Trade and the environment are deeply interconnected. On one hand, open markets improve efficiency in resource use and expand access to cleaner technologies that make domestic production processes more sustainable. On the other, trade liberalisation can intensify pressure on natural resources through increased production for exports and lead to pollution-intensive activities. Balancing trade growth with environmental sustainability has therefore become a central concern in policy debates.
Trends in environmental provisions for agriculture, fisheries, and forestry in trade agreements
Since the establishment of the World Trade Organization (WTO) in 1995, regional trade agreements (RTAs) have become a primary pathway to liberalise trade. Their number has grown from around 50 in the 1990s to over 370 in force today. Initially designed to lower tariffs and boost trade and cooperation, RTAs have evolved into broader frameworks that address issues such as labour, investment, and increasingly, the environment. In this context, environment-related provisions (ERPs)—those clauses that reference sustainable development or environmental protection—are now a recurring feature. Given this trend, more attention is being paid to the inclusion of ERPs in trade agreements. However, assessments of the relationship between the environment and the agriculture, fisheries and forestry sectors remain scarce.
The agriculture, fisheries and forestry sectors are interdependent with the environment and rely on the latter for their productivity and long-term sustainability. Healthy soils are essential for agricultural production, responsible fish stock management and a sound marine ecosystem are crucial for the fishing industry, and sustainable forestry practices are necessary for timber production.
However, if poorly managed, these three sectors can have a negative impact on the environment. For example, certain agricultural practices can contribute to soil degradation and water pollution. Overfishing can contribute to the depletion of fish stocks and damage to marine ecosystems. Unregulated logging can lead to deforestation and the loss of biodiversity.
Against this background, the Food and Agriculture Organization of the United Nations (FAO), with the support of the Federal Office for Agriculture (FOAG) of Switzerland, launched a project to assess the trends in inclusion of ERPs linked to the agriculture, fisheries, and forestry sectors in RTAs.
To underpin this research, FAO created a new database that covers 318 RTAs notified to the WTO from 1995 to 2022. This database expands on the TRade and ENvironment Database (TREND) and includes only ERPs that show a linkage with these three sectors (hereinafter referred to as “Ag-ERPs”). Ag-ERPs can be of various types and can cover a range of issues, from specific agro-environmental concerns like biodiversity, deforestation, and harmful fishing subsidies to more general principles such as the need to protect the environment or promote sustained cooperation between parties.
In fact, as Figure 2 demonstrates, the higher the GDP per capita, the higher the total number of AG-ERPs per country.
Figure 1: Number of RTAs (per year) and average number of Ag-ERPs per RTA (per year), 1995 – 2022
Source: FAO. 2024. Ag-ERPs database: a novel repository of environment-related provisions for agriculture, fisheries, and forestry in Regional Trade Agreements. Rome
Figure 2: The relationship between the total number of Ag-ERPs per country and GDP per capita
Source: FAO. 2024. Ag-ERPs database: a novel repository of environment-related provisions for agriculture, fisheries, and forestry in Regional Trade Agreements. Rome
The impact of Ag-ERPs
Ag-ERPs are not merely symbolic. They help align domestic sustainability priorities with international trade commitments, . They also support capacity development in low- and middle-income countries and strengthen linkages with global environmental frameworks such as the . Moreover, that Ag-ERPs can mitigate the environmental impacts of trade-induced production growth, including reductions in agriculture-related greenhouse gas (GHG) emissions.
Ag-ERPs as drivers of change in domestic legislation
Beyond aggregate impacts, Ag-ERPs often translate into tangible legal and institutional changes. In some cases, they can facilitate the introduction of new environmental legislation and oversight mechanisms. For instance, in Costa Rica, trade agreements such as[1] Dominican Republic–Central America Free Trade Agreement. (CAFTA-DR) and the EU–Central America Association Agreement have facilitated stricter pesticide regulations and the creation of pollutant release registers. In Malaysia, participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has supported progress in combating illegal, unreported, and unregulated (IUU) fishing and improving timber traceability.
In other contexts, Ag-ERPs have complemented and reinforced pre-existing domestic initiatives. For example, South Africa’s water governance and forest conservation policies evolved in parallel with environmental provisions included in several agreements. These include the Economic Partnership Agreement between the EU and the Southern African Development Community (SADC), and the Economic Partnership Agreement between the UK and the Southern African Customs Union (SACU) and Mozambique. Similarly, Kenya’s trade commitments have reinforced efforts under the East African Community (EAC) Treaty and the country’s Economic Partnership Agreement between the UK, aligning trade and environmental goals.
These examples highlight a two-way interaction: rather than simply imposing policy change, Ag-ERPs interact with and shape domestic policy processes, while simultaneously being shaped by them.
Challenges and enablers
Despite their promise, important challenges remain. The uneven distribution of Ag-ERPs across countries risks creating overlapping and inconsistent commitments—the so-called “spaghetti bowl” effect of trade rules.[2] Moreover, although their number and scope are expanding, implementation is often hindered by dispersed responsibilities across ministries and agencies, weak coordination, and limited resources, resulting in inconsistent implementation, particularly where environmental mandates are shared or underfunded.
At the same time, enabling conditions can strengthen their impact. Strong political commitment, effective cross-sectoral coordination, and active stakeholder engagement support more consistent integration of Ag-ERPs.
Moving forward
The rise of Ag-ERPs in RTAs reflects a critical shift: environmental sustainability is no longer peripheral to trade policy but integral to it. The task ahead is to address existing asymmetries so that trade contributes simultaneously to economic development and the protection of natural resources. Achieving this will require international collaboration to harmonise environmental approaches, build capacity in low- and middle-income countries, and ensure that future trade agreements serve as engines of growth while safeguarding sustainability.
For Ag-ERPs to realise their potential, commitments should be translated into action. For governments, this requires:
- Strengthening monitoring and reporting systems with harmonised indicators.
- Promoting multilateral cooperation to reduce fragmentation across agreements.
- Investing in capacity development in key areas, such as fisheries oversight, pesticide regulation, and forest certification.
By building stronger domestic systems and fostering international cooperation, Ag-ERPs can help embed sustainability more deeply into global trade, advancing both economic and environmental goals.
[1] For a complete list of RTAs, and to access their texts, please visit: https://rtais.wto.org/UI/PublicMaintainRTAHome.aspx
[2] The spaghetti bowl effect refers to the complex overlap of multiple trade agreements with differing rules and standards, creating confusion, administrative burdens, and inefficiencies for countries and traders.
References:
Avesani, C., Dervisholli, E., Schéré, E. & Solorzano López, J. D. 2024. Ag-ERPs database: a novel repository of environment-related provisions for agriculture, fisheries and forestry in regional trade agreements. Rome, FAO. https://doi.org/10.4060/cc9645en
Alabrese, M., Avesani, C., Caterino, A., Dervisholli, E. (Forthcoming). Aligning trade and sustainability: the role of Ag-ERPs in shaping domestic environmental governance. FAO, Rome.
Brandi, C. & Schwab, J. 2024. Environmental outcomes in agriculture: the effects of environment-related provisions in regional trade agreements. Rome, FAO. https://doi.org/10.4060/cc9613en