About Colette van der Ven

I am an international trade lawyer passionate about making trade and investment policy work for sustainable development in Africa and Latin America

How the WTO’s Trade Facilitiation Agreement May Reduce Bribery

I argued in my last post that the WTO is not well-suited to directly addressing bribery and corruption; even though bribery impedes trade, it would be a mistake to recognize bribery (or failure to suppress bribery) as an actionable violation of international trade law. But that does not mean the WTO should not take action to deal — indirectly — with the problem of corruption. A good example of productive measures the WTO can implement to reduce the impact of bribery and corruption in trade is the Trade Facilitation Agreement (TFA), which was negotiated in December 2013 (but has not yet entered into force).  The TFA aims to reduce transactional obstacles to trade, focusing mainly on border transactions; in doing so, it may indirectly address some of the most significant contributors to bribery in international trade, even though the TFA is not about corruption as such. The agreement provides a nice example of how the WTO system can take positive steps to combat corruption, even though the system is not equipped to tackle corruption directly.

The TFA has the potential to contribute to reducing trade-related bribery in three main ways.

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Should the WTO Outlaw Transnational Bribery?

Unlike other international organizations, the World Trade Organization (WTO) has not passed measures that directly address transnational bribery. This is the case despite the fact that transnational bribery significantly harms international trade. Almost 20 years ago, then-U.S. Trade Representative Mickey Kantor described corruption as a “barrier to trade” and advocated more action on corruption through the WTO system. Although those proposals went nowhere at the time, prominent scholars continue to make a strong case in favor of using the WTO to directly address matters of bribery and corruption, either by passing provisions that directly outlaw bribery or requiring WTO Member States to sign a declaration against corruption.

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The TTIP Is an Ideal Opportunity to Strengthen Anticorruption Measures

This week, Europe and the US will be negotiating the fifth round of the Transatlantic Trade and Investment Partnership (TTIP). Transparency International (TI) has urged the parties to include a transparency and anticorruption chapter in the TTIP. TI is right about this–the US and European negotiators should include something like TI’s suggested chapter in the revised TTIP. Continue reading