International Trade and the Environment
The relationship between trade and environment has been a topic of discussion for many years. The focus has been the implications of environmental policies on international trade. The GATT Secretariat first expressed this concern in 1971, through the document called Industrial Pollution Control and International Trade. At that time, there was fear for environmental policies to become a form of protectionism. In 1992, the importance of trade for sustainable development emerged. Environment and multilateral trade systems were linked in 1994 through the Marrakesh Agreement, placing environment within the objectives of the WTO (established 1995).
The objective of a trading system is the liberalisation of markets through regional (FTAA) or global (WTO) agreements. It is also argued that trade has a potential to be a source for financing development through trade-related income generation and foreign direct investment. This would translate into economic growth and a source of employment, contributing to poverty reduction and thus contribute to environmental conservation. Therefore, trade can be a promising economic activity for sustainable development. However, its rules can have a severe impact on environmental policies and undermine labour standards. We continue to lobby government to make trade and environment mutually supportive.
Our participation in government discussions regarding trade are to ensure that Multilateral Environmental Agreements (MEA) are considered within the Country’s international trade policies; including the creation of tools for measuring the environmental impacts of trade liberalisation.
