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Leveraging Trade to Support Climate Adaptation in Developing Countries
The document identifies three pathways for using trade to support climate adaptation: domestic trade policy measures to improve access to adaptation goods and services, the use of trade-related financing mechanisms like Aid for Trade, and international collaborative frameworks. It argues that National Adaptation Plan (NAP) processes are critical for mapping these trade opportunities by identifying specific adaptation needs and financing gaps. To illustrate these links, the paper reviews NAP documents from Fiji, Kiribati, and Tonga.
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Document type: Research paper
Trends, Structural Reforms and Intercontinental Trade Dynamics: The case of Sierra Leone’s Approach to the Implementation of the AfCFTA
The report finds that while Sierra Leone ratified the AfCFTA on November 7, 2018, actual implementation has been slow and lacks formal policy frameworks, strategic plans, or dedicated implementation structures. The country's economy remains heavily dependent on the extractive sector, particularly minerals like titanium ore and diamonds, which limits its intra-trade competing capacity. Significant barriers to success include a severe lack of access to finance for SMEs—with 65.1% of SMEs citing it as a major impediment—and a lack of data on business preparedness. The report recommends that the Ministry of Trade and Industry lead the development of a national AfCFTA Policy Framework and establish a steering committee to coordinate implementation.
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Document type: Report
Leveraging Trade to Support Climate Adaptation in Developing Countries
The report examines the nexus between international trade and climate adaptation, arguing that trade can be a vehicle for developing countries to access necessary goods, services, and financing. It identifies three pathways for this: domestic trade policy measures, trade-related financing mechanisms, and international collaborative frameworks. Using case studies from Fiji, Kiribati, and Tonga, the report demonstrates how National Adaptation Plans (NAPs) can be used to identify specific adaptation needs—such as hydrometeorological equipment or rainwater harvesting systems—and map them to trade policy instruments like tariff reductions or Aid for Trade (A4T) funding.
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Document type: Report
Mapping the Future of China–Africa Relations: How the Continent can Benefit
The paper assesses the synergy between the AfCFTA and the BRI, arguing that targeted, structured cooperation—such as sector-specific preferential trade agreements and the strategic use of Special Economic Zones (SEZs)—is more beneficial for Africa than a status-quo ad hoc approach or a full continent-wide Free Trade Agreement (FTA). It highlights the potential for growth in manufacturing and agriculture while warning against the risks of increased Chinese imports and the complexities of rules of origin.
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Document type: Research paper
Carbon Pricing for Climate Action: New Countdown to COP Policy Briefing
The document analyzes the EU's Carbon Border Adjustment Mechanism (CBAM) as a shift in climate policy toward trade and economic levers. It highlights the growth of carbon pricing globally, including the EU ETS and China's national ETS, and suggests that COP26 should be used to establish a 'green window' for preferential treatment of green goods and a mechanism to allocate CBAM revenues to vulnerable countries to ensure a just transition.
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Document type: Briefing
Principles and Best Practice in Border Carbon Adjustment: A modest proposal
The briefing argues that as countries increase climate ambition and carbon pricing, border carbon adjustment (BCA) mechanisms are becoming inevitable to prevent carbon leakage. To avoid these tools becoming protectionist or causing trade disputes, the author proposes a framework of principles—such as prioritizing leakage protection over competitiveness and granting credit for foreign carbon prices—and best practices, including the use of international data standards. The document suggests the World Trade Organization (WTO) as the ideal multilateral forum for discussing these guidelines to provide a bulwark against national protectionist pressures.
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Document type: Briefing
Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade
The document examines how developing countries can leverage the electric vehicle (EV) battery boom, specifically regarding lithium and cobalt. It highlights Chile's potential for revenue generation and value addition and the Democratic Republic of the Congo's risk of overinvestment due to its cobalt monopoly. The brief argues that capturing value requires coordinated policy, stakeholder engagement, and the reinvestment of revenues into infrastructure and governance.
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Document type: Policy brief
How Can Trade Policy Maximize Benefits From Clean Energy Investment?
