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Fostering the positive linkages between trade and sustainable development

Periodic Reporting for period 1 - TRADE4SD (Fostering the positive linkages between trade and sustainable development)

Période du rapport: 2021-06-01 au 2022-11-30

Trade4SD is a 4-year project devoted to research on a topic which is high on the domestic as well as multilateral, EU and bilateral trade policy agenda. The ambition of the project is to explore and foster the positive linkages between trade and sustainable development is to provide policy recommendations for the creation of new opportunities for agents involved in the global, regional and national agri-food value chains, and to define conditions for sustainable livelihoods of farm producers in the EU and developing partner countries.The premise of this proposal is that trade has the power to produce positive outcomes when trade related policies are designed in a way to promote access to markets, fair prices and standards of living for farmers, as well as alleviating rural poverty and ensuring the application of sustainable farming practices. Addressing the relation between trade and SDGs requires an integrated approach to trade and domestic policymaking under an umbrella of inclusive governance. The main objective of TRADE4SD is to identify new opportunities to foster positive sustainability impacts of trade supported by improved trade policy at national, EU and multilateral level, including WTO modernization, and increased coherence across agricultural, energy, climate, environmental and nutrition policies to achieve SDGs.
During the first 18 months (1 June 2021 – 30 November 2022) of the TRADE4SD project, we started to systematically realise our seven scientific objectives (see below in more detail). The work of most teams were basically focusing on (1) reviewing the relevant literature, (2) developing the conceptual framework of the project, (3) preparing data gathering and checking data/indicator accessibility, (4) collecting preliminary data for further analysis and (5) presentation of first preliminary results to the academic audience and the wider public. TRADE4SD consists of six substantive work packages and three packages dealing with communication, dissemination, coordination and ethics. All teams have achieved their goals and submitted the scheduled 15 deliverables and 11 milestones on time.

During the first 18 months, we reviewed previous studies concerning the interactions between trade and sustainability and have identified a system of most relevant indicators and were also able to visualise results of the literature review and the links identified in a user-friendly tool at the website. We have explored and selected a number of datasets to construct measures of the ‘SDG content’ of trade agreements, as well as data on various SDG indicators. At the same time, we have selected a list of SDG outcome indicators that can be tightly linked to the information on the content of trade agreements in terms of SDG-related provisions. Moreover, an overview of current modelling of SDGs related policy instruments and indicators were given to measure the success or degree of progress to reach different SDGs and scenario specifications were also done regarding all the three pillars of sustainability. Questionnaires for three rounds of Delphi exercise were drafted and the responses were analysed and disseminated feedback to stakeholders.The Protocol for case studies has been developed and the following Value Chains (VCs) have been selected as relevant per each trade partner country: cocoa and cashew in Ghana; coffee and cashew in Vietnam; olive oil in Tunisia. We have started a structured literature review and policy document analysis of the main EU trade-related policies and their contribution to achieve the sustainability objectives. Identification and preliminary analysis of the current trade related EU policies and of new policy options in view of their impacts on trade and SDGs has been done together with a quick-scan of SDG evaluation approaches. Some basic analysis of existing results have been started together with elaborating a framework of policy recommendations and lessons learned. The framework of communication, dissemination and exploitation was also given by submitting respective deliverables on data management, communication plan and stakeholders map. Communication materials were also developed together with the set-up of the webpage and social media accounts. Two annual meetings and two workshops were organised and joint work was done with the Horizon Results Booster team. All management, quality assurance, monitoring and ethical requirements were met.
TRADE4SD aims to take an evidence based, genuinely integrated, and participatory approach to research in order to identify, quantify and analyse the complex links between trade and sustainability, as well as to propose innovative options to trade to meet the SDGs globally. In doing so, TRADE4SD goes beyond the state of art in a number of significant ways. The project is specifically designed in order to ensure that potential gaps between the different quantitative modelling approaches employed in the project are avoided. This collaborative approach is necessary to ensure that all elements of quantitative work can provide results consistent with each other but across the broadest range of dimensions possible.

Progress beyond the-state-of-the-art will be achieved through:

• Improved capacity of existing models through linkages, integration and combination of sustainability indicators;
• Developing a new database of core indicators of direct and indirect linkages between trade and sustainability;
• Developing tools to visualise complex linkages to facilitate understanding by stakeholders and civil society organisations;
• Combining amd extending existing models and simulations;
• Testing several new policy measures which can contribute to the achievement of selected SDGs and their effect on different countries, regions as well as on the producers, consumers and taxpayers;
• Revealing the effect of different incentives to farmers and traders to implement more sustainable practices;
• Revealing how learning by doing may change investment behaviour towards the achievement of sustainability goals;
• Showing cases where EU bilateral could be made more effective and where WTO may fill a gap if it modernises; and
• Providing a clear understanding on the participation of developing countries to local and global agri-food value chains.
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