Opportunities and Challenges in Liberalizing the Environmental Goods and Services Market: The Case of Developing Countries in Asia

While the liberalisation of trade in environmental goods and services has often been claimed to be potentially beneficial to developing countries, its realisation in the short-to medium-term is fraught with several obstacles and definitional challenges. Many developing countries without knowing the impact of trade liberalisation in this market, struggle to posture their negotiation positions despite the considerable interest that they might have in these negotiations. The challenges facing developing countries are further compounded by their insufficient regulatory frameworks and institutional capacities. This paper attempts to outline the opportunities that developing countries in Asia might have in liberalising the environmental goods and services market in the context of case studies. In order for countries in the region to reap the benefits of the liberalisation, it is imperative for them to overhaul their positions in the market, to identify their environmental goods and services export interests, and to choose definitions of environmental goods and services that best suit their trade and sustainable development interests. Only when these criteria are fulfilled can they be proactive in the negotiations so that the classifications reflect products and services in areas where they have specific trade interests or environmental needs