As a sequel to our policy report entitled “Mercosur – EU: new trade agreement is a huge deal – if it goes through!” published summer 2019, Mosoj ESG Intelligence commissioned a capstone consultancy project to the London School of Economics to examine in more details possible enforcement mechanisms related to the “Trade and Sustainable Development” chapter of the agreement.
Indeed, in light of the public debate thus far around the agreement-in-principle, and further to our last policy brief, we expect that “sustainable” aspects (e.g. environmental or workers rights) will prove critical to the agreement’s ultimate ratification. As such, by developing proposals sensitive to the interests of key stakeholders through interviews, we believe that our report can help support this process.
Overall, a few main action points emerge as key recommendations from the analysis. The most important actions to be taken are to empower civil society, make dispute settlement more accessible and to increase support for voluntary sustainability initiatives. In addition, making better use of Sustainability Impact Assessments throughout the lifecycle of the agreement should enhance future efforts to continuously improve the enforcement of sustainability provisions, as well as give useful data-points to economic and policy players.