Project report on

“TRADE AND ENVIRONMENT:
AN APPROACH THROUGH BIODIVERSITY"

Submitted to:

Ms. Stuti Binay Nanda
Faculty- Environmental Law

Submitted by:

Apoorva Chandra
Roll No. 25

Semester IV (C)

Hidayatullah National Law University
Submitted on: 24th August 2015

Acknowledgements 4 3. Chapter 3: The WTO approach and the CTE 12 i) The committee on trade and environment ii) The WTO approach 6. Chapter 5: The role of wildlife in trade and environment i) Medicinal Plants ii) Wildlife Trade iii) Animal skin Leather iv) Significance of Wildlife in biodiversity loss 8. Conclusion 19 9. Declaration 3 2. Chapter 4: Trade. Environment and Sustainable Development 15 7. Section 1: Introduction 5 i) Contextual Outline 5 ii) Objectives of the study 6 iii) Scope of the study 6 iv) Methodology of the study 6 v) Organization of the study 7 4. References 20 . Contents 1. Chapter 2: Trade and Environment perspectives 8 i) Policy And Practice of Trade And Environment ii) The Trade Perspective iii) The Environment Perspective 5.

APOORVA CHANDRA. 25 ID No. 1420141023 Semester – IV Section-C Hidayatullah National Law University . Ms Stuti Binay Nanda.’ is record of an original work done by me under the guidance of my esteemed Environmental law faculty. ‘TRADE AND ENVIRONMENT APPROACH THROUGH BIODIVERSITY . Declaration I. hereby declare that the project work entitled. APOORVA CHANDRA Roll No.

Stuti Binay Nanda. Her constant supervision has helped me realize the detailed points of the topic at hand. “TRADE AND ENVIRONMENT APPROACH THROUGH BIODIVERSITY. 25 . which were hugely resourceful. for their continuous support in the form of our Library and the IT lab. I would like to express my gratitude towards my teacher Ms. for his unwavering support throughout the making of the project report. I would also like to thank the staff and administration of the Hidayatullah National Law University. Raipur. APOORVA CHANDRA Semester IV Roll No.” This project could be a reality only through the assistance provided by many persons. ACKNOWLEDGEMENTS I am highly excited to work on the topic.

marketing. making it increasingly important as a driver of environmental change. savings for investment— may be sourced from around the globe in a system held together by powerful communications and information technologies. • Trade liberalization is of itself neither necessarily good nor bad for the environment. assembly. Two fundamental truths about the relationship should become clear in the process: • The links between trade and the environment are multiple. International trade constitutes a growing portion of that growing scale. design. Its effects on the environment in fact depend on the extent to which environment and trade goals can be . This book aims to shed light on the area where these broad trends interact— on the physical. Chapter 1: Introduction Contextual outline Our world has seen fundamental and pervasive change in the last 50 years. and in part by reduced barriers to international trade and investment flows. the world has seen a steady increase in the importance of international trade in the global economy: since 1960. there is bound to be friction between the multilateral systems of law and policy governing both. complex and important. they are fundamentally related. National economies are increasingly integrated in a global economic structure where all the elements needed to produce a final good or service—production of inputs. Much environmental damage is due to the increased scale of global economic activity. world trade grew by a factor of 12 Environment and trade linkages These trends are not isolated. legal and institutional linkages between international trade and the environment. while the global economy almost quadrupled. Possibly as a result. The trend toward globalization has been driven in part by these new technologies. As economic globalization proceeds and the global nature of many environmental problems becomes more evident. management.

The first section deals with the introduction to the topic.. as advised by the Faculty. Websites. dictionaries and articles have also been referred. A positive outcome requires appropriate supporting economic and environmental policies at the national and international levels. It goes on to the different acts. The third section deals with the relation between the levels and types or areas. have been referred to understand the topic and give it a strong foundation. this study gives emphasis on the fundamental rights of a citizen of India. and provisions in the constitution of India about trafficking of human beings. Scope of the Study This study covers definition and types of human trafficking accompanied by other classifications. Also.made complementary and mutually supportive. . followed by the objectives and methodology adopted for carrying out the study.. The final section deals with the concluding observations.. The second section deals with the definition of the term ‘Environment and trade’ and the evaluation of its causes. Methodology of the Study This project report has been compiled through descriptive and analytical research methodology. laws. The topic for this project has been decided by our learned faculty based on the needs of today’s society. Organisation of the Study This study has been organized into three sections. Secondary and electronic resources have been used to a great extent to accumulate knowledge and data related to the topic. Books.

