From Co-Existence to Reinforcement in Trade and Environment Nexus: Example of Complementary Jurisdiction for the Paris Agreement in EU FTAs

Description

This study explores the evolving relationship between trade and the environment, moving beyond the debate of their potential harmony or conflict towards a model of active reinforcement. It proposes a paradigm shift through the example of the Trade and Sustainable Development (TSD) chapters of the European Union (EU) Free Trade Agreements (FTAs). By integrating Multilateral Environmental Agreements (MEAs) with effective enforcement obligations, the TSD chapters introduce a dual-layer enforcement mechanism. This mechanism, termed "complementary jurisdiction", allows for MEA violations also to constitute breaches of FTAs, significantly enhancing compliance. This approach gains particular importance in the context of the Paris Agreement, which, lacking a binding enforcement mechanism, could benefit from the potential for trade sanctions through the TSD framework. The study examines the role of TSD chapters in advancing the EU's environmental values internationally, amid slow multilateral progress on integrating environmental considerations into the global trading system. It analyzes the enforcement mechanisms within TSD chapters, following the European Commission's June 2022 reforms, and the nature and content of the obligation incorporating the Paris Agreement into these chapters. By exploring the concept of complementary jurisdiction, the research underscores its role in bridging the trade-environment divide, suggesting that trade agreements can serve as effective tools for environmental governance and enhance compliance with MEAs, like the Paris Agreement, marking a significant advancement in the debate on trade and environment nexus.

Period	2024
Event title	The Greening of Trade in Times of Planetary and Geopolitical Crises? Ideas, Institutions, and Interdependence in the Environment-Trade-Nexus
Event type	Workshop
Location	Leuven, BelgiumShow on map