Toward Cooperative Environmental Management: The Role of Voluntary Environmental Measures in International Trade Competitiveness and Sustainable Development
Hans Luu
This paper investigates how voluntary environmental measures can be used to enhance trade competitiveness without undermining the aim of sustainable development. It argues that traditional command-and-control regulatory tools are inappropriate for addressing the complexities of contemporary international trade and environment issues; the investigation proposes that voluntary measures can be an effective and efficient tool for both regulators and regulated parties in the pursuit of a more cooperative form of environmental management. The traditional regulatory approach and its shortcomings are discussed; as well, the driving forces for a change in approach, and the barriers to progress, are examined. An analysis of current voluntary environmental measures, with emphasis on their strengths and shortcomings, and the conditions necessary for effective implementation, will suggest that voluntary tools, if properly developed and implemented, can be an effective alternative to increased regulations. The linkages between voluntary measures, trade competitiveness, and sustainable development are then evaluated to justify the need for widening the scope of the trade and environment dialogue.