Methodology for Impact Assessment of Free Trade Agreements

The methodology is to be applied as part of the Commission`s overall trade impact assessment process and applies to both ex ante and ex post evaluations. It is flexible and can be used in all types of trade agreements and with various trading partner countries. In addition, the global approach could also be slightly generalised and applied to the assessment of a wider range of environmental impacts of free trade agreements. This publication presents the selection menu of methods available to assess the impact of free trade agreements. The methodology underpins the implementation of the EU Biodiversity Strategy to 2030, in particular the Commission`s commitment to “better assess the impact of trade agreements on biodiversity, with monitoring to strengthen the biodiversity provisions of existing and new agreements, where appropriate”. This commitment was explicitly endorsed by Member States in the context of the Council conclusions in 2020. It is aimed primarily at policymakers in developing countries and aims to equip them with economic knowledge and techniques that will enable them to conduct their own economic evaluation studies on existing or future free trade agreements, or at least to critically examine the results of impact assessment studies carried out by others. Trade liberalization leads to changes in economic sectors that increase or decrease demand – and thus production – in trading partner countries. These changes can impact biodiversity, ecosystems and the services they provide. Therefore, the impact of EU free trade agreements (FTAs) on biodiversity needs to be systematically assessed.

At a minimum, these impacts should be assessed qualitatively using existing case studies, expertise and stakeholder interviews. For the main impacts on biodiversity, a quantified analysis should be carried out where possible. The guide will be available on the European Commission`s website….