Equity in unilateral value chain policies

Abstract

Unilateral value chain policies have recently emerged as a key strategy of international land use governance. They're part of a broader trend towards trade-based environmental policies, from corporate due diligence to sustainability certification and trade moratoria, that has been critiqued for reinforcing inequities in global trade. Such critique has been heightened by the current rise of unilateralism, whereby states impose environmental rules on imported commodities. Debates have ensued over the political legitimacy of unilateralism, the unequal distribution of its socio-economic impacts, and the need to safeguard local producers and communities. This paper informs these debates by developing and applying a framework for monitoring equity across scales and phases of the policy process. The framework is applied to the 2023 EU Deforestation-free Regulation (EUDR), which aims to stop EU imports of commodities linked to deforestation. We find that EUDR policy references equity as a desired outcome, but excludes affected actors from the design process. Drawing on the case of cocoa in Ghana, we identify diverse potential impacts on smallholder farmers and economies. Opportunities for the EUDR to improve equity include embedding non-EU stakeholders in international decision-making processes, enhanced and equitable partnerships with producing countries and major investments in farmer support. The paper concludes by providing an equity checklist and agenda for monitoring progress, adaptable to a wide range of unilateral and trade-based policies. Show more