International Economic relations Essay Example | Topics and Well Written Essays - 750 words

International Economic relations - Essay Example Does this principle also apply to trade and environmental issues Does doing the other means giving up the other How has the World Trade Organisation work towards resolving issues on the trade and environment trade-off Economists, policy makers and business organisations and owners alike have, for decades, debated the role of international trade in determining environmental outcomes (Antweiler, Copeland and Taylor 2001, p. 877) and such debates are oftentimes heated. From these debates, economic theories on the trade-off between trade and the environment emerged. One such theory is the "pollution haven hypothesis that suggests relatively low-income developing countries will be made dirtier with trade" (Antweiler, Copeland and Taylor 2001, p. 877). On the other hand, the empirical works of others have disputed the fundamentals of the pollution haven hypothesis. Others claim that the international trade policy of a country affects how trade will impact the domestic environment, and trade alone is not to blame for environmental degradation (Bhagwato and Srinivasan 1996). As countries embraces free trade, the economic managers and policy makers of that country designs trade policies which can either break or make the country's future as a global trade player (Driesen 2004). These policies and the way the environment was factored into them will have a significant impact on the direction of change that will happen in the country's natural environment. Trade policies can be designed to protect or exploit the natural resources of a country. This fact is the reason why trade organisations such as the World Trade Organization have taken global climate and global trade, together, as part of their agenda. The World Trade Organisation which is the institution that "embodies the multilateral regime of rules governing international trade" (Frankel 2005, p. 9) was formed in 1995. WTO is the direct result of the Uruguay Round and eight years of negotiations among concerned nations. The WTO and other similar multilateral organisations have acknowledged the interconnectivity of trade policies and environmental policies. So far, the WTO has done its best to minimise the impact of trade on the environment. For example, in order to become a member of the World Trade Organisation, Russia has to ratify the Kyoto Protocol which requires signatory nations to achieve environmental standards such as emission targets. Source: as presented by Frankel 2005, p. 15. Given that trade does impact the environment, it seems that no country can do away with trade altogether. It seems that it is either trade or perish. However, this is not an excuse to do away with the possible impact of trade on the environment. Efforts such as the launch of negotiations for a "Free Trade Area of the Americas with an express decision to exclude environmental issues from the agenda provides an even starker example of the trade community's hostility toward serious environmental engagement" (Esty 2001, p. 120). These actions should not be tolerated. Environmental issues should not be taken out of trade policy decision making since the impacts of trade on the environment have long been identified. Ignoring the problem will not make it go away. The World Trade