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Environmental Assessments and
Capacity Building for Trade Liberalization in the Americas: MERCOSUR
Argentina
 The assessment for Argentina
was conducted with Fundación Ambiente y
Recursos Naturales and it
aimed to study the possible economic effects of the proposed Free
Trade Area of the Americas (FTAA). This assessment looks at some of the key
environmental issues in identified sensible sectors such as the meat
industry, oil and its derivates, sugar processing, soy production, iron and
steel making, and non-metallic mining
the mentioned sectors. It also highlights the need for an in-depth life
cycle analysis, in particular for the soy sector, given the high demand,
growth of the activity and the nature of the social and environmental
effects of its production. One of the conclusions of this assessment is the
need for a formal communication mechanism between policy makers in different
sectors, towards the integration of sustainability into trade and public
policy overall.
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Brazil
 In
Brazil, the assessment focused on the
industrial sector and indicated that the main environmental changes with the
possible implementation of FTAA could include water contamination and
detriment in air quality due to outdoor air pollution. However, the
assessment highlights that those industries that could affect air quality in
Brazil use environmentally friendly technologies in order to meet
sustainability and market access requirements of the export markets.
Additionally, this assessment examines the Brazilian legal-institutional
frameworks and the internalization of environmental cost by industry,
concluding that these costs do not affect competitiveness. Finally, this
assessment includes some recommendations for regulating entities in terms of
promoting efficiency and competitiveness of the Brazilian industrial sector.
Download complete publication.
Summary table with economic, social, environmental and legal/institutional
impacts of trade liberalization for key sector in Brazil.
Paraguay
 The sectors analyzed in the assessment conducted with the
Paraguayan Institute for Environmental Law
and Economics for
Paraguay, were soy and cotton,
the later being slightly replaced by soy production that has practically
become a monoculture of in Paraguay. The economic impacts of the fast growth
in soy production with free trade were analyzed in the assessment, as
well as the environmental and
social effects, including, soil erosion, loss of biodiversity and jobs, due
to the mechanic nature of soy production and spread of some diseases that
had been previously eradicated. This assessment includes key policy
recommendations for agricultural diversification and integration of
sustainability into public policy and decision making.
Download complete publication.
Uruguay
The outcomes of the
assessment conducted with Ecos in
Uruguay,
highlight that the meat and wool sectors could have economic opportunities
with trade liberalization. Paper and rice show slightly negative economic
impacts in the analysis. The environmental effects derived from changes in
the sectors with economic opportunities were not considerable, because of
existing controls applicable for example to the meat industry. However, the
assessment indicates that in the forestry sector there are serious impacts
due to the cultivation of non native species and soil erosion. Another issue
considered, is a notable tendency of increasing production of soy to meet
international demand. This is also causing expansion of the agricultural
frontier and additional pressure on soil due to replacement of native forest
for agricultural purposes. Coordination within MERCOSUR for sustainable
development policies and a common agricultural policy, are some of the
recommendations of this assessment. Download complete Publication
Summary table with economic, social, environmental and legal/institutional
impacts of trade liberalization for key sector in MERCOSUR
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