and for the energy needed to Environment and . trade and the environment are related because all economic activity is based on the environment. The environmental effects are evident in land degradation and soil erosion owing to over cultivation. soil.It also receives the waste products of economic activity. since exporters must respond to market demands for greener goods and services. It is the basis for all basic inputs (metals and minerals. . forests and fisheries). There is evidence of farmers’ occupying and working land in excess of their real needs in order to forestall its use by others. the profitability of cotton led farmers to increase greatly the area cultivated. Trade is also affected by environmental concerns. With increased trade – which is often a major feature of structural adjustment policies required by international agencies such as the International Monetary Fund and the World Bank – the area devoted to export crops increases. for example. insufficient fallow. Almost no fallowing is practiced in the region. A study of Mali. The trade perspective . Chapter 2-Trade And Environment Perspectives Policy And Practice of Trade And Environment Many developing countries grow agricultural crops for domestic sale as well as for export. extending onto marginal land. What are the environmental effects of shifting to export crops? In some cases they can be significant. and the use of marginal land against a backdrop of increasing aridity. and harmful. finds that the development of cotton as a cash export crop “has substantially increased the cultivated area and markedly reduced the fallow period. . At the most basic level.

• But most national governments answer too directly to national industries. countries will look for loopholes. and more efficient foreign firms are shut out. such as World Trade Organization (WTO) rules. • One way to avoid these problems is a strong system of rules spelling out clearly how the environment shall be protected. and will try to protect them against “costly” environmental demands. seriously threaten the earth’s ecosystems. Trade rules forbidding certain types of environmental regulations may be one way to do so. domestic consumers pay higher prices. . keeping foreign competitors at bay. • Trade can actually be good for the environment. at the national and international levels. • The best protection is a strong system of rules against such behaviour. The environmental perspective • Our current social and economic systems. and will try to preserve domestic markets for these industries. • But most national governments answer too directly to national industries. governments make their citizens worse off: domestic firms become inefficient. by which all countries can abide. • More trade means more economic activity and thus in many cases more environmental damage. including the reality of prices that do not reflect the full cost of environmental damage. governments and industry will look to scuttle them. Banning or restricting trade on environmental grounds may be one such loophole. since the efficiency gains from trade can mean fewer resources used and less waste produced and since trade can enhance access to efficient and environmentally-friendly technologies. The wealth created by trade will not necessarily result in environmental improvements. • In doing so. • Even after signing such agreements. since it creates wealth that can be used for environmental improvement.• Trade creates the wealth that could be used to increase human wellbeing. Environment and Trade • Even after such rules are in place.

The WTO approach and the Committee on Trade And Environment The Committee on Trade and Environment The terms of reference given to the CTE were “To identify the relationship between trade measures and environmental measures. The relationship between the WTO and MEAs. Reducing or eliminating barriers to trade in environmental goods and services. To make appropriate recommendations on whether any modifications of the provisions of the multilateral trading system are required. 2. Procedures for information exchange between MEA Secretariats and the WTO. equitable and non-discriminatory nature of the system” The Committee narrowed this broad mandate down to a 10-item agenda for work and used this agenda as its framework for discussions until its role was fundamentally changed by the 2001 Doha Declaration. For these issues the CTE was to serve as a negotiating forum. . in order to promote sustainable development. and 3. contributing to the Doha agenda results—a role fundamentally different than the discussion forum it had been up to that time. compatible with the open. and criteria for granting MEAs observer status in WTO meetings. and for which it convenes in special negotiating sessions. In Doha the members charged the Committee with focusing primarily on three issues: 1.Chapter 3.

The CTE was also instructed. 2. This is consistent with an economic principle known as the specificity rule: policy solutions should be targeted directly at the source of the problem. decisions on international trade policy should not be complicated with environmental issues. and 3. These are: • To oversee the implementation and administration of the WTO agreements. has been criticized on several grounds. which is likely to cause other. Functions of the WTO The main functions of the WTO can be described in very simple terms. As far as possible. It is also inadequate for dealing with environmental problems which are truly transboundary or global. The WTO approach From the WTO perspective. The effect of environmental measures on market access. Labeling requirements for environmental purposes. This argument. It fails to consider the competitive pressures that may encourage trading nations to reduce environmental protections. placing the responsibility for environmental policies on national governments. to give particular attention to three issues (though not in the form of negotiations): 1. the responsibility for environmental policy should remain at the national level. and the environmental benefits of removing trade distortions. The relevant provisions of the TRIPS Agreement. in pursuing its work on the 10. undesired effects such as the reduction of gains from trade.point agenda. as well as the inadequate institutional structures in many developing countries. Using trade measures to accomplish environmental policy goals is therefore a second-best solution. Environment and Trade .

