WTO AND ENVIRONMENT

  • November 8, 2022
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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WTO AND ENVIRONMENT

Subject: Economy

Context:

The WTO may serve as an appropriate forum for discussions on opening up trade in environmental goods and services according to the World Trade Report 2022: Climate Change and International Trade.

Details:

  • The Elimination of tariffs and reduction in Non-tariff measures on a specific subset of environmental goods would reduce carbon emissions while contributing to increase in exports and GDP in all regions.
  • India and several other developing countries are not in favour:
    • It could lead to tariff reduction for dual use goods-used also for non environmental purposes thus detrimental to the domestic industry
    • Majority of environmental goods production takes place in developed countries.

WTO and Environment:

  • The WTO also provides trade related technical assistance and capacity building to developing countries and LDCs, which can help to build climate resilient trade capacity
    • Example-Aid for Trade, the Enhanced Integrated Framework and the Standards and Trade Development Facility (STDE)

About the World Trade Report

  • It is published annually by the WTO.
  • It aims to deepen understanding about the trends in trade, issues, and policies.
  • The 2022 World Trade Report explores the complex interlinkages between climate change and international trade and how international trade and trade rules can contribute to addressing climate change.
The Enhanced Integrated Framework (EIF)

  • It  is the only multilateral partnership dedicated exclusively to assisting least developed countries (LDCs) in their use of trade as an engine for growth, sustainable development and poverty reduction. 
  • The EIF partnership of 51 countries, 24 donors and eight partner agenciesworks closely with governments, development organizations, civil society and academia.
  • The Integrated Framework (IF) was initially established in October 1997, at the High-Level Meeting on LDCs’ Trade Development held at the WTO.
    • Joining the WTO were the IF’s other core partner agencies: the International Monetary Fund (IMF), the International Trade Centre (ITC), the United Nations Conference on Trade and Development (UNCTAD), the United Nations Development Programme (UNDP) and the World Bank.
  • A Task Force on an Enhanced Integrated Framework provided recommendations in 2006 which led to the current Enhanced Integrated Framework.
  • The EIF creates genuine partnerships among Least Developed Countries, donors, partner agencies, the EIF Executive Secretariat, the EIF Trust Fund Manager and other development partners who are supporting LDCs’ own drive to:
    • mainstream trade into national development strategies
    • set up structures needed to coordinate the delivery of trade-related technical assistance
    • build capacity to trade, which also includes addressing critical supply side constraints.
  • EIF and Aid for Trade
    • LDCs can use the EIF as a vehicle to coordinate donors’ support and to lever more Aid for Trade resources, whereas donors can sign up to the EIF as a vehicle to deliver on their Aid for Trade commitments.

The WTO-led Aid-for-Trade Initiative 

  • It encourages developing country governments and donors to recognize the role that trade can play in development. In particular, the initiative seeks to mobilize resources to address the trade-related constraints identified by developing and least-developed countries.
  • Aid for Trade relates to the provision of a comprehensive trade package that aims to help developing countries, particularly least-developed countries, develop the trade-related skills and infrastructure for implementing the WTO agreement thereby benefiting from enhanced market access.

The Standards and Trade Development Facility (STDF)

  • It  is a global partnership which works to strengthen food safety, animal and plant health capacity in developing countries by encouraging the use of good practices – including through digital technologies – to facilitate safe trade worldwide.
  • The STDF supports developing countries to comply with international sanitary and phytosanitary (SPS) requirements, as outlined in the WTO’s SPS Agreement. 
  • The goal is to build long-lasting SPS capacity in developing countries, contributing to sustainable economic growth, poverty reduction and food security. The STDF works to achieve this goal in two main ways:
    • funding collaborative, innovative SPS capacity building projects at the national, regional and global levels
    • identifying and promoting the use of good practices to develop SPS capacity.
  • STDF founding partners are the Food and Agriculture Organization (FAO) of the United Nations, which also houses the Codex and IPPC Secretariats, the World Organisation for Animal Health (WOAH), the World Bank Group, the World Health Organization (WHO) and the WTO.

The WTO-led Aid-for-Trade Initiative 

  • It encourages developing country governments and donors to recognize the role that trade can play in development. In particular, the initiative seeks to mobilize resources to address the trade-related constraints identified by developing and least-developed countries.
  • Aid for Trade relates to the provision of a comprehensive trade package that aims to help developing countries, particularly least-developed countries, develop the trade-related skills and infrastructure for implementing the WTO agreement thereby benefiting from enhanced market access.

The Standards and Trade Development Facility (STDF)

  • It  is a global partnership which works to strengthen food safety, animal and plant health capacity in developing countries by encouraging the use of good practices – including through digital technologies – to facilitate safe trade worldwide.
  • The STDF supports developing countries to comply with international sanitary and phytosanitary (SPS) requirements, as outlined in the WTO’s SPS Agreement. 
  • The goal is to build long-lasting SPS capacity in developing countries, contributing to sustainable economic growth, poverty reduction and food security. The STDF works to achieve this goal in two main ways:
    • funding collaborative, innovative SPS capacity building projects at the national, regional and global levels
    • identifying and promoting the use of good practices to develop SPS capacity.

STDF founding partners are the Food and Agriculture Organization (FAO) of the United Nations, which also houses the Codex and IPPC Secretariats, the World Organisation for Animal Health (WOAH), the World Bank Group, the World Health Organization (WHO) and the WTO.

economy WTO AND ENVIRONMENT