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Arguments for ‘Trade Liberalization Leads to a "Race to the Bottom" in Environmental Standard

In: Business and Management

Submitted By fatydiom
Words 281
Pages 2
The party represented: Environmentalist
Party's interests or objectives: to support the statement that trade liberalization leads to a "race to bottom" in environmental standards.
1. Party’s assertion
The environmentalist support that the development of free trade will have a negative impact on the environment. According to them, the free exchange of goods between countries encourages the reduction of environmental standards to enable local manufacturers to compete in the global market. Another reason is the prohibition of imports based on the production process by the General Agreement on Tariffs and Trade (GATT) policy of "product, not process". This type of policy promotes the creation of the cheapest product by all mean knowing that all the goods will be evaluated equally, despite the manufacturing process.
The actual trend is about firms which are doing everything possible to meet the large demand resulting from the globalization process. As a result, big corporations relocate in countries with cheap labor, but also with less environmental restrictions to manufacture their products. These firms use their financial power to bribe the local authorities in order to be granted a sort of legal operations.
As globalization is developing, it brings a lot of challenges in the preservation of the different components of the environment. We believe that the development of free trade causes more harms than benefits to the environment.
2. A summary of the available evidence that supports your party's assertion and/or examples that illustrate the assertion.
An example of dispute on the environmental impact of trade is the tuna-dolphin dispute between the United States and Mexico. This example shows us to what extent trade liberalization can contribute to the destruction and eradication of…...

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