonize” individual domestic policies into uniform global standards and encompasses trade-related aspects of health, public safety, and environmental protection. These issues are transnational and pose enormous challenges to traditional governance structures. Most governments are not equipped to manage problems that transcend their borders. Moreover, international governance in social issues—with the possible exception of public health—is still in its infancy. Many groups are concerned that local public interests will be subjugated to global corporate interests. The article looks at the social ramifications of world trade policy and concludes that world trade must be balanced with sustainable environments and human health.