Common use of Trade and sustainable development Clause in Contracts

Trade and sustainable development. Through dedicated provisions in the Trade and Sustainable Development (TSD) Chapter, the EU and Mexico sets out common aspirations and objectives to build a free and fair trading relationships, by marrying the values of sustainable development with the economic engine of trade. Upholding the multilateral system The TSD Chapter contains a set of binding commitments to protect workers' rights, environmental and climate protection, based on the multilateral system of the International Labour Organisation (ILO) Conventions and the Multilateral Environmental Agreements (MEAs). These commitments include obligations to effectively implement the "fundamental" ILO standards covering subjects such as freedom of association and effective recognition of the right to collective bargaining, elimination of all forms of forced and compulsory labour, abolition of child labour or equal opportunities for women and men to obtain decent and productive work. These are complemented by a resolve to promote the ILO Decent Work agenda, including on occupational health and safety, working conditions, and labour inspection. Furthermore, the TSD Chapter includes provisions on the fight against climate change and the transition to a sustainable low-carbon economy, referencing the Paris Agreement. It also identifies potential areas where trade and climate change agendas can reinforce each other such as: the conservation and sustainable management of the biological resources, forests and fisheries, the promotion of trade in legally harvested and sustainable products or promotion of low-carbon technologies and energy efficiency. Key relevant international instruments include the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Convention on Biological Diversity (CBD) and fisheries instruments at global (FAO) and regional level (RFMOs). Transparency Transparency is of particular relevance in the context of TSD. Notably, non-state actors (employers' and workers' organisations, business organisations, environmental interest groups or academics) can be informed about and provide inputs at any moment on the development, introduction, and application of measures related to trade and labour or the environment. Working together The TSD provisions also establish priority areas for sharing of information and joint initiatives, including cooperation in international fora responsible for social or environmental aspects of trade such as the WTO, ILO, UN Environment and MEAs. Furthermore, in view of the increasing importance attached to the issue, the TSD chapter includes obligations to promote the uptake of responsible business conduct/ corporate social responsibility practices, in accordance with internationally agreed UN and OECD principles and guidelines. Overseeing mechanism The EU approach to TSD is based on the notion that long-lasting changes in labour and environmental practices can only happen through an inclusive reform process in the country. The TSD enforcement mechanism is geared towards creating ownership, when needed with the necessary pressure elements. This implies regular dialogues, involvement of civil society and close cooperation between the Parties as a mean of reaching common positions on any matter related to the TSD chapter.

Trade and sustainable development. Through dedicated provisions in the The Trade and Sustainable Development (TSD) Chapter, chapter lives up to the EU and highest standards for chapters in other modern agreements such as those with Mexico sets out common aspirations and objectives to build a free and fair trading relationships, by marrying or Japan. The basis is the values of sustainable development with premise that increased trade should not come at the economic engine of trade. Upholding the multilateral system The TSD Chapter contains a set of binding commitments to protect workers' rights, environmental and climate protection, based on the multilateral system expense of the environment or labour conditions. On the contrary, it should promote sustainable development. The Parties agree that they should not lower labour or environmental standards in order to attract trade and investment. They also agree that the trade agreement should not constrain their right to regulate on environmental or labour matters, including in situations where scientific information is not conclusive. The Parties commit to respecting International Labour Organisation (ILO) Organization Conventions on: - Forced and child labour - Non-discrimination at work - Child labour - Freedom of association and the Multilateral Environmental Agreements (MEAs)right to collective bargaining In addition, there are commitments on health and safety at work and labour inspection. These commitments include obligations Both sides also agree to respect multilateral environmental agreements that they have signed such as the CITES Convention on wildlife trade and to work together on their implementation. In a specific article on climate change, they agreed to strong language committing to effectively implement the "fundamental" ILO standards covering subjects such as freedom of association Paris Agreement and effective recognition of the right to collective bargaining, elimination of all forms of forced and compulsory labour, abolition of child labour or equal opportunities for women and men to obtain decent and productive work. These are complemented by a resolve to promote the ILO Decent Work agenda, including on occupational health and safety, working conditions, and labour inspection. Furthermore, the TSD Chapter includes provisions cooperate on the fight against trade- climate change interface. Commitments are included on fighting against deforestation. Private sector initiatives strengthen these commitments, for example not to source meat from farms in recently deforested areas. The Trade and Sustainable Development chapter includes commitments regarding the transition to a sustainable low-carbon economy, referencing the Paris Agreement. It also identifies potential areas where trade and climate change agendas can reinforce each other such as: the conservation and sustainable management of forests as well as on responsible business conduct. It safeguards relevant initiatives on sustainable agriculture, including EU private sector actions on zero deforestation supply chains and producer-led initiatives, such as the biological resourcessoy moratorium in Brazil to limit the expansion of soy plantations in forestland. The Parties also commit to promoting corporate social responsibility/responsible business conduct, in line with international guidance such as that of the OECD or the UN (UN Guiding Principles of Business and Human Rights). The chapter also includes thematic articles on trade-related aspects of natural resources such as biodiversity, forests and fisheries, including combatting illegal logging and illegal, unregulated and unrecorded (IUU) fishing. The agreement lists a number of areas of potential cooperation with a view to ensuring that trade supports the promotion sustainability agenda, including zero-deforestation supply chains. The chapter is subject to a specific dispute settlement procedure under which a complaint concerning non-compliance is first considered in formal government consultations. If the situation is not resolved then an independent panel of trade in legally harvested experts can be requested to examine the matter and sustainable products or promotion make recommendations. The report and recommendations must be made public so that they can be followed up by stakeholders as well as by officials of low-carbon technologies and energy efficiencythe Parties. Key relevant international instruments include the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)In this chapter, the Convention two sides have expressed their commitment to pursue their trade relationship in a way that contributes to sustainable development and builds on Biological Diversity (CBD) and fisheries instruments at global (FAO) and regional level (RFMOs). Transparency Transparency is of particular relevance their multilateral commitments in the context fields of TSD. Notably, non-state actors (employers' labour and workers' organisations, business organisations, environmental interest groups or academics) can be informed about and provide inputs at any moment on the development, introduction, and application of measures related to trade and labour or the environment. Working together The TSD provisions also establish priority areas for sharing of information and joint initiativescivil society consultation mechanisms built into the agreement will complement these provisions, including cooperation in international fora responsible for social or environmental aspects of trade such as providing an opportunity to shape the WTO, ILO, UN Environment and MEAs. Furthermore, in view implementation of the increasing importance attached to chapter and the issue, the TSD chapter includes obligations to promote the uptake of responsible business conduct/ corporate social responsibility practices, in accordance with internationally agreed UN and OECD principles and guidelines. Overseeing mechanism The EU approach to TSD is based on the notion that long-lasting changes in labour and environmental practices can only happen through an inclusive reform process in the country. The TSD enforcement mechanism is geared towards creating ownership, when needed with the necessary pressure elements. This implies regular dialogues, involvement of civil society and close cooperation between the Parties as a mean of reaching common positions on any matter related to the TSD chapteragreement.