environmental regulations on developing countries-effects

8/8/2019 Environmental Regulations on Developing Countries-effects

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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


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)


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

environmental regulations on developing countries-effects

Documents