The Use of Voluntary Sustainability Standards in Trade Policy
Governments are increasingly integrating voluntary sustainability standards (VSSs) into trade policies, recognizing them as instruments that can support and facilitate sustainable trade. This explainer, produced as part of a partnership between ISEAL Alliance and IISD, provides an overview of how VSSs are used in trade policy instruments, including market access and due diligence.
Key Messages
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Policy-makers are increasingly integrating VSSs into trade policy frameworks, including market access and due diligence regulations, free trade agreements, public procurement, and export promotion strategies.
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In some cases, VSSs are mandatory; in others, their use is encouraged or promoted.
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The use of VSSs in trade policy must be accompanied by targeted support for producers, including capacity-building services and financial assistance to access and maintain certification, especially in developing countries.
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Since not all VSSs are equal, their inclusion in trade policy must also be accompanied by credibility criteria.
VSSs are becoming more relevant in aligning trade policy with sustainability goals. They are now increasingly recognized and referenced by governments in a wide range of trade policy instruments, including market access regulations, due diligence laws, free trade agreements, public procurement policies, and export promotion strategies.
However, their integration into trade policy varies, and VSSs differ significantly in their scope, governance, and assurance systems. Consequently, credibility criteria are needed to assess which standards should be incorporated into trade policy to facilitate and support sustainable trade.
This explainer, developed by ISEAL Alliance and IISD, explores examples of how VSSs are currently used in trade policy and outlines key opportunities and challenges associated with their inclusion. It highlights the need for targeted capacity building, financial support, and clearly defined credibility criteria to ensure that VSSs meaningfully contribute to sustainable trade.
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