COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The power of trade partnerships: together for green and just economic growth
Date: 2022-08-16
Institutions: Directorate-General for Trade and Economic Security, European Commission
Subjects: EU growth strategy, civil society, common commercial policy, economic growth, economic sanctions, green economy, international trade, sustainable development, trade agreement (EU), trade relations

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 16.8.2022  COM(2022) 409 final/2  CORRIGENDUM This document corrects document COM(2022) 409 final of 22.6.2022. Concerns the English language version. Correction of footnote 9 on page 2.  The footnote mistakenly referred to the “elimination of non-discrimination in respect of employment and occupation”.  The text shall read as follows: COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The power of trade partnerships: together for green and just economic growth  
 
 
1.  INTRODUCTION 

The EU is strongly committed to ensuring that its trade agreements foster sustainability, 
so that economic growth goes together with the protection of human rights, decent work, the 
climate and the environment, in full adherence with the Union’s values and priorities. In the 
current  geopolitical  context,  marked  by  heightened  instability,  the  EU  must  increase  its 
engagement with  third countries  as  a reliable partner.  The EU’s  trade policy provides for  a 
solid framework to cooperate with trading partners on trade-related sustainability issues. This 
approach  is  based  on  international  labour  and  environmental  rules  through  structured  and 
transparent processes, with the involvement of civil society.  

This  Communication  sets  out  how  to  further  enhance  the  contribution  of  trade 
agreements to sustainable development. All modern EU trade agreements already include 
Trade and Sustainable Development (TSD) chapters. Since 2018, the 15-Point Action Plan has 
guided  their  enhanced  implementation  and  enforcement. 1  In  June  2021,  the  Commission 
launched  an  in-depth  review  with  the  objective  of  strengthening  the  ability  of  trade 
agreements as a whole – and not just their TSD chapters – to champion sustainable trade, 
in  cooperation  with  trade  partners  and  in  concert  with  other  relevant  EU  policy 
instruments, including the European Green Deal2.3 

As part of the review, the Commission requested an independent comparative study on TSD 
practices in third countries’ trade agreements, which confirmed the EU as one of the pioneers 
and key front-runners in promoting sustainability via its trade  agreements.4 Additionally, in 
order  to  gather  input  from  the  widest  possible  range  of  citizens  and  stakeholders,  the 
Commission conducted an open public consultation, which gathered numerous contributions 
from business and trade unions to environmental and human rights groups and social partners.5 
This was accompanied by an extensive exchange of views with Member States, the European 
Parliament and the European Economic and Social Committee.  

Based on the inputs and recommendations received throughout the TSD review process, the 
Commission has identified a set of policy priorities and key action points, which will further 
enhance the effectiveness of the current engagement-based approach to TSD, grounded in the 
international framework and standards, with stronger enforcement rules. The new approach set 
out below includes a fully-fledged compliance stage and the use of trade sanctions in specific 
and well-defined cases.  

1  Commission  Services’  non-paper  ‘Feedback  and  way  forward  on  improving  the  implementation  and 
enforcement of Trade and Sustainable Development chapters in EU Free Trade Agreements’. The 15-Point Action 
Plan  includes  actions  to  make  the  implementation  of  TSD  chapters  more  effective  and  to  improve  their 
enforcement under four headings: (i) working together; (ii) enabling and civil society including the social partners 
to play a greater role in implementation; (iii) delivering; and (iv) transparency and communication. It is available 
at https://trade.ec.europa.eu/doclib/docs/2018/february/tradoc_156618.pdf 
2 COM(2019) 640, available at https://eur-lex.europa.eu/resource.html?uri=cellar:b828d165-1c22-11ea-8c1f-
01aa75ed71a1.0002.02/DOC_1&format=PDF  
3 See https://policy.trade.ec.europa.eu/development-and-sustainability/sustainable-development/sustainable-
development-eu-trade-agreements_en  
4 Velut, J. et al., Comparative Analysis of Trade and Sustainable Development Provisions in Free Trade 
Agreements, LSE Consulting, London, 2022, available at: 
https://trade.ec.europa.eu/doclib/docs/2022/february/tradoc_160043.pdf  
5 See https://policy.trade.ec.europa.eu/consultations/open-public-consultation-trade-and-sustainable-

development-tsd-review_en  

2 

 
                                                 
