KEY ESSENTIALS

The Sustainable Development Goals (SDGs) and the Law

Module 3: Law and Practice of SDGs in the
Global Economy
Democratising Education for Global Sustainability and Justice
Online Education Series 2023
Global Challenge: Perverse Subsidies, Trade and Investment

Scale, scope and technology

impacts of trade and investment CO2 footprint distance
are rising. (Darker the country, greater
Trade may ‘embody’ 17-30% of distance of consumers from their
CO2 footprint)
biodiversity loss, 15-38% of labour
violations, 62-64% of metal ore
extractions, 70% of coal
Source: Wiedmann, T., &
exploitation, 23-30% of GHG Lenzen, M. (2018).
Environmental and social
emissions. footprints of international trade.
Nature Geoscience, 11(5), 314-
OECD/IEA tracks fossil fuel 321.

subsidies over US$577 billion in Global Volume of Trade by Region

2018, then below US$468 in 2019,
but US$900+ billion in 2022.
Trade subsidizes CO2 emissions
by US$550 - $800 billion per
annum, approx US$85 to $120 per
CO2 ton in polluting industries.
Shapiro, J. S. (2021). The Environmental Bias of Trade Policy. The
Quarterly Journal of Economics, 136(2), 831-886; Wiedmann, T., & Lenzen,
M. (2018). Environmental and social footprints of international trade. Nature Source: WTO World
Geoscience, 11(5), 314-321; OECD IEA Analysis. Region Export
Analysis, October
2017; Bain & Company
Analysis
Global Challenge: Conflict Minerals and Energy Resources
Environmental Justice Atlas
Fossil fuels (coal, oil, gas)
are still over 60% of total
final energy consumption in
2022, with subsidies of $70+
billion.
Modern renewable energy
accounted for only 11% of
total final energy
consumption in 2018, up
from 9.6% in 2013.
Assassinations and criminal
violence are documented in
1 in 5 mining and land
conflicts.
Extractive industries
account for 2,743
environmental conflict cases
in Environmental Justice
Atlas – 21% mining, 17%
fossil fuels, 15% biomass
and land use, 14% water Global
management and dams. Renewable
Energy
Potential
REN21, Renewables 2020 Global Status Report
(2020); A Scheidel et al. “Environmental conflicts and
defenders: A global overview” Global Environmental
Change 63 (2020).
A Complex and Globalized Economy

Intensity of Global Trade & Investment Routes

- The global economy is linked by a web of
national authorities, World Trade Organization
(WTO), UNCITRAL, ICSID and other rules, also
an increasingly complex network of
regional/bilateral economic accords.
- In 2023, 340+ free trade agreements were in
force, with WTO notified of 548 Regional Trade
Agreements.
- OECD/UNCTAD list over 2,290 BITs, and at
least 324 hybrid trade/investment accords.
- Economic flows are significant but fragile. Global
FDI flows decreased by 38% to US$846 billion in
2020. The export value of goods traded dropped
from US$19.47 trillion in 2018 to US$17.58 trillion
in 2020.
WTO, ‘Regional Trade Agreements: Scope of RTAs’; UNCTAD, Values and shares of merchandise
exports and imports (2021); OECD, Foreign Direct Investment Statistics: Data, Analysis and
Forecasts, 2021.
Marine Traffic, Marine Traffic Density (2021).
The SDGs – Relevant Economic Treaties & Regimes (1/2)

1948 Universal Declaration of Human Rights

1966 International Convention on Economic, Social and Cultural Rights (ICESCR) [171 Parties]
1966 International Convention on Civil and Political Rights (ICCPR) [173 Parties]
1989 UN Convention on the Rights of the Child [196 Parties]
1964 UN General Assembly Resolution establishing the UN Conference on Trade and Development [195 Parties]
1945 International Bank for Reconstruction and Development Articles of Agreement [189 Parties]
1994 World Trade Organization Agreement [164 Parties]
1964 United Nations Conference on Trade and Development [195 Parties]
2008 European Union-Caribbean Forum Economic Partnership Agreement [42 Parties]
2008 Canada-Colombia Free Trade Agreement [2 Parties]

2009 Statute of the International Renewable Energy Agency [168 Parties]

1994 UN Convention to Combat Desertification [197 Parties]
1994 Energy Charter Treaty [56 Parties]
1994 Protocol on the Energy Efficiency and Related Environmental Aspects [47 Parties]
1982 UN Convention on the Law of the Seas [168 Parties]
2009 Japan-Switzerland Free Trade Agreement [2 Parties]
2009 European Union-South Korea Free Trade Agreement [29 Parties]

