European Commission’s new approach to enforcement of sustainability chapters in FTAs
On 22 June 2022, the European Commission published a communication on “The power of trade partnerships: together for green and just economic growth”, which sets out a new approach to promoting green and just growth through trade agreements. Given that many of the EU trade agreements already include commitments in the field of trade and sustainable development (TSD), the European Union aims to strengthen the implementation and enforcement of those commitments. In particular, the European Union will now seek to extend the application of the standard State-to-State dispute settlement procedure to the TSD chapters in its trade agreements and to impose trade sanctions in case of non-compliance.
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