2.  HOW  EU  TRADE  AGREEMENTS  CONTRIBUTE  TO  THE  SUSTAINABLE  DEVELOPMENT 

AGENDA 

Trade agreements are an important driver for sustainable growth both in the EU and in 
partner countries. An active trade agenda is crucial for Europe’s economic prosperity and 
competitiveness.  Trade  agreements  help  create  jobs,  expand  markets  and  boost  economic 
growth  and  innovation. 6  By  removing  market  access  barriers,  they  also  lower  costs  and 
facilitate the uptake  and  deployment of climate-friendly technologies, and associated  goods 
and services that help reduce greenhouse gas emissions worldwide and adapt to a changing 
climate. Trade agreements also help secure supplies of the necessary raw materials, including 
those used in low-carbon technologies. At the same time, global trade may also have an impact 
on climate, biodiversity or working conditions. To ensure the positive effects of open trade, 
trade liberalisation and promotion of international labour standards as well as decisive climate 
and  environmental  action  must  go  hand-in-hand.  As  instruments  of  privileged  partnership, 
trade agreements provide a platform for policy dialogue and cooperation on sustainability with 
partner countries. This is vital because only global cooperation can address global challenges.  

The Trade Policy Review has made the support for the green and just transition one of the 
pillars of the EU’s trade policy along with openness and assertiveness.7 This is in line with the 
European  Green  Deal  and  the  Decent  Work  Worldwide  Communication, 8  which  put 
sustainable  development  at  the  heart  of  the  EU’s  policymaking  and  action.  Sustainable 
development  priorities  and  objectives  have  been  mainstreamed  into  all  EU  policies  in 
accordance  with  the  United  Nations’  2030  Agenda  and  its  17  Sustainable  Development 
Goals, the Paris Agreement on Climate Change, and other multilateral agreements for the 
protection  of  the  environment  and  labour  standards.  These  multilateral  agreements  and 
conventions  have  become  the  global framework  for international cooperation  and  action on 
sustainable development, and serve as a compass for sustainable development commitments in 
EU trade agreements too. 

The EU’s value-based approach to TSD seeks broader commitments from partner countries 
than those in trade agreements of other international players. Notably, TSD chapters of 
EU  trade  agreements  require  the  effective  implementation  of  the  International  Labour 
Organization (ILO) conventions and the Multilateral Environmental Agreements (MEAs) that 
each party has ratified, such as the Paris Agreement on Climate Change and the Convention on 
Biological Diversity.  

TSD chapters in EU trade agreements also require the respect of the core ILO principles as 
set out in the 1998 ILO Declaration on Fundamental Principles and Rights at Work.9 In this 
regard, the Commission welcomes the work of the ILO and its membership to strengthen and 

6 EU exports support 38 million jobs (up two-thirds from 2000) and the importance of trade to generate prosperity 
for EU citizens will further increase in the future with 86% of global growth expected to be generated outside the 
EU by 2026. 
7 COM(2021) 66, available at https://trade.ec.europa.eu/doclib/docs/2021/february/tradoc_159438.pdf  
8 COM(2022) 66, available at https://ec.europa.eu/commission/presscorner/detail/en/ip_22_1187  
9 Namely: freedom of association and the effective recognition of the right to collective bargaining; the elimination 
of  all  forms  of  forced  or  compulsory  labour;  the  effective  abolition  of  child  labour;  and  the  elimination  of 
discrimination  in  respect  of  employment  and  occupation.  On  10  June  2022,  the  ILO  has  amended  the  1998 
Declaration and added a new principle on occupational safety and health to the list of fundamental principles. 

3 

 
                                                 
expand such core principles, most recently a decision to include occupational safety and health, 
and considers that the TSD chapters should also appropriately reflect such developments. 

TSD  chapters  also  promote  the  ratification  of  the  unratified  fundamental  ILO 
Conventions and have a broad range of commitments and cooperation provisions on issues 
such as labour rights, social dialogue, decent working conditions including labour inspection, 
sustainable  management  of  natural  resources,  forestry,  fisheries,  aquaculture,  ocean 
governance and the promotion of responsible business conduct.10 EU trade agreements now 
also promote cooperation to encourage the shift to a circular and resource-efficient economy 
or deforestation-free supply chains, and foster international environmental governance. Recent 
EU trade agreements also contain provisions regarding the relevant UN and ILO conventions 
advancing  women’s  economic  empowerment  and  gender  equality,  including  promoting 
cooperation in international fora to advance these objectives, for example in the WTO.  

Interaction with other policy tools 

EU trade agreements are not standalone instruments for the promotion and enhancement of the 
Union’s sustainability  agenda  with  third countries.  The TSD commitments  included  therein 
work  hand-in-hand  with  a  wider  set  of  policy  instruments,  multilateral  efforts  and 
development  cooperation  tools  in  an  all-encompassing  approach.  Together  with  EU 
autonomous  instruments,  they  help  make  the  most  of  the  positive  impacts  of  trade  on 
sustainable development and ensure that, conversely, negative impacts are contained.  

