Report : Governance and Global Trade – 2025

Arab-European Center of Human Rights and International Law (AECHRIL)

Date of Issue: 20 May 2025

Executive Summary

This report provides an in-depth analysis of the intersection between governance and global trade in 2025, with particular emphasis on human rights implications. It underscores that effective governance frameworks—grounded in transparency, accountability, and inclusiveness—are essential to ensuring that international trade contributes to sustainable development, social justice, and the protection of fundamental rights.

In a rapidly evolving global economy marked by digital transformation, geopolitical tensions, and climate challenges, the need to align trade policies with international human rights standards has become more urgent than ever. This report highlights key challenges, legal frameworks, and practical pathways toward more equitable and rights-based trade systems.

1. Introduction

Global trade continues to serve as a cornerstone of economic development, international cooperation, and poverty reduction. However, the benefits of globalization remain unevenly distributed across and within countries. In many contexts, weak governance structures, lack of regulatory oversight, and limited participation in decision-making processes have contributed to rising inequality, labor exploitation, and restricted access to justice.

This report examines how governance mechanisms can shape trade outcomes and explores the role of international legal frameworks in promoting fair, inclusive, and sustainable trade practices. It also emphasizes the importance of integrating human rights considerations into trade policymaking at both national and international levels.

2. International Legal Framework

The nexus between governance, global trade, and human rights is guided by a comprehensive body of international instruments and normative frameworks, including:

• The United Nations Charter (1945), which establishes the foundational principles of international cooperation and human rights
• United Nations General Assembly Resolution 70/1: Transforming our World: the 2030 Agenda for Sustainable Development, which integrates trade within the broader framework of sustainable development
• United Nations Human Rights Council Guiding Principles on Business and Human Rights (2011), outlining corporate responsibility to respect human rights
• The World Trade Organization Marrakesh Agreement (1994), which governs the multilateral trading system
• Policy frameworks developed by United Nations Conference on Trade and Development, focusing on inclusive trade and development
• Core labour standards of the International Labour Organization, particularly in relation to decent work and workers’ rights

These instruments collectively emphasize the importance of policy coherence, ensuring that trade agreements and practices do not undermine international human rights obligations.

3. Governance Principles in Global Trade

Effective governance in global trade is built upon four fundamental principles:

• Transparency: Ensuring open access to trade-related information, including negotiations, agreements, and regulatory frameworks
• Accountability: Establishing mechanisms to hold governments, corporations, and institutions responsible for their actions and impacts
• Participation: Promoting inclusive decision-making processes that involve civil society, marginalized groups, and developing countries
• Rule of Law: Ensuring that trade systems operate within fair, predictable, and enforceable legal frameworks

The application of these principles strengthens trust in global trade systems and enhances their legitimacy and effectiveness.

4. Key Human Rights Challenges in 2025

4.1 Inequality in Trade Benefits

Despite the expansion of global markets, many developing countries—particularly least developed countries (LDCs)—continue to face structural barriers such as limited market access, weak infrastructure, and unequal bargaining power. These challenges hinder their ability to fully benefit from international trade.

4.2 Labour Rights in Global Supply Chains

Global supply chains remain vulnerable to human rights violations, including forced labour, child labour, and unsafe working conditions. Strengthening compliance with international labour standards, particularly those established by the International Labour Organization, is critical to addressing these issues.

4.3 Corporate Accountability and Due Diligence

There is growing international recognition of the need for binding regulations requiring companies to conduct human rights due diligence. This includes identifying, preventing, and mitigating adverse human rights impacts within their operations and supply chains.

4.4 Trade and Environmental Sustainability

Trade policies increasingly intersect with environmental concerns, including climate change, biodiversity loss, and resource management. International frameworks such as the United Nations Framework Convention on Climate Change highlight the importance of aligning trade with environmental sustainability goals.

5. Practical Examples and Institutional Engagement

In 2025, the Center actively engaged in key international platforms that address the intersection of trade, governance, and human rights:

• Participation in the World Trade Organization Public Forum 2025, contributing to discussions on inclusive trade policies, digital trade governance, and sustainable economic development
• Engagement in UNCTAD 16 (Geneva, October 2025), where the Center contributed to dialogues on trade, investment, and development, with a focus on human rights integration
• Continued involvement in international policy dialogues addressing corporate responsibility, trade justice, and sustainable development frameworks

These engagements reflect the Center’s commitment to contributing to global governance discussions and promoting rights-based approaches to trade.

6. Recommendations

In light of the findings, the report recommends:

1. Strengthening legal and institutional frameworks to ensure that trade policies comply with international human rights standards
2. Enhancing transparency and inclusiveness in trade negotiations and decision-making processes
3. Promoting mandatory human rights due diligence for corporations engaged in global trade
4. Supporting developing countries in overcoming structural barriers to trade participation
5. Encouraging multi-stakeholder dialogue, including governments, private sector actors, and civil society organizations

In 2025, the role of governance in shaping equitable and sustainable global trade systems is more critical than ever. Ensuring that trade serves as a tool for inclusive development requires a strong commitment to human rights, accountability, and international cooperation.

Aligning trade systems with international legal standards and development goals will not only enhance economic outcomes but also contribute to building more just and resilient societies.

The Arab-European Center of Human Rights and International Law reaffirms its commitment to advancing human rights, promoting fair trade practices, and supporting global efforts toward sustainable and inclusive development.