Effects "especially worrying for developing countries"

Furthermore, the researchers point out that the environmental impacts are especially worrying to developing countries. Indeed, quoting the report, "Environmental impacts in developing countries are found to be negative overall in all three sectors [...]. Environmental regulation in these countries tends to be insufficiently strong to counter the adverse effects automatically. In distribution services the most significant negative effects arise from increased transport and use of packaging."

"Adverse effects in the forest sector occur primarily in countries with weak forest governance. Negative impacts on biodiversity and soil erosion occur from unsustainable harvesting, although incremental impacts may be relatively small compared to those from the conversion of forests to agriculture associated with agricultural trade liberalisation. The agriculture study indicates further environmental impacts from greater use of agro-chemicals in some areas, and others from increased transport." 

Women in developing coutries will be the most vulnerable to the negative impacts brought by liberalisation. In relation to the achievement of Goal 7 of the Millennium Development Goals (MDGs), the studies show that "The overall impact on achieving environmental sustainability is negative for all three studies."

The report highlights how domestic policy both within Europe and developing countries will suffer, with the latter suffering the most. It emphasises how neither damage mitigation, nor benefit enhancement will be ensured unless liberalisation is accompanied by strong regulatory capacity. This of course raises questions given that the current WTO negotiations seek deregulation as much as liberalisation.

Recommendations to the EU-commission

On agriculture, cynically the report recommends to increase the EU’s food aid once the liberalisation of agriculture comes into effect. That would imply that many developing countries will go hungry once the agricultural market will be liberalised given (a) a 10% price increase for many crops and (b) the replacement of staple foods with export crops.

On distribution services, the study concludes that many developing countries will be unable to compete with foreign investors. Small family owned distribution outlets will simply be put out of business. The loss of employment will have serious social repercussions.

The liberalisation of forest products is deemed to have negative environmental impacts due to the loss of forest land, soil erosion, illegal logging practices. Indigenous peoples will also suffer from displacement.

Maybe the most remarkable conclusion of the studies is the need to strengthen multilateral governance mechanisms, such as Multilateral Environmental Agreements or the ILO to ensure that liberalisation in all sectors is accompanied (or better counterbalanced) by a strong safety net capable to mitigate the negative impacts of liberalisation.

(me/ Kim Bizzari, FoE Europe)

Here you can download the overall report, the agriculture report, the forest report, the distribution services report and the annexes.