By the end of the current Commission’s mandate, the EU is expected to have an ambitious set 
of  additional  autonomous  instruments  to  support  sustainable  trade.  In  2021,  the 
Commission  put  forward  a  proposal  to  establish  a  carbon  border  adjustment  mechanism  to 
prevent carbon leakage and strengthen the effectiveness of global climate action,11 as well as a 
proposal on deforestation-free products to strengthen efforts to combat deforestation and forest 
degradation.12 The same year, the Commission adopted a strategy putting forward an ambitious 
and comprehensive package of measures to help improve the flow of money towards financing 
the  transition  to  a  sustainable  economy. 13  In  early  2022,  the  Commission  put  forward  a 
proposal  on  corporate  sustainability  due  diligence,  fostering  sustainable  and  responsible 
business conduct throughout global value chains.14 It also adopted a proposal for a framework 
aiming to make all products placed on the Union market more environmentally sustainable and 
circular.15 As announced in the Decent Work Worldwide Communication, later this year the 
Commission will also present a new legislative initiative to effectively prohibit the placing on 
the EU market of products made by forced labour.16  

10 In line with the relevant international instruments, such as the UN Guiding Principles on Business and Human 
Rights, the OECD Guidelines for Multinational Enterprises, the ILO Tripartite Declaration of Principles 
concerning Multinational Enterprises and Social Policy, and the UN Global Compact. 
11 COM(2021) 564, available at https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:52021PC0564   
12 COM(2021) 706, available at https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A52021PC0706  
13 COM(2021) 390, available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021DC0390  
14 COM (2022) 71, available at https://eur-lex.europa.eu/legal-
content/EN/TXT/?uri=CELEX%3A52022PC0071  
15 COM(2022) 142, available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52022PC0142 
16 See supra footnote 8. 

4 

 
                                                 
In its proposal  for  a new  EU Regulation on the  Generalised Scheme  of  Preferences, the 
Commission  has  enhanced  the  contribution  of  the  scheme  for  the  promotion  of  sustainable 
development, inter alia, by adding a number of international instruments in the areas of human 
rights,  good  governance,  labour  and  environmental  protection.  These  additions  include  the 
Paris  Agreement  on  Climate  Change,  the  UN  Convention  against  Transnational  Organised 
Crime, two new ILO conventions, as well as cover orderly international migration contributing 
to sustainable development.  The proposal  also aims to render the export  of  goods  made by 
internationally prohibited child labour and forced labour a ground for possible withdrawal of 
trade preferences.17  

On  the  multilateral  front,  the  EU  has  recently  co-sponsored  three  plurilateral  WTO 
initiatives on trade and environmental sustainability, plastic pollution and sustainable plastic 
trade, as well as the reform of fossil fuel subsidies.18 At the 12th WTO Ministerial Conference 
the  EU  played  a  key  role  in  achieving  a  first  multilateral  fisheries  subsidies  agreement 
disciplining  harmful  fisheries  subsidies  worldwide,  with  environmental  sustainability  at  its 
heart.  The  EU  will  continue  to  press  for  broadening  disciplines  on  subsidies  by  the  next 
ministerial  conference. 19  The  EU  has  also  actively  supported  the  launch  of  the  Trade 
Ministers’ Coalition for Climate to give further political impetus to build a positive trade and 
climate agenda, particularly in the WTO.20 As part of the reform of the WTO, the EU intends 
to favour dialogue on the interaction between trade and decent work, including through WTO-
ILO cooperation. At the OECD, the EU is promoting amendments in the set of rules governing 
official  export  credits  to  foster  alignment  with  climate  goals.  The  EU  also  successfully 
obtained a ban on unabated coal-fired power plants.21  

All these trade-related policy instruments and initiatives form part of a comprehensive response 
to global sustainability challenges and go hand-in-hand with trade agreements.  

3.  NEW  POLICY  ORIENTATIONS  FOR  SUSTAINABLE  DEVELOPMENT 

IN  TRADE 

AGREEMENTS  

The TSD review has proven the soundness of the EU’s TSD model but has also identified scope 
for improvement in six policy priorities, which can be summarised as (1) the need to be more 
proactive in the cooperation with partners; (2) stepping up the country-specific approach; (3) 
mainstreaming sustainability beyond the TSD chapter of trade agreements; (4) increasing the 
monitoring  of  the  implementation  of  TSD  commitments;  (5)  reinforcing  the  role  of  civil 
society;  and  (6)  enhancing  enforcement  by  means  of  trade  sanctions  as  a  measure  of  last 
resort.22 

