Lecture 2 - International Trade, Environment and Development

• trade unregulated until 20th century. Dominated by British empire and european countries trading with colonies which held monopolistic control over trade in many products.
• Comparative advantage - concept that nations should specialise -> less diversification can be risky for developing nations
• GATT - signed after Brenton Woods (1947) to reduce trade barriers and set up mechanism to reduce trade disputes. Problems - institutionalised liberal trading principles and open markets. This suited Europe and US due to greater trade volume. They still subsidies in different/newer ways
• Asia and pacific formed negotiating blocks such as G-77 and UN conference on trade and development (UNCTAD).
• Uruguay Round - 1986-1994 - 124 countries, ultimately -> QTO with the Marrakesh Agreement
• Note role of "Green Room" meetings. Was some feeling that these seperate meetings of 20-40 delegates could compromise and lead to backroom deals. However extra efforts were made to try to see them held correctly. Some feel they are mainly between US/EU to agree on agenda they want to push through.
• WTO - INdependant (not part of WTO) multilateral org manages  GATT, GATS, TRIPS, and dispute settlemet.  Trade related "Everything" - tarrifs, non tarrif, textiles, ag, services, Trade related IP (TRIPS), trade related investment measures (TRIM), anti-dumping,
• Protests emerged because - Developing countries only given few years to adjust. Very old industries only given few years to adjust, developing countries had not leverage, new inqeualities institutionalised, many countries were net importers
• E.G - surge of exports into developing countries , dumped crops, shrunk small holder production, reduced opportunity to change crops, stuck in global market due to contracts/debt
• Issues beyond trade - labour rights, livihoods (ag), env, medicines, Enviro/human health and safety
• Main rules - may effect specific MEA's - ie Convention on international trade in endangered speciese of flora and fauna (CITES). WTO rules may effect protection beyond national jurastictions, WTO rules may effect high standards for products/services, WTO may encourage pollution havens.
• Env Kuznets curve - states that growth will -> dec env impact eventually . Flaws - limited evidence, irreversible impacts/extinct species!!, carrying capacity exceeded, technology not always the solution - can be the problem.
• Pollution havens - with liberalisation can -> race to bottom-> worst case for source labour/materials.
• Most favoured nation principle - a country cannot discriminate based on distinctions of production techniques - certifications requiring EMS/LCA?
• National Treatment - taxes/charges - must accord treatment no less favourable than national. Impacts on market based (ie polluter pays) mechanisms.
• GATT - environmental exceptions - "nothing shall be construed to prevent adoption or enforcement by any contracting party of measures necessar to protect human, animal, plant life and relating to protection of natural resources
• WTO - committee on trade and env - makes rules to enhance positive interaction between trade and sustainable development . very little progress due to split between advanced nations and majority developing nations.
• MEA/GATT Rules - No panels have directly addressed the conformity of MEA restrictions to GATT. Generally WTO CTE  favour MEA to provide internationally collaborative resolutions
• NAFTA - provides that certain MEA's take precedence over NAFTA. Does not allow investor state disputes.
• CITES - Parties have to implement convention . E.g turtles, asbestos, GMO'
• WTO puts the onus on consumer to choose environmental/fair goods. Utility principle tells us that this is not realistic
• Neoliberal paradox - WTO agreements are depicted as premier agreements. While some removed some are imposed
• Doha - lastest round of discussions - some issues raised for developing countries, little progress. Director-general Pascal Lamy - urged financial leaders to conclude "now" based on agreement on "framework for cutting agricultural tarriffs, ag subsidies, and industrial tarriffs".
• Asia - most countries are party India/Thai very supportive. Few countries implemented rules. Reluctant to open markets. Concerns about TRIPS on medicine etc.
• TRIPS can go mad  - very important when it comes to drugs. Compulsury licensing underway. Japan is pushing for saftey data exclusivity
• Plants - members may exclude patents on Plants - many govts not allowed . African group saw patent on lifeforms as unethical.
• Copywrite has been extended globally 75 years after death of author. raises price of education.
• Education/Technology transfer - Could have numerous benefits including env. Royalties are obstruction to these effects.
• Bilateralism/Regionalism - TRIPS creates a baseline so that any further agreements are TRIPS-Plus. Once raised standards do not go back.
• E.g Thailand - No protection from Biopiracy, pressure not to allow compulsory licensing of drugs for ailments such as AIDS
• New geo-political allignments - European Union, African/carribean, pacific (ACP). Mega-diverse counntries banded together on the basis of biodiversity interests
• Key messages - more to trade than taxes and tarriffs. New forms of colonialism being enforecd on developing nations. Who looses - the environment (limited powers of govts to regulate), local workers, small economies and the hungry.