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The effects of environmentalregulations on developing
countries: what are the concernsand what can be done
UNCTAD
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UNCTAD activities
UNCTAD/IDRC Project Standards and Trade Final meeting: Geneva, 16 and 17 May 2002
UNCTAD Expert Meeting on EnvironmentalRequirements and International Trade Geneva, 2-4 October 2002
Papers
http://www.unctad.org/trade_env/index.htm
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reports
An overview paper
Regionalscopingpaperon South Asia
(Bangladesh, India, Nepaland Sri Lanka) Regionalscopingpaperon Central America
(inparticular Costa Rica) Regionalscopingpaperon Eastern Africa
(Kenya, Mozambique, the UnitedRepublicof Tanzaniaand Uganda)
Scopingpaperonorganicagriculture (Costa
Rica, Indiaand Uganda)
UNCTAD
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Case studies: South Asia
EU bans on exports of fisheryproducts
Bangladesh (Aug97)India (May97 & Aug97)
Meeting standards on pesticideresidues
IndiaTea
Standard-setting, certification,exports and institutional support
IndiaOrganicfoodproducts
Aflatoxin standards and other SPSmeasures
India, Sri LankaSpices
Standards for pesticide residuesIndiaRice
Aflatoxin standards: settingnational standards and promoting
indigenous development oftechnology
IndiaPeanuts
HACCP standardsIndia (other countries)Fishery
products
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Case studies: Central America
US measures concerning imports ofshrimp (turtle excluder devices).
Costa RicaShrimp
Standard-setting, certification,exports and institutional support
Costa RicaOrganicfoodproducts
Effects of (a) the application of US
SPS regulations concerning specificavian diseases (New castle disease)and (b) HACCP requirements onexports to the US and intra-Central
American trade. Policy responses.
Costa Rica (and other
Central American
Poultry
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Case studies: Africa
EU Import ban: outbreak of choleraKenya, Mozambique,
Tanzania and Uganda(1997)
EU Import ban: presence ofsalmonellae in nile perch from Lake
Victoria
Kenya, Tanzania andUganda (1997):
EU Import ban: fish poisoning inLake Victoria
Kenya, Tanzania andUganda (1999)
Standard-setting, certification,exports and institutional support
UgandaOrganicfoodproducts
Kenya : EU regulation on pesticide
application (Maximum ResidueLevels, MRLs)
KenyaPeanuts
Regulation 91/493/EECKenya, Mozambique,
Tanzania and Uganda:
Fishery
products
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Expert MeetingonEnvironmental Requirementsand
International Trade2-4 October 2002
Environmentalandhealthrequirements(SPS measures) Chairmanssummary
(TD/B/COM.1/EM.19/3) Commissionon Trade (3-7 February 2003)
http://www.unctad.org/trade_env/test1/meetings/envreq.htm
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Environmentalrequirements
Standards(voluntary) andtechnicalregulations(mandatory)
Labellingrequirements (eithermandatory
orvoluntary, suchas eco-labelling),
Packaging
Producttaxesandcharges
Take-backobligations
Informal (non-government)requirements
Quotasand Non Automatic Licensing (to
implement MEAs)
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Environmentalrequirements
Voluntarymeasuresandprivate sectorstandardsappearto bemuchmore frequent
than Government environmentalproduct
regulations. These include:
Standards, codesand benchmarks
Supply chainmanagement
There are only few internationalstandardsfor
environmentalregulations
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More stringentandcomplex
Environmentalrequirementsarebecomingmore frequent
growing evidence ofharmfulenvironmental effectsofcertainsubstances
changesinconsumerpreferences
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More stringentandcomplex: examples
Draft Strategy fora Future ChemicalsPolicy inthe EU pointtothe imminentintroductionoflegislationthatimplementsaprecautionary approach
Stakeholders' Conference onthe Commission'sWhite
Paperonthe Strategy fora Future Chemicals Policy,Brussels, 2 April 2002
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More stringentandcomplex: examples
EU Directive 2000/53/EC on End-of-LifeVehicles
Aimedatsoundmanagementofscrappedvehicles
Implicationsformaterialselection, use ofhazardousmaterials, the use ofrecyclableand/or bio-degradable materialaswellasdesignforrecycling.
Japanesemarket, significantinitiatives: The recycling-oriented economy framework
Launchofthe Green Purchasing Act
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Implicationsformarketaccess
Concernsofdevelopingcountries:
Many standardsperceivedasoverly
stringentorcomplex
Frequentchanges (nevercatchup) Scientific justificationinsufficient
Standardesoftenfailtotake intoaccount
the conditionsofdevelopingcountries Way ameasure isimplementedmay
discriminate (GATT/WTO dispute
settlementmechanism)
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Structuralweaknesses
Lackofawareness Managementofinformation
Poorinfrastructure
SMEs
Lackoffinance
Lackofinstitutionalcapacity
Insufficientaccesstotechnology
Standard-takersratherthan standard-setters
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Sectors
Moststudiesdone by UNCTAD referto:
Agriculturalandfisheriesproducts
Leatherandtextiles
Forestry products
Electronics
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Agriculturalproducts
Drivers:Advancementsinfoodsafety sciencesand
growingpublicawarenessofhealthsafety
issues
Followingfoodscares, consumers expect
retailers, throughtheirpurchasingpractices,
tosupplement Governmentregulationsfor
ensuringfoodsafety. Consumersandretailersare demandingmore
transparency, traceability and quality
assurance inthe foodchain
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Agriculturalandfisheriesproducts:concerns
HACCP (whichhas environmentalaspects):maybe expensive forsmallproducers
Aflatoxin:compliance andtestingmay be veryexpensive (issuessuchasscience and
proportionality) MRL levelsinfoodproducts:toostringentfortropicalconditions?
