Trade Agreements and Sustainability: Exploring the Potential of Global Value Chain (GVC) Obligations

ABSTRACT This article investigates the potential of global value chain (GVC)-orientated sustainability provisions in regional and bilateral trade agreements (FTAs). Such impose social environmental obligations directly onto GVCs, as opposed to creating for governments. The theoretical GVC is examined, concepts effectiveness legitimacy are introduced values by which assess them. Four recent sets then scrutinized. These (i) palm oil standards from Indonesia–European Free Trade Association (EFTA) Comprehensive Economic Partnerhsip Agreement (CEPA) FTA, (ii) hen welfare European Union–Mercosur Agreement, (iii) a stipulation minimum average wage automobile industry US–Mexico–Canada (USMCA), (iv) enforcement collective bargaining freedom association against factories, also USMCA. All these found have significant deficiencies. At same time, it argued that three different governance models underpin them, namely third-party certification schemes, domestic regulations one parties, bespoke arrangements created FTA question. therefore considers drawbacks each model terms their legitimacy, well alternative complementary commitments including unilateral measures subject-specific agreements.