State of the World Chapter 8 Reconciling Trade and Sustainable Development

Opening Segment The talks that took place in Doha by the World Trade Organization (WTO) centered around international trade, agricultural issues, and environmental-related elementsThe talks that took place in Doha by the World Trade Organization (WTO) centered around international trade, agricultural issues, and environmental-related elements These talks were known as the Doha Round of NegotiationsThese talks were known as the Doha Round of Negotiations All countries must agree on all aspects of the negotiations befor anything is finalizedAll countries must agree on all aspects of the negotiations befor anything is finalized

The Context: The Trade and Environmental Debates Smoot-Hawley Tariff Act set the scene for WWII and greatened the Great Depression in Smoot-Hawley Tariff Act set the scene for WWII and greatened the Great Depression in GATT’s (General Agreement on Tariffs and Trade) mission in 1947 was to lower tariff barriers that interfere with world tradeGATT’s (General Agreement on Tariffs and Trade) mission in 1947 was to lower tariff barriers that interfere with world trade In 1991, the U.S. banned any importing of tuna from Mexico because in there pursuit of tuna, they killed a lot of dolphinsIn 1991, the U.S. banned any importing of tuna from Mexico because in there pursuit of tuna, they killed a lot of dolphins –Wake-up call to the environmental movement

Basic Concerns and Conflicts Self-sufficiency really doesn’t work all that well, countries are better off importing and exporting goodsSelf-sufficiency really doesn’t work all that well, countries are better off importing and exporting goods We can’t all make our own goods, not every country has the same environment, it could cause an inconvenience or environmental problemsWe can’t all make our own goods, not every country has the same environment, it could cause an inconvenience or environmental problems This line of argument has more or less fizzled outThis line of argument has more or less fizzled out

Remaining Areas of Concern How a good is produced could have an impact on certain environmental regulationsHow a good is produced could have an impact on certain environmental regulations An area of concerns in the Doha talks is the negotiations on the relationship of the WTO laws to the international environmental treaties An area of concerns in the Doha talks is the negotiations on the relationship of the WTO laws to the international environmental treaties Talk on nonagricultural market access, freeing up trade in all goods except those covered by the WTO’s specialized agreement on agricultureTalk on nonagricultural market access, freeing up trade in all goods except those covered by the WTO’s specialized agreement on agriculture

WTO-Environment Synergies The Doha Declaration affirmed that the objectives of the trading system and the objectives of environmental protection should be mutually supportive.The Doha Declaration affirmed that the objectives of the trading system and the objectives of environmental protection should be mutually supportive. Subsidies in general have a bad name with economists, who fear that they distort price signals in the market and result in inefficiency.Subsidies in general have a bad name with economists, who fear that they distort price signals in the market and result in inefficiency. There is potential for synergy if trade rules can manage to reduce “perverse” (as the book labels them) subsidies, those that are both economically and environmentally damaging.There is potential for synergy if trade rules can manage to reduce “perverse” (as the book labels them) subsidies, those that are both economically and environmentally damaging. An area of potential synergy is in the Doha promise to reduce or eliminate tariff and non-tariff barriers to environmental goods and services.An area of potential synergy is in the Doha promise to reduce or eliminate tariff and non-tariff barriers to environmental goods and services.

Trade and Sustainable Development The Doha states that sustainable development- simultaneous progress on environmental, economic, and social issues is an objective of the trading system.The Doha states that sustainable development- simultaneous progress on environmental, economic, and social issues is an objective of the trading system. The book makes note of Madagascar, which is a member of WTO and has 70% of the population living on less than $1 a day. The book states that with trade liberation maybe Madagascar and other countries like it can some day prosper.The book makes note of Madagascar, which is a member of WTO and has 70% of the population living on less than $1 a day. The book states that with trade liberation maybe Madagascar and other countries like it can some day prosper. However it will take more than trade liberation via WTO to bring these countries up from the ashes though, the international community will have to aid in developmental assistance to boost these counties and keep them from privatization of financial services where they could not be monitored.However it will take more than trade liberation via WTO to bring these countries up from the ashes though, the international community will have to aid in developmental assistance to boost these counties and keep them from privatization of financial services where they could not be monitored.

Beyond the WTO The rush to regionalism has been particularly noteworthy in Asia the book states, where an agreement between China and the Association of Southeast Asian Nations is set to create the world’s largest trading bloc by 2010.The rush to regionalism has been particularly noteworthy in Asia the book states, where an agreement between China and the Association of Southeast Asian Nations is set to create the world’s largest trading bloc by A major area of trade and environment interaction outside the WTO occurs at the domestic level.A major area of trade and environment interaction outside the WTO occurs at the domestic level. Voluntary ecolabeling or fair labeling is another facet of the trade-environment relationship that lies outside of the WTO.Voluntary ecolabeling or fair labeling is another facet of the trade-environment relationship that lies outside of the WTO.

A Final Grade: Needs Improvement In the end the areas such as nonagricultural market access, labeling, and relationship to MEAs, and the challenge to ensure that the negotiations do not end up making things worse.In the end the areas such as nonagricultural market access, labeling, and relationship to MEAs, and the challenge to ensure that the negotiations do not end up making things worse. One of the bright spots of this agreement is in the WTO’s Appellate Body to interpret but not actually amend WTO law.One of the bright spots of this agreement is in the WTO’s Appellate Body to interpret but not actually amend WTO law. Paragraph 51 of the Doha Declaration readsParagraph 51 of the Doha Declaration reads –“The committee on trade and Development and the Committee on Trade and Environment shall, within their respective mandates, each act a a forum to identify and debate developmental aspects of the negotiations, in order to help achieve the objective of having sustainable development appropriately reflected.”