Trade And Environnent

Trade and EnvironnentIn the Contexte of Pakistan

Environnemental Policy 2005

Shakeel AhmedRoll No: STP / 08 / 03MUISTD Jamshoro

Agenda

• Define Trade and Environment• Impact of Trade on Environment• Greening of Trade: Certifications• Pakistan Environmental Policy 2005

Initiatives• Conclusions

Trade and Environnent

• Trade is the name of simplex exchange of goods, services or combination of both for some gain, for this exchange to take place we need an Environment, that we naturally have in the shape of this Globe.

Impact of Trade on Environment

• The Economic activates like trade can significantly impact the environment. Guided by the taxonomy that is wide spread in the literature, the impact of trade may be categorized in for major categories:

• Scale effects• Composition effects• Technique effects• Direct effects


Scale effects• Scale effects are simply an increase or decrease in

the scale of the economy. • An increase in scale is a predicted result of trade

liberalization, which increases standards of living by achieving more efficient production of goods and services.

• The scale effect have negative climate change impacts, the more goods and services produced, the more greenhouse gases (GHGs) emitted.

Impact of Trade on EnvironmentComposition effects The composition of each national economy also

change after trade liberalization, tilting towards production of those goods and services in which countries enjoy comparative advantage relative to their trading partners.

As global income levels increase, the global economy will change to favor those goods that are relatively “luxurious.” This may be good from a climate change perspective (consumers can afford more solar panels) or bad (consumers can afford more automobiles).


Technique effects • Trade liberalization, and investment agreements in

particular, may bring new techniques of production that are more energy efficient, and therefore emit fewer GHGs per unit of output.

• This may be due to foreign investors bringing new technologies, or domestic firms having to increase efficiencies in the face of foreign competition.


Direct effects The very fact of increased trade leads directly to

more global GHG emissions from increased transport of goods.

The GHG intensity of ‐ transport varies enormously from marine transport to trucks to air freight, but in the end all modes of transport have some emissions.

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Greening of Trade: Eco Labling

• Identified by the International Organization for Standardization (ISO), the overall goal of these labels and declarations is:"...through communication of verifiable and accurate information, that is not misleading, on environmental aspects of products and services, to encourage the demand for and supply of those products and services that cause less stress on the environment, thereby stimulating the potential for market-driven continuous environmental improvement".


• Identified by the International Organization for Standardization (ISO), the overall goal of these labels and declarations is:"...through communication of verifiable and accurate information, that is not misleading, on environmental aspects of products and services, to encourage the demand for and supply of those products and services that cause less stress on the environment, thereby stimulating the potential for market-driven continuous environmental improvement".


• ecolabel is a label which identifies overall environmental preference of a product (i.e. good or service) within a product category based on life cycle considerations.

• In contrast to a self-styled environmental symbol or claim statement developed by a manufacturer or service provider, an ecolabel is awarded by an impartial third party to products that meet established environmental leadership criteria.

Greening of Trade: Eco Labeling

• Some Important ecolabels

Pakistan Environnent Policy, 2005

To avail optimum benefit from and safe guard Pakistan’s environment and exports against and adverse effects of trade liberalization, the government may take the following steps:– Certify/accredit private and public sector Environmental

laboratories– Promote ISO 2004 series certifications– Build the Capacity of Public and Private sector organizations

in relevant areas such as ISO certification, Technology Transfer, Laboratory certifications and testing.


To avail optimum benefit from and safe guard Pakistan’s environment and exports against and adverse effects of trade liberalization, the government may take the following steps:– Certify/accredit private and public sector Environmental

laboratories– Promote ISO 2004 series certifications– Build the Capacity of Public and Private sector organizations

in relevant areas such as ISO certification, Technology Transfer, Laboratory certifications and testing.


– Undertake sector specific research on the environment effect of tariffs and subsidies.

– Develop strategies to deal with imports of goods and technologies which could have determinal effect on country’s environment.

Conclusions

There are numerous relationships between Trade and environment, the need of the day is to set the rules of the games, It should thoroughly be monitored which region is polluting more and then accordingly the responsibility should be shared across.The Pakistan Trade and Environmental policy 2005 do have good words to say but the proper implementation plans are missing, and as a consequence even more contaminated environment as competed to the date of this policy.

Education

Trade And Environnent