Indeed, in recent trade negotiations, the United States has attempted to strengthen implementation in certain circumstances. During the trans-Pacific Partnership negotiations (a multi-lateral trade agreement from which the Trump administration ultimately withdrew), the United States negotiated bilateral working agreements with three TPP countries that clarified the criteria that partner countries had to meet, increasing the level of surveillance and allowing the United States to withdraw tariff concessions in the event of non-compliance. In the case of Vietnam, for example, if the United States had found that Vietnam had not respected the rights of workers to freely form and join a union of their choice, the United States would have guaranteed that it could close or suspend a union of its choice. Through its trade policy, the EU supports the implementation of international environmental legislation, which is mainly defined in multilateral environmental agreements. In certain circumstances, the EU should subordinate trade concessions to partner countries` compliance with international environmental and labour standards. This will strengthen the coordination of the EU`s trade and sustainable development agenda and strengthen support for openness. The European Parliament insists that the EU withdraw its trade privileges in the event of a breach of agreed environmental and climate standards. In exchange, Commission President Ursula von der Leyen instructed Trade Commissioner-designate Phil Hogan to use existing trade instruments to “support sustainable development” and to “closely monitor the implementation of the EU`s free trade agreements on climate, environment and labour.” It will also design and introduce a marginal carbon tax (on which I have already written). But these measures alone may not be enough to secure Parliament`s support. To reach a political consensus, the EU should review its approach to trade and sustainable development, which is currently lacking in teeth. In well-defined cases, the EU should be prepared to suspend trade preferences if there is evidence of non-compliance with the sustainable development chapters of its free trade agreements. Today, companies are increasingly designing and manufacturing their products in several stages, often in different countries.
The raw materials and components are exchanged from one country to another, assembled and eventually exported to the country where they reach the consumer. This is called global value or supply chains. The EU strives to ensure that trade policy contributes to the promotion of sustainable development and commits both sides to respect multilateral environmental agreements such as the Paris Agreement on Climate Change and the International Labour Organization Conventions on Climate Change and the International Labour Organization Conventions on Climate Change and international labour organization conventions.