1919 Constitution of the International Labour Organization [187 Parties]

1932 Forced Labour ILO Convention [180 Parties]
1951 Equal Renumeration ILO Convention [173 Parties]
1957 Abolition of Forced Labor ILO Convention [176 Parties]
1973 Minimum Age ILO Convention [173 Parties]
2009 European Union-South Korea Free Trade Agreement [29 Parties]
2020 United States-Mexico-Canada Agreement [3 Parties]
2018 Comprehensive and Progressive Agreement for Trans-Pacific Partnership [11 Parties]
2020 EU-United Kingdom Trade and Cooperation Agreement [2 Parties]
The SDGs – Relevant Economic Treaties & Regimes (2/2)

1945 Charter of the United Nations [193 Parties]

1948 Universal Declaration of Human Rights
1966 International Convention on Economic, Social and Cultural Rights
(ICESCR) [171 Parties]
2006 Convention on the Rights of Persons with Disabilities (CRPD) [182
1992 UN Convention on Biodiversity [196 Parties]
Parties]
2000 Cartagena Protocol on Biosafety [173 Parties]
1989 UN Convention on the Rights of the Child (CRC) [196 Parties]
1989 Basel Convention on the Control of
2006 United States-Colombia Free Trade Agreement [2 Parties]
Transboundary Movements of Hazardous Waste and
their Disposal [188 Parties] 2016 EU - Southern African Development Community (SADC) Economic
1998 Rotterdam Convention on the Prior Informed Partnership Agreement [35 Parties]
Consent Procedure for Certain Hazardous Chemicals
and Pesticides in International Trade [164 Parties]
2001 Stockholm Convention on Persistent Organic
Pollutants [184 Parties]
2013 Minamata Convention on Mercury [124 Parties]
2011 Peru-Korea Free Trade Agreement [2 Parties]
2012 European Union-Colombia-Peru Free Trade
Agreement [30 Parties]
2013 European Free Trade Association-Central
America Free Trade Agreement [34 Parties]

1948 Universal Declaration of Human Rights

1966 International Convention on Economic, Social and Cultural Rights (ICESCR) [171 Parties]
1966 International Convention on Civil and Political Rights (ICCPR) [173 Parties]
1979 Conv on the Elimination of all Forms of Discrimination Against Women (CEDAW) [189 Parties]
2006 Convention on the Rights of Persons with Disabilities (CRPD) [182 Parties]
1990 International Convention on the Protection of the Rights of All Migrant Workers and Members of their
Families [55 Parties]
2009 Treaty on European Union [27 Parties]
2016 EU - Southern African Development Community (SADC) Economic Partnership Agreement [35 Parties]

1948 Universal Declaration of Human Rights

1966 Intl Conv on Economic, Social and Cultural Rights (ICESCR) [171 Parties]
1966 International Convention on Civil and Political Rights (ICCPR) [173 Parties]
1947 General Agreement on Tariffs and Trade / 1994 Marrakesh Agreement establishing the World Trade Organisation [164 Parties]
2005 Tampere Convention on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations [49 Parties]
2018 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) [11 Parties]
Selected International Instruments for the Global Economy
A complex system of international rules and organisations, backed by
treaty law and dispute settlement mechanisms

• Global Trade Regime: World Trade Organization (WTO) Agreements w

General Agreement on Trade and Tariffs (GATT), General Agreement on
Trade in Services (GATs), Trade-Related Intellectual Property Rights
(TRIPs), etc.
• Regional / Bilateral Trade Agreements: European Union, US Mexico
Canada FTA (USMCA), Mercado Común del Sur (Mercosur), Southern
African Development Community (SADC), Andean Community (CAN),
Caribbean Community (CARICOM), 340+ Regional / Bilateral Trade
Agreements, etc.
• International Investment Accords: International Centre for Settlement of
Investment Disputes (ICSID), UN Commission on International Trade
Law (UNCITRAL), 2,290+ Bilateral Investment Treaties (BITs), etc.
• Other Economic Agreements and Institutions: World Bank, International
Monetary Fund (IMF), Regional Development Banks (European Bank for
Reconstruction and Development, Inter-American Development Bank,
African Development Bank, Asian Development Bank, etc)
Sustainable Development in the WTO Agreements

• In the US – Shrimp dispute, the WTO Appellate Body was guided by the objective of
"sustainable development" in the Preamble of the WTO Agreement when interpreting the
terms "exhaustible natural resources" in GATT Article XX(g):
• "The words of Article XX(g), 'exhaustible natural resources', were actually crafted more
than 50 years ago. They must be read by a treaty interpreter in the light of contemporary
concerns of the community of nations about the protection and conservation of the
environment. While Article XX was not modified in the Uruguay Round, the preamble
attached to the WTO Agreement shows that the signatories to that Agreement were, in
1994, fully aware of the importance and legitimacy of environmental protection as a goal
of national and international policy. The preamble of the WTO Agreement -- which informs
not only the GATT 1994, but also the other covered agreements -- explicitly
acknowledges 'the objective of sustainable development' ...
Selected Provisions of Regional/Bilateral Trade
Agreements contributing to the SDGs (1/2)

