International trade is widely seen as contributing to faster economic growth and higher living standards. More competition leads to lower prices and forces companies to produce more efficiently. Specialisation and cost savings due to the exploitation of economies of scale follow trade liberalisation. Greater exposure to new ideas and foreign markets results in companies adopting new techniques and organisational practices, reaching higher levels of quality and flexibility, and investing more resources in staff training.

However, this positive view is not shared by all. Critics feel that it gives insufficient attention to the inconveniences associated with a more open trading system, to the fact that not all benefit in equal manner, and that some may not benefit at all. They point at the unsustainable nature of international trade as it relates to the use of natural resources and pollution and at the job losses that often follow trade liberalisation.

This section provides information on research that has been carried out on the social, environmental and welfare aspects of trade. It covers several issues of the aspects and the most important questions related to them, including:

• Labour standards. Are labour standards promoting social conditions in developing countries? Is trade a means to enforce compliance with labour standards?

• Environmental aspects of trade. Is trade beneficial to the environment in developing countries? What is the role of environmental standards in trade negotiations?

• Corporate Social Responsibility (CSR). Is CSR a means to foster sustainable development through sound corporate behaviour? Should rules on CSR be voluntary or mandatory?

• Sustainability Impact Assessments (SIAs). What are SIAs? Why did the European Commission initiate them? What are the benefits and the difficulties?

• Welfare aspects of trade. Is trade increasing equal income distribution or is it decreasing equality? What are the effects of trade on poverty reduction?

• The (anti-)globalisation debate. What role do anti-globalists play in addressing trade-related issues? What are their arguments? Are they listened to by their opponents?

For an overview of the issues and literature on social, environmental and welfare aspects of trade, download the EU-LDC background paper below: 

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	The EU-LDC Background paper - Overview of the issues and literature on social, environmental and welfare aspects of trade