17 COM(2021) 579, available at https://trade.ec.europa.eu/doclib/docs/2021/september/tradoc_159803.pdf  
18 See https://ec.europa.eu/commission/presscorner/detail/en/IP_21_6882  
19 See https://ec.europa.eu/commission/presscorner/detail/en/IP_22_3792 
20 See https://ec.europa.eu/commission/commissioners/2019-2024/dombrovskis/announcements/speech-
executive-vice-president-valdis-dombrovskis-trade-climate-cop26_en  
21 See https://policy.trade.ec.europa.eu/news/ban-export-credits-coal-fired-electricity-projects-agreed-oecd-
2021-10-22_en  
22 Following up and enforcing TSD chapters in trade agreements, including the possibility of a sanctions-based 
mechanism as a last resort, also feature among the 49 proposals included in the final report of the Conference on 
the Future of Europe, see ‘Conference on the Future of Europe – Report on the Final Outcome’, May 2022, 
Proposal no. 19(4), p. 63. 

5 

 
                                                 
To  optimise  the  effectiveness  of  its  contribution,  the  Commission’s  policy  on  sustainable 
development in trade agreements will focus on a number of action points per policy priority. 
These action points build on the implementation experience, evidence gathered as well as on 
the inputs received through the open public consultation. The action points complement and 
expand the action areas identified in the 15-Point Action Plan.   

3.1   A comprehensive TSD approach anchored in multilateral agreements and cooperation 

As  set  out  above,  the  interplay  between  trade  and  sustainable  development  must  be 
addressed  comprehensively,  putting  trade  policy  in  the  wider  context  of  other  tools 
supporting  sustainability.  In  this  comprehensive  approach,  trade  agreements  promote  the 
global governance framework, in particular by incorporating core international standards and 
commitments as well as by upholding their effective implementation, adherence and further 
enhancement  through  cooperative  processes.  The  firm  anchoring  of  bilateral  TSD 
commitments in the multilateral context makes the EU’s TSD approach legitimate, credible 
and effective. It also seeks to avoid fragmentation and instead ensures that TSD commitments 
reinforce global efforts. By being founded on international standards, TSD commitments can 
also shield against protectionist reflexes. 

An approach based on engagement and cooperation allows the EU and its partners to jointly 
take ownership of the contribution of trade agreements to promote a green and just transition 
and to achieve sustainable development objectives. It encourages a wider buy-in from a range 
of  stakeholders,  including  local  communities,  non-governmental  organisations  (NGOs), 
employers and labour unions. All of these are essential to bring about change on the ground. 

In  this  context,  the  Commission  will  make  full  use  of  the  platforms  provided  by  trade 
agreements  to  facilitate  dialogue  on  the  EU’s  trade-related  autonomous  sustainability 
instruments  and  to  encourage  trade  partners  to  promote  compliance  with  them.  The 
Commission  also  intends  to  improve  the  overall  effectiveness  of  its  cooperative  efforts  by 
building  on  the  “Working  Together”  actions  identified  in  the  15-Point  Action  Plan,  and 
enhance the EU collective approach in situations where technical or financial assistance is 
needed  or  can  incentivise  trade  partners  to  further  raise  their  levels  of  labour  and 
environmental protection. 

The Commission will:  

Action Points 

1.  Step  up  engagement  with  trade  partners  in  a  cooperative  process  to  foster 

compliance with international labour and environmental standards.  

2.  When needed, provide incentives and support to trade partners for reform processes 
and capacity building through technical and financial assistance. Where appropriate, 
the  EU  should  also  develop  a  Team  Europe  approach  in  support  of  jointly  agreed 
sustainable development priorities with partner countries. 

3.  Use trade agreements to facilitate dialogue with partner countries and, as appropriate, 
assist  them  in  meeting  the  sustainability  requirements  of  the  EU  trade-related 
autonomous instruments. 

6 

 
 
 
 
 
3.2   Identification of country-specific implementation priorities 

The  TSD  review  has  revealed  a  clear  expectation  that  TSD  commitments  in  EU  trade 
agreements should be more effective and expeditious in bringing change on the ground and 
that  results  are  highly  dependent  on  the  specific  situations  of  individual  countries.  These 
findings speak in favour of stepping up the country-specific approach identified in the 15-
Point Action Plan in a more tailored and targeted fashion.  

The EU’s bilateral trade relations span the entire globe and include partners at various levels 
of  development,  facing  different  economic,  social  and  environmental  challenges  and 
opportunities. While TSD chapters incorporate the same binding commitments for both the EU 
and  partner  countries,  finding  effective  solutions  for  this  diverse  range  of  partners  requires 
flexibility and prioritisation to better tailor  the TSD objectives  to the challenges,  needs and 
capacities of each of them.  

