Foreign Trade in Environmental Products; The WTO Regulations and Environmental Programs

The aim of this paper is to present some aspects related to the Multilateral Trade Regulations and transnational and national environmental programs, from the point of view of their implications for foreign trade in environmental products. It should be noted that the elimination of trade barriers increases the efficiency of the world economic system by enabling countries to specialize in those sectors in which they possess economic advantages, which includes those sectors in which they possess favorable natural environmental conditions. In the latter half of the 1990's one could observe a rapid and dynamic increase in the environmental protection industry's share in the world economy. The overall global value of production in the environmental protection industry was estimated at 550 billion USD in the year 2001. In relative terms, this environmental market is not as large as the steel or agriculture markets, but roughly the same size as the pharmaceuticals and information technology markets. The environmental policy in the "old" and also "new" EU countries contributes to the achievement of the main goals of the global sustainable development strategy via the development of cleaner production and by the support for foreign trade in environmental friendly goods. The results of the empirical foreign trade analysis of trade in environmental products which are presented in the paper cover 11 countries of the OECD, including the USA, seven "old" EU member states, and one "new" member state - Poland. It is based on an international comparable database for environmental friendly goods, calculated by the author according to the OECD requirements (OECD-EUROSTAT, WTO, 1999). The analysis enables the author to present some important trends in foreign trade affecting the main exporters and importers of environmental goods in the USA and the EU. The analysis is also related to some regulations issued by the Committee for Trade and Environment of the WTO, with special reference to the conclusions of the Fourth and Fifth Ministerial Conferences in Doha and Cancun. The paper will also examine the effects of environmental measures on market access within the multilateral liberalization process.