The Forest, Agriculture and Commodity Trade (FACT) Dialogue emphasizes the importance of  building an understanding of the common factors necessary for sustainable production. This involves examining approaches within the beef, cocoa, palm oil, and timber industries among FACT participating countries that are producing and consuming these commodities.

Under the Trade and Market Development theme, the FACT Secretariat has encouraged discussions among FACT members concerning options for a more cooperative approach to market recognition of sustainably-produced products. This focuses on examples of national initiatives that could facilitate or strengthen market recognition, and the inclusion of smallholder farmers is also emphasized.

Working groups are exploring best practices and mechanisms associated with sustainable production, as well as a better understanding of the needs of producer countries concerning market recognition of sustainably-produced products.

An independent scoping study and a sustainable production matrix have been developed and were presented to FACT member countries in late 2024. That matrix maps out sustainability objectives and issues to be applied to the respective commodities and countries. Developed around four main components of sustainability, the matrix compares the environmental, social, economic, and political factors of sustainability for representative examples of commodities from both consumer and producer countries. It also emphasizes four common priority areas highlighted in the scoping study: ecosystem protection, working conditions, livelihoods, and transparency.

The matrix provides a valuable tool for countries to discuss sustainability in a systematic manner and within the local context. It lists objectives and action areas under the relevant categories, and criteria for sustainability. Countries can use this structure in sharing knowledge and best practices.

A high priority is placed on supporting the needs of producer countries with regard to upcoming  legislation and changing regulations concerning sustainability and trade. New and emerging due diligence regulations are an important topic of interest within the FACT Dialogue. These measures include:

• a new European Union Deforestation-free Regulation (EUDR)
• changes to the United Kingdom’s Environment Act and proposed regulations for the use of forest risk commodities (FRC) in commercial activities in the UK 
• EU Forest Law Enforcement, Governance and Trade (FLEGT) and Voluntary Partnership Agreements (VPAs). 

Greater communication and understanding between producer and consumer countries on regulatory issues and sustainability of commodities is important, with the FACT Dialogue providing a forum for such discussions.