Trade-Sustainability Nexus in the EU
Instrument Countries Priority Potential Displacement Effect
New Trade Agreements (reciprocal +
regulatory export + responsibility)
Canada, Japan, Singapore, Korea High North-South divide
Trade of Environmental Goods China, Japan, USA, South Africa Medium Competitiveness concerns, flooding of EU with goods produced with
raw materials that are not controlled
Circular Economy Missions China, Colombia, South Africa, Chile High Accumulated expertise not brought back home, resource
sovereignty, local sourcing might not be sustainable
EU Conflict Minerals Regulation Myanmar, DR Congo, predominantly LDCs High Deflection towards other countries (lithium and jade towards China),
moving to cash crops, etc.
Sanctions Russia, Belarus, North Korea, South Sudan,
Zimbabwe, Venezuela, etc.
Medium Re-export and avoidance of rules of origin principles, pariah states
alter diplomatic alignment
Generalised System of Preferences (+) Georgia, Armenia, Kyrgyzstan, Philippines, etc. High Improper implementation, preference for regimes not requiring
compliance, quotas might have externalities
Multilateral Environmental Agreements
(COP)
France, Germany, Morocco, etc. Medium Diplomatic alignment due to competitive aid delivery could
transliterate in altered trade patterns
Waste import ban, Waste governance ENPI East, Sub-Saharan Africa Low Accumulation of waste, import of secondary materials by other
countries (e.g. China)
FLEGT (and illegal fishing) Côte d'Ivoire, DRC, Indonesia, Laos, Malaysia,
Vietnam, China, Honduras
High Overlaps with REDD+, trade diversion
Emissions Trading Ukraine, Georgia, Kazakhstan, China, Korea, USA,
etc.
High Rising production costs and loss of competitiveness, political
obstruction
Copyright: Teodor Kalpakchiev, the-enpi.org