Inger Gregersen
Senior Officer
Trade and sustainable development
In the EFTA States, openness to trade and access to international markets are the basis for economic growth and general welfare. The EFTA States also apply and actively promote high standards for sustainable development and inclusiveness in their trade policies, trade relations and their respective foreign policies. With the adoption of model provisions on trade and sustainable development (TSD) in 2010, EFTA Ministers acknowledged the need for enhanced policy coherence at national and international level to harness the potential for international trade to contribute positively to the promotion of sustainable development.
What do we do?
Since 2010, EFTA has developed and systematically included TSD model provisions in its free trade agreements (FTAs). These provisions reflect a cooperative approach and emphasise policy coherence. They recognise that economic development, social development and environmental protection are interdependent and mutually supportive components of sustainable development. The provisions foresee that the Parties shall reaffirm their commitment to promoting the development of international trade in a manner that contributes to sustainable development. The provisions of the TSD chapter specifically address trade- and investment-related aspects of labour and environmental standards, as well as the fulfilment of human rights obligations. A TSD chapter was first introduced in the FTA with Hong Kong China in 2011.
In 2020, to mark a decade of negotiating and including TSD chapters in its FTAs, EFTA published a report reviewing developments, updates and measures on monitoring and implementation.
With which partners do we have a trade and sustainable chapter?
A TSD chapter is included in EFTA’s FTAs with Albania (2015), Bosnia and Herzegovina (2013), Ecuador (2018), Central American States (2013), Chile (2024), Georgia (2016), Hong Kong China (2011), India (2024), Indonesia (2018), Kosovo (2025), Malaysia (2025), MERCOSUR (concluded 2025), Moldova (2023), Montenegro (2011), Philippines (2016), Serbia (2015), Thailand (2025), Türkiye (2018) and Ukraine (2025). EFTA is currently negotiating a TSD chapter with Vietnam.
Signing of the EFTA–Malaysia Economic Partnership Agreement in Tromsø in 2025. The agreement includes a chapter on trade and sustainable development.
New developments
In 2017, the EFTA States decided to engage in a review of the model TSD provisions. This process was finalised in 2020 with provisions added on:
- Inclusive economic development and equal opportunities
- Sustainable forest management and associated trade
- Trade and climate change
- Trade and biological diversity
- Trade and sustainable management of fisheries and aquaculture
- Trade and sustainable agriculture and food systems
- Promotion of trade and investment favouring sustainable development
- Responsible business conduct
- Panel of experts
Additionally, an article on international labour standards was strengthened and commitments on stakeholder consultations were added to several articles.
Monitoring and implementation
In 2021, EFTA established a mechanism to monitor the implementation of the TSD provisions agreed with each partner country.
EFTA gathers and analyses information on the implementation of TSD provisions in the specific partner country for the period under review. It does this by relying on publicly available information sources (including from relevant international organisation) and expert input from Member States, as well as from the EFTA Advisory Bodies and civil society in the EFTA States.
EFTA also encourages the public to contribute relevant information on a specific partner at TSD [at] efta.int (any time).
TSD [at] efta.int (Contribute here)
The information gathered should lead to an in-depth discussion at the relevant joint committee meeting. Based on this discussion, the EFTA States subsequently define any necessary follow-up measures to support the effective implementation of the TSD chapter.
The meeting results are brought back to the relevant stakeholders for transparency purposes and for possible discussions. A report is made available on EFTA’s website after each joint committee meeting, outlining the result of the discussion.
As at June 2025, EFTA has conducted monitoring of the TSD commitments agreed with Ecuador, Georgia, Indonesia, Philippines and Türkiye.
The future
The negotiation of ambitious and robust provisions on TSD in FTAs will remain a priority for the EFTA States. EFTA is closely following relevant developments both internationally and in other important trading partners that may need to be reflected in its TSD provisions.
Feel free to contribute
If you have any inquiries or suggestions on TSD, please share them with us by TSD [at] efta.int (email).
