Assessing the Impact of Trade and Investment Policies : Toward an Era of ‘Enlightened’ Policymaking?

One of the sharpest ideological frictions that characterises modern societies is the one that opposes supporters and opponents of trade and investment liberalisation policies. The existence of mixed empirical findings underscores the importance of avoiding general assertions about the benefits of such policies. Policymaking processes need to take into account the economic, social, and environmental costs of trade and investment policies. Evidence-based approaches encourage governments to draw on scientific knowledge and replace ideology with more rational decision-making mechanisms. Sustainability Impact Assessment studies, a sophisticated and comprehensive tool designed by the European Commission, marked a turning point in the way international trade negotiations are conducted. They allow for a discussion between a broad range of stakeholders about a variety of societal concerns that was not included in the traditional trade agenda. However, there are many factors bearing on the trade policymaking process besides scientific knowledge. Policymaking is an essentially political process that seeks to balance competing interests. Impact assessment studies are meant to inform the policymaking process, not to replace political judgment. In the end, the influence of trade impact assessment studies in the formulation of new policies is in the hands of negotiators and governments