Wednesday, March 20, 2019

Should government consider human right of host country before granting preferential trading rights?(International Business)

Preferential trading right is a preferential treatment given to members of the group in the form of reduced barriers (tariff or non-tariff) which it would not have received otherwise if it were out of that bloc. And definitely, it is a big yes from my side that the country should look at the current status of human right with its trading partners before legitimating any trade agreements.  The human rights are the basic rights and freedom to which all the human are entitled, it comprises domains like freedom of expression, gender equality, right to information, race equality, women’s right et cetera.  And the violation of human rights may come due to the vicious circle of poverty, prevalent illiteracy, lack of infrastructure, unstable government, corruption and taboos along with ignorance which signifies not a good place to do business so forth.
The home country(the government which is giving the preferential right) can help eradicate the poverty, stop child labor, remove corruption and protect women rights in the host country and ultimately make the overall trading mechanism-free, fair and transparent.  It is often seen, these are strictly guided by the developed nations to it's developing and least developing trade partners. The European Union banned the import of carpets and garments from Nepal after knowing the use of the child as the labor in the garment industry (Clark, 1996), these pressured Nepalese government to abolish the unregulated practice of child labor, now Nepal has profoundly crafted “Rugmark” brand which testifies the products are child labor free.  In the same way, the business sanctions to North Korea and Venezuela from international human right watchdogs; UN is putting pressure through sanctions on these countries dictators to respect human right (Merchant, 2019).  The USA has strongly vocal against the human right issue in China, these have pressured China to take care of various issues like an intellectual property right, business rights, subsidies which are creating a geopolitical disturbance.
On the other hand, it is often impliedly seen trade requirements and protocol are used by the developed nations as the trade negotiations tools, to discourage the exports from the developing countries which otherwise will dominate the world with cheap production.  China by the means of welcoming foreign direct investments from developed countries like the USA, Japan is infringing their intellectual and property rights.  And also, often, the preferential trading rights comes with limited time period and uncertainty, after the end of multi-fiber trade agreement given to Nepal by the USA, the overall garment industry jeopardized, billions worth of investment ruined.
But equal cautions have to be taken, in the vide to maintain human rights, countries are blatantly using sanctions. And sadly, I think, it would not impact the regime a lot, it even degrades the life of innocent citizens.  US sanctions on North Korea, Russia, Venezuela has negatively impacted ordinary citizens rather than the regime.
Hence, the government of the home country should see the human right condition of the host country before providing the preferential rights, but equal care has to be taken as some time the uncertain and stern measure put forth by the home country even can degrade the condition of the preferential rights receiving countries.

Bibliography

Clark, C. S. (1996, August 16). Child labors and sweatshops. Retrieved from www.library.cqpress.com: https://library.cqpress.com/cqresearcher/document.php?id=cqresrre1996081600
Merchant, K. F. (2019, January 15). New Year Sanctions Roundup: Where Do We Stand? Retrieved from www.natlawreview.com: https://www.natlawreview.com/article/new-year-sanctions-roundup-where-do-we-stand

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