Challenges for Asia's Trade and Environment

Abstract

The recent rapid growth in Asia’s trade and the degradation of its environment, together with discussions in international fora such as the World Trade Organization, have highlighted the linkages between the region’s trade and environment. Trade policy is a relatively inefficient method of achieving environmental objectives but is one of the few peaceful means of influencing the environment in other countries, which may affect the domestic environment or industrial competitiveness. Similarly, environmental policies often have implications for international trade. In particular, there are widespread concerns that environmental instruments such as product standards or ecolabeling may be used as protectionist measures. Trade liberalization, new international production standards, and international cooperation efforts will all influence, and be influenced by the linkages between trade and the environment.