Fair Trade, Formal Equality, and Preferential Treatment

In this paper I criticize the claim that fair trade entails a commitment to an ideal of formal equality according to which all members of the trade regime are to receive and offer equal, or uniform, treatment. I first elaborate on the idea of formal equality and its rationales, identify several positive arguments for departing from formal equality, and respond to a number of objections to “special and differential treatment” for poor countries. I then consider in more detail one specific element of formal equality in the trade regime, namely, the principle of reciprocity. Several distinct reciprocity principles are identified, none of which, I argue, should be regarded as a requirement of fairness. Next I consider a more recent interpretation of formal equality that requires trading countries to “harmonize” domestic laws and policies. I argue that harmonization is not required by fairness.