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Trends in inclusion of environmental related provisions linked to the agriculture, fisheries and forestry sectors in regional trade agreements










Avesani, C., Dervisholli, E. & Solórzano, J. 2023. Trends in inclusion of environmental related provisions linked to the agriculture, fisheries and forestry sectors in regional trade agreements. Trade policy briefs, No. 54. Rome, FAO.




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    Ag-ERPs database: a novel repository of environment-related provisions for agriculture, fisheries and forestry in regional trade agreements 2024
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    The relationship between trade and the environment is intricate. Trade can improve the allocation of production among countries, with an efficiency-enhancing role in natural resources use. Likewise, open markets can improve access to new technologies that make domestic production processes more cost-efficient and reduce the use of inputs as well as other environmentally harmful substances. However, economic growth due to trade expansion can have a direct impact on the environment by increasing pollution and contributing to natural resource degradation. Trade liberalization may also lead to specialization in pollution-intensive activities in some countries, especially when environmental policies are not stringent. In recent years, there has been a significant shift in how trade policies are being approached, with a renewed emphasis on balancing sustainable development and market liberalization to ensure that trade policies and environmental protection are coherent and mutually supportive. Since the establishment of the World Trade Organization (WTO) in 1995, regional trade agreements (RTAs) have become a common option to further liberalize trade, growing significantly in number. RTAs have also expanded rapidly in terms of regulatory coverage and have evolved to directly referencing sustainable development and including provisions linking the environment to the agriculture, fisheries and forestry sectors. Based on novel dataset, this research looks into the trends in inclusion of environmental provisions related to the agriculture, fisheries and forestry sectors (“Ag-ERPs”) in RTAs and provides policy recommendations.
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    Environmental outcomes in agriculture: the effects of environment-related provisions in regional trade agreements 2024
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    The agriculture sector is both a contributor to global greenhouse gas (GHG) emissions and is affected by trade policies. As more and more regional trade agreements (RTAs) include environment-related provisions (ERPs), this technical note explores whether agriculture-related ERPs in RTAs are associated with reduced GHG emissions from agriculture. The research applies a novel dataset on ERPs related to the agriculture, forestry and fishery sectors (Ag-ERPs) to analyse this relationship in a panel of 195 countries and territories in RTAs notified to the World Trade Organization from 1995 to 2019. The findings show that there is indeed a significant reduction in agriculture-related GHG emissions in countries that enter into RTAs with more Ag-ERPs with their relevant trading partners in agricultural products. A mediation analysis reveals that this association is partly driven by stricter domestic environmental regulation, and partly by a reduction in agricultural land use. However, a large part of the overall association between RTAs with more Ag-ERPs and the reduction in agriculture-related emissions is still unexplained by these two channels. This suggests that lower GHG emission production methods are implemented at given levels of domestic environmental regulation and agricultural land use in countries with more Ag-ERPs in their relevant RTAs.
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