Trade and Environment: a Resource Book
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TRADE AND ENVIRONMENT – Trade and Environment A Resource Book Trade and environment policy is increasingly intertwined and the stakes are nearly always high in both trade and environmental TRADE AND terms. These issues are often complex and discussions tend to become very specialized, challenging policy practitioners to understand and follow all the various sub-strands of trade and ENVIRONMENT environment debates. This Resource Book seeks to demystify these issues without losing the critical nuances. A RESOURCE BOOK This collaborative effort of some 61 authors from 34 countries provides relevant information as well as pertinent analysis on a broad set of trade and environment discussions while explaining, A RESOURCE BOOK as clearly as possible, what are the key issues from a trade and environment perspective; what are the most important policy debates around them; and what are the different policy positions Edited by that define these debates. Adil Najam The volume is structured and organized to be a reference document Mark Halle that is useful and easy to use. Our hope is that those actively involved in trade and environment discussions—as practitioners, Ricardo Meléndez-Ortiz as scholars and as activists—will be able to draw on the analysis Meléndez-Ortiz Najam, Mark Halle and Ricardo Adil Edited by and opinions in this book to help them advance a closer synergy between trade and environmental policy for the common goal of achieving sustainable development. T&E Resource.qx 10/17/07 4:39 PM Page i TRADE AND ENVIRONMENT A RESOURCE BOOK Edited by Adil Najam Mark Halle Ricardo Meléndez-Ortiz T&E Resource.qx 10/17/07 4:39 PM Page ii Trade and Environment: A Resource Book © 2007 International Institute for Sustainable Development (IISD), International Centre for Trade and Sustainable Development (ICTSD) and the Regional and International Networking Group (The Ring). Trade and Environment: A Resource Book Edited by Adil Najam, Mark Halle and Ricardo Meléndez-Ortiz ISBN 978-1-895536-99-7 Published by International Institute for Sustainable Development, International Centre for Trade and Sustainable Development, The Regional and International Networking Group This publication is available online at http://www.trade-environment.org http://www.iisd.org http://www.ictsd.org http://www.ring-alliance.org Cover photos from iStockphoto. Readers are encouraged to quote and reproduce this material for educational, not-for-profit purposes, provided the source is acknowledged. Printed on 100% post-consumer recycled paper. T&E Resource.qx 10/17/07 4:39 PM Page iii Trade and Environment: A Resource Book The International Institute for Sustainable Development (IISD, http://www.iisd.org) con- tributes to sustainable development by advancing policy recommendations on international trade and investment, economic policy, climate change, measurement and assessment, and nat- ural resources management. Through the Internet, we report on international negotiations and share knowledge gained through collaborative projects with global partners, resulting in more rigorous research, capacity building in developing countries and better dialogue between North and South. IISD’s vision is better living for all—sustainably; its mission is to champion innova- tion, enabling societies to live sustainably. IISD is registered as a charitable organization in Canada and has 501(c)(3) status in the United States. IISD receives core operating support from the Government of Canada, provided through the Canadian International Development Agency (CIDA), the International Development Research Centre (IDRC) and Environment Canada; and from the Province of Manitoba. The institute receives project funding from numerous governments inside and outside Canada, United Nations agencies, foundations and the private sector. The International Centre for Trade and Sustainable Development (ICTSD, http://www.ictsd.org) was established in Geneva in September 1996 to contribute to a better understanding of development and environment concerns in the context of international trade. As an independent nonprofit and nongovernmental organization, ICTSD engages a broad range of actors in ongoing dialogue about trade and sustainable development. With a wide network of governmental, nongovernmental and intergovernmental partners, ICTSD plays a unique sys- temic role as a provider of original, non-partisan reporting and facilitation services at the inter- section of international trade and sustainable development. ICTSD facilitates interaction between policy-makers and those outside the system to help trade policy become more sup- portive of sustainable development. By helping parties increase capacity and become better informed about each