strategy

Applying trade measures to enforce environmental policies

Synonyms:

Creating environmentally sound trading practices

Context:

International cooperation in the environmental field is growing, and in a number of cases trade provisions in multilateral environment agreements have played a role in tackling global environmental challenges. Trade measures have thus been used in certain specific instances, where considered necessary, to enhance the effectiveness of environmental regulations for the protection of the environment. Such regulations should address the root causes of environmental degradation so as not to result in unjustified restrictions on trade. The challenge is to ensure that trade and environment policies are consistent and reinforce the process of sustainable development. However, account should be taken of the fact that environmental standards valid for developed countries may have unwarranted social and economic costs in developing countries.

Implementation:

This strategy features in the framework of Agenda 21 as formulated at UNCED (Rio de Janeiro, 1992), now coordinated by the United Nations Commission on Sustainable Development and implemented through national and local authorities.

International cooperation in the environmental field is growing, and in a number of cases trade provisions in multilateral environment agreements have played a role in tackling global environmental challenges. Trade measures have been used in certain specific instances to enhance the effectiveness of environmental regulations for the protection of the environment. Such regulations aim to address the root causes of environmental degradation in a manner which does not result in unjustified restrictions on trade. The challenge is to ensure that trade and environment policies are consistent and reinforce the process of sustainable development, taking into account the fact that environmental standards valid for developed countries may have unwarranted social and economic costs in developing countries.

Counter Claim:

Trade policy measures for environmental purposes should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. Unilateral actions to deal with environmental challenges outside the jurisdiction of the importing country should be avoided. Environmental measures addressing international environmental problems should, as far as possible, be based on an international consensus. Domestic measures targeted to achieve certain environmental objectives may need trade measures to render them effective. Should trade policy measures be found necessary for the enforcement of environmental policies, certain principles and rules should apply. These could include, [inter alia], the principle of non-discrimination; the principle that the trade measure chosen should be the least trade-restrictive necessary to achieve the objectives; an obligation to ensure transparency in the use of trade measures related to the environment and to provide adequate notification of national regulations; and the need to give consideration to the special conditions and development requirements of developing countries as they move towards internationally agreed environmental objectives.

Broader:

Managing technological change
Developing international environmental policy
Creating environmentally sound trading practices
Expanding trade union participation in sustainable development

Narrower:

Greening the GATT
Using environmental labelling
Recognizing different situation of developing countries in environment and trade policies

Facilitated by:

Reforming domestic trade policy
Establishing trade information points
Protecting trade between developing countries
Expanding trading opportunities for developing countries
Adapting environmental policies to changes in production and trade

References:

Organisation for Economic Co-operation and Development: Future Liberalisation of Trade in Environmental Goods and Services: ensuring environmental protection as well as economic benefits

Subjects: