European Union´s governance through trade. Considerations on the Proposal for a Regulation on prohibiting products made with forced labour on the Union market

Abstract

The European Union has been governing through trade for decades, trying to export its core values beyond its borders through its trade instruments. Recently, the European Parliament and the Council have launched a Proposal for a Regulation on prohibiting products made with forced labour on the Union market that aims to put an end to one of the most despicable contemporary practices: forced or compulsory labour. Nevertheless, this measure, like any other unilateral measure, must meet a number of requirements to be compatible with World Trade Organization law: it must fall within the exceptions contained in Article XX of GATT 1994 and must not constitute an arbitrary or discriminatory measure. In the event that the European Union's unilateral measure does not meet these requirements and a state is affected, the World Trade Organization's dispute settlement system could take action. However, the entire World Trade Organization is at an impasse that is very difficult to resolve, putting into risk the whole multilateral international trade system.