other, ICTSD builds bridges between groups with seemingly disparate agendas. It seeks to enable these actors to discover the many places where their interests and pri- orities coincide, for ultimately sustainable development is their common objective. The Regional and International Networking Group (The RING, http://www.ring-alliance.org) is a global alliance of predominantly Southern independent research and policy organizations. It was formed in 1991 to stimulate preparations for the 1992 Rio Earth Summit. In 1994 the group designed and implemented an ongoing program of capacity development, pooled and collaborative research at regional and global levels, with the goal of creating a unique and influ- ential platform for international comparative policy research, action and advocacy. With an emphasis on South-South and South-North collaboration, the Ring aims to improve environ- ment and development policy formulation processes, and to increase the regional and local impact of organizations working on sustainable development issues. Ring activities focus on strategic development, capacity strengthening and planning within the individual organizations, water and people, sustainable livelihoods (including people’s technologies), multilateral envi- ronmental agreements, trade and environment, climate change, financing for development, and people-centred governance approaches for development. iii T&E Resource.qx 10/17/07 4:39 PM Page iv Trade and Environment: A Resource Book iv T&E Resource.qx 10/17/07 4:39 PM Page v Trade and Environment: A Resource Book Contents Contributors vii Acronyms and Abbreviations xi Acknowledgements xvii A User’s Guide – Adil Najam, Mark Halle and Ricardo Meléndez-Ortiz xix Section I: Setting the Context The Evolution of the Trade and Environment Debate at the WTO – Hugo Cameron 3 Expert Opinion: The future of the trade and environment debate – Hector Torres 5 Expert Opinion: It’s time to make the global debate local – K.G. Anthony Hill 9 The Trade and Environment Policy Formulation Process – Doaa Abdel Motaal 17 Expert Opinion: The case for integrated assessment – Hussein Abaza 19 Expert Opinion: Policy should be made through negotiation, not litigation – Sabrina Shaw 23 Section II: Issues and Debates 1. Agriculture – Malena Sell 29 Expert Opinion: Agriculture, environment and social justice – Adriano Campolina 31 Expert Opinion: Dealing with the hidden agenda on agricultural subsidies – Vangelis Vitalis 35 2. Biotechnology – Heike Baumüller 39 Expert Opinion: Making the Cartagena Protocol work – Veit Koester 41 Expert Opinion: Biotechnology and the multilateral trading system – Gustavo Alanís-Ortega 45 3. Capacity Building – Christophe Bellmann 49 Expert Opinion: The Andean experience on capacity building – Luisa Elena Guinand and 51 María Elena Gutiérrez 4. Climate Change and Energy – Malena Sell 59 Expert Opinion: Doing trade and climate policy together – ZhongXiang Zhang 61 Expert Opinion: Can trade be an instrument of climate policy? – Gao Pronove 63 5. Dispute Resolution – Howard Mann and Yvonne Apea 67 Expert Opinion: Reforming the DSU – Welber Barral 69 Expert Opinion: PPMs, trade law and the environment – Robert Howse 73 6. Environmental Goods and Non-agricultural Market Access – Nathalie Bernasconi-Osterwalder, 77 Linsey Sherman and Mahesh Sugathan Expert Opinion: Liberalization of environmental goods: A double-edged sword 79 or a panacea? – Beatrice Chaytor Expert Opinion: Are environmental goods good for the South? – Magda Shahin 81 v T&E Resource.qx 10/17/07 4:39 PM Page vi Trade and Environment: A Resource Book 7. Environmental Services – Mahesh Sugathan and Johannes Bernabe 87 Expert Opinion: Making trade liberalization work for the poor – Sitanon Jesdapipat 89 8. Environmental Technologies – Sandeep Singh 93 Expert Opinion: Encouraging trade in biofuels – Suani Teixeira Coelho 95 9. Fisheries Subsidies – Anja von Moltke 101 Expert Opinion: Fisheries subsidies and beyond – John Kurien 103 Expert Opinion: Fixing Cotonou’s rules of origin regime – Roman Grynberg and Natallie Rochester 107 10. Illegal Trade in Natural Resources – Duncan Brack 115 Expert Opinion: Illegal trade in tropical timber – Chen Hin Keong 117 11. Intellectual Property Rights – David Vivas-Eugui and Heike Baumüller 123 Expert Opinion: The limits of geographical indications – Dwijen Rangnekar 125 Expert Opinion: Protecting genetic resources – Manuel Ruiz 127 Expert Opinion: Focusing on the local agenda – Stella Wattimah Simiyu 131 12. Investment – Luke Eric Peterson 135 Expert Opinion: Investment rules for sustainable development – Konrad von Moltke 137 Expert Opinion: Investment law as if development mattered – Marcos A. Orellana 139 13. Multilateral Environmental Agreements – Vicente Paola B. Yu III 145 Expert Opinion: The logic of the WTO-MEA relationship