The Sustainable Trade Issues and Policies

Dear Colleagues,

Global trade is slowly becoming the key aspect of the global economy agenda. Its character, structure, and different stakeholders have made international trade activities an extremely specific and difficult part of the economic agenda of any country around the world. The global economy has become so interconnected that important trends and events in one region can have substantial effects on the opposite side of the globe. Global economic tendencies refers to current issues of the global economy that shape the future economy. We can liken global economic tendencies to Brexit and Donald Trump policy directions. It is also possible to see the effort of many countries, especially EU members seeking to protect the living environment and to make global economy and trade more sustainable. A classic example of such efforts is the so-called “Green Deal” and “Farm to Fork Policy” introduced by EU authorities in 2019. According to the new EU vision, it is necessary to pay attention to production conditions of imports coming to the EU market. The EU and other countries are ready to apply import restrictions for such imports, including agricultural commodities, which do not comply with environmentally friendly requirements, especially in relation to CO2 emissions and deforestation issues. The character of the current economy and trade is affected by several extremely important processes which have been typical in the last two decades. Those processes are, especially, internationalization, liberalization, specialization, deindustrialization, labor and environmental dumping, etc. All those processes have changed the character of the global and regional economy and are connected to structural changes and transfers that have happened around the world. The liberalization of global trade and free movement of capital and finance are connected to the process of massive transfer of economy power from West Europe and North America to transitional and emerging countries and regions. Cheap labor, land and natural resources have attracted foreign capital to transfer significant capacities to emerging regions, the growth of their economy performance has fostered their trade activities, and the growth of the economy has stimulated the growth of emerging countries’ demand as their purchasing power increases. The constantly growing demand is connected to several key drivers, e.g., the growth of the population, the growth of supply and demand, the growth of household consumption, and private and public investments. All those factors lead us to think about the future sustainability of the economy and trade development. The problem is not only related to natural resource sustainability, but also to living environment sustainability and social sustainability. However, the economy and trade performance are increasing and the global society is suffering because of unequal trade surplus redistribution among individual stakeholders. For many countries, it is rather difficult to support the process of even deeper liberalization and internationalization, as their profit related to those processes is rather low. On the other hand, there are many other stakeholders whose interest is in conflict with the process of deeper cooperation and internationalization as the economic power of many countries is changing, and it is possible to even see the process of transfer of economic power from traditional countries to emerging economies, e.g., G7 vs. E7.

The hot topic of the current global trade agenda is the coronavirus crisis. Coronavirus has managed to affect the process of specialization and internationalization at the level of individual countries, regions, and even more so at the global level. Individual countries have changed their policies and attitude to international trade as many policy makers are interested in fostering the role of individual national economies. Trade sustainability—a very popular topic before the coronavirus crisis—is at a crossroads. The basic definition of sustainability is being heavily discussed, and individual key stakeholders are looking for a new trade vision and strategy. The key driver of sustainable trade ideas is the European Union. According to EU authorities, sustainable trade occurs when the commercial exchange of goods and services generates social, economic, and environmental benefits in accordance with the fundamental principles of sustainable development:

• Creation of economic value;
• Reduction of poverty and inequality;
• Preservation and reuse of environmental resources.

The promoters of these practices want to put the emphasis not only on decent working conditions, but also on the fact that this trade is carried out with a genuine consideration for environmental resources and a concern for the preservation and reuse of raw materials. Since the Rio Earth Summit in 1992, consumers have become increasingly sensitive to ecological issues and the living conditions of the poorest populations. In response to this gradual growth of awareness, as an extension to fair trade initiatives, the term “sustainable trade” began to appear a few years ago. The principles of sustainable trade are all the more essential when developing countries are the first victims of global warming, which results in drought and floods, to the detriment of the small farmers making up the bulk of the population in these countries.

The contemporary situation of international trade will undergo subsequent changes. The evolutionary nature of international trade and economy development is a natural process, caused by the need to adapt to the changing reality, as well as the economic, social, and living environment. It is important, therefore, due to the close connection between global economy and trade on one side and climate change, living environment, and social needs on the other side, for this Special Issue to become a collection of scientific papers and valuable recommendations that will help to design and propose a model for sustainable trade development. Sustainable trade and trade policy will guarantee economic stable long-term economy development in equilibrium and harmony with social expectations and the requirements of the natural/living environment.

Prof. Dr. Mansoor Maitah
Dr. Luboš Smutka
Guest Editors

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•  World trade
•  Regional trade
•  Competitiveness
•  Sustainable trade development
•  Climate change
•  Public policies for trade development
•  Green Deal
•  Dumping
•  Trade policy
•  Trade strategies
•  Commodity structure
•  Protectionism
•  Liberalism
•  GATT/WTO
•  Trade diversity
•  Specialization
•  Foreign direct investments
•  Internationalization
•  Globalization
•  Nationalism
•  Regional approach
•  European Union (Common Trade Policy)
•  Merchandise trade
•  Trade in services
•  Agri-food trade
•  Trade in natural resources and energies
•  Ecology of trade
•  Life cycle
•  Trade diversion and trade creation effects
•  Equity