International Trade in Services.pdf - DSpace at Khazar University

322 International Trade in Services
The magnitude and risks associated with the severe environmental challenges
faced by developing countries require firm action to avoid reversals of the development
progress. The environmental industry is also important to the health and
well-being of citizens in developing countries. Strengthening the environmental
service industry is thus critical in managing the consequences of economic
growth and development, and international cooperation and trade in environmental
goods and services are key factors in achieving this goal. In the context of
the current debate on tackling climate change and competitiveness, the global
trade in environmental goods and services will play a critical role.
While the liberalization of imports of environmental services and access to
new environmental export markets are clearly important, they are only part of the
equation. Liberalization needs to be a component of a strategy that emphasizes
competition, sound regulation, and policies to widen access to services, that
enhances the capacity to design and implement appropriate regulations, and that
improves the business climate. What are the elements of successful reform in environmental
services
This chapter presents broad guidance on how to design the necessary reforms
and liberalization strategies in environmental services. The next section describes
why trade in environmental services is of interest for developing countries. The
subsequent section considers the situation of the trade in environmental services
and the prospects for this trade, the extent to which environmental service markets
are emerging in developing countries, the evolving trade and investment
patterns in environmental services, and the factors influencing the competitive
positions of developing countries. The following section addresses what can be
done to harness trade opportunities for environmental services, focusing on
the importance of environmental standards in driving the growth of the industry,
the role of government procurement policies regarding environmental
services, and the components of an offensive (rather than defensive) strategy for
promoting trade in environmental services. The penultimate section poses the
questions that stakeholders should bear in mind as they advance the reform of
environmental policies for trade and development. The final section summarizes.
What Is the Situation of and What Are the
Prospects for Markets and Trade in
Environmental Services
The environmental sector is going through important structural changes (for
example, privatization, consolidation), output-related changes (for example, from
end-of-pipe technology to cleaner technology), and regulatory changes (for example,
from compliance with environmental regulations to policies that encourage