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LESSONS FROM FEDERALISM IN THE INTERNATIONAL TRADE OF RECYCLABLES (BASED ON MY TERM PAPER ON TRADE AND ENVIRONMENT AT THE DIVISION OF LAW MACQUARIE UNIVERSITY) by E.A.R. Ouano OUTLINE OF THE PRESENTATION Nature of Recyclable Trade Appreciation for the 3 Rs 3 Rs from the perspective of the developing countries Problems in trade negotiations involving recyclables Nature of Federal System Comparison of Trade and Federal System Almost all countries today agree and have polices on the 3Rs ( Recover, Reuse and Recycles) All countries agree 3Rs uses less energy, materials, and generates less wastes All countries today realized that their economies generates wastes that could not be effective recycled, reused, and recovered within their own territorial boundaries Reasons for the need to export recyclables Quantity generated is too small to commercially recover, reuse and recycle Segregation calls for manual labor which with high labor cost makes the process uneconomical– to developing countries Process calls for sophisticated technology that is difficult to operate and maintain with present level of sophistication- to developed countries While a country may export recyclables it is hesitant to import recyclables Fear of undisclosed nature of the recyclables Fear of unwanted residues Fear of unwanted pollution from wastes generated during processing Fear of being seen as the global dumping ground for recyclables Fear of being exploited Countries would like to limit recycling, reuse and recovery of wastes materials to wastes generated in its own territory and export those that it could not recover, reuse and recycle The more undeveloped and backward the country is, the stronger is the resistance to the trade of recyclables for reasons given in previous slides Aside from economic and technological disadvantage, fear on the trade of recyclables is magnified by historical experience such as Colonial exploitation Unequal trade agreements 3R industries that were detrimental to health and environment Public distrust on the governing elite- governing elite may profit from recyclables at the expense of public welfare Federalism is the union of autonomous or semiautonomous states forming a State. The states surrender some of their political powers to the central government or the State, relying it for common good. Confederation is a loose alliance of states with the states retaining ultimate control of their internal policies, absolute control of their territories and citizens Federalism comes from Latin word fidere meaning to trust In a federal system not all states are of equal level of social, and economic development Some states exports more recyclables to other states The relationships between the states are similar to those of the States in Regional and bilateral agreement Conflict resolution in confederates and federal system are normally more effective Common Commercial and Trade Features of a Federal State states maintain control of local commerce, trade, and industry states compete with other states in attracting investments, production of goods and services The State facilitate trade and commerce between the states The State constitution normally prohibits states legislation that impedes trade and commerce between states Federal system is relatively uncommon compared to unitary system Confederations are more uncommon Environmental problems and concerns in multilateral and bilateral trade agreements are also found in the relations between states in a federal system Trade in recyclables is an environmental concern in federated states as well as in confederation COMPARISON OF BACKGROUND FEDERAL, CONFEDERATION AND REGIONAL AGREEMENTS Federal Confederation Regional Agreements Main Legal Source Constitution Treaty Treaty Validity Permanent Permanent to very long period Normally with expiration, subject to extension Changes Ratified by people Ratified by the people Negotiated executive and Conflict resolution Judicial system Judiciary or commission Variable depending on the treaty provisions Constituency Citizens free movement within the territory Free movement but control left on states Limited to territory of the country Socio-economic conditions Variations are low Variations maybe high but common aspirations Variations high, aspirations maybe different Environmental Variations are low Variations are Variations are Precedents in resolving environmental issue Very high high Very low except when environment becomes a center of controversy Trusts in equitable Very high resolutions of environmental issue high Very low especially if the difference in the standard of living is high Conclusion Environment is a new dimension in trade negotiations especially in recyclables Environment represents a broader spectrum of distrust and equity issue especially when agreement involved societies with highly unequal economic and social level of development Federal and confederate system face the same trade problems but the conflict resolution mechanism is more matured Federal and confederate system resolve issues other than trade and environment- stakes are dispersed Conclusion (continued) There is a need for strong public consultation at the earliest stage The trade agreements must have a conflict resolution mechanism that is seen as fair, permanent, transparent and possibly integrated with other social and economic concerns The conflict resolution mechanism should not be seen as biased towards trade THANK YOU