Trade news

EU trade policy
WTO
The EU's position
Sustainability Impact Assessments
Factfile
Publications

Home

Although a considerable amount of research is available on the economic impact of trade liberalization on the forest products sector, environmental and social impact assessments are virtually non-existent. No sustainability impact assessment of the current trade regime has been carried out, despite demands from several NGOs and governments.

The EU was the first trading partner to attempt to assess the sustainability impact of its position on a new trade round. The US then ordered environmental reviews to be conducted for major new trade liberalization agreements in natural resource sectors. Japan has also started an environmental impact assessment of its trade position on forest products.

FERN’s comments on the EU's sustainability impact assessment which has been criticised for being too broad, lacking precision, and using trade liberalization as a starting point.

In general the EU's SIA concludes that the impact of a new trade round is positive and significant for the EU. The outcome is less positive for developing and least developed countries where welfare losses may be experienced and significant negative social and or environmental impacts may occur. In relation to forests, the report points out that further liberalization of tariffs on non-agricultural products, in the intermediate scenario is likely to have negative environmental impacts on forests. These impacts will be more severe in countries lacking an effective environmental policy and regulatory framework.

The Commission is currently carrying out the first wave of sectoral SIAs including agriculture and services. Officials had suggested that a sectoral SIA on forests would be carried out but that has yet to materialize.