Published in World Development (Volume 200, April 2026)
This study examines the impact of trade agreements and their specific provisions on the sustainability of marine fisheries resources. Using global data on the Mean Trophic Level (MTL) between 1950 and 2018 and a comprehensive dataset of environmental provisions from trade agreements signed between 1947 and 2018, we estimate the impact on the MTL of signing (i) a free trade agreement and (ii) a free trade agreement including fishery-related provisions. To address potential endogeneity problems associated with fisheries-related provisions, we use a difference-in-differences (DID) propensity score matching method.
Our results show that while trade agreements tend to negatively impact the MTL, including fisheries-related provisions offsets this negative impact among signatory countries. By examining the potential mechanisms underlying this result, we are able to temper the optimistic findings in the existing literature on the beneficial environmental outcomes of environmental provisions. Our findings suggest that these provisions do not foster the adoption of more effective resource management practices. Instead, they appear to reduce trade opportunities, which is contrary to the objective of trade creation in trade agreements.
