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01-08 "Is NACEC a Model Trade and Environment Institution? Lessons from Mexican Industry"

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  • Kevin P. Gallagher

Abstract

This chapter evaluates the extent to which NACEC serves as a model for more effective trade and environmental institutions by examining the institution's role in abating industrial pollution in Mexico. Despite some notable improvements in levels of industrial pollution, the environmental costs of trade-led economic growth in Mexico have remained high in the post-NAFTA period. NACEC is not playing a significant role in channeling this growth toward sustainable levels of development. However, it wasn't designed to, and should not be evaluated on those terms. Indeed, NACEC was designed with more modest goals that are evaluated in detail throughout this volume. This paper argues that NACEC has a number of the elements of an institution that could facilitate the balance of economic growth and environmental protection. An outline is provided regarding how these elements could developed in the context of other trade agreements such as the proposed Free Trade Area of the Americas (FTAA).

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Paper provided by GDAE, Tufts University in its series GDAE Working Papers with number 01-08.

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Handle: RePEc:dae:daepap:01-08

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  1. Dasgupta, Susmita, 1999. "Opportunities for improving environmental compliance in Mexico," Policy Research Working Paper Series 2245, The World Bank.
  2. Gary Clyde Hufbauer & Daniel C. Esty & Diana Orejas, 2000. "NAFTA and the Environment: Seven Years Later," Peterson Institute Press: Policy Analyses in International Economics, Peterson Institute for International Economics, number pa61, November.
  3. Bartzokas, Anthony & Yarime, Masaru, 1997. "Technology Trends in Pollution-Intensive Industries: A Review of Sectoral Trends," UNU-INTECH Discussion Paper Series 06, United Nations University - INTECH.
  4. Fredriksson, P.G., 1999. "Trade, Global Policy, and the Environment," World Bank - Discussion Papers 402, World Bank.
  5. Kevin P. Gallagher & Francisco Aguayo & Ana Citlalic González, . "01-07 "Dirt is in the Eye of the Beholder: The World Bank Air Pollution Intensities for Mexico"," GDAE Working Papers 01-07, GDAE, Tufts University.
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