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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
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