• SDG 1 End Poverty in all its Forms Everywhere: 2007 EU-ESA Interim EPA contributes ‘to
the reduction and eventual eradication of poverty through the establishment of a strengthened
and strategic trade and development partnership consistent with the objective of sustainable
development…
• SDG 2 End Hunger, Achieve Food Security and Improved Nutrition and Promote
Sustainable Agriculture: 2016 Canada – Europe Trade Agreement notifies significant food
safety issues relating to products traded between the Parties, which is conducive to achieving
target 2.1: ensuring ‘access by all people, in particular the poor and people in vulnerable
situations, including infants, to safe, nutritious and sufficient food all year round.
• SDG 7 Ensure Access to Affordable, Reliable, Sustainable and Modern Energy for All:
2009 Japan-Switzerland Free Trade Agreement encourage ‘trade and dissemination of
environmental products and environment- related services in order to facilitate access to
technologies and products that support the environmental protection and development goals,
such as… sustainable promotion of renewable energy and climate-change-related goals’.
Selected Provisions of Regional/Bilateral Trade Agreements
contributing to the SDGs (2/2)

• SDG 8 Promote Sustained, Inclusive and Sustainable Economic Growth, Full and
Productive Employment and Decent Work for All: 2006 US-Colombia Free Trade
Agreement chapter on labour facilitates protection of workers’ rights and ‘safe and secure
working environments for all workers, including migrant workers, in particular women migrants,
and those in precarious employment’, whilst also promoting measures to eradicate forced
measures to eradicate forced labour, end modern slavery and human trafficking and secure the
prohibition and elimination of the worst forms of child labour.
• SDG 9 Build resilient infrastructure, promote inclusive and sustainable industrialization
and foster innovation: 2018 Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) Article 18.8 focuses on “promotion of innovation and technology transfer
between the member countries to create a favourable environment for investment in research and
development”
• SDG 12 Ensure Sustainable Consumption and Production Patterns: 2008 EU-CARIFORUM
Economic Partnership Agreements’s articles on cooperation on eco-innovation and support
‘promotion of eco- innovation networks and clusters, including through public-private
partnerships’
Illustrative Domestic Law and Policy Innovations (1/2)

Nigeria's Finance Act (2020): A comprehensive tax reform aiming to

promote fiscal equity, support small and medium-sized enterprises (SMEs),
and align the Nigerian tax system with global best practices, the Act:
• raises the threshold for VAT exemption for small businesses from N10
million to N25 million in annual turnover;
• reduces the tax burden on small businesses and helps to level the playing
field with larger businesses;
• provides tax incentives for individuals and companies that invest in MSMEs
in Nigeria;
• offers incentives including a tax credit of 20% of the value of the
investment, which can be used to offset tax liabilities.
The Finance Act addresses SDG 8.3 by promoting the growth of micro,
small, and medium-sized enterprises, and SDG 10.4, targeting progressive
tax policies to reduce income inequality.
Illustrative Domestic Law and Policy Innovation (2/2)

Brazil's National Policy on Solid Waste (2020): Policy addresses waste

management, recycling, and pollution reduction. The policy:
• emphasizes the importance of shared responsibility for waste management among
all actors, including the government, producers, consumers, and waste pickers
• promotes an inclusive and participatory approach to waste management, which
involves engaging local communities, waste pickers, and other stakeholders in the
decision-making process
• requires the development of integrated waste management plans at the local and
regional levels, which aim to reduce waste generation, increase recycling rates, and
improve waste management practices.
The policy targets SDG 12.4 to achieve the environmentally sound management of…
wastes throughout their life cycle, in accordance with agreed international frameworks,
and significantly reduce their release to air, water and soil in order to minimize their
adverse impacts on human health and the environment; and 12.5 to substantially
reduce waste generation through prevention, reduction, recycling and reuse
Recommended Online
Resources:
- United Nations Sustainable Development Goals
[Click here]
- World Trade Organization [Click here]
- Database of Regional Trade Agreements [Click
here]
- UN Conference on Trade and Development
(UNCTAD) Database of International Investment
Agreements [Click here]
- World Bank [Click here]
- ILA Kyoto Guidelines on the Role of International
Law in Sustainable Resources Management for
Development [Click here]
Recommended Further
Reading:
- J Bacchus, Trade Links (Oxford University
Press 2022)
- W Huck, Sustainable Development Goals:
Article-by-Article Commentary (Beck Hart Nomos
2022)
- MC Cordonier Segger and N Schrijver, ILA
Guidelines for Sustainable Natural Resources
Management for Development (Netherlands
International Law Review 2021)
- MC Cordonier Segger, Athena’s Treaties:
Crafting Trade and Investment Accords for
Sustainable Development (Oxford University
Press 2021)
Focus Questions
- How do international trade and investment treaties align with
the SDGs?
- Does international law play a role in sustainable resources
management for development?
- How can national economic policies and regulations
advance the SDGs?
- How can commercial legal instruments, including the rules
governing banks and stock exchanges, better contribute to
advancing the SDGs in the global economy?