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The Trade Proponent’s Opinions
Liberalization of global trade and conservation of environment form complicated relationship. After assessed the critiques described above, we couldn’t overlook the other side of the coin, free trade may improve the environment by
(a) reducing population growth through the higher education, that comes with higher incomes;
(b) reducing waste through efficiency gains of competition and economies of scale;
(c) encouraging intergovernmental cooperation to deal with the transboundary and global environmental challenge; and
(d) providing advanced technology and equipment to developing countries for dealing with waste.
II. Trade and Environment in GATT/WTO
Trade and environment conflict, as an issue, is by no means new in GATT/WTO. The increased emphasis on environmental policies, however, is relatively recent. The WTO has 142 member countries, which collectively accounts for the vast majority of the world’s trade. The aim of the GATT/WTO is trade liberalization, based on two core principles: (a) trade without discrimination (principle of national treatment and most-favoured nation), and (b) sustainable development.
History and Status quo
As early as November 1971, the EMIT (the Group on Environmental Measures and International Trade) was set up by the GATT Council of Representatives to examine what the implications of environmental policies might be for international trade. The EMIT, however, did not meet until 20 years later, 1991, because no one asked for it to meet. Between 1971 and 1994, environmental policies began to have an increasing impact on trade, and with increasing trade flows, and the effects of trade on the environment had also become more widespread. During the Tokyo Round of trade negotiations (1973–1979) and the Uruguay Round (1986–1994), trade related environmental issues were taken up, certain environmental issues were addressed in the Technical Barriers to Trade (TBT) Agreement, the General Agreement on Trade in Services, the Agreements on Agriculture, Sanitary and Phytosanitary Measures (SPS), Subsidies and Countervailing Measures, and Trade-Related Aspects of Intellectual Property Rights (TRIPS), despite some countries’ initial reluctance to have environmental issues discussed in GATT. At the 1982 GATT ministerial meeting, members decided to examine the measures needed to bring under control the export of products prohibited domestically (on the grounds of harm to human, animal, plant life or health, or the environment). This led to the creation, in 1989, of a Working Group on the Export of Domestically Prohibited Goods and Other Hazardous Substances.
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