Trade and environmental policies should be mutually supportive in the pursuit of sustainable development through the interface between both policies. Process and production methods(PPMs) have significant environmental impacts. PPMs can pollute or deg...
Trade and environmental policies should be mutually supportive in the pursuit of sustainable development through the interface between both policies. Process and production methods(PPMs) have significant environmental impacts. PPMs can pollute or degrade the environment. Trade measures should be enforced on trade and trade policy in order to prevent environmental pollution in relation to PPMs. Trade measures can include trade bans or restrictions, trade sanctions, countervailing duties, mandatory eco-labeling and borter tax adjustments. PPMs can be sorted into product-related PPMs and non-product-related PPMs. As product-related PPMs takes the form of consumption externality, it can be accepted under the WTO rules like Technical Barriers to Trade(TBT) and Sanitary and Phytosanitary Measures(SPS). Non-product-related PPMs takes the form of production externality. Non-product-related PPMs can impact non-nationals and be seen extra-jurisdictional application of the importing country`s law. And these measures can also be the discriminatory application of trade measures and introduce distortions into international trade. Therefore, non-product-related PPMs can not be accepted under the WTO`s rules. PPM-based trade measures might be the last resort. Therefore, We should consider possible alternatives like harmonization of PPM criteria, enforcement of economic intruments, financial and technical assistance, eco-labelling, promoting cleaner production by cleaner technologies and introducing environmental trade preferences.