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The adoption of EU supply chain due diligence instruments, most notably the Corporate Sustainability Due Diligence Directive (CSDDD), should mark a watershed in the EU’s model for linking trade to sustainability.
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Due diligence is no longer voluntary but legally binding in the EU, a shift that has drawn pushback from the United States and China and created compliance headaches. It is therefore crucial to leverage trade policy to safeguard the effectiveness of EU law.
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European citizens’ support for due diligence rules has been strong, but that confidence erodes when barriers are lifted for products that appear to be made under far lower standards. Effectively enforcing stronger sustainability mechanisms vis-à-vis trading partners would address this perceived unfairness, help narrow the gap by raising standards abroad, and strengthen the legitimacy of both the EU’s trade agenda and its social and green one.
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