2024-01-26 13:00:01
Lhe free trade agreement finalized in November between the European Union (EU) and New Zealand is due to come into force in 2024. It is the first to incorporate the new EU doctrine for “green and just.” This agreement with the furthest country from Europe is certainly highlighted for the greenhouse gas emissions induced by the increased transport of goods. How can we make free trade consistent with the imperatives of the fight once morest global warming, which are supposed to restrict these trades?
In New Zealand, a country with a temperate climate and sparse population – the population of Ireland is almost four times its surface area – nature is the most abundant factor of production, which explains the country’s strong agricultural specialization. . Conversely, Europe is better endowed with workers and capital. Unsurprisingly, meat is therefore New Zealand’s main export to France (121.89 million euros in 2022), and vice versa for automobiles or aeronautics (64.26 million and 54.69 million euros). ‘euros of French exports respectively in 2022), according to French customs. Specializing in what each country is relatively best equipped with production factors allows for more efficient use of resources, as long as their scarcity is signaled by a price.
On the other hand, the effect is ambivalent, in the absence of a price signal, on environmental damage: more wealth means more consumption and therefore pollution; but wealthier citizens often give more weight to the quality of the environment, pushing political powers to act for its preservation. It should be noted in this regard that New Zealand is one of the most virtuous countries in terms of energy, with more than 80% of its electricity from renewable sources.
Product diversification
International trade also promotes, through market growth, the diversity of goods and intra-industry trade which preserves jobs. Thus, although having imported 44.5 million euros worth of dairy products and cheeses from New Zealand in 2022, France exported nearly 12 million euros there in the same year. The agreement should promote the diversity of production and practices respectful of territories through increased protection of protected geographical indications. It also excludes significant sections of the agricultural sector to preserve European farmers. Product diversification also comes with greater market power and thus preserves the ability to transfer the carbon price signal to consumers rather than relocating to “pollution havens”. As for maritime transport, it is covered by the European carbon market from 1is January 2024 (half in the case of journeys from or to a non-European country).
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