The uneasy marriage of private standards and public policies for sustainable commodity governance

Global value chains for commodity agriculture have been the target of a broad array of sustainability governance efforts led by both public and private actors. In this paper, we ask: how do public policies and private standards interact in commodity-exporting countries? To answer this question, we examine the interactions between voluntary sustainability standards and domestic public policies in three cases: soybean farming in Brazil, palm oil production in Indonesia, and pangasius aquaculture in Vietnam. We find that in each case, public and private governance interactions go through a period of competition before ending in a state of reluctant complementarity. We argue that this reluctant complementarity results from the need of governments in commodity-producing countries to maintain export markets for their goods. This finding challenges the idea that complementarity between public and private sustainable commodity governance is driven by goal alignment and tempers expectations that standards and certifications can mitigate deforestation.

Automated summary

In this paper, the interactions between voluntary sustainability standards and domestic public policies in commodity-exporting countries are examined through case studies on soybean farming in Brazil, palm oil production in Indonesia, and pangasius aquaculture in Vietnam. The findings suggest that public and private governance interactions initially involve competition but eventually lead to reluctant complementarity, driven by the need of governments in commodity-producing countries to maintain export markets. This challenges the notion that complementarity between public and private sustainable commodity governance is driven by goal alignment and dampens expectations of standards and certifications mitigating deforestation.