Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE credits
The discussion on the relationship between trade and environment has always been aheated one particularly in the context of varying economic and environmental conditionsbetween developed and developing countries. The economies of developing countriesdepend on their export to the Western countries and they are sensitive about anydevelopment, which is likely to affect their export capacity.A study has been conducted to assess the strengths, weaknesses, opportunities and threatsof a textile company in Pakistan exporting textile products to E.U countries with specificfocus on the issue of current and emerging environmental trade barriers.The study is divided into four major sections. Chapter 1 opens the debate on the issue oftrade and environment, recent developments and perspectives of major actors involvedi.e. business, environmentalists and the third world countries. Chapter 2 defines thepremises, aim, objectives and methodology. Chapter 3 outlines the detailed companyprofile. Chapter 4 deals with identification of current and emerging environmental tradebarriers that the company is facing or will face in the future. They are five namely, theNational Environmental Laws of the country, International Environmental Standards,Eco-Labeling Schemes, Intellectual Property Rights and Environmental Tariff. Chapter 5discusses the availability of resources in the company in term of information, humancapital and technology. Chapter 6 analyses the relationship between the company and itsinternational buyers in term of demand from the Western world and the supply from thethird world.This study is an example of how a Pakistani company is underpinned with the lack offinancial, technical and human resources. It also presents a case that demandingenvironmental obligations from this company for trade purposes, may create adversetrade barriers. There might be some standards, which this company may not be able tomeet in a given situation, but it does not rule out the possible improvements in theenvironmental management that can be worked upon within the given financial, technicaland human resources of the company.The study shows that the textile products in Pakistan are not cheap but have deliberatelybeen made cheaper by the policy makers at the expense of people’s health and thephysical environment. The installation and operation of primary and secondary treatmentplant, which is considered the most costly option to improve environmental condition ofthe factory, increases the cost merely up to approximately USD 0.01per square meter ofprocessing fabric. Similarly, the presence of other measures such as emission controldevices, use of environment-friendly chemicals, the recycling of waste water, exercisingfresh water consumption etc as discussed in this study would have minimal effect on theprice of the product. Considering the affluence of the European society, even the increasein product price cannot be regarded too much when converted into European currencies.This company fears that due consideration of the environmental issues will affect theprice of products which is true to some extent. But this fear is often exaggerated. The lackof environmental provisions in the company is a result of the poor environmentalbehaviour, which is due to the absence of effective communication and co-ordinationbetween the parties concerned. If this study is projected on a major scale, covering anumber of textile companies in the third world, there is a possibility of similar nature of4findings and results. If trade is part of the problem causing environmental damages, it canalso be used as a part of the solution.
2000. , 59 p.