Striking a balance

IN THE run-up to the first ministerial meeting of the World Trade
Organization'
(WTO) in Singapore in December 1996, the European Commission has
prepared
guidelines to promote world rules on trade and environment.
Endorsing an open
multilateral trading system, the communication says that it allows
for a more efficient use of natural resources and helps to reduce demands on the
environment. The
us $250 billion annual market for green technology is growing at
eight per cent a
year. According to a survey conducted in 1995, nearly 67 per cent
of European Union
(EU) citizens were ready to buy 'green' products, even at a higher
price.

The Commission pointed out that environmental costs are not a
decisive factor
for industries: they represent only one to two per cent of overall
production costs in
the EU. It has also called for non -discriminatory domestic
environmental rules which
would avoid protectionism in disguise.

The communication lays stress on the need to frame better environmental policies and sustainable development strategies to fully
realise the benefits
of trade liberalisation policies. The Commission has proposed that
the EU
should encourage environmental improvements in developing countries
through market premiums or preferential access, instead of
penalising those
with lower standards by using ecoduties. It has also called for
the inclusion of
multilateral environment agreements such as the Montreal Protocol
on ozone
depletion and the Basel convention on toxic waste, by the WTO
within the trade measures of the multilateral trading system.

The need to plug the loopholes in regulations that might increase
developing
countries' fears of turning into a dumping ground for hazardous
substances
prohibited in the western countries, has also been highlighted by
the Commission.