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Prospects for Environmental Trade under the Regional Process in South Asia : Evidence from SAPTA and Proposals for SAFTA


  • S. K. Mohanty


  • Sachin Chaturvedi


The debate about identification of environmentally sensitive goods (ESGs) is highly complex as discussed in the economic literature. In the context of SAFTA, ESGs assumes significance as the region is significantly dependent on these products for trade. In this paper an attempt has been made to formulate a new approach to identify ESGs, and the same definition is used to analyses the nature of trade flows in the South Asian region. The implications of three Rounds of SAPTA trade liberalization in ESGs trade is examined at a disaggregated level separately. The empirical exercise indicates that South Asia has a large market for these products, and nearly one quarter of the regional trade is falling under the medium and high technology product groups. The study has prepared a road map for setoral trade liberalization, which would promote intra-regional trade in ESG products under SAFTA. An effort has been made to suggest counter alancing measures to minimize negative environmental implications of possible trade expansion once SAFTA is implemented.

Suggested Citation

  • S. K. Mohanty & Sachin Chaturvedi, 2005. "Prospects for Environmental Trade under the Regional Process in South Asia : Evidence from SAPTA and Proposals for SAFTA," Trade Working Papers 22119, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:22119

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    References listed on IDEAS

    1. Jörg Mayer & Arunas Butkevicius & Ali Kadri & Juan Pizarro, 2004. "Dynamic products in world exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(3), pages 762-795, September.
    2. Nagesh Kumar & K.J. Joseph, 2006. "National Innovation Systems and India’s IT Capability: Are There Any Lessons for ASEAN Newcomers?," Chapters,in: Asia’s Innovation Systems in Transition, chapter 10 Edward Elgar Publishing.
    3. Pradhan, Jaya Prakash, 2003. "Rise of service sector outward foreign direct investment from Indian economy: trends, patterns, and determinants," MPRA Paper 17078, University Library of Munich, Germany.
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    More about this item


    SAFTA; ESGs; MEAs; technology; biosafety;

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F10 - International Economics - - Trade - - - General


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