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The effects of environmental regulations on developing countries: what are the concerns and what can be done
Veena Jha UNCTAD
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UNCTAD activities
UNCTAD/IDRC Project Standards and Trade
Final meeting: Geneva, 16 and 17 May 2002
Papers
http://www.unctad.org/trade_env/index.htm
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UNCTAD
reports
An overview paper
Regional scoping paper on South Asia (Bangladesh, India, Nepal and Sri Lanka)
Regional scoping paper on Central America (in particular Costa Rica) Regional scoping paper on Eastern Africa (Kenya, Mozambique, the United Republic of Tanzania and Uganda) Scoping paper on organic agriculture (Costa Rica, India and Uganda)
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Rice
Spices Tea Organic food products
India
India, Sri Lanka India India
Shrimp
Costa Rica
Costa Rica
Uganda
http://www.unctad.org/trade_env/test1/meetings/envreq.htm 7
Environmental requirements
Standards (voluntary) and technical regulations (mandatory)
Environmental requirements
Voluntary measures and private sector standards appear to be much more frequent than Government environmental product regulations. These include: Standards, codes and benchmarks
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Structural weaknesses
Lack of awareness Management of information Poor infrastructure SMEs Lack of finance Lack of institutional capacity Insufficient access to technology Standard-takers rather than standardsetters
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Sectors
Most studies done by UNCTAD refer to:
Agricultural and fisheries products Leather and textiles Forestry products Electronics
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Agricultural products
Drivers:
Advancements in food safety sciences and growing public awareness of health safety issues Following food scares, consumers expect retailers, through their purchasing practices, to supplement Government regulations for ensuring food safety.
Consumers and retailers are demanding more transparency, traceability and quality assurance in the food chain
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Electronics
EU: The Waste from Electrical and Electronic Equipment (WEEE) Directive The Restriction of the use of certain Hazardous Substances in electrical and electronic equipment (RoHS) Directive Integrated Product Policy (IPP) Green Purchasing Law (GPL) The Draft Strategy for a Future Chemicals Policy Japan Recycling regulations
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Electronics: implications
Since manufacturing of electronics components and other products are being increasingly outsourced to developing countries, companies and governments in these countries need to promote proactive policies with regard to information gathering/management and product engineering/design Developing country companies should also seek cooperation with transnational corporations and obtain information from customers 24
Electronics
Thailand
A high-level subcommittee set up under the National Committee for International Trade and Economic Policy to monitor the development of the EU WEEE and RoHS directives and propose a plan of action The subcommittee has commissioned a study to investigate the specific implications and adjustment requirements
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Developmental aspects
Environmental requirements that adversely affect market access can have a negative effect on development and poverty alleviation There can be longer term advantages from trade-induced shifts to more stringent standards in terms of greater resource efficiency, higher occupational safety, improved health conditions and less environmental pollution There may be trade-offs especially in resource-constraint countries 26
Developmental aspects
SME development WTO issues
Special and differential treatment (S&D) Technical assistance Notification Transfer of technology
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Raise awareness (gov., private sector) Dissemination of standard-related information, early warning system Strengthen national and regional institutions to conduct risk analysis and testing; monitor enforcement of standards and carry out certification. R&D, innovation and enterprise development Promote business partnerships SMEs
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Aid agencies
Strengthen capacities and assist developing countries to become standard setters Assist developing countries in their participation in the work of international standardization bodies
National/regional cooperation Cases where developing countries have successfully enhanced their participation?
Best practices on appropriate involvement of key trading partners in setting of environmental standards and regulations Early warning systems
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Technical assistance
Large range of programmes Piecemeal? Often emerges when developing countries face problems in meeting requirements of importing countries Long-term Link TC/CB to enhance capacities to comply with environmental standards with broader TC/CB to enhance export comptetiveness
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Consultative mechanism
To support: Research on new trends in environmental requirements and likely implications for products of export interest to developing countries