trade and environment

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The topic presented regarding trade and environmental agreements followed in the world. Some of the points shared are outdated but the purpose was to give an idea about the relation between trade and environment.

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Page 1: Trade and environment
Page 2: Trade and environment

By: SHAHZAD CHANNA

Course: Environmental issues & Management

Instructor: Dr. Nuzhat Khan

Page 3: Trade and environment

Why this world needed various agreements?

Page 4: Trade and environment

Agreementssubstantial reduction of tariffs and other trade barriers and the elimination of preferences,

on a reciprocal and mutually advantageous basis." GATTaim is to ensure that international trade in specimens of wild animals and plants does not threaten the survival of the species in the wild, and it accords varying degrees of protection to more than 35,000 species of animals and plants. In order to ensure that the General Agreement on Tariff and Trade (GATT) was not violated, the Secretariat of GATT was

consulted during the drafting process. CITESIT is a legally binding agreement between three or more states relating to the environment. They are predominantly produced by the United Nations. It is called a bilateral environmental

agreement if the agreement is between two nation states. MEAinternational treaty designed to protect the ozone layer by phasing out the production of

numerous substances that are responsible for ozone depletion. MONTREAL PROTOCOLinternational treaty that was designed to reduce the movements of hazardous waste between nations, and specifically to prevent transfer of hazardous waste from developed to Less developed countries (LDCs). It does not, however, address the movement of radioactive

waste. BASEL PROTOCOLa multilateral treaty created by the United Nations to enhance the cooperative management of fisheries resources that span wide areas, and are of economic and environmental concern to a number of nations. Straddling stocks are fish stocks that migrate through, or occur in,

more than one exclusive economic zone. CONVENTION ON STRADDLING

Page 5: Trade and environment

AGREEMENT

PROBLEM

TRADE ENVIRONMENT

What was the problem? What is environment and how was it being affected?

How trade is related to the problemand environment?

Page 6: Trade and environment

Environment is the surrounding in which organization operates including air and water. Land and natural resources, flora and fauna, humans and their interactions.

Trade involves the transfer of the ownership of good or services from one person or entity to another in exchange for other goods or services or for money.

Problem is the adverse impact of trade on environment and in return environments negative impacts on trade.

Page 7: Trade and environment

US Marine mammal act prohibited tuna fishing method that killed large number of dolphins and banned tuna imports from the countries that used such fishing methods.

GATT article xx states that, countries are allowed toRestrict trade in order to “conserve exhaustible natural resources” or to protect “human, plant or animal health and life.”

Free trade rules has led to fiercelycontested disputes among countries. for example, European nations have refused to allow imports ofUS beef produced with hormone supplement.

Page 8: Trade and environment

Similar issue has arisen over the issue of genetically engineered crops.while unlabelled genetically engineered foods are allowed in the US,they are widely opposed in Europe.

US argued there is no proven harm to human health from the use of hormones, this is an illegal barrier to trade. The Europeans however, cite the precautionary principle: since they fear the possible effect of hormone.

Pollen from such crops can easily spread into the environment, disrupting fragile ecosystem and possibly creating “superweeds” resistant to pesticides.

Europeans reasonFor trade restrictionNot valid underArticle XX of GATT.As product itself hasNo proven harm. How it is preparedShouldn’t be the Basis for trade Restriction.

if pesticides residues at dangerous levels are detected on fruit or vegetables, import of those products can be banned. But if the overuse of pesticides is causing environmental damage in the producing areas, the importing nation has no right to act.

Page 9: Trade and environment

NAFTA (North American Free Trade Agreement) has produced cases in which corporations have challenged environmental regulations as barriers to trade.

The Canadian asbestos industry sought to remove U.S restrictionsOn the scale of cancer-causing asbestos products.

While US pesticide industry challenged strong Canadian pesticide regulation.

In one case, the US based Ethyl Corporation successfully overturned a Canadian banOn the importation and sale of the gasoline additive MDMA, a chemical suspectedTo cause never damage. Canada was required not only to eliminate the ban, but alsoTo pay $10 million compensation to Ethyl Corporation for legal costs and lost sale.

Page 10: Trade and environment

TRADE do not have just adverse impacts on environment!!According to theory ofComparative advantageTrade causes countriesTo become more efficientIn their use of resources,There by conserving Resources and avoiding waste

Encourages theEnvironmentallyFriendly techno--logy

Trade can replace old, inefficienthigh polluting power plants withnew modern, highly efficientcombined cycle facility.

Page 11: Trade and environment

THANK YOU