ADB_book_18 April.qxp - Himalayan Document Centre - icimod

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United Nations. 2003. World Population Prospects. NewYork.United Nations Environment Programme (UNEP). 2002.UNEP’s Global Environment Outlook 3. London :Earthscan.Uprety, D.R. 2003. “Evaluation of Forest Sector Policy inConnection to Community Forestry of Nepal.”Submitted for the partial fulfillment of the Doctoratestudy at the University of Natural Resources andApplied Life Sciences, Vienna.World Environmental Journalists Egroup. 2002. “IllegalWildlife Trade Rampant in Nepal.” In People andPlanet, <strong>18</strong> November. Available:http://www.peopleandplanet.net/doc.php?id=<strong>18</strong>04World Wide Fund for Nature (WWF). 2003. “New PolicyProhibits Domesticated Elephants Inside NationalParks.” WWF-Nepal, Kathmandu. Available:http://www.wwfnepal.org.np/ WildlifeNews/PolicyDomElephants.htmYadav, R.P. 1999. “Land Tenure Situation in Nepal.” PolicyOutlook Series, No. 5, His Majesty’s Government ofNepal, Ministry of Agriculture/Winrock International,Kathmandu.174 Environment Assessment of Nepal : Emerging Issues and Challenges
Chapter 12Environment and TradeIntroductionThis chapter is not about trade or about theenvironment; it is about the increasing overlapbetween trade and environment where thereare trade-related environmental issues andenvironment-related trade issues. Trade-relatedenvironment problems can be seen in the exports ofnatural resources such as forest products and theresulting deforestation that could impact awatershed and lead to serious environmentalconsequences for an area’s people and biodiversity.Export industries may be using so much of scarcewater resources that the increasing competitionactually keeps people and ecosystems fromaccessing this resource. In addition there may besignificant water and air pollution, as there is rarelyonly one environmental problem associated with anytype of manufacturing industry.Environment-related trade issues deal withenvironmental measures taken to control or regulateenvironmentally undesirable trade because ofthreats to human and plant life or to the overallenvironment. The World Trade Organization’s (WTO)sanitary and phyto-sanitary measures are goodexamples of environment-related trade measures.There is a wide ranging discussion about many ofthese environment-related trade measures becausedeveloping countries are arguing that this is anotherform of protectionism being introduced bydeveloped countries.On the one hand we see a strong move towardsliberalization, with countries like the People’sRepublic of China and India coming up as neweconomic powerhouses following their gradualliberalization, but there is also a strong push fromdeveloped countries to impose new restrictions andsanctions on trade related with environmental,social, labor, and even human rights issues. Some ofthe environmental standards have adversely affectedexports from developing countries. Many issuesremain unresolved. Over the next few yearssignificant changes will occur in the areas of tradeand environment relationships. To the extent thatdeveloping countries can benefit from environmentallyfriendly exports, trade will have a positiveimpact on the environment. However, experienceshows that this need not always happen. Exports arebeing lost on environmental grounds, given the highcosts of changing industry practices, which may notbe possible in the short run. In such cases both theenvironment and the economy may suffer.Nepal is a relatively small and new player in thefield of environment and trade. This may be bothgood and bad for the country. It may be goodbecause its small trade means current investments indirty equipment, management practices, and laborskills may be altered relatively easily. It may be badbecause as a poor country it has few options andlimited resources to exercise any option fully. Nepalis already a member of the WTO, having agreed toplay by its rules. Exports to the European Union (EU)and United States of America (US) are limited butextremely significant in terms of overall exports.These are also the main destinations with toughenvironmental standards that are getting morestringent every year and are also being rigorouslyenforced by these countries. In addition there aremultilateral environmental agreements, many ofwhich Nepal has ratified or signed. How successfulNepal will be in promoting its trade in the context ofthese developments only time can tell.The challenges for this poor nation areformidable not only on account of the increasinglystringent standards abroad but more significantly onaccount of the terribly disorganized state of thedomestic institutions responsible for promoting tradeand improving the environment.This chapter reviews Nepal’s current situationregarding trade and environment. The next sectionoutlines the ongoing discussion in the areas of trade,environment, and sustainable development. This isfollowed by a review of the different trade-relatedenvironmental obligations under multilateralenvironmental agreements, and then a review of thetrade environmental agreements that Nepal has withthe WTO and India, and the restrictions imposed byNepal. The next part reviews Nepal’s exports,imports, and trade with different regions of theworld. As Nepal’s trade is relatively small, any seriouseffort to increase it will mean understanding betterChapter 12: Environment and Trade175
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About the OrganisationsAsian Develo
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© 2006 International Centre for In
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AcknowledgementsWe would like to ex
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PM2.5PAHRSSAARCSACEPSEASO 2TSPUKUND
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Chapter 6: Energy Resources 65Intro
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List of FiguresFigure 2.1: People a
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Table 6.1: Energy Consumption and P
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forests are also used for infrastru
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as data gathered by different agenc
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Table 2.1: Population Growth Rates
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mortality rates for rural and urban
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Agglomeration village in the centra
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soil erosion, and depletion of wate
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provision remains inadequate becaus
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Malnutrition remains a serious obst
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Table 2.24: Existing and Projected
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Table 2.28: Income Poverty Indicato
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Table 2.31: Change in Employment St
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In 2004, the average annual househo
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Mountain areas have the most food i
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Schaffner, U. 1987. “Road Constru
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Table 3.1: Agricultural Economic De
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Table 3.4: Estimated Soil Erosion R
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B. PradhanImpacts of land degradati
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Carson, B. 1985. “Erosion and Sed
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The trend of forest coverage in the
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BiodiversityState of BiodiversityNe
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The Government has given legal prot
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Different ways of maintaining biodi
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———.2004. State of the Enviro
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Appendix 4.1: Table continuedMajor
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Appendix 4.2: Protected Plant and W
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Table A4.2.3: Nepal's Share in Plan
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to intense weathering, and percolat
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Table 5.5: Water Supply and Water T
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Table 5.9: Water Quality of Shallow
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species are reported to be endanger
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Ministry of Water Resources (MOWR).
