FTAs and other Trade Agreements are an established mechanism for furthering SDG related goals. The EU systematically include clauses in bilateral trade agreements (FTAs, BITS and GSP arrangements). Typically, these clauses require a commitment from the parties to these agreements to adhere to existing norms such as ILO labour standards, human rights conventions and multilateral environmental commitments.

Since 2018, the European Commission has been evaluating and revising is approach to TSD chapters in FTAs. In 2022, the Communication on “The power of trade partnerships: together for green and just economic growth” outlined a modernised approach to TSD chapters. This approach is not limited to increasing the substantive ambition of the commitments that should be adhered to. It also encompasses reinforced dispute settlement mechanisms and other avenues for enforcement. The recently negotiated FTA between the EU and New Zealand includes a number of reinforced provisions linked to the modernised approach.