Global Sustainability in an Interconnected World: The Role of the EU in Trade and Value Chains

This paper explores how sustainability transitions are unfolding within Global Value Chains (GVCs) and Global Production Networks (GPNs), focusing on how environmental and social costs, governance capacity, and value capture are unevenly distributed across sectors and territories. Drawing from case studies in Peru, Vietnam, and Italy, we examine how sustainability is shaped by sector-specific dynamics and the interplay between global standards, local institutions, and innovation systems. We develop an integrated analytical framework combining GVC/GPN theory, global sociotechnical regimes, and the Sustainable Human Development (SHD) approach, structured around the 5Ps (People, Planet, Prosperity, Peace, and Partnership). Our findings reveal three core mechanisms driving sustainability tensions: (1) asymmetrical distribution of costs and risks, (2) institutional misalignment between global norms and local capabilities, and (3) lead-firm control over upgrading opportunities. We show how these mechanisms reinforce inequality and limit inclusive, ecological upgrading, particularly in Global South regions. The paper concludes by outlining actionable policy levers, at EU, national, and multilateral levels, to promote fairer, more sustainable competitiveness in global production systems.