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Definition, Forms, and UnitsEnergy
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Table 6.5: Hydropower PotentialRive
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Chilime Hydroelectric Project: An E
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load occurs from 6 pm to 9 pm with
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assessment of wind energy and lack
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Review of Dams and Development by t
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IUCNElizabeth Khaka, UNEP-NairobiRu
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therefore reflect the three guiding
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is a seasonal dust storm. Anthropog
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Figure 7.3: Average Air Quality, Ja
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matter, hydrocarbons, and NO x (Nae
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Figure: 7.9: Vehicle Registered in
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Brick Kilnchlorofluorocarbons (HCFC
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Climate ChangeA region’s climate
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Figure 7.14: Mean Annual Precipitat
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Table 7.3: National Ambient Air Qua
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India. Available: http://www.cleana
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———.1999. “Ambient Air Qual
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Appendix 7.1: World Health Organiza
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Table 8.1: Criteria for Urban Statu
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accommodate the rapidly increasing
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managing solid waste. They are part
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In most municipalities, hazardous w
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in worsening public health conditio
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objects of archaeological, historic
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Min BajracharyaB. PradhanVehicles a
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Department of Health Services (DOHS
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Table 9.1 describes the major highl
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the period to up 2017. The document
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Page 140 and 141: Sub-regional LinkagesOther developi
Page 142 and 143: Figure 9.1: The Key Environmental I
Page 144 and 145: (iv)(v)(vi)plants, and other non-ti
Page 146 and 147: environmental governance can be bet
Page 148 and 149: can vary considerably. Both sides h
Page 150 and 151: Dhungel, D.N., and A.B. Rajbhandari
Page 152 and 153: Table A9.1.2: Industry-Specific Tol
Page 154 and 155: . Cultural Heritage8. Convention fo
Page 156 and 157: Appendix 9.3: Some Prominent Enviro
Page 158 and 159: Some funding arrangements made by t
Page 160 and 161: (NARDF 2004) for a period of 1 to 3
Page 162 and 163: Table 10.2: Annual Income and Expen
Page 164 and 165: Table 10.4: Users’ Share in Benef
Page 166 and 167: From Hands Around Everest bookFrom
Page 168 and 169: Table 10.8: Subsidy Rate for Biogas
Page 170 and 171: microorganism communities and the n
Page 172 and 173: subsidies (Mason 1996). All these a
Page 174 and 175: addressed only part of the problem.
Page 176 and 177: historical practice of community-ma
Page 178 and 179: moved or relocated. The fact that s
Page 180 and 181: Kathmandu Valley and receives a lar
Page 182 and 183: cooperative ventures provided neith
Page 184 and 185: further poaching has not been repor
Page 186 and 187: http://www.pugwash.org/reports/pac/
Page 190 and 191: how other countries with substantia
Page 192 and 193: (i) Broad-based and sustainable eco
Page 194 and 195: Although progress is encouraging, m
Page 196 and 197: Nepal’s Changing Pattern of Trade
Page 198 and 199: Table 12.2: Trade/ GDP RatiosFY1981
Page 200 and 201: Table 12.5: Percentage Share of Maj
Page 202 and 203: well as other provisions in specifi
Page 204 and 205: Future Implications for NepalIncrea
Page 206 and 207: International Trade Forum (ITN). 20
Page 208 and 209: - Gross domestic product per unit e
Page 210 and 211: Time Series InformationGenerally tw
Page 212 and 213: Table 13.1a: Different Datasets Col
Page 214 and 215: elevant due to its multidisciplinar
Page 216 and 217: Figure 13.6: Examples of Applicatio
Page 218 and 219: Judith DobmannThere are many source
Page 220 and 221: ———.2003. Mapping Nepal Censu
Page 222 and 223: sustainable livelihoods requires an
Page 224 and 225: and haphazard. Population pressures
Page 226 and 227: issue. These deficiencies stem from
Page 228 and 229: population must be assessed. MOEST
Page 230 and 231: Appendix 14.1: List of Key Environm
Page 232 and 233: (vii) The EIA report approving agen
Page 234 and 235: Goal 1: Eradicate extreme poverty a
Page 236 and 237: Nepal’s Progress Towards the MDGs
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Goal 4: Reduce child mortalityReduc
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