Could global norms enable definition of sustainable farming systems in a transformative international trade system?

This paper aims to support differentiation between sustainable and unsustainable agricultural production, with a view to enabling a transformative agricultural trade system by incentivizing sustainable agricultural production. We argue that transformative governance of corresponding global trade flows will need to provide support to the weaker participants in production systems, above all small-scale farmers in the global South, in order to support their food security and a path out of poverty as well as global environmental goals. The present article seeks to provide an overview of internationally agreed norms that can serve as basis for differentiation between sustainable and unsustainable agricultural systems. Such common objectives and benchmarks could then be used in multilateral and binational trade agreements. We propose a list of objectives, criteria, and benchmarks that could contribute to formulation of new trade agreements that strengthen producers who are currently marginalized in international trade flows. While acknowledging that sustainability cannot be easily measured and defined for all site-specific conditions, we posit that it is nevertheless possible to identify such common objectives and benchmarks, based on internationally agreed norms

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

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

Prescriptive Pricing and Stabilisation Clauses in Investment Agreements

‘Prescriptive’ pricing methods, which employ reference prices and fixed margins for tax purposes, have gained prominence as a pragmatic approach to combatting commodity trade mispricing and tax evasion, especially for countries with limited tax administration capabilities. While these methods hold promise for facilitating enforcement, reducing administrative burdens, and curtailing abusive tax avoidance practices, concerns have arisen about their potential deviation from established international rules and principles. The perceived risk of legal liabilities and investor claims, including ‘unfair treatment’ under investment treaties, acts as a significant uncertainty factor in the adoption of such methods. Thus, the present chapter addresses the legal aspects of ‘prescriptive’ pricing methods within the parameters of international investment law, offering a multifaceted perspective on challenges involving the scope of defence arguments that states can mobilise under international investment law to justify such methods and exploring the right and duty of states to regulate corporate conduct and economic activities under human rights law, as well as the practical limitations to this approach in present lawmaking practices

Mehr Fairness für arme Länder: Besteuerung von Rohstoffexporten gerecht gestalten

For decades, countries in Africa, Asia, and Latin America have remained trapped in poverty despite continuously exporting valuable commodities with which they are richly endowed – including oil, metals, plant proteins, grains, and more. This policy brief outlines one of the key causes of this harmful, unjust phenomenon: trade mispricing. More importantly, it introduces a raft of measures that can be taken to stop revenue losses from trade mispricing – in particular measures that commodity-exporting poor countries can implement unilaterally.Seit Jahrzehnten leiden viele Länder in Afrika, Asien und Lateinamerika unter Armut, obwohl sie wertvolle Rohstoffe exportieren – wie Erdöl, Edelmetalle, Kupfer, pflanzliche Rohstoffe, Getreide und vieles mehr. Eine Ursache dieses gravierenden Missstands sind Fehlbewertungen im Rohstoffhandel, die eine angemessene Besteuerung der Exporte verhindern. Dieser Policy Brief zeigt auf, was sich dagegen tun lässt. Der Schwerpunkt liegt dabei auf Massnahmen, die rohstoffexportierende arme Länder von sich aus umsetzen können

Curbing Commodity Trade Mispricing: Simplified Methods in Host Countries

This report outlines simple regulatory tools and techniques that developing countries could unilaterally implement to track down commodity trade mispricing. To a varying extent, these techniques revolve around the use of reference prices for benchmarking purposes in the interests of administrative convenience and simplicity