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Options for Harnessing Trade as an Adaptation Mechanism for Climate Change










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    Book (stand-alone)
    AGRICULTURE, TRADE AND FOOD SECURITY: ISSUES AND OPTIONS IN THE WTO NEGOTIATIONS FROM THE PERSPECTIVE OF DEVELOPING COUNTRIES.
    Report and papers of an FAO Symposiumheld at Geneva on 23 - 24 September 1999. Vol. 1 Issues and options.
    2000
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    As part of its mandate to provide assistance to member countries for the follow-up to the Uruguay Round and future negotiations on agriculture, FAO has pursued a wide range of activities with a view to enhancing the capacity of member countries, particularly developing countries, to analyse the implications of the Uruguay Round Agreements for the agricultural sector, to adjust to the new trading environment and thus take advantage of trading opportunities, and to participate effectively in futur e multilateral trade negotiations. The 1996 World Food Summit Plan of Action commits FAO to continue assisting developing countries on trade issues and in particular
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    Meeting
    Roundtable II: Economic growth and climate change: long-term implications for commodity prices and trade
    Ministerial Meeting On Long-Term Commodity Price Trends and Sustainable Agricultural Development. Monday, 3 October 2016, Rome, Italy
    2016
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    Border and related measures in the context of adaptation and mitigation to climate change
    The State of Agricultural Commodity Markets (SOCO): Background paper
    2018
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    Although international trade is not specifically mentioned in the Paris Climate Agreement, trade can play a facilitating role in achieving the mitigation and adaptation objectives of signatories to the Agreement. Trade policies can also undermine those objectives. The focus of this paper is on examining how the facilitating role of trade can be achieved. One of the challenges created by the ‘bottom-up’ approach of self-declared national mitigation targets adopted in the Agreement is that if the economic costs of greenhouse gas (GHG) emissions are internalized in production and consumption, the implicit price of carbon will differ across countries. This creates the potential for trade distortions. Domestic mitigation policies in importers will almost inevitably result in some carbon leakage, i.e. offsets to reductions in domestic emissions through additional emissions generated in supplying imports. But an important distinction needs to be made between carbon reallocation and carbon misallocation resulting from changes in trade volumes. In the reallocation case, trade leads to a shift in production to lower-emitting producers thereby contributing to global mitigation. In the misallocation case, the opposite occurs. This paper analyses how various border measures, including border tax adjustments (BTAs) might be used to reduce potential carbon misallocation. The conclusion is that technical and legal constraints on the effective application of border measures for food and agricultural products to prevent carbon misallocation are extremely challenging and their use could open the door to protectionism. The use of carbon standards and labelling offers an alternative approach to reducing misallocation and promoting reallocation. It poses fewer technical difficulties and reduces the potential for legal challenges. An added advantage of labelling is that it can help to promote changes in consumption that will be needed to reduce the carbon footprint of food and agriculture. The use of the approach could be facilitated through the adoption of international standards for carbon measurement and labelling, such as those being developed through the International Organization for Standardization (ISO). Labelling is not a panacea and may have limited effectiveness when consumers base their consumption decisions primarily on the basis of price. For this reason, the use of domestic policy measures that increase carbon efficiency in agriculture (reduce emissions per unit of output) and limit changes in land use that contribute to emissions will also be important for achieving mitigation aims under the Paris Agreement. An increasing number of regional trade agreements (RTAs) have incorporated environmental provisions, with the most common types of provisions focusing on environmental cooperation. Recent agreements recognise the importance of mutually supportive trade and environmental policies, and national commitments to multinational environmental agreements. RTAs could play a supporting role to the Paris Climate Agreement, by fostering international cooperation on climate mitigation measures in the context of freer trade.

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