Sustainability Trends, the
Significance of Trade, and the
Potential Role of RTAs
Magnus Bengtsson
Principal Researcher
Institute for Global Environmental Strategies
OECD and Government of Viet Nam Regional Workshop on Regional Trade Agreements
(RTAs) and the Environment, 17-18 September 2014, Ha Noi, Viet Nam
Economic Growth in Developing Asia
High and
stable
growth
Trade is playing an increasingly important
role in Asian economies
Consumption of Materials is Soaring:
Asia is Leading the Trend
- Very rapid
increase in
material
consumption
- Asia-Pac is now
consuming more
materials than
the rest of the
world combined
West & Schandl 2012
Asia-Pacific is Becoming
LESS Resource Efficient
Each dollar of
GDP requires
increasing
amounts of
natural
resources.
West & Schandl 2012
High Youth Unemployment
 Pressure on Governments to Create Jobs
 Temptation to promote growth and FDI also at the expense of
environmental impacts and human rights violations, such as
land grabs
Minimum Wages not Keeping up with Growth
Minimum wage
growth and per
capita GDP growth
in developing AsiaPacific, 2002-2011
Increasing Inequality in Many Countries
Annual growth rates of income share held by lowest 20% and highest 20%
during 1990s and 2000s
Governance Remains a Real Challenge
Asia 7: PRC, India, Indonesia, Japan, Republic of Korea, Malaysia, and Thailand.
Emerging Trend: South-South Trade
• South-south trade is on the increase – raises
both opportunities and challenges
– China the world’s largest buyer of soy
– India buying 20% of traded palm oil, China 16%
• Is there awareness, willingness and capacity in
these countries to push for greening of supply
chains?
• What role for RTAs?
Questions for Reflection/Discussion
• How are these environmental and social trends
related with trade?
• To what extent can RTAs influence these trends?
– Risks and opportunities?
• How could well-crafted RTAs help addressing
these trends?
– Where do you see the greatest opportunities and the
most feasible entry points?
– What opportunities exist in the existing integration
processes: TPP, ASEAN Community, and RCEP
Greening Integration in Asia
How Regional Integration Can Benefit People and
the Environment
• Forthcoming report from IGES, Release
planned for December
• Reviews how existing integration and
cooperation initiatives in Asia contribute to
sustainable development
• Makes recommendations for improvement
Please feel free to contact me to receive a copy:
bengtsson@iges.or.jp
Some Tentative Recommendations
Related with RTAs
• Sustainability Impact Assessments of new or
revised trade and investment agreements.
Pooling capacity and expertise regionally could
prove beneficial.
• Preferential tariffs for environmental goods and
services
• Regional information tools, such as labelling
schemes for more sustainable materials and
goods
• Ensure that trade agreements allow for, or even
encourage, sustainable public purchasing