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OECD Trade Policy Papers

This series is designed to make available to a wider readership selected trade policy studies prepared for use within the OECD.

NB. No. 1 to No. 139 were released under the previous series title OECD Trade Policy Working Papers.

English

Regulatory Transparency in Multilateral Agreements Controlling Exports of Tropical Timber, E-Waste and Conflict Diamonds

Export restrictions can be problematic if trading partners question either their conformity with international obligations or their possibly unintended negative impacts on others. Regulatory transparency can help. This paper examines how three multilateral environmental agreements (MEAs) incorporate transparency into their regulatory regimes: CITES (endangered species, especially tropical timber), the Basel Convention (hazardous e-waste), and the Kimberley Process (conflict diamonds). All three require producing countries to control exports of sensitive commodities, while allowing (Basel) or requiring consuming countries to control imports. Export and import restrictions are usually intended to affect relative prices, but in these three MEAs the ultimate objective is to limit the negative consequences, whether economic, environmental or societal, associated with improper exploitation of the covered commodities. In each case all trade in the target commodities ought to be covered, no export permits should be issued that do not meet the standards established by the MEA, and no imports should take place without the appropriate documentation. In order to have a consistent comparative basis for assessing the contribution of regulatory transparency to the success of these regimes, we use an analytic framework based on three major transparency principles: publication of the rules (the “right to know”); peer review by governments (monitoring and surveillance); and public engagement (reporting on results, and a role for non-governmental organisations, NGOs). The paper concludes with some observations about characteristics that appear to make transparency more or less effective.

English

JEL: F1: International Economics / Trade; D7: Microeconomics / Analysis of Collective Decision-Making; Q2: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Renewable Resources and Conservation; L6: Industrial Organization / Industry Studies: Manufacturing; F5: International Economics / International Relations, National Security, and International Political Economy; Q53: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling; Q3: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Nonrenewable Resources and Conservation; L7: Industrial Organization / Industry Studies: Primary Products and Construction; Q5: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics
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