Most Favored Regime

Episode #593: “Why are values included in international trade?” Arianna Bondi’s research begins with that question, but Myanmar turns it into a problem of limits. A PhD candidate at McGill University studying international political economy, Bondi examined how the European Union tried to promote human rights through trade policy, focusing on Myanmar’s place in the EU’s Generalized System of Preferences.

Her study, completed in 2020 at Johns Hopkins SAIS in Bologna, looks at the period before the 2021 coup. That timing matters; Myanmar had been brought back into the EU’s Everything ButArms trade scheme in 2013 after preferences were withdrawn in 1997 over forced labor concerns. The policy was supposed to support development while encouraging respect for international standards. Bondi found that this created two different tools: positive conditionality, through engagement and market access, and negative conditionality, through the threat or use of withdrawal.

Her interviewees saw little evidence that withdrawal had produced human rights change. Negative conditionality could send a signal, but it risked punishing workers while failing to reach the military structures responsible for the gravest abuses. Positive conditionality seemed more promising, especially in the garment sector, where EU-linked trade could improve wages, standards, and opportunities for largely female workers. But that success remained narrow. It could touch factory floors more easily than constitutional power, military violence, or the Rohingya crisis.

Bondi’s account keeps returning to mechanism. Human rights cannot be treated as one broad category that trade either improves or fails to improve. The question has to be which right, which sector, which actor, and which channel. EU policy also carried other motives: business access, regional influence, concern over China, and member-state interests. That makes the application of values uneven.

Myanmar leaves the trade instrument under pressure. A tariff preference may help workers, a withdrawal may make a statement, and neither may reach the institution doing the most harm.