The WTO and the Limits of Distributive Justice

In this article I rethink Rawls' conception of international economic justice, with a particular focus on international trade. I ground my normative argument on a different interpretation of the concepts of basic structure and of basic institution. I use the contemporary international trading system to illustrate my normative interpretation. I use the Law of Peoples to discuss the Rawlsian concept of basic structure. I contest Samuel Freeman's interpretation of this concept as one that pertains exclusively to the domestic realm. As a reply, I work out an interpretation of basic institutions valid for both the national and international context. I base my understanding on the impact and the form of membership that characterize basic institutions. Both properties are compatible with an extension of the concept of a basic institution to the international domain. I then show how the World Trade Organization (WTO) system can be compared to a domestic basic institution. I analyse the decisional setting that surrounds the choice of joining the WTO. I conclude that no real alternative exists. Hence, WTO membership is not to be considered a completely free policy choice. I also state that the new system is witnessing a strong expansion of the areas subject to trade governance. Such expansion is responsible for the growing impact that international trade has on domestic institutions and hence on people. Finally, I use my analysis of contemporary international trading relations to test Rawls' position in the Law of Peoples. I conclude that although Rawls' principles for fair trade and international cooperation can regulate GATT-style international trade, they are not proficient in assessing the new characteristics of international trade.