Wire Line
September 2000  VOL. 10, NO. 5 
Executive Order for Trade/Environmental Reviews

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The Clinton Administration released a draft proposal that would require all future trade agreements signed by the US government to undergo extensive environmental impact reviews. The first step in implementing this order is to establish procedures and guidelines for how the USTR and the Council on Environmental Quality (CEQ) will identify the potential environmental effects of multilateral trade rounds, multilateral or bilateral free trade agreements, and other major new agreements.

Sections 1 and 4 of the Order commit the US to careful assessment and consideration of the ramifications of future trade agreements, including environmental reviews of certain major agreements. Reviews will be conducted by USTR through the Trade Policy Staff Committee.

Environmental impact reviews will consider the following:

  • The extent to which the agreement might affect environmentally sensitive resources and/or result in substantial changes in trade flows of products or services that could confer environmental harms or benefits;
  • The extent to which the agreement might affect US environmental laws, regulations, policies, and/or international commitments; and
  • The magnitude and scope of reasonably foreseeable environmental impacts.

Environmental activists said the plan is a step in the right direction, but did not go far enough. Friends of the Earth complained draft trade agreements would not be made public, inhibiting the ability of environmental groups to review the documents and register their complaints.

The metals industry on the whole has not been following the issue intently, a fact that will likely change as soon as the reviews begin. This will probably develop into more of an issue as each trade initiative is reviewed on a case-by-case basis.

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