Drawing the line between sustainable and unsustainable fish: product differentiation that supports sustainable development through trade measures

Background: Unsustainable production practices and increased demand for fish have aggravated negative social, ecological, and environmental impacts in fisheries and aquaculture. Measures to correct bad practices have mainly been introduced by private actors. However, there is increased demand for state intervention, particularly regarding trade regulations for fish and other agricultural products. Building on discussions about product differentiation through trade measures that favour sustainable products, this study looked at how sustainable and unsustainable fish has been distinguished in Switzerland. In interviewing experts in the fish trade and sales business in Switzerland, the research aimed at understanding the actors and forces that shape the concept of sustainable fish in the country. Results: Three ways of product differentiation for sustainable fish by private actors were identified in Switzerland: ecolabels, “Swiss produce”, and recommendations in the form of a “consumer guide for fish”. Currently, price is the main constraint on consumption of sustainable products in the country. Defining “sustainable fish” is challenging and subject to interpretation. All existing measures to differentiate sustainable from unsustainable fish products in Switzerland have shortcomings, particularly in terms of discrimination and inclusiveness. Fish ecolabels play a key role in product differentiation, but experts believe that they fail to accommodate all aspects of sustainability. Conclusion: Our findings imply that the Swiss state should play a more important role if it aims to fulfil the promise of article 104a of the Swiss Constitution, which seeks to foster sustainable production and cross-border trade relations that contribute towards this goal. Preferred trade treatment for sustainable fish products is a potential option to increase the production and consumption of sustainable fish. When designing measures for product differentiation, a careful choice is paramount to address sustainability in a holistic, inclusive, and transparent way and in order not to violate existing trade obligations. Due to similarities between the Swiss and other fish markets, we assume that governments in general and members of the European Union in particular must play an active role in shaping the definition and trade of sustainable fish products if they seek to comply with their sustainability commitments

(Un)sustainability in the Swiss fish market

Sustainability of fish as a food is a highly complex issue, especially in a global market with wildly varying measures and priorities in fish production and harvesting. Urs Baumgartner, environmental scientist, and Dr Elisabeth Bürgi Bonanomi, legal scientist and expert in sustainable trade regulation, tried to get a clearer picture of sustainability in the fish market of Switzerland, which imports almost all its fish. They discovered an urgent need for quality assurance by the state, provided for by nuanced frameworks for public procurement and trade

Illicit Financial Flows: Concepts and Definition

This article reviews and challenges some key tenets of the debate on illicit financial flows (IFFs), and articulates some lines of legal reasoning that can help to define the boundaries of what constitutes illicit flows (or not). The analysis challenges the ‘narrow’ definition of IFFs, arguing that it mis-characterises the legal terrain. It then brings much-needed clarity to the ‘broad’ definition of IFFs, by anchoring it in legal concepts, rather than ethics. The analysis tackles two further contested areas in the debate: the tension between ‘development’ and ‘legal’ approaches to IFFs, and aggregate versus disaggregate approaches under the IFF agenda. In these areas, the analysis briefly rehearses the state of the debate, questions some entrenched assumptions, and presents ideas that help to reconcile conflicting views. It bridges development and legal perspectives by firmly embedding the legal discourse in the Sustainable Development Agenda and the SDGs. It concludes with some summary observations

Countering Commodity Trade Mispricing in Low-Income Countries: A Prescriptive Approach

Commodity trade mispricing, especially the undervaluation of commodity exports, disproportionately harms low-income countries that depend on commodity exports for most of their export earnings. Such countries should (re)consider adopting rule-based pricing methods as a prescriptive alternative to transaction-based valuation systems. This article firmly grounds rule-based pricing in market parameters. It calls for a hybrid form of market-based price regulation in the framework of public–private models of supply chain governance, also integrating advice from independent experts. This article addresses this policy option within the parameters set by international law, considering state regulatory scope under international trade and tax law. It challenges the popular objection that prescriptive pricing methods breach international trade and tax rules. Instead, it emphasizes the complexity of any such legal assessment under international economic law

