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Mr. Nalin M. Kishor, Mr. Muthukumara Mani, and Mr. Luis F. Constantino
An increasing number of tropical timber producing nations have enacted bans on export of logs. Proponents argue that a log export ban is a second-best policy tool for addressing environmental externalities; it also creates more jobs and improves scale efficiencies domestically. Theoretical arguments suggest that log export bans are largely incapable of achieving their objectives. However, little quantitative evidence exists. The authors maintain that eliminating log export bans in Costa Rica could generate economic gains as high as $14 million annually in addition to the environmental benefits.
Ms. Piritta Sorsa
The paper seeks to provide an overview of the present state of debate on trade, environment and the GATT for developing countries. Potential for green protectionism and relevant GATT rules are discussed in three areas: i) environmental product regulations including eco-labeling and other product measures with effects on production processes and border adjustment of environmental taxes; ii) extraterritorial use of trade measures to influence environmental behavior in other countries; and iii) the use of trade measures with international environmental agreements. The conclusion of the Uruguay Round will have a number of direct and indirect effects on trade and environment and the GATT debate on it.
Ms. Piritta Sorsa and Grant B. Taplin

and the use of trade restrictions to enforce external environmental objectives. Many of these issues have been discussed in depth over the past years, and it is difficult to find new angles to the debate. Agendas for action to reconcile trade and environment objectives in the near term have been drawn up. For example, the OECD will seek to formulate guidelines or recommendations in the spring of 1995 and the GATT/WTO will discuss issues and present its recommendations for further action in two years from its entry into force. This paper seeks to provide an

Ms. Piritta Sorsa

/W/188 . GATT ( 1994d ), Report by Ambassador Ukawa, Chairman of the Group on Environmental Measures and International Trade, to the 49th Session of the Contracting parties, L/7402 . GATT ( 1994e ), Trade Measures for Environmental Purposes Taken Pursuant to Multilateral Environmental Agreements: Recent Developments, PC/SCTE/W/3 . OECD ( 1994 ), Summary Report of the Workshop on Trade and Environment:PPM Issues, Joint Session of Trade and Environment Experts , June 1994 Paris . Pearson ( 1993 ), Trade and Environment: The United

Ms. Piritta Sorsa

indirect effects on trade and environment. The Round was important, not only in reducing all protectionist pressures, but also in preserving and reinforcing the multilateral framework to deal with new and old trade issues. In addition, the results of the Round in improving growth, in general, and market access for labor-intensive products, in particular, can be beneficial for improved environmental quality in developing countries. Some rules with links to the environment are modified, and new sectors added to the debate. The paper believes more focus is also needed on

Ms. Piritta Sorsa

and indirect effects on trade and environment. The Round was important, not only in reducing all protectionist pressures, but also in preserving and reinforcing the multilateral framework to deal with new and old trade issues. In addition, the results of the Round in improving growth, in general, and market access for labor-intensive products, in particular, can be beneficial for improved environmental quality in developing countries. Some rules with links to the environment are modified, and new sectors added to the debate. The paper believes more focus is also

International Monetary Fund

issues in the work program agreed in Doha. Agriculture. Members to submit comprehensive draft schedules. New issues. Members to decide by “explicit consensus” on modalities (including whether/when) for launching negotiations on investment, competition policy, transparency in government procurement, and trade facilitation. Environment. Committee on Trade and Environment to report to the Ministerial Conference on the need to clarify WTO rules—including the desirability of negotiations—with regard to the effect of environmental measures on market access; the relevant

International Monetary Fund. External Relations Dept.

yet members of the WTO to join it, by accepting its principles. Given the WTO’s vital role, we agree on the importance of improving its transparency to make it more responsive to civil society while preserving its government-to-government nature. We pledge to work for a successful ministerial meeting in Seattle to launch the new round. We will also seek a more effective way within the WTO for addressing the trade and environment relationship and promoting sustainable development and social and economic welfare worldwide. Designing employment policies One