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Journal of Economic Surveys, 2006, 11: 24-25.

Green Barriers Trade and its Influences on China's

Foreign Trade

Thomas J. Sargent

ABSTRACT

In recent years, green consumption has become a main trend of the consumption in many developed countries and these countries began to make strict standards to restrict the entry of foreign products below their standards of environmental protection.

Key words:Green Barriers; products; Trade

In recent years, green consumption has become a main trend of the consumption in many developed countries and these countries began to make strict standards to restrict the entry of foreign products below their standards of environmental protection. These regulations have many unfavorable influences on the export of developing countries and are generally known as "Green Barriers to trade". In accordance with the provisions of the Agreement on Green Barriers to Trade of WTO, "Green Barriers to Trade" is defined as the compulsory and arbitrary Green regulations, standards and conformity assessment procedures of the importing countries in the name of the protection of human health and environment that actually form barriers to trade with an aim to protect its home market and domestic products.

1. Analysis on the causes of formation of "Green Trade Barriers"

Firstly, the worsening of ecology is the major reason for "Green Barriers". With the development of industry and technology, the economy increases very fast and the human life has been improved. But at the same time, the development of economy is at a cost of the destruction of environment. The environmental problems have aroused public attention and the international society has begun to make laws to protect environment. In June, 1972, the United Nations published the Stockholm Declaration and stressed the importance of the protection of environment. From then on, more and more people concern about the environmental problems. The concept of environment has influenced the life of humankinds in every layer and the developed countries began to make very strict

environmental protection rules under the pressure of public, which forms a barrier to the international trade.

Secondly, the differences between countries in technology, environmental standards and investment directly cause the "Green Trade Barriers". As we know, developed countries surpass the developing countries in science and technology. Even if they make very strict environmental standards, their domestic products can reach the requirements of strict environmental standards while such standards may constitute barriers to products from developing countries. In fact, these standards may become discriminations against products from the developing countries and constitute a means of arbitrary or unjustifiable discrimination between country.

Thirdly, the rise of protectionism in some developed countries contributes much to the formation of Green barriers. In modern market economy, competition is more severe than before. The domestic industries are directly facing competition from the products of other countries, and they will urge their governments to take effective measures to protect them from the foreign products. While because of the multilateral negotiations of WTO, the tariffs have been greatly cut down and the use of non-tariff measures has also been restricted. Therefore, many developed countries have to resort to some legal restrictions of importation such as Green barriers to protect their home industries, which gives rise to the increase of Green barriers.

2. The main forms of Green barriers trade

In accordance with the related provisions of WTO Agreement on Green Barriers to Trade, the Green barriers are usually in the forms as follows:

2.1Green Tariff

Some developed countries would impose import surtax on products that may cause pollution or harms to the environment. If such measure is abused, it will constitute a Green barrier to trade.

2.2Green Standards

Green standards refer to those compulsory Green standards provided through legislation. With their superiority in economy and technology, developed countries tend to make higher Green standards with no consideration on the interests of the developing countries. Such high Green standards will in fact constitute a barrier to the products from

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