• Raising standards of living.• To provide a forum for negotiations • To provide a dispute settlement mechanism. Together. Ensuring full employment. The goals behind these functions are set out in the preamble to the Marrakech Agreement Establishing the WTO. they form the critical “discipline” of non-discrimination at the core of trade law. Expanding the production of and trade in goods and services. . The WTO aims to achieve its objectives by reducing existing barriers to trade and by preventing new ones from developing. This approach is based on two fundamental principles: the national-treatment and most-favored nation principles. It seeks to ensure fair and equal competitive conditions for market access. and predictability of access for all traded goods and services. Ensuring large and steadily growing real incomes and demand.

that “in order to achieve sustainable development. Sweden.. . establishing that “the polluter should.” The Declaration’s 15th and 16th Principles set out two other important ideas that are now widely accepted by policy makers: the “precautionary approach “. in its Principles 4. which requires that “when there are threats of serious or irreversible damage. bear the cost of pollution “. lack of full scientific certainty shall not be used as reason for postponing cost-effective measures to prevent environmental degradation “.sustainable development is not a fixed state of harmony. The central themes of the conference were:  The interdependence of human beings and natural environment  The links between economic and social development and environmental protection. Environment and Sustainable Development Sustainable Development The main elements of sustainable development emerged at the 1972 United Nations Conference on the Human Environment in Stockholm. but rather a process of change in which the exploitation of resources. which was held in Rio in 1992. and the “polluter pays “principle. The Brundtland Commission went on to say that: .. stating. the orientation of technological The Rio Declaration.Chapter 4: Trade. environmental protection shall constitute an integral part of the development process and cannot be in isolation from it. the direction of investment. firmly established the inherent link between environmental issues and development. in principle.  The need for a global vision and common principles.

and the Convention on Straddling and Highly Migratory Fish Stocks (1995). These include conventions protecting fur seals. An international convention was required to prevent any exporting country from gaining competitive advantage by using phosphorus in match production. Multilateral Environmental Agreements (MEAs) It has long been recognized that some environmental problems require international solutions. The first international treaty dealing with trade and the environment was the Phylloxera agreement of 1878. migratory birds. polar bears. . but it was the cheapest ingredient for matches. numerous international treaties have been adopted to respond to specific environmental issues. including important trade-related measures. Phosphorous was responsible for serious occupational disease among match workers. whales. the Antarctica Treaty (1991). Transboundary and global environmental issues have been addressed in the Montreal Protocol on Substances that Deplete the Ozone Layer (1987). the Basel Convention on Hazardous Wastes (1989). In 1906 an international convention was adopted banning the use of phosphorus in matches. In 1997 the Kyoto Protocol on Climate Change established guidelines for reducing greenhouse gas emissions. which restricted trade in grapevines to prevent the spread of pests that damage vineyards.13 Since then. and endangered species.

Also its trend has been increased in 0. spread across the Western and Eastern Ghats. in its report for the year 1997. They serve as therapeutic agents as well as important raw materials for the manufacture of traditional and modern medicine.Chapter 5: The Role of Wildlife in Trade and Environment Medicinal Plants Medicinal plants also play an important role in the lives of rural people in India with few health facilities. The export of Medicinal plants is Rs. Substantial amount of foreign exchange can be earned by exporting medicinal plants to other countries.5.23 lakhs during 1991-92 to 2002-2003. The plants that possess therapeutic properties or exert beneficial pharmacological effects on the animal body are generally designated as “Medicinal Plants”. The Ministry of Environment and Forests. Government of India. . The Export-Import Bank of India. which is poised to grow to $5 trillion by the year 2050. Its overall trend has been increased in 0.33453. And the average Import of Rs. puts medicinal plants related trade in India at $. They play a significant role in providing primary health care services to rural India. Of this. In India there are 880 medicinal plants species involved in all India trade. reveals that there are over 8000 species of medicinal plants grown in the country. According to World Health Organisation (WHO) the international market of herbal products is around $6. Unfortunately.01 lakhs.2 billion.5 percent. India’s share in the global medicinal plants related export trade is just 0.2827. About 70 percent of these plants are found in the tropical forest.5 billion and the same is growing rapidly.21 percent.39 percent. 48 species are exported and about 42 spices are imported.

