On Thursday 10 February, the European Commission published the study it had commissioned from the London School of Economics (LSE) on trade and sustainable development chapters (TSDs) in trade agreements.
The European Commission is currently considering whether or not to include sanctions in its free trade agreements if partner countries fail to comply with TSD chapters. In this regard, the European Commission is due to publish a revised 15-point action plan next summer, which will indicate the direction it has chosen. For the time being, it favours the option of not providing for sanctions, preferring cooperation and dialogue with partners (see EUROPE 12876/12).
The LSE study seems to suggest the same. The authors analysed the provisions on TSD chapters in the trade agreements of different countries (Australia, Canada, Chile, Japan, New Zealand, Switzerland and the United States). According to them, “cooperation is the watchword” in these countries. Where the US and Canada have sanctions in some of their agreements, it appears that they are hardly used.
The study discusses the limitations of the sanctions model and emphasises the importance of providing technical assistance and capacity building to partner countries.
This “shows that positive engagement can be more effective in bringing about positive and lasting change”, said EU Commissioner Valdis Dombrovskis.
The study also reveals that disputes between countries always concern labour provisions and never environmental issues.
See the study: https://aeur.eu/f/b5 (Original version in French by Léa Marchal)