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International Trade and Environment

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International Trade and Environment
- Environmental and Trade Conflicts
- Stakeholders and Interests
- Diplomacy
- Existing Solutions
- Proposed Solution

Published in: Business, Technology
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International Trade and Environment

  1. 1. EU TRADE perspectives UNEP negotiation Developping stakeholdersBUSINESS REALISM WTO governments countres Developed multilateral China Countries VALUESGLOBAL COMPACT MNEs education NAFTA SME DIPLOMACYawareness ECONOMY NGOs GATT AGREEMENT CIVIL SOCIETY KYOTO SUSTAINABILTY ineffectiveness Environment Doha PROFITS WEO COOPERATION green WETO USA ENVIRONMENT AND INTERNATIONAL TRADE Diplomacy – IMA 2 12.12.2013
  2. 2. Environment and International Trade Case Overview Problems related to Environment and International Trade - What impact do trade have on the environment? - Responsible? - Should trade rules be changed to meet the Environmental standards? 3 perspectives  Environmentalist  Economist  Business Community 12.12.2013 Trade and Environmental Conflicts  NAFTA  EC  GATT Multilateral Environmental Agreements  The Basel convention  CITES  Tropical timber (ITTA/ITTO)  The Montreal Protocol Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 2
  3. 3. Environment and International Trade Evironmental and Trade Conflicts Organisation Date of Establishment Who was involved Conflict/discussion Did it work out? (problems) NAFTA Official negotiation 1990, Approved agreement in 1993 Governments & Environmentalists from all three countries (U.S, Canada & Mexico) Free trade agreement among US, Canada & Mexico • Objections about maquiladora factories • Increased trade & economic growth= more pollution • lower environmental and health standards in U.S & Canada • Jobs lost in US • Several nations in EC • EC as the authority to set the same directives to every nation Economic reason which led to a Harmonization of member-country standards (recycle law Germany) • Solutions of standardization disrupted trade, made it ineffective or raised the trade barriers (German recycling law =no effect) • Over 200 directives and regulations (2000) • Act as a single neglecting unit of its members US MMPA Regulations to ban import of tuna caught with fishing methods fatal to dolphins. MMPA was incompatible with GATT precepts and the “global common of the world” was beyond control of one single nation Mexico as the exporter to US, opposed the agreement and said they was discriminated by the rules • US could not prohibit imports of tuna products from Mexico because it did not match the US regulations . • GATT  U.S. could not use domestic legislation to protect dolphins outside its own territorial limits. • Eco-colonialism EC Directorates for Environment and Trade From mid 1980s GATT Circulated from 1988, never adopted 12.12.2013 • GATT, MMPA, Mexico and US Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH • The right of every country to establish its own standard as long as it sought legitimate environmental objectives First agreement with connection of trade and development. NAAEC (North American Agreement on Environmental Cooperation) 3
  4. 4. Environment and International Trade Problem(s) at Stake  Ineffectiveness and non acceptance of the governmental approach to cohere environment and trade.  Environmental Standards as Discrimination against Developing Countries DILEMMA OF VALUES IN TERMS OF ENVIRONMENT AND INTERNATIONAL TRADE  Environmental Goals as Legitimation for Suspending the Usual Trade Rules 12.12.2013 Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 4
  5. 5. Environment and International Trade Stakeholders & Interests States & Government • Ruling their country & focusing on their country’s interests • Enacting laws which could either support the environment, international trade or combine both Environmentalists • Protecting the natural environment • Economic development leads to more intensive use of global resources and greater volume of pollutants • Wish a international cooperation Economists • Support free trade • Some reject the bad influence of international trade on the environment (i.e. indirect effect of trade could be environmental beneficial) Business Community • Conflicting interests • • 12.12.2013 free trade enables growth & increases the # of competitors implementing environmental rules cause costs, but prevention costs are often lower than remedial measures NGOs • Perspective of NGOs differ. But mainly NGOs are representing the interests of a certain group of people (i.e. environmentalists) • International Chamber of Commerce: open cross-border trade and investment and global economic integration for sustainable growth; job creation • WWF: anti-growth policies; CITES; Creating awareness, finding members to sign & support Institutions as WTO • Established at the closure of the Uruguay Round (GATT negotiation 1994) to consider whether environmental provisions (i.e. green taxes) undermined free trade principles. It deals with the global rules of trade between nations. • Main function is to ensure that trade flows as smoothly, predictably and freely as possible. • Fundamental goals : sustainable development and protection and preservation of the environment Civil society • Consumer is driven to fulfil their needs and wants • Growing awareness on environment issues Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 5
  6. 6. Environment and International Trade Diplomatic Processes  How did the diplomatic processes look like?  Hard power failed, soft power?  Hard power: i.e. US banned imports of tuna 1988  Soft power:  i.e. GATT installed WTO (diplomatic approach)  Inefficient i.e. DOHA round  Negotiations  WTO  Treaties 12.12.2013 Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 6
