1. Sustainable Development: International Trade and International Agreements Chapter 20 © 2004 Thomson Learning/South-Western

2. 2 Sustainable Development As a Global Objective Redefining Environmental Objectives  Environmental Quality Revisited Environmental Quality – a reduction in anthropogenic contamination to a level that is “acceptable” to society  Moving Toward Sustainable Development Sustainable development – management of the earth’s resources such that their long-term quality and abundance is ensured for future generations Intergenerational equity  Sustainable Development in Practice Concept is vague and not a good notion to guide policy

3. 3 Sustainable Development As a Global Objective Understanding the Implications of Economic and Population Growth on the Environment  What the Data Imply Data imply that the associated environmental impact per unit of income must decline at a rate between 3.5 percent and 4 percent per year to avoid further pollution and natural resource depletion

4. 4 Sustainable Development As a Global Objective The Environmental Kuznets Curve – Models an inverted U shaped relationship between economic growth and environmental degradation

5. 5 Sustainable Development As a Global Objective Figure 20.1 The Environmental Kuznets Curve

6. 6 Global Framework for Sustainable Development United Nations Conference on Environment and Development (UNCED)  Agenda 21 – a voluntary action plan outlining the course for worldwide progress toward sustainable development  Rio Declaration on Environment and Development – outlines 27 principles to act as guidelines for achieving global environmental quality and economic development

7. 7 Global Framework for Sustainable Development World Summit on Sustainable Development: Johannesburg 2002  Objective was to renew worldwide interest in sustainable development and to assess progress achieved since the 1992 Rio Summit

8. 8 International Agreements To Control Transboundary Pollution  International externality – a spillover effect associated with production or consumption that extends to a third party outside the market in another nation Montreal Protocol and Amendments  Important example of international cooperation aimed at environmental protection Chlorofluorocarbons (CFCs) – a family of chemicals that scientists believe contributes to ozone depletion Halons – a major group of ozone depleters with long atmospheric lifetimes

9. 9 International Agreements To Control Transboundary Pollution U.N. Framework Convention on Climate Change (UNFCCC)  Key provision was a commitment to implement national strategy to limit the release of greenhouse gases Greenhouse gases (GHGs) – gases collectively responsible for the absorption process that naturally warms the earth  Kyoto Protocol Set binding GHG emission targets for developed nations

10. 10 International Agreements To Control Transboundary Pollution  London Dumping Convention (LDC) Prohibited ocean dumping of certain wastes, including radioactive wastes  U.S.-Canada Air Quality Agreement Established to combat the problem of acid rain and visibility impairment Acid rain – arises when sulfuric and nitric acids mix with other airborne particles and fall to earth as precipitation

11. 11 International Trade and Environmental Protection Overview of the Controversy: Free Trade Versus Protectionism  Free Trade Proponents argue that nations should trade with one another because there are tangible gains to be realized  The Protectionist View Protectionism – fostering trade barriers, such as tariffs or quotas, to protect a domestic economy from foreign competition

12. 12 International Trade and Environmental Protection International Trade and Environmental Objectives  Concerns Lenient labor laws and relatively low wage rates in less developed nations can adversely affect employment in more advanced nations Quality and desirability of imports produced in nations with lax regulations on such issues at toxic chemical use, fuel efficiency, and coal consumption

13. 13 International Trade and Environmental Protection International Trade Agreements and the Environment  North American Free Trade Agreement (NAFTA)  General Agreement on Tariffs and Trade (GATT)  World Trade Organization (WTO)