Environmental Factors That Affect Trade Between United States And Mexico Essay

Global business surround is progressively being determined by prevailing purlieual concerns. Trade regulations amid countries be being benchmarked on the decisions made on environmental indemnity. plain though there exists an underlying inadequacy in negotiating international take placements in conjunction with multilateral environment agreements, formulation of switch policy has been forced to move hand in hand with requisite environment policy creating a situation that only promotes a complimentary of the policies for sustainable economic development. In the same fray is the unification Ameri gouge waive Trade Agreement (NAFTA).NAFTA which includes several guidelines that detail environmental related provisions. The harmonize as agreed provides trilateral cooperation on matters concerning the environment and it besides contains particular(prenominal) provisions that seek to pressurize members to employ environmental law. The join States and Mexico has besides insti tuted a bilateral establishment called the Boarder Environment Cooperation Commission. Together with the compass north American Development Bank communities around the boarder atomic number 18as are financed to change them complete environment infrastructure projects.Despite the agreement these are til now ongoing discussions on NAFTAs possible environment effect, implementation of pending NAFTAs provisions and border funding modalities ( may Tinmann, 2000) During the negotiations carried turn out in the scene of liberalizing investment and trade rules amid the two countries, environmental issues arose due to the foundation of a more stringent specimens on one country turn the other(a) country had only weak environmental protection measures. much(prenominal)(prenominal) differences could be challenged with notable success as non tariff barriers that only act to stifle trade between the two countries.Another issue was whether the humans of weaker environment protection measures on one side could created an unfair competitory advantage and hence encourage businesses to relocate ingatheringion to areas that are to the lowest degree regulated in terms of environmental protection measures. Strict environmental regulations on the United States soil pose a considerable non tariff trade barrier hence the requirement for the need of harmonization of environmental provisions, health and safety standards. Relocation of industries to least environmentally regulated zones created a new challenge with increasing population.To offset this a mechanism had to be put in place to regulate all border environmental projects. Under the auspices of General Agreement on Tariffs and Trade (GATT) on which NAFTA operates new environmental issues are arising. In 1991 a dispute arose later the United States banned importations of tuna as Mexico had violated GATTs trade rules. The ban imposed under the Us Marine Mammal certificate Act sought to limit the killing or the causing of weighty injury to dolphins together with other marine animals in the course of commercial fishing.Mexico contested the ban but the court order was not lifted. following(a) the hearings of the case it was proposed that congress would lift the ban temporarily and Canada made a 5 year moratorium perpetration that stated on March 1, 1994. directly proposed changes on key environmental provisions that affect trade are focusing on non tariff barriers and the expansion on GATT discipline for Agriculture. (Trade and the Environment, 1993) on that point is no certainty to the conclusion of NAFTA debates and discussions taking into account that they had stalled several clock earlier.The set up of additional changes are likely to brew new tremble of conflict between GATT and environmental provisions. The relationship between international environmental agreements and GATT is other concern. Included in the International environmental agreement are 17 multilateral environment al agreements. These agreements cover key environmental problems such as stratospheric ozone depletion, hazardous waste and endangered species. in that respect is concern that other multilateral environmental agreements such as limits to green ho use of goods and services splatter emissions may be included in the trade agreements further melodic line Mexico trade as importation of products that do not comply with twain the GATT provisions and multilateral environment provisions will be banned. At the moment it still remains to be seen whether another GATT member can successfully challenge a trade measure leveled upon it by another member in pursuant of the multilateral environmental agreements.The growth of conflicts may in the future discourage GATT from acquiring agreements that would make trade undoable in addition to making GATTs resolutions ineffective and difficult to put by (Trade and Environment, 1992). There is need to reduce the functions between trade and environme ntal concerns. The North American Free Trade Agreement seeks to increase economic military action in Mexico and Boarder regions of the United States by negotiating a trade agreement that is agreeable to all the trade partners.However, there are concerns that unless the agreement puts in place adequate environmental safeguards, additional economic growth would decline the already serious environmental health problems. There are also concerns that these trade agreements may weaken or undermine the existing United States environmental standards. Mexicos commitment to environmental legislation and protection and commitment to attaining high environmental compliance is important. The laxity of the Mexican authorities to enforce strict environmental standards has seen some United States industries migrating to Mexicos duty broad export zones.These situationories relocate mainly to erode the strict United States Environmental Protection Standards and also to utilize cheap labor in Mexi co. Their law of proximity to the United States markets creates a competitive advantage as compared to the industries operating in the United States If all trading partners agree and conduct environmental reviews impact Trade agreements as a unified standard procedure the environment and underlying economic implications will be adequately analyzed through expert opinions and public debate.In line with environment, health and safety standard risks from traded products can be curtailed. However, this required a standardized method of that product risk assessment and testing is done strictly to the recommended stringent domesticated and international guidelines. (Paul Cough, 1993) New interpretations of GATT guidelines could holy terroren domestic regulatory regimes hence present a new risk to trading partners.There are environmental concerns that inadequate regulation and low levels of environmental regulation in hobbyhorse of trade liberalization may be used as an incentive to attract foreign investment as the production costs would be very low compared to countries with stringent guidelines. There are those who argue that environmental problems have limited impact on international competitiveness further if countries could impose a large carbon tax aimed primarily at reducing the emission of green house gases, the impact would be easily huge.Conflicting interests particularly the Trade and the Rio Declaration declares that all states have got the mature and sovereign authority to exploit their resources according to their own national environmental and development policies so long as their activities do not suggest an environmental affright to that of other states or areas beyond their jurisdiction. The underlying fact that some states might lower their environmental protection measures is a threat to agreements that struggle to foster free trade between countries.This paper analyzes such concerns and offers recommendations to the extent of the pre sent regulatory frameworks. Border waste Trade between the United States and Mexico The United States border lies within the jurisdiction of six Mexican states and four United States. Even though each state keep and governs its won jurisdiction there has always been a very profound and longstanding environmental pollution issue that is exacerbated by industrial and municipal wastes being discharged to the rivers that flow from the Mexican frontiers to the United States.Mexican wastes municipal treatment system are obsolete or non existent. This is further turn by companies that operate in a less strict environmental regulatory jurisdiction. These companies are inclusive of United States companies and they engage in unlawful dumping of untreated wastes into the river systems. This has created a disparity in the levels of development as well as fresh concerns on priorities of development and trade with specificity to the use of underground and surface water that are becoming incre asingly polluted.There is another problem of illegal dumping sites that pose a threat to health of inhabitants of the cities along the United States-Mexico border. The Border Environmental cooperation Agreement has been mandated to ordinate boarder water quality and sanitation services. However, disputes are ripe and any country is presenting its own interpretations of treaty. This has worsened the trade between countries as discussions and debates carried out under the auspices of NAFTA though fruitful have failed to provide an innovative, plenary and internationally binding agreement to forestall the potential health effects of continued trade.