Introduction
Global trade is advancing as sustainability concerns move from the periphery to be considered among the factors affecting market access requirements. For Africa, this shift presents both unprecedented opportunities and formidable challenges. The continent’s micro, small, and medium-sized enterprises (MSMEs), who form the backbone of African economies, are increasingly confronted by a proliferation of sustainability standards. While these standards can serve as powerful tools for sustainable development and market integration, the insertion of varied norms, standards and procedures into policy frameworks can often act as a barrier to trade disproportionately affecting MSMEs.
This piece discusses green trade and sustainability standards, highlighting the various mechanisms by which a multiplicity of relevant measures can create trade barriers for MSMEs. This analysis focuses on the agricultural sector, with the intention of advancing ongoing conversations that contribute to the establishment of a single African market, in line with the objectives of the AfCFTA. The piece highlights Eco-Mark Africa’s role in offering a partial solution, examines the limitations of harmonisation alone, and the role of the AfCFTA framework. The analysis argues for a combined approach that includes, inter alia mutual recognition agreements (MRAs), and capacity-building for the relevant actors in the region. The piece concludes by emphasizing that, when properly designed and implemented, standards can be enabling tools for African integration and for promoting regional value chains, but this is only one piece of a rather complicated puzzle that is far from completion.
Defining Green Trade and Sustainability Standards
Green trade refers to the exchange of goods and services embodying environmental sustainability standards, relying upon less environmentally harmful processes in production. The analysis also encompasses goods whose end-use generates environmental benefits, and technologies or equipment designed to reduce, treat, or monitor environmental damage.[1] We thus focus on both products and production processes.
Sustainability standards are statements that lay out certain basic requirements to be met, relating to the composition or production processes of goods in order for them to be certified as sustainable according to stated criteria, relating to a wide range of sustainability metrics.[2] These standards may be voluntary or mandatory, and are typically developed by international organizations, governments, industry groups, or multi-stakeholder initiatives, depending on their nature.[3]
Voluntary sustainability standards (VSS), such as the Rainforest Alliance, are privately developed certification schemes and eco‑labels that signal environmental and social practices to buyers, and are not legally binding. Technical or mandatory regulations, on the other hand, are government‑enacted rules that legally govern product characteristics and conformity procedures. Both voluntary and mandatory standards operate through conformity assessment procedures, but differ in legal force and governance.