Setting  such  country-based  implementation  priorities  requires  an  early  gap  analysis  and 
integrating a greater degree of granularity and specificity to the TSD dimension. The key 
challenges, opportunities and priorities should be identified jointly and at the early stages of 
engagement with a specific partner. Such priorities should be developed involving civil society 
and already feature in the impact assessment preceding the launch of negotiations, but then be 
further refined during the sustainability impact assessment, and assessed in ex-post analysis 
during  implementation.  In  line  with  the  EU  Biodiversity  Strategy, 23  the  impact  of  trade 
liberalisation on biodiversity will play an important role in these assessments. On that basis, 
the EU and partner countries should consider negotiating and focusing on the key country-
based  implementation  priorities  to  ensure  progress  towards  reaching  the  TSD  objectives. 
These priorities should be realistic and targeted to help deliver results. They should also be 
sufficiently flexible to be adapted over time as the sustainability situation evolves.  

The objective would be to strengthen, where needed, the implementation in a specific field, for 
example in terms of respect for an ILO principle or convention, or compliance with a ratified 
MEA. When necessary and where relevant, this can be achieved by agreeing on specific steps 
with a partner country in accordance with set timelines and milestones for the implementation 
phase (so-called implementation roadmaps) with appropriate follow-up, and including the 
support of international organisations and stakeholders in this process as appropriate.  

Moreover,  the  EU  will  continue  to  promote  the  ratification  of  fundamental  ILO 
Conventions.  It  will  focus  ratification  efforts  in  support  of  the  identified  implementation 
priorities. This will need to be assessed on a case-by-case basis, concentrating on issues with a 
major impact on the effective implementation of fundamental rights. 

23 COM(2020) 380, available at https://eur-lex.europa.eu/legal-
content/EN/TXT/HTML/?uri=CELEX:52020DC0380&from=EN 

7 

 
                                                 
The Commission will:  

Action Points 

4.  Pursue a tailored approach and conduct better targeted impact assessments on TSD, 
with  a  view  to  identifying  country-specific  sustainability  priorities  and  providing 
detailed analyses of impacts early on.  

5.  Negotiate,  where  appropriate  in  light  of  specifically  identified  priorities  in  partner 
countries  and  on  a  case-by-case  basis,  detailed  and  time-bound  roadmaps  with 
milestones.  Roadmaps  should  recognise  a  role  for  civil  society  in  monitoring  their 
implementation. 

3.3   Mainstreaming sustainability throughout the entire trade agreement 

All EU trade agreements already include several provisions that aim to preserve the right of 
countries  to  regulate  in  order  to  pursue  legitimate  environmental  and  labour  objectives.  In 
addition to respecting this necessary policy space, sustainability considerations should also be 
proactively mainstreamed in different parts of trade agreements.  

Mainstreaming  TSD  objectives  throughout  trade  agreements  could  include  prioritising 
liberalisation of environmental goods and services, in particular those goods and services 
that  contribute  to  reducing  greenhouse  gas  emissions  and  promote  resource  efficiency  and 
circularity. Furthermore, trade agreements should ensure undistorted trade and investment 
in  the  raw  materials  and  energy  goods  that  are  needed  for  the  transition  to  climate-
neutral, resource-efficient economies.  

This could be done, for instance, by addressing non-tariff barriers and promoting the use of 
international standards in fostering trade and investment in environmental protection, resource 
efficiency, and in renewable energy sources. In addition, trade agreements should encourage 
the  use  of  non-discriminatory  sustainability  considerations  in  public  procurement  processes 
and seek to include provisions on sustainable food systems.  

In  order  to  extend  the  prioritisation  of  TSD  objectives  beyond  the  TSD  chapters,  impact 
assessments  and  sustainability  impact  assessments  should  look  into  the  sustainability 
challenges and  opportunities in all  relevant  areas of trade agreements. The country-specific 
approach  mentioned  in  the  previous  section  should  apply  throughout  the  whole  trade 
agreement. 

The Commission will:  

Action Points 

6.  Prioritise market access for environmental goods and services, in particular in the area 
of  renewable  energy  and  energy  efficiency,  for  instance  through  addressing  tariff  and 
non-tariff  barriers,  as  well  as  access  to  and  investment  into  raw  materials  and  goods 
needed for the green transition. 

7.  Ensure  that  impact  assessments  and  sustainability  impact  assessments  analyse  all 
relevant chapters of trade agreements to identify which provisions and commitments 
are most likely to have an impact on sustainability issues as well as where the agreement 
opens opportunities for achieving sustainability objectives beyond the TSD chapter. 

