"COMERCIO Y DESARROLLO SOSTENIBLE"

Environmental Notifications and Trade Policies

Overview of Environmental Notifications

• Approximately 165 to 200 environmental notifications are issued annually, showing a clear upward trend. By 2023, around 850 to 900 notifications were recorded.

• Members of the WTO increasingly regulate trade policies with environmental objectives in mind, indicating a shift towards sustainable practices.

Key Agreements Influencing Notifications

• Three-quarters of these notifications relate to two specific agreements:

• Technical Barriers to Trade (TBT)

• Sanitary and Phytosanitary Measures (SPS).

Common Environmental Objectives

• A significant portion of measures focuses on chemical management, particularly toxic substances, which includes import bans.

• Other frequent objectives include:

• Conservation and energy efficiency (25%)

• General environmental protection (10%)

• Air pollution reduction (9%).

Case Study: Peru's Environmental Notifications

• Peru has submitted 72 environmental notifications to the WTO, with varied priorities compared to global trends.

• Key focus areas for Peru include:

• Water management and conservation (nearly half)

• Natural resource conservation (about one-third)

• Sustainable agriculture management (15%).

Types of Measures Used by Peru

• Nearly half of Peru's notifications involve non-monetary support measures such as training and research development.

• Other methods include technical regulations and direct payments or tax concessions.

WTO's Role in Environmental Discussions

Transparency Mechanism

• The WTO serves as a transparency mechanism for member states regarding their environmental policies.

Forum for Discussion

• Since its inception in 1995, the WTO has established a Committee on Trade and Environment that meets regularly to discuss intersections between trade and environment.

Objectives of the Committee

• The committee aims to:

• Explore links between trade and environment.

• Facilitate learning from national experiences among members.

• Ensure that trade policies support rather than hinder environmental protection.

Recent Discussions in the Committee

Overview of EU Green Deal Measures and Their Implications

Introduction to EU Green Deal

• The European Union has been discussing various measures under the Green Deal for over five years, generating significant interest and concern among member states due to their innovative nature and potential impact on trade partners.

Carbon Border Adjustment Mechanism

• A key measure being adopted is the Carbon Border Adjustment Mechanism, which aims to impose costs on imports based on greenhouse gas emissions from their production. This seeks to align external imports with internal carbon pricing in the EU.

Regulations Against Deforestation

• The EU is also working on regulations to ensure that its market does not contribute to deforestation linked with certain agricultural commodities like coffee, cocoa, and timber. These measures have sparked considerable discussion among member states.

Circular Economy and Fossil Fuel Subsidies

• Discussions include promoting a circular economy and reforming fossil fuel subsidies to create a more balanced environment between green technologies and those reliant on fossil fuels.

Key Initiatives in Trade and Environment

• Three notable initiatives have emerged over the past five years focusing on trade and environmental sustainability:

• Structured debates involving around 75 members addressing environmental goods/services liberalization.

• Dialogue aimed at reducing plastic pollution while promoting sustainable alternatives.

• Reform of fossil fuel subsidies, engaging about 45 members in sensitive discussions regarding economic impacts.

WTO's Role as a Knowledge Center

Regulatory Trends in Low Carbon Economy

• The World Trade Organization (WTO), particularly under Director-General Ngozi Okonjo-Iweala, has focused on providing information about regulatory trends related to transitioning towards a low-carbon economy.

Climate Goals Highlighted by WTO

• Examples of climate goals discussed include increasing renewable energy adoption, reducing emissions associated with trade, enhancing climate resilience against extreme weather events, and lowering emissions from buildings and appliances.

Policy Instruments for Climate Action

Impact of Trade Regulations on Sustainability

Emissions and Energy Efficiency Standards

• Discussion on emissions associated with buildings, industry, and appliances. The WTO members frequently utilize energy efficiency standards and labeling to help reduce these emissions.

• Invitation to consult the organization's website for a wide range of resources related to trade and the environment, available in English, Spanish, and French at no cost.

Role of WTO in Sustainable Development

• Acknowledgment of the importance of the relationship between trade and sustainability as a driver for sustainable development when properly regulated.

