Trade. Trade. Sustainability Impact Assessments. Eduardo Carqueijeiro. DG Trade Internal Audit and Evaluation Unit

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1 Sustainability Impact Assessments Eduardo Carqueijeiro. DG Internal Audit and Evaluation Unit

2 1. What is a trade SIA? (1) A SIA is a policy tool for ex ante evaluation of the economic, social and environmental implications of a trade negotiation. is carried out during the negotiation to: integrate sustainability into trade policy by informing negotiators of the possible social, environmental and economic consequences of a trade agreement; make information on the potential impacts available to all actors and stakeholders. is an independent study, on the basis of which the Commission sets out its own views on the identified impacts, and on the policy measures proposed to address them.

3 1. What is a SIA?(2) SIAs consist of two complementary elements of equal importance: a robust analysis of the potential economic, environmental and social impacts of the proposed trade agreement, both in the EU and in the partner country/region; and a transparent and very wide consultation process which: ensures a high degree of transparency; aims to engage stakeholders both in the EU and in the partner country/region; and allows the studies to take account of the knowledge and concerns of relevant interest groups.

4 2. SIAs completed or planned SIAs were first developed by DG in 1999 for the WTO- DDA negotiations. Since then they have been applied to all the EU's major multilateral, regional or bilateral trade negotiations. SIAs completed: the Free Agreements (FTAs) with Chile countries; and with the Gulf the Economic Partnership Agreements (EPAs) with ACP countries; the EU-Mediterranean FTA; the Partnership and Cooperation Agreement (PCA) with China; the Association Agreement with Mercosur; the FTAs with Ukraine, Korea, ASEAN countries, India, and Libya; and the trade part of the Association Agreements with Central America and the Andean Community. SIAs planned: proposed negotiations for a comprehensive economic and trade agreement (CETA) between the EU and Canada (begins soon); proposed upgrade the EU-Morocco Association Agreement (in early planning) * Libya, Central America, Andean Community and now Canada used a modified approach.

5 3. Recent developments in SIAs A modified approach was adopted for the most recent SIAs, and for those that are currently planned the time taken to complete the studies has been reduced. examples the consultation procedure has been extended

6 4. The consultation process The objective of extended consultations is to encourage public debate and actively engage with key stakeholders in business, national administrations and within civil society including social partners, both in the EU and the partner country. This includes: Interviews, meetings, surveys/questionnaires with various stakeholders in relevant administrations, business and civil society; Presentations of inception and draft final reports at public meetings in Brussels; Presentations of the interim report at a local workshop in the partner country; Electronic dissemination of reports for all phases using a dedicated project website and expert networks.

7 5. Technical / methodological challenges A non-exhaustive list: SIAs for new FTAs will include a specific analysis of SME issues. The SIA for the CETA with Canada is the first study where this new policy will be applied. It will identify major economic and social implications (including potential changes in wages and employment, poverty, gender impacts, adjustment costs) as well as environmental effects and impacts on small and mediumsized enterprises both in the EU and in the partner country. The same study will consider the potential impact of the proposed trade agreement on all aspects of decent work (i.e. productive employment, rights at work, social dialogue, social protection and a gender mainstreaming objective), and should verify that the indicators chosen are directly linked to the internationally agreed decent work agenda. Quantitative methods extending the economic modelling approach to cover greenhouse gas emissions to produce reliable estimates of the impact have been defined. Ex post evaluations on the implementation of FTAs are planned. (Invitation to tender for an Evaluation study of the trade pillar of the EU Chile Association Agreement is now published on DG s website.) DG has requested an exploratory opinion from the European Economic and Social Committee on ways to make the SIA methodology more user-friendly and to reinforce the consultation process.

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