8 

 
 
 
 
 
3.4   Collective monitoring of the implementation of TSD commitments 

One of the lessons from the application of the 15-Point Action Plan is that results are achieved 
through  continuous  engagement  with  the  trade  partner  concerned.  This  approach  is 
resource-intensive  but  achieves  lasting  results  on  the  ground.  The  Commission  intends  to 
continue to pull together the expertise and available instruments and programmes at its 
disposal  in  a  comprehensive  EU  approach  across  services.  This  includes,  for  instance, 
bilateral  labour  and  environmental  policy  and  regulatory  dialogues  and,  when  warranted, 
development cooperation and financial support. 

The  role  of  EU  Delegations  in  monitoring  the  implementation  of  TSD  commitments  is 
particularly relevant. They have direct contact with both governments and administrations as 
well as local stakeholders, including Domestic Advisory Groups (DAGs).24 EU Delegations 
also have the opportunity to engage on trade-related sustainable development concerns first-
hand. Together with Member States, they are not only the eyes and ears on the ground, but 
form a collective network of European diplomats, which jointly contribute to anticipating and 
addressing sustainability concerns in their respective geographical and areas of expertise.  

This  all-encompassing  approach  should  be  complemented  by  enhanced  cooperation  with 
Member States in capitals as well as on the ground, through their embassies and missions in 
third countries. The objective should be to ensure that the relevant Commission and national 
instruments interact together and reinforce each other, enabling the EU to achieve economies 
of scale and enhanced impact on the ground.  

It is also important  to  reinforce  the  involvement of the European  Parliament. Through its 
Members’  missions  and  field  visits,  the  European  Parliament  could  further  contribute  to 
monitoring  and  implementation  of  TSD  commitments.  Interactions  between  the  European 
Parliament  and  parliaments  in  partner  countries  may  prove  particularly  effective  when 
legislative reforms are required. Field visits by European and national parliaments also offer 
opportunities to communicate the EU sustainability objectives abroad, interacting not only with 
local officials but also with local civil society representatives, local DAGs and businesses.  

The Monitoring Groups established by the INTA Committee have also played an important 
role  during  negotiations  and  implementation  of  trade  agreements.  This  dimension  could  be 
further  enhanced,  for  instance  through  regular  country-specific  discussions  on  trade  and 
sustainable development. Together with EU Delegations, the Commission would stand ready 
to assist the European Parliament in this effort. 

A collective monitoring of the implementation of TSD commitments in trade agreements also 
implies a stronger role for civil society, including social partners. Both the EU and each 
of its trade partners should strive to engage with civil society organisations on both sides 
and encourage structured and material contributions.  

24 Domestic Advisory Groups are bodies established under the trade agreements and composed of independent 
representatives of civil society groups, including non-governmental organisations, business and trade unions, in 
a balanced representation of different economic, social, human rights, environmental and other interests. DAGs 
monitor the implementation of the sustainable development commitments in trade agreements, and provide 
advice and opinions to the respective contracting parties. 

9 

 
 
                                                 
The creation in 2020 of the Chief Trade Enforcement Officer (CTEO) function and of the 
Single Entry Point (SEP) constitutes an important step in reinforcing the implementation and 
enforcement of TSD commitments.25 The SEP provides a centralised contact point for all EU-
based  stakeholders  who  want  to  lodge  a  complaint  on,  among  others,  violations  of  TSD 
commitments.26 The Operating Guidelines and the accompanying complaint form have been 
developed to help stakeholders (e.g. trade unions, industry associations, NGOs) make the best 
use of the new system. The handling and follow-up of TSD complaints is an important part of 
the role of the CTEO in the implementation and enforcement of trade agreements.27 

Nevertheless, to date stakeholders’ reach out to the SEP concerning TSD has been limited. The 
SEP  system  has  been  designed  to  allow  early  contacts  on  particular  problems  and  the 
Commission  confirms  its  willingness  to  engage  on  potential  TSD  issues  and,  beyond  the 
detailed  information  posted  online,  to  explain  how  the  system  can  be  used  and  what 
information  may  be  required.  The  Commission  will  provide  further  clarifications  and 
assistance  to  enhance  its  use.  To  that  end,  in  parallel  to  the  TSD  review  it  has  updated  the 
Operating Guidelines to  make clear that DAGs can also submit collective complaints and 
that an EU-based complainant can represent the TSD-related concerns of an entity located 
in a partner country. The update includes greater transparency and clarity on how and within 
what timeframes the SEP can handle the initial stages of a complaint on TSD violation. 

The Commission will:  

Action Points 

8.  Develop  a  comprehensive  EU  approach  across  services,  using  all  available 
instruments  to  monitor  the  implementation  of  TSD  commitments,  and  involving  EU 
Delegations,  as  well  as  actively  cooperating with Member  States’ capitals,  embassies 
and field offices. 

9.  Work together with EU Delegations in their support and definition of best practices as 

trade partners set and start working with their local DAGs. 

