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Here Comes the Sun - The Development of Sustainability Commitments in Trade and Sustainable Development Chapters of the EU’s Free Trade Agreements

Travaglia Granquist, Linn LU and Elfvelin, Emmy LU (2025) HARN63 20251
Department of Business Law
Abstract
The development of the European Union’s (EU) sustainability legislation has significantly influenced its external trade policy, especially through the Trade and Sustainable Development (TSD) chapters in Free Trade Agreements (FTAs). The enforceability of these chapters has evolved from a cooperative, dialogue-based model to one that increasingly allows sanctions and legal consequences. This thesis examines the shift from non-binding, dialogue-based approaches in early TSD chapters to more enforceable models involving legal obligations and trade sanctions, following the development in the EU’s FTAs. The EU-Korea FTA introduced a separate, cooperation-oriented TSD chapter, and the recent EU-New Zealand FTA, integrating TSD disputes under the... (More)
The development of the European Union’s (EU) sustainability legislation has significantly influenced its external trade policy, especially through the Trade and Sustainable Development (TSD) chapters in Free Trade Agreements (FTAs). The enforceability of these chapters has evolved from a cooperative, dialogue-based model to one that increasingly allows sanctions and legal consequences. This thesis examines the shift from non-binding, dialogue-based approaches in early TSD chapters to more enforceable models involving legal obligations and trade sanctions, following the development in the EU’s FTAs. The EU-Korea FTA introduced a separate, cooperation-oriented TSD chapter, and the recent EU-New Zealand FTA, integrating TSD disputes under the general dispute settlement mechanism (DSM), introduces the possibility of trade sanctions for non-compliance with the Paris Agreement. This thesis is guided by two research questions that explore the EU’s development of external trade policies in relation to sustainability aspects, with a specific focus on the development of enforcement mechanisms in TSD chapters of FTAs. The research demonstrates that the EU’s external sustainability policy has played a significant role in shaping the legal enforcement structure of TSD chapters in FTAs. This is reflected in the EU’s trade strategy, The power of Trade Partnership: together for green and just economic growth, and exemplified by the EU-New Zealand FTA, which subjects TSD provisions to the agreement’s general DSM and allows sanctions under specific conditions. Moreover, the research establishes that the EU-New Zealand FTA sets a precedent and current sustainability legislation indicates a trend towards more enforceable TSD commitments. (Less)
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author
Travaglia Granquist, Linn LU and Elfvelin, Emmy LU
supervisor
organization
course
HARN63 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
European Union, Sustainable Development, Free Trade Agreements, Trade and Sustainable Development Chapters, EU-Korea FTA, EU-New Zealand FTA
language
English
id
9192360
date added to LUP
2025-06-03 12:56:15
date last changed
2025-06-03 12:56:15
@misc{9192360,
  abstract     = {{The development of the European Union’s (EU) sustainability legislation has significantly influenced its external trade policy, especially through the Trade and Sustainable Development (TSD) chapters in Free Trade Agreements (FTAs). The enforceability of these chapters has evolved from a cooperative, dialogue-based model to one that increasingly allows sanctions and legal consequences. This thesis examines the shift from non-binding, dialogue-based approaches in early TSD chapters to more enforceable models involving legal obligations and trade sanctions, following the development in the EU’s FTAs. The EU-Korea FTA introduced a separate, cooperation-oriented TSD chapter, and the recent EU-New Zealand FTA, integrating TSD disputes under the general dispute settlement mechanism (DSM), introduces the possibility of trade sanctions for non-compliance with the Paris Agreement. This thesis is guided by two research questions that explore the EU’s development of external trade policies in relation to sustainability aspects, with a specific focus on the development of enforcement mechanisms in TSD chapters of FTAs. The research demonstrates that the EU’s external sustainability policy has played a significant role in shaping the legal enforcement structure of TSD chapters in FTAs. This is reflected in the EU’s trade strategy, The power of Trade Partnership: together for green and just economic growth, and exemplified by the EU-New Zealand FTA, which subjects TSD provisions to the agreement’s general DSM and allows sanctions under specific conditions. Moreover, the research establishes that the EU-New Zealand FTA sets a precedent and current sustainability legislation indicates a trend towards more enforceable TSD commitments.}},
  author       = {{Travaglia Granquist, Linn and Elfvelin, Emmy}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Here Comes the Sun - The Development of Sustainability Commitments in Trade and Sustainable Development Chapters of the EU’s Free Trade Agreements}},
  year         = {{2025}},
}