Search Climate Insights Directory

The document outlines the environmental risks associated with the EU-Mercosur trade agreement, specifically regarding deforestation in the Amazon and other biomes, the extraction of critical minerals, and the potential conflict between the trade deal and the European Union Deforestation Regulation (EUDR).

The report details how industrial actors employ strategies such as suppressing harmful data, funding biased research, and using front groups to avoid regulation of toxic chemicals. It provides case studies on PFAS, Bisphenol A (BPA), benzene, and neonicotinoids to illustrate these patterns of disinformation. The document concludes that to protect public health and the environment, companies producing hazardous substances should be prohibited from influencing the formulation of the policies that regulate them.

A joint letter from various NGOs urging the European Commission to ensure the EUDR benchmarking process is based on objective risk criteria rather than political factors or sanctions.

The statement by Friends of the Earth International criticizes the proposed EU-Mercosur trade agreement, highlighting its potential to accelerate deforestation and climate change while undermining small-scale farmers in both Europe and Latin America. It calls for a shift toward a people-centered trade model that prioritizes social rights and environmental sustainability over corporate profit, especially in light of the rise of climate-denying leadership in Argentina.

Friends of the Earth International opposes the EU-Mercosur trade agreement, asserting that it would accelerate deforestation and climate change while undermining small-scale farmers in Europe and Latin America. The statement highlights protests from European farmers and social movements in Latin America, and warns that the current administration in Argentina, led by climate-denier Javier Milei, further invalidates the agreement's sustainability claims. It calls for a shift in international trade policy toward a model centered on people's sovereignty, food security, and environmental protection.

The document argues that voluntary sustainability standards (VSS) can reduce poverty by improving agricultural prices, preserving natural resources, and strengthening producer organization, provided they are integrated into broader poverty-reduction strategies. While VSS can increase income through price premiums of 10% to 30% and promote sustainable land management, their impact is often limited by high certification costs, lack of direct market access, and insufficient inclusion of women and smallholders in governance. The brief recommends that VSS incorporate requirements for living incomes and climate adaptation, while governments should support these efforts through land regularization, financial resources, and the promotion of direct trade relationships.

The document analyzes the 'fair and equitable treatment' (FET) standard, which appears in nearly 95% of international investment agreements and is the basis for approximately 83% of investor-state arbitrations. It argues that the lack of a precise definition allows tribunals to expand the standard's scope, creating legal unpredictability and 'regulatory chill' for states. The brief details five common drafting approaches—ranging from unqualified FET clauses to those linked to customary international law—and concludes that even 'new generation' treaties often produce the same results as older ones. To protect their right to regulate, the authors suggest three policy options: excluding the FET standard entirely, using alternative terminology like 'fair administrative treatment', or implementing a strictly defined, closed list of violations that explicitly excludes investor expectations.

NGOs report a 17% increase in Amazon deforestation in the first half of 2021 and warn that the Brazilian Amazon may now emit more carbon than it sequesters. The statement criticizes France's passive approach and calls for binding legislation to prevent the import of soy and beef linked to deforestation, as well as the blocking of the EU-Mercosur trade 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.

ClientEarth urges the European Commission to prioritize the preservation of forests over their economic exploitation in the new EU Forest Strategy. The organization advocates for the strict protection of primary and old-growth forests, the integration of the Strategy with existing anti-illegal logging frameworks like the EUTR and FLEGT, and the complete exclusion of forest biomass from the definition of renewable energy. It further emphasizes the need for the legal recognition of Indigenous Peoples' and local communities' tenure rights, the use of remote-sensing data for monitoring, and the inclusion of binding forest protection criteria in EU trade agreements.

The proposal seeks USD 599,704 to help Brazil 'leapfrog' to sustainable commercial refrigeration by implementing Minimum Energy Performance Standards (MEPS) and energy labels for the first time in this sector. The project, implemented by UNEP, aims to reduce electricity demand and GHG emissions, as commercial refrigeration is estimated to account for 25% of energy consumption in an average Brazilian supermarket. Key activities include establishing a Policy Working Group, conducting a national market assessment, developing a Monitoring, Verification and Enforcement (MVE) framework, and creating guidelines for sustainable public procurement. The project also intends to share lessons learned with other MERCOSUR countries to create a regional multiplier effect.

The paper argues that the TSD Chapter of the EU-Mercosur Association Agreement is not fit for purpose, citing its inability to reinforce Paris Agreement commitments, a weak dispute settlement mechanism lacking sanctions, and insufficient monitoring of environmental and social impacts. It highlights gaps in the agreement's scope regarding human rights and supply chain responsibility, and recommends fundamental reforms to monitoring, enforcement, and the role of civil society.

