Backgrounder on Trade, 2020

Backgrounder on Trade 2020

Trade has moral and human consequences and must serve people, not just markets. The USCCB evaluates agreements using ethical criteria drawn from Catholic Social Teaching. The USMCA’s final text shows notable improvements on pharmaceuticals and labor standards and could be positive if enforced. Trade policy must center human dignity, protect vulnerable groups, support sustainable development, and include enforceable provisions and democratic participation to ensure benefits reach people rather than solely serving market interests.

U.S.-Mexico-Canada agreement

• Assessment: The USMCA improves provisions on pharmaceuticals and labor compared with earlier drafts.
• Condition: Benefits depend on effective enforcement to ensure sustainable, mutually enriching trade across the United States, Mexico, and Canada.

USCCB ethical criteria on trade

• Labor protections:
  • Principle: Work has inherent dignity.
  • Expectations: Protect worker rights including the right to organize; ensure safe conditions, reasonable hours, family wages, and social benefits; include commitments to assist displaced workers and communities domestically and abroad.
• Indigenous rights:
  • Principle: Respect cultural patrimony and ensure indigenous communities share equitably in benefits when commerce uses their knowledge or resources.
• Migration:
  • Principle: People have a right to migrate when necessary.
  • Expectations: Trade and investment should reduce root causes of migration by improving home-country conditions.
• Agriculture:
  • Concern: Small producers are vulnerable to competition from large agricultural producers.
  • Expectations: Agreements should protect and promote agriculture in both developing and developed countries and safeguard small-scale farmers.
• Sustainable development and care for creation:
  • Principle: Environmental protection is integral to human development.
  • Expectations: Prioritize environment and public health; assist poor countries with technical and financial capacity; consider debt relief so nations can invest in social needs.
• Intellectual property rights:
  • Principle: IP should be balanced with the common good.
  • Concern: Overly long or broad protections, especially for pharmaceuticals and agricultural innovations, can restrict access for the poor.
• Dispute resolution mechanisms:
  • Concern: Binding international arbitration can favor commercial interests and undermine environmental, labor, and human rights standards.
• Participation and transparency:
  • Principle: People affected by trade must have a voice.
  • Expectation: Decision-making should be transparent and allow meaningful public participation.

TRADE-BACKGROUNDER-2020.pdf