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About Trade for Sustainable Development

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The last decade has seen a marked expansion in the global reach of markets as both trade and investment flows have increased. Whether countries can realise the benefits of expanding trade and investment depends critically on the policies they adopt at national level and their ability to negotiate favourable terms in bilateral, regional and multilateral agreements.

The benefits associated with this expansion of trade and investment include increases in national income, increased efficiency in resource allocation, and the spread of more efficient and environmentally friendly technologies. There are potential opportunities for international trade to achieve integrated environmental and social and economic objectives.

But there are also concerns about the social and environmental implications. Unsustainable patterns of economic activity can be magnified, exacerbating problems of commodity dependence, resource depletion and environmental degradation. This can lead to more income inequality both between and within countries. The challenge is to identify and strengthen these synergies whilst minimising and avoiding damage.

IIED’s Sustainable Markets Group focuses on the following areas:

  • Trade in “sustainable products” - We work to assist developing countries to attain benefits from trade liberalisation in sustainable products, such as organic products or sustainably managed timber. We give special emphasis to new products such as biofuels
  • Sustainability impact assessments - we review different approaches to assess sustainable development impacts  of trade policy. We focus on the agriculture and forestry sectors, and explore the value chain approaches.

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