Environmental Engineering Reference
In-Depth Information
27
Redesigning the world's trading system for
environmentally sustainable development
Alejandro Nadal
1
Introduction
In a relatively short period of time, human activity has brought the world to the brink
of a major ecological disaster. One manifestation of this is a massive biotic crisis
(Eldredge, 1998; Myers and Knoll, 2001; Wilson, 1993). The other is the anthropogenic
impact on global average temperatures, with e
ects on rising oceans, disruption of
rainfall patterns, and extreme climate variability (Houghton et al., 2001; McCarthy et al.,
2001).
At the same time, social disparities and inequality mark the world's social and eco-
nomic landscape, at both the national and international levels (UNFPA, 2002; GPM,
2004). Economic performance in the past 30 years was marked by slower growth rates for
higher- and middle-income countries, and modest growth rates for lower-income
economies. Also, the ecological footprint of the richest countries is still unduly heavy.
Although greenhouse gas emissions rates have been going down, absolute levels of emis-
sions continue to increase. The absolute volume of natural resources used by developed
countries continues to increase and material
ff
fl
ows' analyses reveal the presence of envi-
ronmental cost-shifting.
2
The structure of world trade provides a sobering backdrop for the assessment of
WTO performance. Although developing countries' exports have increased, world trade
remains heavily lopsided. Average trade de
cits for all developing countries during
the 1990s were higher than those in the 1970s by three percentage points of GDP
while growth rates were lower by two percentage points (UNCTAD, 2003). This has
serious negative implications for developing countries' current accounts and
indebtedness, consolidating the trend towards greater disparities between rich and poor
countries.
Before the world embarks on a new round of multilateral trade negotiations, existing
trade agreements should be carefully evaluated. Developing countries should carry out
their own assessment with the support of the international community. The central
message is that WTO should be subordinated to the overarching objectives of sustainable
development.
This chapter concentrates on reforms needed in the world's trading system in order to
enhance its contribution to sustainable development. The
fi
ve
themes that need to be re-examined when assessing the world's trading system. The
second section discusses the relation between macroeconomic and trade policies. The
third section focuses on the regulatory regime for agricultural trade, while the fourth
section looks at international commodity agreements, intellectual property and invest-
ment rights.
fi
rst section presents
fi
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