Developmentsincutflowers
Fishery products:large fundsrequiredtoestablishinfrastructure and buildinstitutions
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Agriculturalandfisheriesproducts:concerns
Cuba, honey andcoffee:lackofin-countrytechnicalcapacity toverify compliance withthevery low MRL limitsrequiredunder EUregulation 2377/EC.
Peru: traditionalfoodsare nowsubjecttocomplex importregulations (EU regulation258/97 on Novel Foodand Novel FoodIngredients)due simply totheir exogeniety
Caribbeancountries: similarproblemsinexportingcertaintraditionalfoodproductstothe USmarket, because MRL levelshave notbeendefined
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Leatherandtextiles, concerns
India Bansonproductscontainingtracesofazodyes,pentachlorophenol (PCP), otherharmfulaminesandothersubstances
Eco-labels, basedonlife cycle analysis, buyersrequirementsand ISO standards
Animalrightsissues (leather)Pakistan
Withphasingout quantitative restrictions,quality standardsand environment-relatedrequirementsof buyersindevelopedcountriesbecomemore stringent
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Leatherandtextiles, implications
South Asian Problemsof SMEs
India:
Substitutes 2.5 timesmore expensive thanazodyes
Azo-free dyeing 15 to 20 percentmore expensive
High Costsoftesting
Nepal:
Weakregulatory andinstitutionalframeworkto
addressproblemsfaced by the exportindustry
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Leatherandtextiles, nationalresponses
India The Governmentof India (GoI)has banned 112harmfulazodyes.
pro-active role of Pollution Control Boards:
normsfor effluenttreatment.
Disseminationofinformationanddevelopmentof eco-standards.
The GoI has establishedaTechnologyUpgradation Fund, strengthenedtestinglaboratoriesand beenassistingtextile unitsinsecuringcertification
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Leatherandtextiles, nationalresponses
Pakistan Pakistan National EnvironmentalQuality
Standardsand Environmental ImprovementPlans
EnvironmentTechnology Programme forIndustry ofthe Federationof Pakistan Chamberof Commerce and Industries (FPCCI)
Nepal
Jointinitiative withthe Governmentsof Finlandtoimprove environmentalperformance andpromote environmentallabellingincertainexportindustries.
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Electronics:implications
Sincemanufacturingof electronicscomponentsandotherproductsare beingincreasingly outsourcedtodevelopingcountries, companiesandgovernmentsin
these countriesneedtopromote pro-active policieswithregardtoinformationgathering/managementandproductengineering/design
Developingcountry companiesshouldalsoseekcooperationwithtransnationalcorporationsandobtaininformationfromcustomers
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Electronics
Thailand
A high-levelsubcommittee setupundertheNational Committee for InternationalTrade
and Economic Policy tomonitorthedevelopmentofthe EU WEEE and RoHSdirectivesandpropose aplanofaction
The subcommittee hascommissionedastudy
toinvestigate the specificimplicationsandadjustmentrequirements
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Developmentalaspects
Environmentalrequirementsthatadversely affectmarketaccesscanhave anegative effectondevelopmentandpoverty alleviation
There can be longertermadvantagesfromtrade-inducedshiftstomorestringentstandardsintermsofgreaterresource efficiency, higheroccupational
safety, improvedhealthconditionsandless environmentalpollution
Theremay be trade-offs especially inresource-constraintcountries
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Developmentalaspects
SME development WTO issues
Specialanddifferentialtreatment (S&D) Technicalassistance Notification
Transferoftechnology
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Actionatnationallevel
Raise awareness (gov., private sector) Disseminationofstandard-relatedinformation, early warningsystem
Strengthennationalandregionalinstitutionstoconductriskanalysisandtesting;monitor enforcementofstandardsandcarry outcertification.
R&D, innovationand enterprisedevelopment
Promote businesspartnerships
SMEs
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Actioninternationalcommunity andWTO
BilateralcooperationParticipationandadequate time toadjust
Informationdissemination
Promotingharmonizationandmutual
recognitionofproductstandardsandregulations basedon equivalence intheWTO
Standardsdevelopedwithoutinvolvement
ofproducingandconsumingcountriesshouldhave adefaultassumptionof beingdiscriminatory totrade.
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Aidagencies
Strengthencapacitiesandassistdevelopingcountriesto become standardsetters
Assistdevelopingcountriesintheirparticipationinthe workofinternationalstandardization bodies National/regionalcooperation
Caseswhere developingcountrieshavesuccessfully enhancedtheirparticipation?
Bestpracticesonappropriate involvementofkey tradingpartnersinsettingofenvironmentalstandardsandregulations
Early warningsystems
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Technicalassistance
Large range ofprogrammes Piecemeal?
Often emergeswhendevelopingcountriesface problemsinmeetingrequirementsof
importingcountries
Long-term
LinkTC/CB to enhance capacitiesto
comply with environmentalstandardswithbroaderTC/CB to enhance exportcomptetiveness
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Consultative mechanism
Tosupport: Researchonnewtrendsin environmental
requirementsandlikely implicationsfor
productsof exportinteresttodeveloping
countries Informationmanagementanddissemination
Pro-active adjustmentstrategiesin exporting
developingcountries
Strategiesfor SMEs
Reliable statisticalinformationtofacilitate
supportpolicy-orientedresearch
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