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EU: Commission unveils new plan for trade and sustainable development chapters of trade agreements, including sanctions for breaches
The European Commission published, on 22 June 2022, its communication, titled 'The Power of Trade Partnerships: Together for Green and Just Economic Growth', which unveils a new plan to further strengthen the implementation and enforcement of Trade and Sustainable Development ('TSD') chapters of the EU's trade agreements. In particular, the communication highlights policy priorities and key action points to enhance the effectiveness of the current engagement-based approach to TSD, for example through using trade sanctions for breaches of core TSD provisions and shifting towards results-oriented and priority-based engagement with partner countries. Widely, the communication outlines the new approach to TSD as requiring action across six priority areas:
- establishing a comprehensive approach anchored in multi-lateral agreements and cooperation;
- pursuing country-specific implementation priorities, using impact assessments and detailed roadmaps;
- mainstreaming sustainability throughout the whole trade agreement;
- collective monitoring of sustainability commitments in trade agreements;
- reinforcing the role of civil society and Domestic Advisory Groups; and
- strengthening the enforcement of sustainability commitments.
You can read the press release here, the communication here, the updated operating guidelines for the Single Entry Point and complaints mechanism here, and the factsheet here.