BUSINESS INFORM JOURNAL.

УКР

ENG

Search:

REGISTRATION CERTIFICATE

KV #19905-9705 PR dated 02.04.2013.

FOUNDERS

RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE)

According to the decision No. 802 of the National Council of Television and Radio Broadcasting of Ukraine dated 14.03.2024, is registered as a subject in the field of print media.
ID R30-03156

PUBLISHER

Liburkina L. M.

SITE SECTIONS

The EU Trade Policy in the Sphere of Sustainable Development as a Factor in Forming Economic Security and the Development of the Circular Economy
Ishchuk Y. A.

Ishchuk, Yuliia A. (2025) “The EU Trade Policy in the Sphere of Sustainable Development as a Factor in Forming Economic Security and the Development of the Circular Economy.” Business Inform 10:132–141.
https://doi.org/10.32983/2222-4459-2025-10-132-141

Section: Foreign Experience

Article is written in Ukrainian
Downloads/views: 0

Download article (pdf) -

UDC 339,9: 339.923: 338.49: 338.2

Abstract:
The article provides a comprehensive analysis of the Chapter on Trade and Sustainable Development (TSD) as a key predictor of long-term economic development and an institutional mechanism for strengthening economic security, boosting competitiveness, and accelerating the circular transformation of EU partner countries within the current trade governance framework. The author reviews the evolution of EU trade policy – from the 1999 Helsinki European Council and the «Global Europe» Strategy to the six strategic priorities outlined in the 2022 European Commission Communication «The Power of Trade Partnerships» – confirming the institutionalization of TSD as a mandatory, cross-cutting element of all modern free trade agreements. The article identifies a structural shift from a «soft» model of cooperation and consultation (notably, the 2011 EU–South Korea Agreement) to a «hard» implementation model, which envisages legally binding provisions and the application of sanctions in the event of violations of environmental, labor, or climate commitments, as demonstrated by the EU–New Zealand and EU–Chile Agreements of 2023. A comparative analysis of the governance philosophy of TSD in the EU and the USA (USMCA agreement) revealed conceptual and institutional asymmetries: while the American approach relies on coercive and punitive dispute resolution mechanisms, it simultaneously creates risks of «green protectionism,» regulatory fragmentation, and macroeconomic instability. It has been shown that the implementation of TSD provisions has a multiplicative effect on achieving the Sustainable Development Goals (SDGs) and facilitates the transition to a circular and resource-efficient economy through autonomous regulatory instruments, notably the Ecodesign Regulation and the Batteries Regulation, which establishes a mandatory digital battery passport. It has been determined that the TSD serves as a key institutional instrument for mitigating the environmental impacts of trade, promoting innovative growth, and developing responsible supply chains, while also generating systemic risks associated with the cross-border transfer of environmental hazards and the limitation of regulatory sovereignty. Strategic recommendations have been proposed to enhance the effectiveness of the TSD, including: the development of a unified sanctions mechanism for dispute resolution, the implementation of standardized models for assessing the circularity of production systems, and the strengthening of the EU’s global governance role as a leader in sustainable trade transformations.

Keywords: international trade, economic security, sustainable development, circular economy, sanctions mechanism, institutional changes, predictors of economic development, green protectionism.

Tabl.: 2. Bibl.: 18.

Ishchuk Yuliia A. – PhD, Associate Professor, Associate Professor, Department of International Economic Relations, Vasyl’ Stus Donetsk National University (21 600-richchia Str., Vinnytsia, 21021, Ukraine)
Email: [email protected]

List of references in article

BusinessEurope. (n.d.). «Trade for All»: BusinessEurope’s assessment of the European Commission Communication. URL: https://www.businesseurope.eu/publications/trade-for-all-businesseurope-assessment-of-the-european-commission-communication
Council of the European Union. (2023). Corporate sustainability due diligence: Council and Parliament strike deal to protect environment and human rights. URL: https://www.consilium.europa.eu/en/press/press-releases/2023/12/14/corporate-sustainability-due-diligence-council-and-parliament-strike-deal-to-protect-environment-and-human-rights
Council of the European Union. (2024). Council conclusions at the start of the 13th World Trade Organization Ministerial Conference. URL: https://www.consilium.europa.eu/en/press/press-releases/2024/02/25/council-conclusions-at-the-start-of-the-13th-world-trade-organization-ministerial-conference
European Commission. (2023). WTO appraises EU’s trade policy and practices. URL: https://policy.trade.ec.europa.eu/news/wto-appraises-eus-trade-policy-and-practices-2023-06-05_en
European Commission. (2025). Joint Statement: United States – European Union Framework on an Agreement on Reciprocal, Fair and Balanced Trade. URL: https://policy.trade.ec.europa.eu/news/joint-statement-united-states-european-union-framework-agreement-reciprocal-fair-and-balanced-trade-2025-08-21_en
European Commission. (n.d.). EU – Canada Comprehensive Economic and Trade Agreement (CETA). URL: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/canada/eu-canada-agreement/ceta-chapter-chapter_en
European Commission. (n.d.). EU – Chile (Modernised Agreement). URL: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/chile_en
European Commission. (n.d.). EU – Japan Economic Partnership Agreement (EPA). URL: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/japan_en
European Commission. (n.d.). EU – New Zealand Free Trade Agreement (EUNZ FTA). URL: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/new-zealand_en
European Commission. (n.d.). European Union – South Korea Free Trade Agreement (EU – Korea FTA). URL: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/south-korea_en
European Commission. (n.d.). Sustainable development in EU trade agreements. URL: https://policy.trade.ec.europa.eu/development-and-sustainability/sustainable-development/sustainable-development-eu-trade-agreements_en
European Commission. (n.d.). Trade for All: Towards a more responsible trade and investment policy. URL: https://www.europarl.europa.eu/cmsdata/92121/Commission%20Communication.pdf
European Council. (n.d.). Conclusion of the European Council. URL: https://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/acfa4c.htm
European Parliament. (2023). Trade and Sustainable Development in EU free trade agreements: State of play. URL: https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/754613/EPRS_BRI(2023)754613_EN.pdf
European Union. (n.d.). Strategy for sustainable development. URL: https://eur-lex.europa.eu/EN/legal-content/summary/strategy-for-sustainable-development.html
Gianvincenzi, M., et al. (2024). Eco-Design and Battery Regulation: Strategies for Sustainable Lifecycle Management. Journal of Circular Economy, 2(3). https://doi.org/10.55845/FDXP6482
United States. (n.d.). Chapter 24: Environment of the United States-Mexico-Canada Agreement (USMCA). URL: https://ustr.gov/sites/default/files/IssueAreas/Environment/USMCA_Environment_Chapter_24.pdf
iPoint Systems Blog. (n.d.). EU Battery Regulation: New Requirements Across the Life Cycle. URL: https://go.ipoint-systems.com/blog/eu-battery-regulation

FOR AUTHORS

License Contract

Conditions of Publication

Article Requirements

Regulations on Peer-Reviewing

Publication Contract

Current Issue

Frequently asked questions

INFORMATION

The Plan of Scientific Conferences

OUR PARTNERS

Journal «The Problems of Economy»

The site and its metadata are licensed under CC BY-SA.

Write to webmaster