primates. tortoiseshell. Consequently. without which we would live very different lives. agarwood. and properly managed . However. It also includes timber products. protect wild species and their habitats. as well as ornamental plants such as orchids and cacti. This includes ornamental animal products such as corals for aquaria. Wildlife trade can also represent a sizeable contribution to developed country economies Animal Skin Leather Re-importing and re-exporting of skins in different stages of processing leads to double-counting and consequently figures on the value of the reptile skin trade must be taken as approximations. reptile skins for the leather industry. such as in the trade in Vicuña products.Wildlife Trade ‘Wildlife trade’ refers to the sale and exchange of animal and plant resources. as only good quality skins are selected for export . In some cases. such as for some crocodile species. and live animals for the pet trade including parrots. trade records for reptile skins have been estimated to represent only 50% of total capture. raptors. and musk. sustainable wildlife trade can be beneficial to species and habitat conservation. and maintain the resource for sustainable and profitable use in the medium and long term. medicinal and aromatic products such as taxol. the legal trade has largely displaced the illegal trade. The trade in wild species can contribute significantly to rural incomes. as well as contributing towards sustainable livelihoods and social development The sustainable trade in wildlife can consequently represent a positive contribution to human societies. and the effect upon local economies can be substantial. The high value of wildlife products and derivatives can also provide positive economic incentives that can compete with other land use options available to local people. fisheries products. and a wide variety of reptiles and ornamental fish.

These cases involved commodities from highly endangered species. The 2006 IUCN Read List of Threatened Species records a significant increase in the number of animals and plants in the Critically Endangered. shahtoosh shawls. However. . such as the Tiger for medicine and skins. and the Tibetan Antelope for its wool. wildlife trade can be an equally significant threat to the survival of certain species. and certain parrots and birds of prey. Endangered and Vulnerable categories . such as rhino horns.The high value of wildlife trade can increase threats to biodiversity by acting as a financial incentive for people to trade in wildlife products even when the trade is not sustainable .captive breeding and ranching of reptiles for the skin trade can provide incentives for sustainable trade and the conservation of wild population The Significance Of Wildlife Trade In Biodiversity Loss A number of factors including habitat loss and climate change contribute to global biodiversity loss.

While it is usually economically advantageous for countries to pursue their comparative advantage through trade. the Commission for Environmental Cooperation. or shifted in regional impact. and impacts on marginal lands. Certification and labeling requirements. Multilateral Environmental Agreements (MEAs) address specific environmental issues which are transboundary or global. Where effective environmental protection policies are lacking at the regional or global level. Agricultural cropping patterns altered by the introduction of export crops may involve environmental benefit or harm. but this body has little enforcement power. but have so far been avoided. Conclusion Trade expansion can often have environmental implications. or global level. can help to promote consumer awareness and “greener” corporate practices in international trade. increased migration. Industrial pollution may be increased. reduced. instituted by governments or by private nongovernmental organizations. The effects of trade on the environment are varied. or global level. national policies are needed to address trade-related environmental issues. Conflicts between MEAs and World Trade Organization rules are possible. The European Union is an example of a free trade area that has set up institutions for transnational environmental standards enforcement. Proposals have been made for a World Environmental Organization to oversee global environmental policy. The North American Free Trade Agreement was accompanied by a side agreement setting up an environmental monitoring authority. and to serve as an advocate for environmental interests in the world trade system. Policy responses to trade and environment issues can occur at the national. regional. Secondary effects of trade may arise from the disruption of existing communities. Trade may increase environmental externalities at the national. environmental impacts such as increased pollution or natural resource degradation may also occur as a result of trade. . regional.

Daniel C. Washington. 5.C. and the Environment. D. Fredriksson.C. No.org/english/tratop_e/envir_e/envir_e. http://www. ed. Refrences  Brack. 1998.wto. 2. 1999. 1994  Charnovitz. Trade. including trade and the environment.2 (1996). Greening the GATT: Trade. Daniel C. 15.oecd. “Bridging the Trade-Environment Divide. The site includes links to many research reports and other information. Montreal: CEC. World Bank Discussion Paper No. pp.org/english/docs_e/legal_e/legal_e.wto.htm>. Global Policy. Journal of Environment and Development Vol. Environment. 3.org/ech/ The web site for the trade division of the Organisation for Economic Co-operation and Development.: Institute for International Economics. 1999.htm The World Trade Organization’s web site devoted to the relationship between international trade issues and environmental quality.168-169. vol.: The World Bank.” Journal of Economic Perspectives. and the Future. References Bibliography 1. The site includes many publications on trade issues. http://www.  Commission for Environmental Cooperation (CEC). Trade and Environment: Conflict or Compatibility? London: Royal Institute of International Affairs.. Washington D. Steve.<http://www. Per G. 3 (2001): 353-377. 402. . Duncan ed.  Esty. no. Assessing Environmental Effects of the North American Free Trade Agreement: An Analytic Framework and Issue Studies.  Esty. “Trade Measures and the Design of International Regimes”.

 Selected tropical timber commodities include (under the HS2002 classification):.  5 United Nations Environment Programme – United Nations Conference on Trade and Development (UNEP-UNCTAD). .  Which is Objective 3 of five key priorities in the ASEAN Regional Action Plan on Trade in Wild Fauna and Flora 2005–2010.  Document 16164/06 (Presse 349). .