Institute for International Trade

Policy & Engagement 

WORKING PAPER No. 17

The Impact of Due Diligence Legislation on International Trade and Business: An Analysis of Potential Trade-Offs

Our latest working paper dives into the complexities of due diligence legislation, aiming to bolster human rights, labor standards, and environmental sustainability. While these laws target vital moral and political objectives, they also bring significant costs that might deter investment and trade.

The authors analyze 60 cases to investigate these laws' impact on international trade and business and highlight unintended consequences like investor withdrawal, reduced trade in strategic commodities, and compliance costs affecting competitiveness.

Are these laws crafted well enough to achieve their goals without adverse effects? We invite you to engage in the conversation and share your thoughts on how we can harmonize ethical goals with economic realities. 

Access Working Paper No.17

The views expressed here are the author’s alone and not those of the Institute for International Trade.

Image by VKStudio - AdobeStock