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Key Message

Voluntary initiatives offer new opportunities for building sustainable production and trade, but are also challenged by the systemic presence of externalities. Public policy needs to proactively complement the development and implementation of such initiatives with the appropriate incentives and guidance to ensure optimal outcomes for sustainable development. Special attention needs to be given to the challenges facing developing countries with respect to participation in such initiatives.

Public Policy

Promoting best practice and maximizing results

What's New in Public Policy?

  • The Legality of PPMs under the GATT: Challenges and Opportunities for Sustainable Trade Policy (PDF - 496 kb) » Jason Potts Since the GATT Tuna-Dolphin decisions of the late '80s, many policy-makers and other stakeholders have assumed the use of non-product-related processing and production methods (PPMs) as a means for differential treatment between products to be "WTO illegal." This paper reviews the sustainable development case for PPMs as well as the relevant GATT case law. The paper suggests that that there is no legal basis for making this claim today.

  • Trading Practices for a Sustainable Coffee Sector (PDF - 944 kb) » Jason Potts with Guido Fernandez and Christopher Wunderlich As the number of voluntary initiatives aimed at implementing sustainable development within the coffee sector grows, there is a growing concern about how such initiatives can contribute to the overall well-being of producers. In this paper we provide an analysis of the constraints, conditions and opportunities for building sustainable trading relationships between coffee buyers and producers. In addition to providing a number of examples of initiatives which have been implemented to build trust and durability in producer/buyer relationships, the document provides a number of general recommendations for policy-makers and supply chain actors interested in promoting sustainable trading relationships.

Voluntary standards and supply chain initiatives offer a framework for implementing, monitoring and managing sustainable practice along supply chains. By setting rules for production and trade, standards-based initiatives have the potential to impact on the public good in a number of ways. Public policy-makers have an interest in ensuring that such initiatives maximize their positive impact on sustainable development. In some cases, public policy may have a role to play in creating a level playing field or providing market incentives for preferred practices. In other cases, public policy may seek to ensure good governance or market access over the course of initiative implementation and uptake. Historically policy-makers have remained at arm's length from such initiatives, but as they become increasingly integrated within mainstream supply chains, policy-makers are becoming increasingly interested in exploring ways to promote best practices and maximize results.

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