10. Support continuous involvement of the European Parliament in TSD implementation 
in the framework of its inter-parliamentary contacts, and stand ready to assist it in its 
effort for regular country-specific discussions on trade and sustainable development.   

11. In parallel to the TSD review, revise the Operating Guidelines for the Single Entry 
Point to increase transparency and predictability for stakeholders, while clarifying who 
can  bring  complaints,  how  they  will  be  handled  and  the  applicable  timeframes.  The 
Guidelines will also make clear that DAGs can file collective complaints on violations 
of TSD commitments and represent the interests of a party located in a partner country.  

3.5 

  Reinforcing the role of civil society 

The Commission regularly and frequently consults interested parties through a well-established 
horizontal  structure  of  Civil  Society  Dialogues,  where  trade  and  sustainable  development 
issues are routinely raised and discussed. The Commission is also making increased efforts to 

25 See https://policy.trade.ec.europa.eu/enforcement-and-protection/chief-trade-enforcement-officer_en  
26 See https://trade.ec.europa.eu/doclib/docs/2021/november/tradoc_159907.pdf  
27 ‘Operating guidelines for the Single Entry Point and complaints mechanism for the enforcement of EU trade 
agreements and arrangements’, available at https://trade.ec.europa.eu/access-to-markets/en/form-
assets/operational_guidelines.pdf  

10 

 
 
 
                                                 
reach civil society more effectively in Member States, including by increasing the number of 
dedicated  events  and  high-level  discussions.  In  addition,  EU  trade  agreements  provide 
specifically for civil society’s involvement during the implementation of TSD commitments, 
including  through  the  DAGs.  Civil  society  can  also  have  an  active  role  in  the  enforcement 
phase by submitting TSD-related complaints to the Single Entry Point (see supra) and amicus 
curiae briefs before the panel.  

The  input  from  civil  society  organisations,  through  well-substantiated  and  evidence-based 
contributions, is essential for the Commission to identify, prioritise, and act upon TSD matters. 
The  cooperation  and  exchanges  between  the  EU  stakeholders  and  their  partner 
organisations abroad are also essential in this respect. Such contribution could be then better 
valorised for targeting and priority setting. For instance, during the impact assessment phase 
(both  impact  assessments  and  sustainability  impact  assessments),  civil  society  consultation 
could  help  identify  gaps  and  challenges,  and  help  setting  priorities  to  tackle  during  the 
negotiation process and anticipate possible key questions related to implementation. After an 
agreement  has  entered  into  force,  timely  and  pertinent  submissions  to  the  TSD  committees 
under the trade agreements based on on-the-ground knowledge and expertise can inform the 
joint monitoring of TSD compliance and steer the bilateral implementation efforts.  

The  Commission  will  also  continue  to  engage  with  the  DAGs  established  under  the  trade 
agreements, offering logistical support and support to capacity building and expertise. The 
Commission  has  also  increased  transparency  by  publishing  the  agendas  and  minutes  of 
existing  TSD  Committees.  Going  forward,  the  Commission  will  continue  strengthening  the 
DAGs  by  monitoring  closely  their  establishment  in  line  with  the  terms  agreed  in  trade 
agreements and support the interaction between the EU’s and partner countries’ DAGs. 
Recognising the importance of their contribution and further valorising their experience and 
expertise, the Commission will also seek to extend the remit of the DAGs beyond TSD in 
order to cover the entirety of trade agreements, as it is already foreseen in the EU-UK Trade 
and Cooperation Agreement. 

The Commission will: 

Action Points 

12. Ensure an inclusive consultation process with civil society throughout all stages of the 
lifecycle of  trade agreements,  from  gap-analysis to implementation, including priority 
identification. 

13. Further  strengthen  the  role  of  EU  DAGs  by  providing  resources  for  their  logistical 

support, capacity building and functioning.  

14. Invite EU DAG’s representatives to TSD Member States’ Expert Groups led by the 
Commission,  where  they  will  be  able  to  contribute  specific  expertise,  and  closely 
associate  DAGs  in  preparing  the  TSD  Committee  meetings,  in  particular  on  the 
identification and the monitoring of implementation priorities. 

15. Promote and facilitate the interaction between EU and partner countries’ DAGs. 

16. Foster transparency on the composition of DAGs. 

17. Exchange views with EU DAGs on EU TSD-related technical assistance projects. 

18. Ensure that the remit of the DAGs extends beyond TSD in order to cover the entirety 

of trade agreements. 

11 

 
3.6 

  More assertive enforcement, including through trade sanctions  

TSD commitments  are  legally  binding  and enforceable through  a dedicated state-to-state 
dispute  settlement  mechanism,28 with  an  independent  and  transparent  review  by  a  panel  of 
experts, and the active involvement of civil society.29 This approach is based on engagement 
and addresses emerging concerns through dialogue and cooperation.  

