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Sustainability impact assessments of free trade agreements: A critical review

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  • Evdokia Moïsé
  • Stela Rubínová

Abstract

Trade negotiations are frequently accompanied by sustainability impact assessment (SIA) to evaluate the potential economic, environmental, social and human rights effects of a possible agreement. SIAs can help promote environmental protection, and support the better integration of women, vulnerable populations, and small businesses into the global economy, as well as address growing concerns from civil society. They provide a critical opportunity for dialogue among stakeholders and trade policy makers, and thereby help to rebuild confidence in the trading system. However, SIA approaches ‒ including economic modelling, qualitative causal chain analysis and stakeholder consultations ‒ each have their strengths, challenges and limitations. Those need to be understood by policy makers if reliable and policy relevant conclusions are to be provided. This paper offers a perspective on the challenges and opportunities of various approaches and discusses best practices for assessing the sustainability impact of trade and trade agreements.

Suggested Citation

  • Evdokia Moïsé & Stela Rubínová, 2021. "Sustainability impact assessments of free trade agreements: A critical review," OECD Trade Policy Papers 255, OECD Publishing.
    • Handle: RePEc:oec:traaab:255-en
    DOI: 10.1787/65b1a07e-en
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    More about this item

    Keywords

    CGE models; Qualitative methods; Stakeholder dialogue; Sustainable growth; Trade liberalisation;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • F6 - International Economics - - Economic Impacts of Globalization
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F18 - International Economics - - Trade - - - Trade and Environment

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