{"id":50008700,"date":"2017-03-17T20:03:56","date_gmt":"2017-03-17T20:03:56","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=8700"},"modified":"2023-01-25T11:12:12","modified_gmt":"2023-01-25T11:12:12","slug":"8700-would-a-china-backed-pacific-trade-bloc-be-bad-for-the-environment","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/8700-would-a-china-backed-pacific-trade-bloc-be-bad-for-the-environment\/","title":{"rendered":"Would a China-backed Pacific trade bloc be bad for the environment?"},"content":{"rendered":"<p>Is the Trans-Pacific Partnership (TPP) dead? Is China seeking to replace the faltering regional trade bloc and supplant the US as a champion of free trade among Pacific nations and around the world? And just how does one navigate the \u201calphabetti spaghetti\u201d of abbreviated Pacific trade deals on the table right now (see also the Regional Comprehensive Economic Partnership, or RCEP, and the Free Trade Area of the Asia-Pacific, FTAAP)?<\/p>\n<p>Questions abound as China dispatched a high-level delegation to the Chilean city of Vi\u00f1a del Mar for talks with 12 existing TPP members plus South Korea about the future of Asia-Pacific economic integration. Yin Hengmin, China&#8217;s envoy on Latin American and Caribbean Affairs, was <a href=\"http:\/\/news.xinhuanet.com\/english\/2017-03\/16\/c_136134214.htm\">unequivocal<\/a> about his\u00a0country\u2019s position on trade: &#8220;China promotes the economic integration of the Asia-Pacific and we also firmly support global integration.&#8221; But he <a href=\"http:\/\/www.reuters.com\/article\/us-trade-tpp-china-chile-idUSKBN16K15B\">denied<\/a>\u00a0China\u2019s mission was to seek support for an alternative to TPP.<\/p>\n<p>Following US president Donald Trump\u2019s withdrawal from TPP by executive order shortly after taking office, speculation has mounted over what a China-led or other Asia-led bloc would look like. Amid the uncertainty of how the US\u2019 new protectionism will impact the global economy, and which of the many Pacific trade proposals will prevail, an important point remains: What does all this mean for social and environmental standards among member countries?<strong>\u00a0<\/strong><\/p>\n<h2>TPP, RCEP, FTAAP: Spelling it out<\/h2>\n<p>Twelve countries (not including China) signed the final proposal for <a href=\"https:\/\/en.wikipedia.org\/wiki\/Trans-Pacific_Partnership\">TPP<\/a> in February 2016 after seven years of negotiations. Along with economic growth and poverty reduction, former US president Barack Obama claimed TPP would \u201cpromote transparency, good governance, and enhanced labour and environmental protections\u201d. However the deal, which includes major economies the US, Japan, Canada, Australia and Mexico and would account for around 40% of GDP, is paralysed in its current form as it requires US ratification.<\/p>\n<p>FTAAP is an Asia-Pacific Cooperation Forum (APEC) proposal that the Chinese foreign ministry endorses as a more inclusive, simplified version of TPP. The <a href=\"http:\/\/www.apec.org\/Meeting-Papers\/Leaders-Declarations\/2016\/2016_aelm\/2016_Annex%20A.aspx\">proposal <\/a>has been around for decades and is progressing slowly, with countries due to review progress towards its realisation before 2020.<\/p>\n<p>Then there\u2019s RCEP. This proposal is led by the <a href=\"http:\/\/asean.org\/asean\/asean-member-states\/\">10 countries<\/a> of ASEAN (Association of South-East Asian Nations) and also includes China, Japan, South Korea, New Zealand, Australia and India. It accounts for around 24% of global GDP and 46% of the global population. It excludes the US.<\/p>\n<p>Obama <a href=\"https:\/\/www.washingtonpost.com\/opinions\/president-obama-the-tpp-would-let-america-not-china-lead-the-way-on-global-trade\/2016\/05\/02\/680540e4-0fd0-11e6-93ae-50921721165d_story.html?utm_term=.0231c91620b3\">wrote<\/a> about RCEP: \u201cit certainly won\u2019t enforce high standards for our workers and our environment\u201d, referring to the lack of protections written into the proposal.<\/p>\n<p>Yu Zheng, a professor of international politics at Fudan University agrees that, in theory at least, TPP has higher standards on the labour and environmental fronts. \u201cHow likely [it is that] member countries will comply with these standards is a different issue,\u201d he told <em>Di\u00e1logo Chino<\/em>.<\/p>\n<p>There have also been suggestions RCEP would involve a race to the bottom, or \u201charmonizing\u201d of standards among member countries not seen as fully <a href=\"http:\/\/money.cnn.com\/2017\/01\/23\/news\/economy\/tpp-trump-china\/\">compliant<\/a> with market rules. However, Yu argues that making standards compatible is a realistic goal that may increase participation and compliance in international treaties. \u201cAfter all, it is compliance that matters more than the treaty itself,\u201d he said.<\/p>\n<h2>TPP: the lesser of evils?<\/h2>\n<p>While TPP may imply greater environmental and labour protections, it is still far from clear about how it would achieve them, according to Ciro Salazar Valdivia, an independent researcher and director of <a href=\"https:\/\/www.facebook.com\/PeruanoscontraelTPP\/\">Peruvians Against TPP<\/a>.<\/p>\n<p>Salazar points out the \u201cflexible\u201d language in the agreement that only requires countries to express \u201ca commitment\u201d to implementing international environmental accords \u2013 with no obligation. \u201cAs we know with international trade agreements, every letter is important,\u201d he said.<\/p>\n<p>Based on its focus on high-carbon goods, greater trade integration through multilateral deals also has the effect of increasing greenhouse gas emissions, according to a <a href=\"https:\/\/www.wto.org\/english\/res_e\/booksp_e\/trade_climate_change_e.pdf\">report<\/a> by the United Nations Environment Program (UNEP) and the World Trade Organization (WTO).<\/p>\n<p>However, greater trade openness could facilitate the adoption of technologies that reduce the emissions intensity of goods and their production processes and lead to a transition to less energy-intensive production methods, the report concludes.<\/p>\n<p>The growth in recent years of the trade and investment relationship between China and Latin American countries such as Peru, which has focused principally on mining, is associated with a slackening of the sector\u2019s environmental standards. While it remains the responsibility of countries in need of foreign investment to uphold their own domestic regulations, this can be a challenge, Yu acknowledged.<\/p>\n<p>\u201cInternational capital, regardless of its origins, has a tendency to impose pressure on host countries to change their domestic regulations to accommodate foreign investors,\u201d said Yu.<\/p>\n<p>Instead of focusing on\u00a0comparatively lower environmental\u00a0standards in Asia, China can serve as a useful example of how not to pursue growth-at-all-costs: \u201cIt is essentially a trade-off between short-term growth and long-term development,&#8221; said Yu, adding; \u201cone of the biggest side effects of China\u2019s high growth is environmental degradation. It is a huge lesson other developing countries including Peru should learn.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Chile meet focuses on TPP\u2019s life after Trump amid ongoing concerns about environmental standards<\/p>\n","protected":false},"author":40000225,"featured_media":50026368,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[569,600],"hashtags":[],"country":[50040734,50040710,50000024,20000110,20000111,50040727,50002597,50040742,50002601,50040702,50040700],"class_list":["post-50008700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-negotiations","tag-trade","country-australia","country-canada","country-chile","country-china","country-india","country-japan","country-mexico","country-new-zealand","country-peru","country-south-korea","country-united-states-of-america"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Would a China-backed Pacific trade bloc be bad for the environment? 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