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The Issues:
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At the outset, it is important
to distinguish between the use of trade measures to help strengthen
implementation, and the trade effects of MEA implementation. Given the
increasingly close links between environmental policies and economic
policies, almost all MEAs will have some trade effect. Indeed, it is
widely expected that some of the post-UNCED agreements, notably the
Climate Change Convention, will have important trade effects, even though
they do not contain what is traditionally referred to as trade measures.
In some cases, developing countries have been the principal supporters
of trade measures in MEAs. This has primarily been the case where exports
from (mainly) developed to developing countries may pose health and
environmental risks to developing countries, which may not have sufficient
information as well as technological capacities to cope with potential
risks. Examples can be found in the areas of hazardous waste and products,
obsolete technologies and genetically modified organisms.
The use of trade measures in MEAs goes
beyond the legal debate concerning their compatibility with the rules
of the multilateral trading system. This debate has been an important
focus of the WTO's Committee on Trade and Environment. Instead, of interest
is the extent to which these trade measures contribute to and strengthen
environmental policy, while at the same time cause little economic distortion
in their implementation. That is, while uniform trade measures are applied
in these MEAs, thereby affecting all parties to the MEA, in practice
they tend to have non-uniform effects, given differences between countries
in the stage of development, technological profiles, market composition
and trade intensities.
In looking at the costs and benefits of MEA implementation at the national
level, it is crucial that analysis of trade measures is viewed within
the wider picture of the effects of all measures in MEAs. Although there
has been a tendency in the trade and environment debate to divide MEAs
into two distinct categories -- "trade measures" on the one
hand and "positive/supportive/enabling measures" on the other
-- in reality this terminology is an imprecise abbreviation for a very
complex and sophisticated interplay between different types of measures.
For the sake of simplicity, non-trade measures are referred to here
as positive, supportive or enabling measures. These include a wide range
of measures, including technical training and capacity building, the
provision of financial assistance to help meet incremental costs in
achieving international standards contained in MEAs, the use of other
types of information exchange and environmental management assistance
-- often embodied in differences in the burden of environmental management
responsibilities between exporting and importing countries -- and many
other measures. There has been a consistent and strong commitment among
MEAs for the past twenty-five years to make explicit allowances for
the special needs and circumstances of developing countries in addressing
common problems. These provisions have been in place well before the
1992 UNCED Conference, in which principles such as common but differentiated
responsibility were endorsed formally by the world community.
Trade and positive/supportive/enabling measures are generally part of
a package which is MEA -, and sometimes even country group-specific.
It is therefore important to view MEAs as a package of different types
of measures which work together. The term "positive, supportive
or enabling" measures is the result of a historical process of
discussions on the role of and interrelationship between trade and non-trade
measures in MEAs.
The main focus of UNCTAD's activities is the analysis, design and assistance
in implementing positive/supportive/enabling measures with a view to
meeting the objectives of MEAs, which include trade measures/restrictions,
without compromising developmental and social priorities in developing
countries. Such measures are particularly useful in reducing adjustment
costs of the uniform trade measures under
- divergent levels of development, technological
profiles, market composition and trade intensities;
- lack of information on the underlying
economics behind the use of trade measures, in particular in encouraging
access to and use of environmentally sound technologies;
- overwhelming presence of the informal
sector (i.e. production or servicing units with no operating permit)
with little technological and financial capacity;
- situations in which trade measures might
not necessarily address the root cause of the environmental problem.
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Our work:
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UNCTAD's role is basically three-fold:
1. UNCTAD will contribute to building capacity
for informed participation in trade and environment deliberations. This
includes the empirical analysis of the implications of trade measures
in MEAs and their developmental and social effects.
2. UNCTAD is building capacity in developing
multi-stakeholder environmental deliberations at the national level
aimed at
- taking pro-active policy measures for
reducing domestic adjustment costs of the trade measures of MEAs;
- identifying suitable packages of positive/supportive/enabling
measures in this regard;
- facilitating the creation of conducive
conditions for access to and effective use of environmentally sound
technologies.
3. UNTAD facilitates co-operation among developing
countries, particularly at regional level, with a view to exchanging
experience on the use of suitable domestic policy packages to supplement
the trade measures in MEAs or finding regional solutions to similar
technical or economic problems.
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