Better, But Not Sustainable: The Impacts of Switzerland’s Sector Agreement on Soy Production in Brazil

The production and expansion of soy feed in Brazil generates various environmental and social harms. The vast majority of this soy is genetically modified (GM) and non-certified. But there is a small share of soy feed production that occurs under certification schemes stipulating social and environmental criteria, as well as a small share of production of non-genetically modified (non-GM) soy. These two production modes partly overlap. Based on a sector agreement, Switzerland exclusively imports certified non-GM soy feed. In the present article, we conduct a literature review to explore who drives this decision for non-GM soy feed and, more importantly, whether it has discernible sustainability impacts on the ground in production areas. Literature and data analysing the impacts of certified non-GM soy feed are scarce. Based on the scant but a little less scarce available data on certified soy, we conclude that the Swiss model represents an improvement, but is not truly sustainable. We recommend that more data be made available which enables robust linking of Swiss consumption to production in Brazil. Finally, we recommend conducting more research into how a sustainable Swiss feed–meat nexus could be designed

Co-creating solutions for the sustainable development of benzoin landscapes in Laos: A case study to reveal the aspirations and needs of local residents

To stay within the planetary boundaries, a radical transformation of all economic systems is needed. This includes rural areas in the Global South, where the quest to overcome poverty all too often focusses on short-term economic growth with detrimental dis-benefits for of natural resources and biodiversity. Sustainable landscape investment is promising to operationalize transformative pathways towards sustainability as it seeks to contribute to multiple elements of landscape sustainability and human well-being: economic production, ecosystems, biodiversity, social bonds as well as financial returns. Together with local benzoin farming communities in shifting cultivation landscapes of Laos we co-developed desirable and most feasible scenarios for the future land use. We identified opportunities that facilitate, and obstacles that hinder the realization of these scenarios by use of backcasting, a transdisciplinary research method. Our study showed that benzoin farming communities see their unique heritage on sustainable benzoin resin production as key asset to reach their vision for the future. They strive for socio-economic development: They developed scenarios based on the intensification of agricultural land use and diversification of income sources through the production of agricultural commodities. Villagers had no knowledge on how to integrate the safeguarding of natural resources and biodiversity conservation into their portfolio of livelihood activities, and financial schemes for these activities had so far not been explored with them. Village communities desired investments in social infrastructure in their villages and material wealth for their families. They identified main obstacles for sustainable benzoin farming as (1) lack of technical innovation and local processing, (2) lack of government support for marketing; (3) lack of market knowledge and price negotiation power; and finally (4) lack of rule of law (theft, illegal benzoin trading). Our results and learnings provide base knowledge for the establishment of a living-lab for sustainable landscape investment in benzoin resin production landscapes of Norther Laos. They furthermore feed into current discussions in Switzerland on how to further sustainable trade of agricultural products and provide insights on potential future contributions from Swiss development cooperation for supporting just transitions in shifting cultivation areas

Kleiner Staat, grosse Unternehmen, die Schweiz in der Ordnung der Globalisierung

Transnationale Gouvernanz sucht internationale Unternehmenstätigkeiten einzubetten, das heisst zu regeln und zu legiti-mieren. Besonders wichtige und beispielhafte Instrumente sind hierfür die Sustainable Development Goals der UN Agenda 2030, die UN-Leitprinzipien für Wirtschaft und Menschenrechte sowie die OECD-Leitsätze für multinationale Unternehmen. Welches sind die langfristigen Entwicklungen im Wechselspiel von wirtschaftlicher Globalisierung und transnationaler Gou-vernanz? An welchem Punkt stehen wir heute? Welches sind die aktuellen und potenziellen Rollen von Politik und Wirtschaft in der Schweiz als Betroffene und Gestalter transnationaler Gouvernanz? Dies sind die Fragen, die das Grundlagenpapier aus einer historischen und rechtlichen Perspektive anhand der drei genannten Regelwerke zu beantworten versucht