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International Trade: a Justice Approach Loyola University Chicago Loyola eCommons Dissertations Theses and Dissertations 2014 International Trade: A Justice Approach Aaron Crowe Loyola University Chicago Follow this and additional works at: https://ecommons.luc.edu/luc_diss Part of the Ethics and Political Philosophy Commons Recommended Citation Crowe, Aaron, "International Trade: A Justice Approach" (2014). Dissertations. 1470. https://ecommons.luc.edu/luc_diss/1470 This Dissertation is brought to you for free and open access by the Theses and Dissertations at Loyola eCommons. It has been accepted for inclusion in Dissertations by an authorized administrator of Loyola eCommons. For more information, please contact [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License. Copyright © 2014 Aaron Crowe LOYOLA UNIVERSITY CHICAGO INTERNATIONAL TRADE: A JUSTICE APPROACH A DISSERTATION SUBMITTED TO THE FACULTY OF THE GRADUATE SCHOOL IN CANDIDACY FOR THE DEGREE OF DOCTOR OF PHILOSOPHY PROGRAM IN PHILOSOPHY BY AARON CROWE CHICAGO, ILLINOIS MAY 2015 Copyright by Aaron Crowe, 2015 All rights reserved. ACKNOWLEDGMENTS I would like to thank several people who made it possible for me to complete this dissertation, I would like to start with Dr. David Schweickart who provided guidance and feedback over the years it took me to finish the project. I would also like to thank Dr. Thomas Wren who has been a source of support and helpful advice since I entered the graduate program at Loyola. Most importantly I would like to thank my wife and partner Lori Weiman who provided support, motivation and understanding crucial to successfully completing the dissertation. Thank you Lori, I love you very much. iii TABLE OF CONTENTS ACKNOWLEDGMENTS ......................................................................................................... iii INTRODUCTION ................................................................................................................... 1 Narrative Description of Chapters ................................................................................... 5 Is There a Value in Theorizing About International Trade? ............................................. 8 Justice Concerns in International Trade ......................................................................... 11 CHAPTER ONE: JUSTICE CONCERNS IN INTERNATIONAL TRADE ...................................... 16 John Rawls: A Theory of Justice ...................................................................................... 16 The Law of Peoples and Justice in International Trade ................................................. 41 Human Rights in The Law of Peoples ............................................................................. 56 The Law of Peoples and Principles of Just International Trade ..................................... 71 Charles Beitz and Iris Young: Building from Rawls ......................................................... 83 CHAPTER TWO: UTILITARIAN AND HUMAN RIGHTS APPROACHES TO JUSTICE IN INTERNATIONAL TRADE ............................................................................................... 113 Singer: The Utilitarian Position .................................................................................... 114 Pogge: The Rights Model and Reaction to The Law of Peoples ................................... 137 CHAPTER THREE: THE SELF-REGULATING FREE MARKET IN FREE TRADE ...................... 173 Mercantilism ................................................................................................................ 173 The Free Trade Model .................................................................................................. 177 Critiques of the Free Trade Model ............................................................................... 196 Daly’s Critique of Comparative Advantage .................................................................. 225 CHAPTER FOUR: ALTERNATIVES ..................................................................................... 237 Strategic Protective Tariffs and National Interest: Fletcher ........................................ 237 Stiglitz and Charlton: Fair Trade for All ........................................................................ 245 Schweickart: Socialist Protectionism ........................................................................... 256 Daly: Ecological Economics Proposal ........................................................................... 261 CHAPTER FIVE: A COSMOPOLITAN PROPOSAL FOR JUSTICE IN INTERNATIONAL TRADE ........................................................................................................................... 271 Principles for a Just International Trade Regime ......................................................... 274 Functions of Institutions .............................................................................................. 284 Structure of the Institutions ......................................................................................... 308 How Would This New Institution for Global Economic Collaboration Come into Existence? ................................................................................................................. 319 BIBLIOGRAPHY ................................................................................................................ 323 iv VITA ................................................................................................................................. 335 v INTRODUCTION The current international trade regime is flawed, unjust, and in need of redress. It largely ignores concerns for global economic justice, and fails those most in need of a strategy to help them move out of extreme poverty; it exacerbates inequalities, both between states on the world stage and within individual countries, and it creates a competitive pressure on producers to use the differing legal standards and enforcement between countries to externalize important environmental, social, human rights and cultural costs that harm others now, or in the future. There are two models, which have generally been presented as ideal alternatives to the present system. The first of these is a move towards eliminating all barriers to free trade in a self-regulating free-market approach to trade. This is a model that has had a strong influence on international trade policy over the past thirty years, and has shaped many features of the current system. The other main model has a strong state- centric focus that favors unilateral protectionism as a tool to advance individual state interest, and develop or protect domestic industry. This model has been a strong influence on trade policy since the development of the modern state. Both these models, while having their strengths, fall short of addressing the important concerns of global justice. What is needed is a model that focuses on regulating and facilitating international trade in the best interests of all participants. 1 2 The model I propose is one that is influenced by John Rawls’ conception of social justice, the idea that achieving a just society is dependent on ensuring the institutions and basic social structures of a society are based on embedded principles of justice. Rawls argues that a fair background framework for a society, permits individuals to pursue their own ends as they see fit, under conditions that in most cases, support maintenance of a just society. This proposal is intended as the basis of a new, more just approach to international trade, and it is intended as a proposal that could be implemented in global society as it actually exists. The project takes a cosmopolitan approach to obligations of justice, in that it accepts that obligations of justice extend between all members of global society, but it is not necessarily part of a larger project of global justice, and thus the principles are limited to those that are relevant specifically to international trade. The project will be based around principles of justice, but although influenced by Rawls’ conception of justice, Rawls’ principles are not adopted directly. Rawls suggests principles for justice in international society, in The Law of Peoples. There justice is seen to be very different in international society than is his conception in A Theory of Justice for a single self-contained society. In A Theory of Justice Rawls carefully outlines his conceptions of the economic institutions that would be required in society to support his principles of justice. In The Law of Peoples Rawls claims that a fair background framework for trade would need to be worked out using 3 the concept of the original position with the veil of ignorance,1 but, unlike A Theory of Justice, he does not work out what it would look like. Rawls argues that his liberty principle and difference principle do not make sense in the context of international society, he argues against a cosmopolitan conception of the obligations of justice in international society, and his principles of justice, which he calls the “Law of Peoples,” are arguably a much thinner and less comprehensive conception. There are several important commentators on global justice who critique Rawls’ conception of global justice in The Law of Peoples, but claim that his principles of justice stated in A Theory of Justice, which he developed for a single, mostly self-sufficient society (really a single country or state), ought to be applied to global society.
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