BEUC NEWS – 13.02.2024

A study commissioned by the European Consumer Organisation (BEUC) shows a weak degree of coherence between trade policy and the European Green Deal. As this could create a chilling effect on policies to promote sustainable consumer choices, BEUC has published recommendations for how policymakers can improve this coherence.

Does importing more sheep meat and dairy from New Zealand contribute to tackling climate change? How is this coherent when consumers are advised to shift more to plant-based diets? Could the EU be sued by trading partners for measures that aim to make the sustainable choice the easy choice for consumers?

These questions led the European Consumer Organisation (BEUC) to commission a study on the alignment of EU trade policy and the Green Deal. This study looks at the less-researched parts of the nexus between trade and the Green Deal, including World Trade Organization (WTO) rules, tariff reductions, and chapters on technical barriers and sanitary measures.

BEUC concludes from the report that trade policy is not sufficiently coherent with the Green Deal. In some cases, trade policy is even incoherent with the Green Deal. While new chapters in trade agreements on sustainable development present a positive evolution, they require further improvements to be more aligned with the Green Deal.

Moreover, WTO rules – that the EU must comply with – can pose problems. The interpretation of these rules lacks clarity, especially when it comes to laws aiming to protect the environment, promote sustainability, and the circular economy. This opens the door to trade disputes with partners (third countries) who disagree with EU environmental policies, potentially creating a chilling effect on ambitious sustainability policies.

BEUC recommends that EU policymakers tackle this incoherence by:

• Adapting EU legislation to apply the same rules to imports as to domestic products

• Mainstreaming sustainability throughout EU trade agreements

• Preventing trade disputes over sustainability measures in the WTO

• Make sure imports comply with EU law through an ambitious customs reform.

Documentation

• The study by the Vrije Universiteit Brussel’s School of Governance: Executive summary / Full study

• BEUC’s policy recommendations to better align EU trade policy and the Green Deal