Model-based Lessons on How Policy Measures Affect the Sustainability of Agri-food Trade

Abstract

In an era marked by intensifying global interdependence, trade policy has emerged as a decisive force influencing agricultural development, food security, environmental integrity and social equity. The European Union (EU), as a major actor in global agricultural trade, has embraced a dual agenda: to promote trade in food and agricultural products and to foster sustainable development. However, while EU trade agreements increasingly reflect sustainability principles, critical gaps remain in understanding the implications of trade liberalisation through the lens of the EU's Sustainable Development Goals (SDGs). This article synthesises the model-based findings of the two TRADE4SD and MATS H2020 projects as both are focusing on social, environmental and economic impacts of international agricultural trade and trade policies in complementary ways. The article demonstrates that while liberalised trade can improve market efficiency and food availability, it can also exacerbate inequality and environmental degradation if not accompanied by robust institutional and financial support measures. The model-based results affirm that EU trade policy must adopt an integrated approach - embedding economic, social and environmental dimensions in its framework while accounting for local conditions - to fully realise the potential of trade as a driver of sustainable development.