Download As competition in the global market increases, national businesses

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As competition in the global market increases, national businesses are engaging in
international trade to improve and stabilize their economy, and use the profits for further
national development. The benefits of global trade, in developing countries, can be
witnessed through the strengthening of their economies – with more access to foreign
capital, greater export markets, and advanced technologies. However, as the economies
are getting stronger, national resources are being depleted and the environment is facing
greater pollution. GHG emissions from global and national industries are becoming
hazardous, not only to the environment and ozone layer, but to human health as well.
Environmental degradation, due to the effects of human activity (such as global trade and
industries), are also noticeable – especially, in developing countries that are seeing a
scarcity of their natural resources, increases in pollution, and lower environmental
protection standards. The government of Rwanda recognizes the importance of
international trade as a means of generating revenue for national development, but also
sees the risk of a polluted atmosphere and scarcity of natural resources; therefore,
proposing trade liberalization with better trade monitoring, effective environment and
trade policies/agreements, and use of clean renewable energy.
Over the past fifty years, global trade has increased an average of 6% per year.
Much of today’s increased global market competition is due to the elimination of trade
barriers, tariffs and certain trade restrictions. However, consequently since 1970, thirtypercent of earth’s natural wealth has been destroyed as a result of GHG emissions and
other human activities (Claude 1). The amount of GHG emissions have escalated over the
years and we are seeing their effects through significant climate change.
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The major players of GHG emissions are big industries, in developed countries. A
recent study shows that developed nations, like United States - one of the major GHG
emitters – have increased their import rates in recent years; and such consumption has
added significantly to the GHG emissions of their trading partners, especially those with
poor enforced environmental regulations, like China (“Outsourcing U.S. Greenhouse Gas
Emissions” 1). The rise of pollution and GHG emissions through rapid industrialization
and global trade, has many environmentalists concerned. Through the depletion of the
ozone layer, global climatic temperatures are also rising. Extreme temperatures and
atmospheric pollution can lead to an increase in infection and disease and expose humans
to air-borne pollutants (“Climate Change and Health” 1).
Although human activity through trade and industries has contributed to the
amount of GHG in the atmosphere, global trade can not be completely abandoned or
restricted. Globalization, itself, has significant benefits to developed and developing
nations. On average, people who live in countries open to the global economy enjoy
higher living standards, than those trapped behind high-tariff barriers (Griswold 1). With
recent acceleration of global trade, countries throughout the world are benefiting from
more investment, industrial development, and income growth. Effective participation in
the global economy has enabled many developing nations to restructure their national
economies.
Based on an Environmental Protection Agency report, developing nations will be
producing greater amounts of greenhouse gas emissions than certain developed nations,
in the future. As developing nation markets are trying to compete in the global arena,
more industrialized production is resulting in greater emission release (“Climate Change
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and Health” 1). However reducing global trade is not the correct approach to reducing
greenhouse gas emissions. Alternative methods need to be taken to protect the
environment and also ensure the smooth running of global trade. Global trade is crucial to
national economies. With implementation of proper environmental and trade policies
along with an increase in the global trade of safer goods, the environment can be better
protected. This is ultimately the goal of Rwanda.
Under UNDP, the nation of Rwanda – realizing the importance of global trade to
a developing economy, and understanding the importance of environmental preservation,
encourages trade liberalization, adherence to environmental protection agreements, and
an increase in the trade of cleaner and “greener” products. Rwanda strongly urges nations
to participate in the global economy through trade liberalization.
Free trade has tremendous benefits towards the stabilization and growth of
national economy and is essential for poverty reduction. With an increase in income,
through global trade and investment, the nation of Rwanda wishes to achieve a stable
economic growth between 7-8% in the following fifteen years (“Rwanda: Trade Policy
Review” 1). Free trade allows global markets to increase profit, thus better funding for
national development and higher environmental standards.
The benefits of trade liberalization are gradual, although initial resource depletion
may occur. Thus, trade liberalization indirectly benefits a nation’s natural and
environmental resource base – as trade-relation fiscal revenues increase, it provides
national governments with new financial resources to support environmental protection
and conservation efforts (“Trade Liberalization…” 1). Trade liberalization must be
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implemented not only to ensure economic development, but to eventually acquire
financial aid to develop stronger and effective environmental standards.
Rwanda also encourages the adoption of better environmental and trading
agreements, such as WTO agreements and the Kyoto Protocol. The WTO contributes to
the sustainable development and protection of the environment by furthering open trade
of goods and services and by providing nations with the opportunity to adopt traderelated measures for environmental protection (“An Introduction to Trade…” 1). Through
specialized agreements such as WTO’s Agreement on Technical Barriers to Trade,
certain pollutants and hazardous products can be regulated.
The WTO also works with developing nations to eliminate harmful subsidies. In
certain communities, high levels of fishing subsidies resulted due to over fishing.
Through the elimination of these subsides, developing countries will have greater access
to markets; at the same time, reduce pressure on the environment (Claude 3). Through a
WTO report, Rwanda had made significant economic progress since the 1994 conflicts,
by liberalizing foreign exchange and interest rates, eliminating export tax, and lowering
tariffs (“Rwanda: Trade and Policy Review” 1).
With increases in GHG emissions, several developing nations have also adopted
the Kyoto Protocol. Under this protocol, industrialized nations are limited to the amount
of greenhouse gas emission they can produce annually and must report their emissions on
yearly bases (Petsonak 7). Through emission trading, carbon emission can be tracked and
traded in the global economy through certain regulations (“Emission Trading” 1). Also,
the practice of carbon taxation can help reduce GHG emissions and benefit developing
countries. Recent study shows that, through the revenues of carbon tax, countries like
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Indonesia, are able to use the money to finance higher energy needs. Under the Kyoto’s
CDM project, developed nations can negotiate carbon credits with developing countries
(“Rwanda: Coping with Global…” 2). Developing nations will receive funds for better
cleaning projects, while developed nations receive the credits.
Rwanda strongly believes that global trade needs to be practiced alongside
environmental-friendly policies. And advances towards clean-renewable energy and
stricter environmental standards need to be implemented. Rwanda relies heavily on
imported oil, and high oil prices and transportation cost can be damaging to its economy
(“Rwanda and the Brussels Programme…” 1). Through financial aid, from the global
trade market, NGOs, and revenues acquired through agreement policies, developing
countries can establish cleaner, renewable energy and be less dependent on foreign
imports.
Rwanda also proposes that in order for countries to benefit from international
trade, a greater amount of regional integration and local trade need to be established.
This, Rwanda believes, will eliminate the barriers that are hold back the smooth trade
flow among many African/developing nations. With the help of UNCTAD, Rwanda
believes that an increase in income through regional and international trade can
eventually enable countries to better protect their environment (“Protection of Quality…”
1).
Global trade helps nations develop their economy through increase in financial
resources, allowing them to be more competitive internationally. Unfortunately, the rise
in global trade has lead to an increase in GHG emissions, harming the health populations
and resulting in resource depletion. Although global trade significantly contributes to the
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rise in greenhouse gas emissions, the nation of Rwanda strongly believes that global trade
can be practiced safely alongside environment protection laws to ensure economic
growth and environmental conservation. Realizing the effects of GHG emissions and the
benefits of global trade, the nation of Rwanda is looking forward to offering her advice
on reducing global trade’s impact on the environment.