Understanding Trade in Environmental Services: Key Issues and Prospects
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• Encourage domestic firms to hire foreigners to facilitate knowledge transfer • Enhance public accessibility to environmental service rules, regulations, and specifications. Pursuing an offensive (rather than defensive) trade strategy National dialogue and sector assessment
Developing countries can work to create better conditions for trade in environmental services and closely coordinate their trade strategy with domestic regulatory reform in the sector. An effective starting point is an environmental service policy dialogue at the national level to gather information on the environmental marketplace at home and abroad. Consumer education and client knowledge play an important role in the success of recycling enterprises and in establishing astute environmental service procurement and forward-looking regulation. A national dialogue can therefore draw attention to the industry and create important information for policy makers at home. A national environmental service dialogue can provide information on the following: • Employment in the environmental industry, the contribution to gross domestic product, growth trends • The number and size of domestic environmental service firms operating at home and abroad • The business models, areas of expertise, and export markets of interest for firms • Why certain export markets are of particular interest • Trade barriers in export markets of interest • How restrictions impact domestic environmental firms • How restrictions impact the marketplace • How firms are positioned within larger global networks of environmental firms Policy makers can use this information to refine domestic rules and regulations. The environmental service dialogue also creates a case for unilateral reform and trade negotiations. If it is conducted rigorously, a national dialogue can create momentum for legislative, regulatory, and administrative changes at home. Stakeholders can also support the tasks associated with implementing trade commitments.4 An environmental service trade dialogue can help negotiators pursue specific market-opening objectives in multilateral, regional, and bilateral trade negotiations. Consultation with environmental service firms, regulatory agencies, and environmental service users can determine specific barriers that should be removed.