The author contends that the EU's current trade policy is characterized by an 'inertia' that prioritizes unconditional liberalization over environmental and social goals. While the EU aims for carbon neutrality via the Green Deal, its trade framework continues to promote 'new generation' bilateral agreements that limit state sovereignty through investor-state dispute settlements and 'living agreements' that bypass democratic control. The text argues that the EU remains a net importer of carbon, with one-third of its footprint stemming from imports, and calls for a shift toward trade regulation that conditions market access on the achievement of environmental and social objectives.

The document analyzes the 2019 Amazon fires as a result of corporate power and the expansion of the agricultural frontier, specifically linked to the interests of transnational corporations (TNCs). It contends that the EU-Mercosur Free Trade Agreement will exacerbate this trend by increasing demand for commodities like soy and beef, leading to further deforestation and human rights violations. The report criticizes the Bolsonaro administration for dismantling environmental protections and argues that the agreement's environmental clauses are non-binding and insufficient to prevent climate catastrophe.

The IISD advocates for a Canada-MERCOSUR free trade agreement that prioritizes the liberalization of environmental goods and services, the adoption of sustainability standards, and a shift in investment models from investor protection to investment facilitation. The statement emphasizes the need for transparency in negotiations and the integration of corporate social responsibility and investor accountability to protect communities and the environment.

The report examines foreign investment in agriculture across MERCOSUR, identifying three primary models: state-level cooperation agreements, direct private land purchases, and foreign direct investment in production via contract farming. It highlights a general lack of reliable data, though estimates suggest foreign ownership varies significantly, from 1.7% of arable land in Brazil to 19.4% of national territory in Paraguay. While Brazil and Argentina have implemented laws to restrict foreign land ownership, Uruguay is debating similar measures, and Paraguay has seen little public discussion on restrictions despite high foreign ownership. The document recommends the establishment of national land registries and clear definitions of 'foreign stakeholders' to better manage and monitor these investments.

The report analyzes foreign investment in the agricultural sectors of MERCOSUR countries, identifying three primary models: state-to-state cooperation agreements, direct private land purchases, and foreign direct investment in production via contract farming. It highlights a general lack of robust data across the region, though it notes that foreigners own approximately 1.7% of Brazil's arable land and an estimated 3.4% of Argentina's. Paraguay shows the highest level of foreign ownership at 19.4% of its national territory, largely held by Brazilians. The document details the legislative shift toward restricting foreign land ownership in Argentina and Brazil, while noting that Uruguay is debating similar measures and Paraguay lacks significant public debate or effective restrictions. It concludes that while foreign investment can bring technology, it often risks displacing local producers and threatening food security if not properly regulated through clear definitions of foreign ownership and national land registries.

The document examines South Africa's industrial development zones (IDZs), established in 2000, and argues that current incentives are insufficient to attract necessary foreign investment. By comparing South African IDZs with special trade zones in the EU, US, Mercosur, India, and China, the author identifies gaps in regulatory, financial, and fiscal incentives. The paper recommends that the South African government introduce specific IDZ incentives, such as easing labour-market requirements and providing infrastructure and wage subsidies, while expanding the scope of these zones to include trade-related service industries.

The report examines the Southern African Customs Union (SACU)—comprising South Africa, Botswana, Namibia, Lesotho, and Swaziland—and its various trade agreements. It finds that most agreements focus almost exclusively on market access and economic growth, largely ignoring social and environmental pillars of sustainable development. The study highlights the critical role of the SACU Revenue Sharing Formula in supporting smaller member states and warns that rapid trade liberalization, particularly with the EU, US, and China, may lead to significant tariff revenue losses and job cuts in sensitive sectors like textiles. It recommends that SACU integrate sustainable development guidelines into negotiations, conduct impact assessments, and increase transparency and parliamentary oversight of trade deals.

The WTO Panel found that Brazil's import ban on retreaded tyres (via Portaria SECEX 14/2004 and Portaria DECEX 8/1991) and its associated fines (Presidential Decree 3.179/3.919) are inconsistent with Article XI:1 of GATT 1994. The Panel also ruled that the State of Rio Grande do Sul's marketing restrictions (Law 12.114/12.381) violate Article III:4. While the Panel acknowledged that Brazil's policy of reducing waste tyre accumulation to protect human, animal, and plant health falls within the scope of Article XX(b), it concluded the measures were not justified because they were applied in a manner that constituted "unjustifiable discrimination" and a "disguised restriction on international trade," primarily due to the significant volume of used tyres imported via court injunctions to benefit domestic retreaders.