The document examines the tension between using trade policy to maximize local economic benefits from clean energy investments and the risk of increasing costs that could hinder the renewable energy transition. It notes that while global components like solar modules often face lower tariffs in low-income countries, tariffs on components suited for local production—such as bulky wind towers—can stimulate domestic capacity. The author argues that international efforts to liberalize environmental goods and services must be paired with incentives for competitive local production to maintain political and economic support for the transition.
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Document type: Research paper
Enabling Climate Ambition: Border carbon adjustment in Canada and abroad
The document argues that Canada needs to design a border carbon adjustment (BCA) mechanism to prevent emissions from being transferred to unregulated foreign competitors as its carbon price is legislated to rise to CAD 170/tonne by 2030. It notes that while the EU will implement a BCA (CBAM) by 2023, and the US and UK intend to do the same, such systems are complex, politically sensitive, and potentially conflict with trade rules. The report provides recommendations on eight design elements for a Canadian BCA and examines how Canada should respond to the schemes of its major trading partners.
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Document type: Report
U.S. Cocoa Imports: Secretive mega-traders get the lion’s share
Analysis of 2020 vessel tracking and manifest data reveals that a small number of mega-traders dominate U.S. cocoa imports through opaque networks and 'cocoa-laundering' via third countries. The report highlights how 43% of cocoa from Ghana and Cote d’Ivoire passes through Europe and significant volumes from Peru and Ecuador funnel through Panama and Colombia, diverting revenue from producers. It identifies systemic obfuscation in import data, including the use of multiple company name variations by traders like Barry Callebaut to hide market dominance, and calls for U.S. legislative action to restrict imported deforestation and improve traceability.
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Document type: Research paper
The WTO and Africa: The State of Play and Key Priorities Going Forward
The document argues that African states must shift from a strategy of blocking new negotiations to one of active participation to avoid becoming 'rule takers' in the global trade system. It specifically recommends narrowing the TRIPS waiver proposal to focus solely on COVID-19 vaccines to secure broader support and suggests that African states prioritize a few key development outcomes from the stalled Doha Round while engaging in Joint Statement Initiatives (JSIs) on e-commerce and investment. The brief also emphasizes the need for the African Union to coordinate common policy positions and the establishment of regional vaccine production hubs in countries like South Africa, Senegal, Algeria, and Tunisia.
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Document type: Policy brief
PREPAREDNESS OF LOCAL BUSINESSES PARTICIPATING IN THE AFCFTA AGREEMENT IMPLEMENTATION IN GHANA
The report evaluates Ghana's institutional and private sector readiness for the AfCFTA, which officially commenced trading on 1 January 2021. While the Ghanaian government has established policy frameworks and institutional structures, such as the National AfCFTA Coordinating Office, the report finds that local small and medium enterprises (SMEs) face significant hurdles. Key findings indicate low production capabilities, limited knowledge of the agreement's protocols, and a lack of export certificates among many firms. However, some companies like Kasapreko Company Limited and Ghandour Cosmetics Limited have successfully exported to other African markets. The report recommends the development of a public national strategic plan, increased decentralized stakeholder consultations, and financial strategies to reduce lending interest rates for local industries.
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Document type: Report
How Can Trade Policy Maximize Benefits From Clean Energy Investment?
The report analyzes the value chain of wind and solar projects to identify which components are suitable for local production versus global sourcing. It argues that while highly centralized components like solar modules and wind turbines are best imported to keep costs low, significant economic opportunities exist in localizing structures, towers, and electrical subsystems. Through case studies of countries like Mauritius, Namibia, Cambodia, and the Philippines, the report demonstrates how different tariff strategies—ranging from revenue generation to industry protection—impact renewable energy deployment and suggests that international cooperation to reduce trade barriers on environmental goods can accelerate the energy transition.
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Document type: Report
Driving Demand: Assessing the impacts and opportunities of the electric vehicle revolution on cobalt and lithium raw material production and trade
The report examines the global market for lithium-ion batteries and the critical role of lithium and cobalt. It uses Chile and the Democratic Republic of the Congo (DRC) as case studies to illustrate how developing countries can capture value from the electric vehicle (EV) boom while managing risks such as price volatility, technological shifts toward cobalt-free batteries, and social or environmental degradation. The document argues that while lithium demand remains stable, cobalt faces higher uncertainty, suggesting that producer countries should diversify into mining-related services to avoid stranded assets.
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Document type: Report
What Can Least Developed Countries and Other Climate Vulnerable Countries Expect from The EU Carbon Border Adjustment Mechanism (CBAM)?
The document outlines the objectives of a joint briefing by several institutes to analyze how the EU's CBAM, part of the "Fit for 55" package, affects climate-vulnerable countries, including least developed countries and small island developing states. It focuses on the differences between the European Commission and European Parliament positions, the identification of most-affected countries based on carbon-intensive sectors and export reliance, the implications for UNFCCC climate action, and the potential for CBAM revenues to support low-carbon transitions abroad.
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Document type: Briefing
EU-Mercosur Association Agreement
The briefing argues that the EU-Mercosur trade deal was concluded without a complete sustainability impact assessment (SIA), which the European Ombudsman identified as maladministration. It highlights concerns that the agreement could increase deforestation in Mercosur countries, particularly Brazil, and criticizes the European Commission's attempt to seek pre-ratification commitments rather than renegotiating the text. Furthermore, the document opposes any effort by the Commission to 'split' the trade and political components of the agreement to bypass the requirement for unanimity in the Council and ratification by the 27 EU Member State parliaments, asserting that such a move would violate the original 1999 mandate and principles of sincere cooperation.
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Document type: Briefing
WTO Negotiations on Fisheries Subsidies Update: What’s the state of play?
The document provides an overview of the May 11, 2021, draft consolidated text for a WTO agreement to discipline fisheries subsidies. It outlines three substantive pillars: prohibitions on subsidies for illegal, unreported, and unregulated (IUU) fishing; subsidies for overfished stocks; and subsidies contributing to overcapacity and overfishing (OFOC). The brief highlights the 'hybrid' approach for OFOC, which prohibits specific subsidy types unless management measures are in place to maintain biologically sustainable levels. It also details proposed special and differential treatment (SDT) for developing countries and least developed countries (LDCs), including potential exemptions based on GNI per capita or share of global marine capture. Finally, it addresses institutional issues such as transparency, notification requirements, and the role of a potential new Committee to oversee implementation.
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Document type: Policy brief
China’s BRI and the AfCFTA: Potential Overlaps, Complementarities and Challenges
The report examines the intersection of China's Belt and Road Initiative (BRI) and the African Continental Free Trade Area (AfCFTA), noting that while BRI infrastructure investments can support AfCFTA goals, a lack of coordinated African strategy poses risks. It highlights China's incentive to access the AfCFTA's massive consumer market while warning that cheap Chinese imports could undermine the free trade area's objectives.
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Document type: Report
Options to Incorporate Circular Economy Provisions in Regional Trade Agreements
The document examines how regional trade agreements (RTAs) can be used as vehicles to support the transition to a circular economy, which aims to address climate change, biodiversity loss, and unsustainable resource use. It identifies that while some blocs, notably the European Union, have begun including such provisions, they remain 'largely embryonic'. The brief suggests that circularity can be integrated into RTAs through horizontal chapters (such as environment, sustainable development, or government procurement), dedicated sectoral chapters, stand-alone annexes, or specific annexes attached to broader chapters like technical barriers to trade.
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Document type: Policy brief
10 PRIORITIES FOR THE FARM TO FORK INI REPORT
The document advocates for a transition from an industrial food system to one based on agroecology and rights-based governance. It calls for the European Parliament to endorse the Farm to Fork Strategy's targets, make them legally binding, and align the Common Agricultural Policy with the European Green Deal. Key recommendations include reducing pesticide and fertiliser use, cutting livestock numbers, regulating new GMOs, improving animal welfare, and ensuring a socially just transition for food workers and global south partners.
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Document type: Statement