Trade and sustainable development (TSD) chapters in EU “New Generation” Trade Agreements: Views on their effectiveness and the European Commission enforcement capacity

Details

Supervisors

Defraigne, Jean-Christophe

Faculty

Louvain School of Management

Degree label

Master de spécialisation en entreprises et politiques économiques européennes

Abstract

This paper aims to evaluate the effectiveness of Trade and Sustainable Development (TSD) chapters within the European Union's “New Generation” bilateral trade agreements and the European Commission's enforcement capacity. It investigates the extent to which TSD chapters impact sustainable development in partner countries and assesses the European Commission’s capacity to enforce these commitments. The analysis begins with an introduction to the concept of TSD chapters and a review of the debates surrounding their efficacy. The evolution of policies implemented by the European Commission in response to these debates is examined, followed by a discussion on the enforceability of TSD provisions and the resources of the European Commission. Case studies, including the EU-Korea, EU-Colombia/Ecuador/Peru, EU-Moldova, and EU-Georgia agreements, are analyzed to illustrate the practical impacts of these chapters. The findings indicate that while TSD chapters have led to some legislative and policy improvements, significant challenges remain in achieving substantial socio-economic impacts. Furthermore, the European Commission’s enforcement capacity is constrained by limited financial and human resources, raising questions about the genuine nature of their inclusion. Based on its analyses and observations, the paper concludes by asserting that, at present, the TSD chapters are not effective and that the Commission lacks the necessary resources, rendering it incapable of effectively enforcing partner countries’compliance with their commitments.