  7. 7. Environment and International Trade Existing Solutions UNEP UN Global Compact Business and Environment Initiatives Voice of the Environment • Non-profit organization (Established 2006) • UNEP, established in 1972 within the United Nations system • Voluntary corporate responsibility initiative in the world • global environmental authority • UNEP acts as a catalyst, advocate, educator and facilitator to promote the wise use and sustainable development of the global environment. Purpose: • Public-private collaboration to find long-term solutions concerning areas of human rights, labour standards, the environment and anti-corruption Environmental principles: • Business should support a precautionary approach to environmental challenges; • Undertake initiatives to promote greater environmental responsibility, and; • • Assessing global, regional and national environmental conditions and trends 12.12.2013 ESG stands for Environmental, Social and Governance. There is growing evidence that suggests that ESG factors, when integrated into investment analysis and decision making, may offer investors potential long-term performance advantages. ESG has become shorthand for investment methodologies that embrace ESG or sustainability factors as a means of helping to identify companies with superior business models. Round of Trade Negotiations 2001-2013 Purpose: • A more open market for environmental goods and services • More coherence between trade and environment rules • Better cooperation between the WTO and MEAs Committee on Trade and Environment (CTE) • Developing international and national environmental instruments EITI: • 1995 • Strengthening institutions for the wise management of the environment • • identifying the relationship between trade measures and environmental measures in order to promote sustainable development, and making appropriate recommendations on whether any modifications of the provisions of the multilateral trading system •  objective: sustainable development Encourage the development and diffusion of environmentally friendly technologies Not compulsory, not much influence on international level • UNEP work encompasses: • ESG: Doha Round Tool to negotiate, not useful for business issues, on national level The Extractive Industries Transparency Initiative (EITI) is a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources Good starting point, need to go deeper (expand) Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH Non-discrimination dilemma, only framework setting 7
  8. 8. Environment and International Trade Various Problem Sets • Developed countries have pressure from environmental interest groups to reconcile what they perceived as "incompatibilities" between trade and environmental policies  Consequence: no more market access opportunities for developing countries 12.12.2013 • Proposals for the creation of a United Nations Environmental Organization (UNEO) have come as some question the efficacy of the current United Nations Environmental Program (UNEP) at dealing with the scope of global environmental issues. • Created to act as an anchor institution in the system of Global Environmental Governance (GEG)  failed to meet those demands Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 8
  9. 9. Environment and International Trade Our Proposed Solution(s) WTO WTO Civil Society Sustainable development and protection and preservation of the environment are fundamental goals of the WTO  implemented Marrakesh Agreement (1995) Increase awareness among civil societies Civil Society Business  Strengthen NGOs‘ position in the society and media  Implement “environment“ along the course of people’s education No single solution possible BUT starting point for further improvement Business Increase commitment towards sustainability among the MNE and SME because companies are important actors  Offer benefits 12.12.2013 Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 9
  10. 10. Environment and International Trade Virtuous Circle WTO 2.0 / WETO GET ALL STAKEHOLDERS TO A ROUNDTABLE REPRESENTATIVES OF CIVIL SOCIETY Business Civil Society WTO WTO 2.0 / WETO NGO 12.12.2013 Government WTO 2.0 / WETO LESS POSSIBILITY MULTILATERAL DRAFTS FOR AGREEMENTS TO REJECT AGREEMENTS Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 10
  11. 11. Environment and International Trade Our Proposed Solution(s) • Creation of an International evironmental agency who is taking the lead to set an international framework for the environmental issues concerning international trade agreements • (international level) •  Try to reduce the overlapping of the agreements, values •  increasing awareness of environmental issues among the MNE and SME, civil societies • Most important actors will be the companies • But also on national level A World Environmental Trade Organization could serve as an umbrella for the implementation of existing multinational environmental agreements, as well as promoting further agreements consistent with global sustainable development strategies. 12.12.2013 Julie ANTOINE, Karin GRÖNVALL, Margareta HEIDT, Sabine JUNGBAUER, Kerstin KNOBLOCH 11
  12. 12. EU TRADE perspectives UNEP negotiation Developping stakeholdersBUSINESS REALISM WTO governments countres Developed multilateral GLOBAL COMPACT China Countries MNEs VALUES education NAFTA SME DIPLOMACYawareness ECONOMY NGOs GATT AGREEMENT CIVIL SOCIETY KYOTO SUSTAINABILTY ineffectiveness Environment Doha PROFITS WEO COOPERATION green WETO USA THANK YOU FOR YOUR ATTENTION Diplomacy – IMA 2 12.12.2013

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