Until  now,  this  mechanism  had  not  included  specific  rules  on  how  to  monitor  the 
implementation  of  the  report  issued  by  the  panel  of  experts  (the  so-called  compliance 
stage). The Commission now proposes to further align TSD enforcement with the general state-
to-state dispute (SSDS) settlement and to extend the compliance stage to disputes under the 
TSD chapter. This means that the party found in violation of its TSD commitments will have 
to promptly inform how it will implement the panel report, and carry this out within a certain 
period  of  time.  This  will  be  subject  to  panel  review.  Civil  society  will  be  able  to  submit 
observations to the panel also at this stage. 

Equally, the EU’s approach to TSD did not contemplate the use of sanctions in the case of non-
compliance  with  the  panel  report.  The  Commission  now  proposes  the  possibility  of  trade 
sanctions as a matter of last resort, in instances of serious violations of core TSD commitments, 
namely  the  ILO  fundamental  principles  and  rights  at  work,  and  of  the  Paris  Agreement  on 
Climate Change. In such instances, trade sanctions would be appropriate as a means to foster 
compliance. In the case of the Paris Agreement, the intention would be to capture failure to 
comply with obligations that materially defeats the object and purpose of the agreement. With 
regard  to  the  ILO  fundamental  principles  and  rights  at  work,  trade  sanctions  would  be 
warranted in serious instances of non-compliance with the principles, and rely on the fact that 
the ILO monitors developments in all members. This approach will build on and reinforce the 
respect  of  core  labour  rights  and  of  the  Paris  Agreement  as  essential  elements  of  our  trade 
agreements.30  

The application of trade sanctions for violations of dedicated TSD provisions will follow the 
general  dispute  settlement  rules.  Accordingly,  trade  sanctions  will  be  temporary  and 
proportionate and may take the form of suspension of trade concessions. They will be possible 
only in the event that a panel finds a party in breach of its TSD commitments, and the latter 
does not bring itself into compliance within the arranged time period. In that context, the parties 
may also reach a mutually agreed solution to the dispute at any time. 

Introducing  for  the  first  time  in  EU  trade  agreements  trade  sanctions  for  core  TSD 
commitments, in conjunction with the cooperation-based approach, will enable the EU to carry 
out a more assertive enforcement of its TSD chapters. In doing so, the EU will enhance the 

28 The dedicated TSD dispute settlement follows the procedure of the state-to-state enforcement mechanism 
applicable to other parts of the trade agreement with some adjustments (such as required expertise on trade, 
labour and environment for the panellists), but without possibility to resort to sanctions in case of non-
compliance with the panel report.  
29 For instance, by making amicus curiae submissions or attending open hearings. 
30 Building on the development of the future robust Global Biodiversity Framework, in particular with regard to 
setting  biodiversity  targets  and  appropriate  mechanism  for  international  reporting  and  monitoring,  the 
Commission  will  evaluate  the  possibility  of  including  the  Convention  on  Biological  Diversity  in  this  new 
approach. 

12 

 
 
                                                 
tools at its disposal to pursue sustainability objectives and the contribution of trade agreements 
towards these objectives.  

The Commission will: 

Action Points 

19. Further  strengthen  the  enforcement  of  TSD  commitments  in  future  agreements  by 

proposing to EU trading partners to: 

a.  Extend  the  general  state-to-state  dispute  settlement  compliance  stage  to  the 

TSD chapter. 

b.  Involve the DAGs in monitoring the compliance stage. 

c.  Extend the possibility to apply trade sanctions in cases of failure to comply with 
obligations that materially defeats the object and purpose of the Paris Agreement 
on  Climate  Change  or  in  serious  instances  of  non-compliance  with  the  ILO 
fundamental principles and rights at work.  

The application of trade sanctions will follow the general state-to-state dispute settlement 
rules.  

20. Prioritise the enforcement of TSD cases based on the importance of the nature of the 
commitments  at  issue,  the  seriousness  of  their  violation  and  the  impact  on  the 
environment or workers. 

4.  CONCLUSION 

Several  of  the  identified  action  points,  notably  the  majority  of  those  that  relate  to  the 
implementation of TSD commitments and the reinforcement of the role of civil society, can be 
immediately deployed, including in trade agreements already in force. 

Going forward, the outcome of the TSD review will be proposed for all future negotiations 
and reflected in the ongoing negotiations as appropriate. The Commission will duly integrate 
the identified action points early on in its pre-negotiation activity.  

The Commission invites the European Parliament and the Council to endorse the approach set 
out in this Communication and to work together to implement its action points. 

13