Effects of trade liberalization in environmental goods

Abstract

The need to protect and preserve the environment in a globalized world is causing countries to reach agreements through international organizations to enable the coexistence of trade and environment. Through the World Trade Organization, efforts are being made to reduce barriers in the trade of environmental goods, with the ultimate objective of encouraging their use. This is likely to imply benefits for trade, the environment and the development of countries. From the analysis of studies by different authors, the present paper focuses on the effects of a decrease in tariffs on environmental goods within countries, especially in Spain. Through the observation of the signing of the Agreement on Environmental Goods, the elimination of tariff barriers concludes to be not sufficient for the adhesion of developing countries. Additionally, a highly beneficial effect on Spain is reported, due to the large number of exports of environmental goods performed annually. With this in mind, it is expected that environmental services and the removal of non-tariff barriers will be comprised in the Agreement in the near future.