Trade Can Support Sustainability – Corvinus University Has Led EU Trade4SD Project

The aim of the Trade4SD (Trade for Sustainable Development) project was to explore how international trade can help advance sustainable development goals. The project began in 2021, before EU funding restrictions affecting the university were introduced, and concluded in May this year.
Project leader Attila Jámbor – who also heads the Institute for Sustainable Development at Corvinus – sees it as a major achievement that the university acted not only as a partner but as the coordinator of such a large-scale international project. “Trade4SD was backed by €4 million in funding, which is a significant amount in the Hungarian context, especially considering the high level of competition across Europe for these grants,” he noted. The project proposal, submitted four years ago, was rated as outstanding, scoring 14.5 out of a possible 15 points in the EU’s professional evaluation.
The Trade4SD consortium included 13 partners from 10 countries, mainly in Europe, with additional collaborators from Ghana and Vietnam. The research relied on cooperation with several international organisations and institutions, including relevant Directorates-General of the European Commission, the UN’s Food and Agriculture Organisation (FAO), the Organisation for Economic Co-operation and Development (OECD), and the World Trade Organisation (WTO). National authorities and ministries were also involved in the research, making it possible to form a comprehensive picture of each country’s situation.
The main conclusion of the research is that trade liberalisation remains the general direction to follow, but achieving sustainability requires targeted agricultural and environmental policy measures, such as the EU’s carbon border tax or efforts to curb deforestation. Experts involved in the project argue that the goals of trade and sustainability should not be in conflict. “Sustainability works when the interests of producers and local communities are taken into account. Trade is a tool, not a barrier,” explains Jámbor. This is why the project recommends, among other things, increasing rural incomes, supporting smallholder access to markets, and promoting women’s employment in agriculture (a recent Corvinus study also highlighted the benefits of this, showing that women tend to farm more sustainably – Ed.).
Among the project’s recommendations are: embedding sustainability goals more firmly in trade agreements; giving greater consideration to local interests during negotiation; measuring sustainability levels within trade agreements; and improving cohesion and coordination in EU decision-making processes. “It’s common for rules to be written in a Brussels office without asking local communities what they actually want,” Jámbor points out.
As the project was supported by the European Commission, its recommendations are primarily aimed at EU policymakers. However, they are also relevant for national governments as they shape their trade and agricultural policies. On a national level, Jámbor believes the results could help improve coordination between ministries responsible for agriculture and rural development in Hungary and foster a broader professional dialogue.
Following the official closing of the project in May, several academic publications will present the findings. In August, the highly regarded journal EuroChoices will dedicate a special issue to the Trade4SD results.
Jámbor does not deny that the current US administration’s trade policies run counter to the aims of the project. “The US government is focused solely on promoting its own interests, while our project is about trying to consider global ones – because you can’t achieve sustainability without global cooperation,” he stresses.