Trade, Globalization and Sustainable Development: Where are we Post-WSSD?

1
Trade, Globalization and Sustainable
DevelopmentWhere are we Post-WSSD?

• H.E. Dr. John W. Ashe
• WTO Symposium on Trade and Sustainable
  Development
• Geneva, 10-11 October 2005

2
Outline

• Leading Question
• Overview of Major trends
• Changing nature of trade barriers
• NTBs
• Domestic regulations
• Trade and MEAs
• Trade in Environmental Goods Services
• Concluding Remarks

3

• What are the major multilateral processes
  shaping the interactions among trade,
  globalization and sustainable development?
• WTO-Doha
• Monterrey Consensus
• 2005 World Summit
• CSD
• Multilateral environmental agreements

4
WSSD and Trade JPOI

• Call for timely conclusion of Doha Development
  Round, specifically
• Improved market access for developing countries
• Reduction with view to phasing out agriculture
  export subsidies, trade-distorting domestic
  support
• Support for trade-related technical assistance
  and capacity-building
• Duty-, quota-free access to exports of LDCs
• Building capacity to diversify exports

5
Trade and Sustainable Development the JPOI links

• Incentives to adopt efficient, clean technology
• Increased availability, lower cost of clean
  technology
• Technology transfer through export-oriented FDI
• Information sharing with small- and medium
  enterprises

6
Structure of world trade and the position of
developing countries

• Developing countries account for a growing share
  of world trade, including for manufactures and
  services

7
(No Transcript)
8
Non-traditional export opportunities for
developing countries

• Moving up value-chain does not always mean moving
  from primary commodities to manufactures
• natural-resource based industries
• services

9
Low-income countries still face obstacles to
world trade integration

• Tariff escalation remains a problem
• Other trading costs weigh heavily
• Weak supply side response
• Even as tariff rates fall, non-tariff barriers
  remain and even increase

10
Source UN-ECLAC, Agricultural Development Unit,
based on WITS/TRAINS data (World Integrated
Solution, Trade Analysis Information System).
11
Non-tariff barriers (NTBs)

• Non-tariff barriers (NTBs) are an increasing
  source of concern especially for the worlds
  poorer nations
• Currently affect up to 40 of the exports of the
  world's least developed countries
• Wide ranging (direct and indirect)

12
Evolution of NTB use by category
Source UNCTAD TRAINS database
13
The trend in the evolution of NTBs creates a
challenge for JPOI

• Thwarts the role of trade in achieving
  sustainable development, by, inter alia
• Affecting higher value aquaculture exports,
  making moving up value chain more difficult
• Risk of market fragmentation
• Measures often exceed multilaterally accepted
  norms
• Challenge for small economies and community-based
  entrepreneurial capacity

14
Domestic environmental legislation and barriers
to trade

• National legislation and regulatory regimes can
  act as barriers to trade-related sustainable
  growth.
• Examples
• Biofuels are environmentally preferable products
  but effected by protective trade rules
• Approval of biotech products is long and complex
  in key markets
• Foreign organic production systems are not
  recognized key markets, requiring dual
  certification.

15
Trade and Multilateral Environmental Agreements

• Proliferation of trade agreements and
  environmental agreements
• Agenda 21 of the Rio Conference states that
  measures should be taken to avoid unilateral
  action to deal with environmental challenges
  outside the jurisdiction of the importing
  country
• WTO Members have agreed to clarify the legal
  relationship between WTO rules and MEAs
• No disputes have thus far come to the WTO
  regarding the trade provisions contained in an
  MEA
• Of the approximately 200 MEAs currently in force,
  only about 20 contain trade provisions.

16
Trade in Environmental goods and services

• Opportunity for fast tracking
• Trade in environmental Goods and Services is
  sizable and growing fast
• Elimination of tariff and non-tariff barriers to
  environmental goods and services

17
Growth of environmental goods trade, 1990-2002
Source Bora and Teh (2004). Tariffs and Trade in
Environmental Goods. WORKSHOP ON ENVIRONMENTAL
GOODS, Geneva, 11 October 2004. WTO Secretariat.
18
Growth Factors for environmental goods and
services

• Domestic regulation and public pressure
• Customer requirements global supply chains
• EU enlargement regional trade agreements
• Infrastructure development
• MEAs and associated financing mechanisms

19
Measures to address market access concerns

• Enable developing countries to be more involved
  in standard setting
• Enhance the capacity of developing countries to
  deal with NTBs
• Formulate a balanced approach towards
  disciplining arbitrary and abusive use of such
  barriers

20
Measures to foster intl diffusion of
environmental goods and services

• Public financing, risk sharing for export of EGS
  consistent with international trade
  disciplines, e.g.,
• waste-water treatment technology
• flue gas capture
• methane capture from landfills for power
  geneneration
• waste incineration, including for power generation

21
Conclusion

• Firm groundwork in major multilateral processes
• Progress on implementation is vital
• Successful completion of Doha would mean greater
  progress in sustainable development objectives
• Reversal of the trend in escalating NTBs
• Addressing market-access concerns for developing
  countries
• More can be achieved by focusing on areas of
  opportunity for fast-tracking
• Trade in Environmental Goods and Services
• Cleaner production technology