Will the Inclusion of Voluntary Standards in Trade Agreements Lead to More Sustainable Trade?

Briefing or opinion
Descriptive information
Research briefing

Published April 2024 by ISEAL and International Institute for Sustainable Development (IISD). Authored by Bermúdez, S. and Sarmiento, F.

Summary

This briefing examines whether the increasing inclusion of voluntary sustainability standards (VSSs) in free trade agreements (FTAs) can drive more sustainable global production and consumption, and explores the implications for trade policy. Drawing on expert insights, it maps how VSSs are currently referenced in FTAs, highlights key trends, and identifies gaps in enforcement, definitions, and support mechanisms. The analysis is based on a review of existing FTAs and their treatment of VSSs, along with policy-relevant commentary. Findings show that while VSSs are being incorporated more frequently, inconsistent terminology, weak enforcement mechanisms, and limited support for small-scale producers hinder their impact. To address these challenges, the report recommends standardising language, strengthening enforcement, assessing VSS credibility, and developing clear guidelines to ensure their effective use in trade policy. These steps could enable FTAs and VSSs to better reinforce each other and contribute meaningfully to sustainable trade.

Research detail

Will the Inclusion of Voluntary Standards in Trade Agreements Lead to More Sustainable Trade?

Briefing or opinion
Descriptive information
Research briefing

Published April 2024 by ISEAL and International Institute for Sustainable Development (IISD). Authored by Bermúdez, S. and Sarmiento, F.