Linking Trade with the Environment in the Context of WTO: Why is this Option good for Bhutan?

In: The Spider and the Piglet: Proceedings of the First Seminar on Bhutan Studies. Thimphu, Centre for Bhutan Studies 2004, pp. 466-528 . ISBN 99936-14-19-X

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Abstract

Today, the Bhutan not only aims at building up a strong export oriented economy to compete in the regional market, but also aspires to join the WTO in future. However, Bhutan continues to face constraints in developing a niche market. The present paper argues that the post-Rio world has provided an opportunity, not only for increased trade but also for a diversified trade. This is likely to come about by linking trade with environment and following WTO-conforming product standards. Bhutan is in a better position to pursue this option. At this stage, Bhutan cannot afford to ignore the ‘new possibility’ of trade expansion and diversification in the areas of natural resource based primary products, food processing, mineral products and other manufacturing. While the potential for trade expansion through linking it to environment exists for Bhutan, there are limiting factors, which will keep on undermining its capacity to do so.