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The Political Economy of Due Diligence Legislation


Prof Peter Draper The Institute for International Trade, The University  of Adelaide. Prof Andreas Freytag, Friedrich Schiller University, Jena. Naoise McDonagh, Edith Cowan University. Prof Matthias Menter, Friedrich Schiller University, Jena. Western democracy increasingly values human and social rights, civil liberties, and sustainability issues. This is materialising into legalisation, obliging domestic businesses to both comply and enforce these values along supply chains. However, this legalisation has its controversies regarding compliance costs, impacts on foreign relationships, and effectiveness, inter alia. Due diligence legislation is inherently complex. This policy brief develops a conceptual overview of the political economy challenges when designing these laws and evaluates how Western countries could enforce values-based trade along international supply chains.

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Geopolitical tensions and economic fragmentation: a trade policy response

A stylized image of dried and cracked soil representing fragmentation

Carlos A. Primo Braga is an Adjunct Professor, Fundação Dom Cabral, Brazil; Visiting Professor at IMD, Switzerland and at El Colegio de México. 
Douglas Lippoldt is a non-resident Senior Fellow at the Centre for International Governance Innovation (CIGI, Canada). At a time when effective global co-ordination and action are desperately required, developments on the ground present several challenges. The shock from the COVID-19 pandemic elicited protectionist sentiment in some areas and continues to weigh on the global economy, despite the heroic response by the medical community. The war in Ukraine is tremendously costly to the adversaries. It has also proven very costly to third parties, especially those dependent on food and energy supply from the region.

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