Environmental Impact Assessments of Trade Agreements: Towards a Systematic and Comprehensive Application

Environmental impact assessments (EIAs) of trade agreements are a key instrument to align trade practices with the Sustainable Development Goals (SDG 13, 14, 15, 17). Whereas some members of the G20 have increasingly applied EIAs since the 1990s, there is limited empirical data on the politics of these impact assessments. Our exhaustive survey on the EIAs of trade agreements delves into the design of these assessments, focusing on the role of actors, agencies, and EIAs agendas globally. The criteria and methodologies used in EIAs are critically examined, drawing comparisons between so-called developed and emerging economies. Our analysis reveals a significant gap between current practices and recommended standards for EIAs developed by the UN Environment Programme and the International Institute for Sustainable Development. EIAs are not systematically conducted; their indicators are not standardized; and it remains unclear how their insights are taken into account for the design of trade agreements. To enhance the effectiveness of EIAs, we propose five key institutional and methodological recommendations: a) applying EIAs to all the trade agreements of OECD countries and major economies, starting with G20 nations, where technical capacity is not a severe impediment; b) boosting the role of regional bodies, such as ASEAN, the African Union or Mercosur, to support EIAs for integration treaties and steer member states
needing more capacity; c) extend assessments from ex-ante to complementary ex-post analyses, validating expectations based on model calibrations; d) evaluate the environmental impact on all parties involved, including third countries, and strengthen the involvement of civil society while ensuring public accessibility of EIAs for increased transparency, and e) establish a common framework for indicators and economic levels in EIAs, promoting consistency and comparability. Focusing on the role of G20 nations in trade, our recommendations emphasize the need for leadership by the G20 in adopting systematic, standardized, comprehensive, and transparent EIAs of trade agreements to foster global environmental sustainability