Due diligence legislation versus trade policy

In February 2022 the European Commission launched a proposal for an EU corporate sustainability due diligence directive (‘CSDDD proposal’). Companies will be mandated, under threat of sanctions, to monitor adverse impacts that may arise throughout their value chain from violations of a series of sustainability treaties: that is, treaties on human rights, labor and the environment. These treaties are listed in a comprehensive Annex. This due diligence obligation applies globally; no distinctions are made depending on the countries where the value chain operates.

A few months later, in June 2022, the European Commission came out with a policy paper on the Trade and Sustainable Development (‘TSD’) commitments which the EU will incorporate in its bilateral free trade agreements and which it would expect is trading partners to observe. The Commission positions these TSD commitments in trade policy amongst a wider group of instruments to support sustainable trade, such as its CSDDD proposal. However, the Commission glosses over important differences between these two initiatives, one of which relates to companies and the other applicable to other states.

Lees verder:

• Due diligence legislation versus trade policy, Leiden Law Blog