• Introduction of questions from students regarding how WTO regulations impact corporate financial planning.

Understanding WTO Regulations

• Explanation that WTO rules are international treaties applicable to its 166 member countries, implemented at the national level.

• Clarification that while WTO rules primarily target governments for public policy measures, they indirectly affect corporations through national implementation.

Regulatory Framework Impacting Corporations

• The relationship between WTO regulations and private sector operations is indirect; there are no direct rules applied to companies like other international organizations may have.

• The WTO provides a regulatory framework within which governments can adopt various measures impacting commercial operators.

Good Regulatory Practices by WTO

• The organization offers good regulatory practices aimed at minimizing unnecessary impacts on commercial operators through government policies.

• Discussion about how micro, small, and medium enterprises (MIPEPs) can adapt to new sustainability demands in international markets depends more on internal country regulations than on the WTO itself.

Addressing Unnecessary Barriers

• Inquiry into what constitutes unnecessary barriers that should not be imposed; emphasis on elaborating this concept further.

• Recognition that despite an indirect relationship with economic operators, the WTO supports them by enhancing transparency in trade requirements.

Tools for Market Access

• Mention of ePing.com as an online tool provided by the WTO where users can find information about technical regulations affecting market access for exports.

• This tool helps traders understand compliance requirements necessary for accessing specific markets effectively.

Trade Regulations and Environmental Concerns

Trade Rules and Obstacles

• The rules prohibit members from imposing unnecessary obstacles to trade, meaning that any technical regulations must be proportional to the public policy objectives they aim to achieve.

• Excessive labeling requirements are often questioned; for instance, when a country mandates unique labels for each market, exporters may view this as an unnecessary burden.

• Members are required to consider proportionality when implementing such regulations that could impact trade. This ensures that measures taken do not exceed what is necessary for achieving their goals.

WTO's Committee on Trade and Environment

• The WTO does have a committee focused on trade and environment where all 166 members discuss issues at the intersection of these two areas. However, there is no specific international treaty dedicated solely to this topic within the WTO framework.

• Relevant environmental rules are dispersed across various agreements rather than consolidated into one comprehensive treaty. This reflects the complexity of integrating environmental concerns into trade policies.

International Treaties and Sustainability

• Free trade agreements (FTAs) typically involve bilateral or regional arrangements that establish rules among trading partners, which exist outside of WTO regulations. These agreements can include chapters aimed at environmental protection.

• Modern FTAs often require minimum environmental standards to prevent production shifts from countries with high standards to those with lower ones, ensuring fair competition among nations involved in the agreement.

Recent Developments in WTO Agreements

• Traditionally, WTO rules have focused primarily on commercial aspects; however, recent developments show a shift towards incorporating clearer environmental objectives in new agreements like the fisheries subsidies agreement aimed at sustainable marine resources management.

• The evolution of these agreements indicates a growing recognition of urgent global environmental needs and a willingness among member states to create more environmentally-focused regulations within international trade frameworks.

Recommendations for Future Professionals

• Aspiring professionals in international business should recognize the strong trend towards greener and more sustainable commerce as emphasized by current WTO practices; being proactive about sustainability will be crucial for future success in this field.

Transitioning to Sustainable Trade

Importance of Sustainable Commerce

• The global trend is shifting towards more sustainable trade practices, emphasizing the need for efficient and cost-effective transitions.

• Stakeholders are encouraged to consider how they can contribute to this transition in a practical manner.

Acknowledgments and Participation

• Gratitude was expressed towards students, professors, and authorities for their participation in the event.

• The acknowledgment was made on behalf of the Faculty of Administrative Sciences and Human Resources by Dean Dr. Daniel Valera Losa.

Recognition of Contributions

• Special thanks were given to Magister Mateo Ferrero for his excellent presentation during the session.

• It was noted that certificates and recognition plaques would be sent through appropriate channels following the event.

Closing Remarks

• Appreciation was extended to Universidad San Martín de Porras for their kind invitation to participate in the workshop.