The EKOS 707 research group at the University of Calgary prepared this brief to show why environmental considerations are necessary in the negotiations for the FTAA. Details are presented in supporting documents. Arguments are organized in five themes:

• improved environmental management is cost effective,

• environmental management enhances benefits and controls negative impacts,

• FTAA partners have prior commitments to protection of the environment,

• existing member country commitments on trade and environment require similar commitments in the FTAA, and

• a negotiating group on environmental issues must be formed.
  

Environmental management in government and the private sector has proven to be pragmatic, practical, and cost effective. It is understood that partnerships will be needed to build the capacity of all involved, especially in education.

Improved Environmental Management is Cost Effective

Credible international business organizations such as GEMI (Global Environmental Management Initiative), and the WBCSD (World Business Council on Sustainable Development), and international organizations such as the IISD (International Institute for Sustainable Development) and the CEC (Commission for Environmental Cooperation) have provided evidence that improved environmental management provides economic benefits. Recently Bennet and James in The Green Bottom Line have added to that body of evidence. In addition to reduction of costs and improved revenues, improved environmental management will facilitate access to the largest and wealthiest markets. Environmental purchasing guidelines are now used by large customers to select products and services; improved environmental management must be used to meet the conditions of those guidelines. Therefore, including provisions for improved environmental management within the FTAA will provide direct and indirect economic benefits to both governments and the private sector.

Improved Environmental Management Enhances Benefits and Controls Negative Impacts

This brief does not attempt to settle the debate about the environmental costs and benefits of increased trade through the FTAA. We argue that improved environmental management will enhance the environmental benefits and control the negative impacts. Environmental management tools to enhance benefits and control costs include: driving forces and barriers to environmental management, policies, education and training, management structures, environmental impact assessment, environmental auditing, accounting practices, product and technology assessment, life cycle assessment, purchasing guidelines, indicators and reporting, economic instruments, and risk management. International environmental management standards such as ISO 14000 establish a market driven, widely accepted minimum, which improves access to world markets. FTAA member governments must encourage and facilitate improved environmental management within governments and the private sector, particularly through education and training.

Commitment to Protection of the Environment is Not New to FTAA Partners

The majority of FTAA member countries have adopted or participated in a number significant conventions for protection of the environment. These include the Convention on Biological Diversity, CITES, the UN Framework Convention on Climate Change, the UN Convention to Combat Desertification, the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal, the Montreal Protocol on Substances that Deplete the Ozone Layer, and the Rotterdam Convention for Prior Informed Consent for Certain Hazardous Chemicals in International Trade. Therefore, including enhanced environmental management in the FTAA would assist member countries in meeting previous commitments without adding new commitments.

Existing Member Country Commitments on Trade and Environment Require Similar Commitments in FTAA

Existing trade agreements and declarations on trade and environment have already committed some FTAA member countries to improved environmental management, protection of the environment and the principles of sustainable development. These include NAFTA, Canada-Chile Free Trade negotiations, MERCOSUR, and the Summit of the Americas series (Miami 1994, Santa Cruz 1996, and Santiago 1998). Such agreements have considered the inclusion of trade and environmental issues as essential for achieving sustainable development goals, and provide guidelines to assist participating countries. These agreements have set important precedents for the FTAA.

Negotiating Group On Environment

The FTAA negotiations have established nine negotiating groups. It must establish a tenth negotiating group on environment to incorporate two of the five Miami Summit of the Americas principles guiding the agreement:

• Principle 1: Partnership for Development and Prosperity: Democracy, Free Trade and Sustainable Development in the Americas.

• Principle 5: To Guarantee Sustainable Development and Conserve our Natural Environment for Future Generations.

A chapter in the final document should outline the environmental principles and concerns, with a more detailed description of environmental measures and precautions included in a parallel accord.