Green Barrier to China's Export

1582 Words Apr 25th, 2012 7 Pages
As the world economy moves towards globalization, China has become more open to trade with other countries. Its international trade volume had risen from US$20.6 in 1978 to US$1,422 billion in 2005 (Wang & Liu, 2007). Since China’s exports mainly focus on the labor intensive and resource intensive industries, this exports pattern causes a serious environmental problem in China. Green barriers become a kind of emerging non-tariff barrier which is used for the developed countries to protect their production and economic development in recent years. The main forms of green barriers include green tariff and market access, green packaging and labeling requirements, green technology standards, Green health inspection system,
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In fact, “Green barriers are the outcome of economic development”. On the one hand, production and development of technology increase people’s income and living standards. On the other hand, it has irreversible negative influence on the natural resources and environment, such as desert encroachment, deforestation, water shortages, acid rain, biodiversity reduction (Wang & Liu, 2007, p.2). Therefore, many regulations and principles point out that international trade must integrate with the environment and the economic development. To this extent, green barriers have a rational and positive effect on protecting environment as well as the health of human beings, animals and plants. Specifically, the reasons are explained as follows.
First, a green barrier has been widely accepted by WTO members in principle as an environmental measure related to trade. The European Union has applied ISO 14000 to request all imported goods meet environment standards. Second, green barriers are not only embodied in environmental and technological effects, but also in aligning world production according to true comparative advantage. One country will have a positive effect on its neighbor and global environment through protecting the environment, so green barriers has a positive global externality. Third, strict environmental regulations can improve efficiency and encourage innovations that improve