Professional Documents
Culture Documents
Environmental Regulations On Developing Countries-Effects
Environmental Regulations On Developing Countries-Effects
regulations on developing
countries: what are the concerns
and what can be done
UNCTAD
1
UNCTAD activities
Papers
http://www.unctad.org/trade_env/index.htm
2
UNCTAD
reports
• An overview paper
• Regional scoping paper on South Asia
(Bangladesh, India, Nepal and Sri Lanka)
• Regional scoping paper on Central America
(in particular Costa Rica)
• Regional scoping paper on Eastern Africa
(Kenya, Mozambique, the United Republic
of Tanzania and Uganda)
• Scoping paper on organic agriculture (Costa
Rica, India and Uganda)
3
Case studies: South Asia
Fishery India (other countries) HACCP standards
products
Bangladesh (Aug97) EU bans on exports of fishery
India (May97 & Aug97) products
Peanuts India Aflatoxin standards: setting
national standards and promoting
indigenous development of
technology
Rice India Standards for pesticide residues
Spices India, Sri Lanka Aflatoxin standards and other SPS
measures
Tea India Meeting standards on pesticide
residues
Organic India Standard-setting, certification,
food exports and institutional support
products
4
Case studies: Central America
Poultry Costa Rica (and other Effects of (a) the application of US
Central American SPS regulations concerning specific
avian diseases (New castle
disease) and (b) HACCP
requirements on exports to the US
and intra-Central American trade.
Shrimp Costa Rica Policy responses.
US measures concerning imports of
shrimp (turtle excluder devices).
Organic Costa Rica Standard-setting, certification,
food exports and institutional support
products
5
Case studies: Africa
Fishery Kenya, Mozambique, Regulation 91/493/EEC
products Tanzania and Uganda:
Kenya, Tanzania and EU Import ban: presence of
Uganda (1997): salmonellae in nile perch from Lake
Victoria
Kenya, Mozambique, EU Import ban: outbreak of cholera
Tanzania and Uganda
(1997)
Kenya, Tanzania and EU Import ban: fish poisoning in
Uganda (1999) Lake Victoria
Peanuts Kenya Kenya : EU regulation on pesticide
application (Maximum Residue
Levels, MRLs)
Organic Uganda Standard-setting, certification,
food exports and institutional support
products
6
Expert Meeting on
Environmental Requirements and
International Trade
2-4 October 2002
http://www.unctad.org/trade_env/test1/meetings/envreq.htm
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Environmental requirements
• Standards (voluntary) and technical
regulations (mandatory)
• Labelling requirements (either mandatory
or voluntary, such as eco-labelling),
• Packaging
• Product taxes and charges
• Take-back obligations
• Informal (non-government) requirements
• Quotas and Non Automatic Licensing (to
implement MEAs)
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Environmental requirements
• Voluntary measures and private sector
standards appear to be much more frequent
than Government environmental product
regulations. These include:
– Standards, codes and benchmarks
– Supply chain management
• There are only few international standards for
environmental regulations
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More stringent and complex…
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More stringent and complex: examples…
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More stringent and complex: examples…
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Implications for market access
Concerns of developing countries:
• Many standards perceived as overly
stringent or complex
• Frequent changes (never catch up)
• Scientific justification insufficient
• Standardes often fail to take into account
the conditions of developing countries
• Way a measure is implemented may
discriminate (GATT/WTO dispute
settlement mechanism) 13
Structural weaknesses
• Lack of awareness
• Management of information
• Poor infrastructure
• SMEs
• Lack of finance
• Lack of institutional capacity
• Insufficient access to technology
• “Standard-takers” rather than “standard-
setters”
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Sectors
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Agricultural and fisheries products: concerns
South Asian
• Problems of SMEs
India:
• Substitutes 2.5 times more expensive than azo
dyes
• Azo-free dyeing 15 to 20 per cent more expensive
• High Costs of testing
Nepal:
• Weak regulatory and institutional framework to
address problems faced by the export industry
20
Leather and textiles, national responses
India
• The Government of India (GoI) has banned 112
harmful azo dyes.
• pro-active role of Pollution Control Boards:
norms for effluent treatment.
• Dissemination of information and development
of eco-standards.
• The GoI has established a Technology
Upgradation Fund, strengthened testing
laboratories and been assisting textile units in
securing certification
21
Leather and textiles, national responses
Pakistan
• Pakistan National Environmental Quality
Standards and Environmental Improvement
Plans
• Environment Technology Programme for
Industry of the Federation of Pakistan Chamber
of Commerce and Industries (FPCCI)
Nepal
• Joint initiative with the Governments of Finland
to improve environmental performance and
promote environmental labelling in certain
export industries.
22
Electronics
EU:
• The Waste from Electrical and Electronic
Equipment (WEEE) Directive
• The Restriction of the use of certain
Hazardous Substances in electrical and
electronic equipment (RoHS) Directive
• Integrated Product Policy (IPP)
• Green Purchasing Law (GPL)
• The Draft Strategy for a Future Chemicals
Policy
Japan
• Recycling regulations
23
Electronics: implications
Thailand
• A high-level subcommittee set up under the
National Committee for International Trade
and Economic Policy to monitor the
development of the EU WEEE and RoHS
directives and propose a plan of action
• The subcommittee has commissioned a study
to investigate the specific implications and
adjustment requirements
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Developmental aspects
• Environmental requirements that
adversely affect market access can have a
negative effect on development and
poverty alleviation
• There can be longer term advantages
from trade-induced shifts to more
stringent standards in terms of greater
resource efficiency, higher occupational
safety, improved health conditions and
less environmental pollution
• There may be trade-offs especially in
resource-constraint countries 26
Developmental aspects
• SME development
• WTO issues
– Special and differential treatment (S&D)
– Technical assistance
– Notification
– Transfer of technology
27
Action at national level
Raise awareness (gov., private sector)
Dissemination of standard-related
information, early warning system
Strengthen national and regional
institutions to conduct risk analysis and
testing; monitor enforcement of standards
and carry out certification.
R&D, innovation and enterprise
development
Promote business partnerships
SMEs
28
Action international community and
WTO
Bilateral cooperation
Participation and adequate time to adjust
Information dissemination
Promoting harmonization and mutual
recognition of product standards and
regulations based on equivalence in the
WTO
Standards developed without involvement
of producing and consuming countries
should have a default assumption of being
discriminatory to trade.
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Aid agencies
Strengthen capacities and assist
developing countries to become standard
setters
Assist developing countries in their
participation in the work of international
standardization bodies
National/regional cooperation
Cases where developing countries have
successfully enhanced their participation?
Best practices on appropriate involvement
of key trading partners in setting of
environmental standards and regulations
Early warning systems
30
Technical assistance
Large range of programmes
Piecemeal?
Often emerges when developing countries
face problems in meeting requirements of
importing countries
Long-term
Link TC/CB to enhance capacities to
comply with environmental standards with
broader TC/CB to enhance export
comptetiveness
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Consultative mechanism
To support:
• Research on new trends in environmental
requirements and likely implications for
products of export interest to developing
countries
• Information management and dissemination
• Pro-active adjustment strategies in exporting
developing countries
• Strategies for SMEs
• Reliable statistical information to facilitate
support policy-oriented research
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