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EU plans sanctions if partner countries breach labour and sustainability rules

Talks with India will present first challenge as EU increasingly uses economic muscle to change policies elsewhere

The EU will propose new rules this week that would allow it to impose trade sanctions against countries that breached conditions on labour rights and climate change in bilateral deals with the bloc.

Valdis Dombrovskis, EU trade commissioner, said in an interview he wanted to put “sustainability at the heart of trade policy” by improving enforcement of the trade and sustainable development (TSD) clauses in the deals.

The move comes days after the World Trade Organization clinched its first agreement on sustainability and trade, limiting subsidies for vessels fishing in unregulated international waters and for overfished stocks.

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