Work in progress: Léo Gargne

Abstract

In the EU, the faltering prospects of introducing new policy areas and further liberalization commitments at a multilateral level, that is, within the WTO framework, have arguably supplied the main impetus to the negotiation and conclusion of Free Trade Agreements (FTAs). Since then, it has been the trading bloc’s declared ambition to integrate the promotion of sustainable development as an integral part of its international trade policy, most notably through its international trade agreements. Ever since the 2011 EU-Korea FTA, the EU has consistently included a Trade and Sustainable Development (TSD) chapter in its FTAs – be it with Vietnam, Peru and Colombia, Canada, Singapore, Japan, etc. – and intends to carry on this practice, as evidenced by the trade agreements that are currently under negotiation or modernization. This contribution aims to offer a legal analysis of the implementation and enforcement apparatus utilized to resolve disputes arising from the interpretation or application of TSD provisions, which focus on environmental and social matters. Traditionally, the institutional apparatus used to resolve TSD disputes reflects the cooperative and consultation-based approach favored by the EU. A single specialized dispute settlement procedure applies to all disputes arising under the TSD chapter, i.e., governmental consultations followed by a referral to a Panel of Experts, which is to deliver a non-binding report including its recommendations. This analysis will notably focus on the Commission's 2022 Communication titled 'The power of trade partnerships: together for green and just economic growth’, which introduces the possibility to impose economic sanctions, under specific conditions, in cases of non-compliance with the Panel of Experts’ Final Report by the party complained against. The novel stance adopted by the Commission seems to constitute a partial reversal of the EU’s traditional approach, which is significant, albeit not unsuspected. The presentation offers to delve into the ramifications of this policy shift.

Speaker: Léo Gargne

Time: 10:45-11:45 hrs

Host: Konrad Borowicz
Moderator: Konrad Borowicz