The environmental impact of free trade

In recent years the debate about the costs, benefits and longer-term implications of free trade and economic globalization has moved to the forefront of public policy concerns. Among the key issues shaping the free trade and economic globalization debate is the question of how trade liberalization affects environmental quality, either in terms of direct effects on our environment, or indirectly—for instance, the effects that such trade laws as those codified in the North American Free Trade Agreement and the World Trade Organization have on hard-fought national environmental standards and regulations.

To begin with, the implications that globalization and increasing needs and population have implemented in the free trade sector, as on a global scale member stated have become interconnected and hence free trade has expanded profoundly impacting the environment by raising issues such as pollution- intensive activities and the exploitation and degradations of natural resources. Also, the goal of free trade is to increase production for the world as a whole, the GDAE’s 2008 report contends that the total levels of pollution and negative environmental impacts would likely increase. It could be added, the Global Development and Environment Institute (GDAE) article, “Environmental Impacts of Trade”, which states that the carbon footprint of transportation must necessarily rise with free trade to export goods to foreign countries, leading to an increased amount of greenhouse gases. Lastly, free trade encourages the enchantment of efficient production techniques between high standard countries and LLEDCs as well as the development of environmentally friendly innovations to attract developed nations preoccupied by environmental issues.

There is a plethora of ways to combat the carbon footprint and the environmental impact of free trade. Firstly, it is crucial that trade amplifies sustainable practices, including but not limited to greener productions and consumptions, development of environmental sound technologies, investment in the environment and integration into green value chains. Furthermore, another solution to this problem is that all Member States apply a Carbon tax system by placing a surcharge on carbon-based fuels on all means that free trade is being achieved. In addition, it is of paramount importance that countries start pursuing a digital economy locally, namely by digital payments, service delivery and trading, with a view to further limiting environmental damages. Moreover, in order to mitigate the environmental impact of free trade we could develop a mechanism which would reinforce the capacity of inhabitants and the respectful nation’s organizations to effectively contribute to sufficient monitoring and implementation of the environmental laws. Lastly, Non-Governmental Organizations and contries’ governments could incorporate binding regulations and financial penalties into argument settlement events on condition that the environmental junctures are breached to discourage non- adherence and simultaneously exploit the penalty money to enhance law enforcement.

In conclusion, combating climate change requires the collaborate of all people, government, states, and associations and should be humans’ top priority. Free trade has a very big environmental impact and taking into account that climate change is not a prediction and is happening right know, it is crucial that immediate actions are taken to mitigate its effect on the environment.