Regional Economic Integration: Trade And Environment

In the 21st century, the conflict between trade and environment arouses wideconcern in the world. With the Doha round of WTO negotiations at a deadlock,multilateral trade system faces a dilemma, economic globalization develops slowly andregional economy witnesses an increasing upsurge of grouping and internationalization.Economic globalization and regional economic integration form a relationship ofcomplementary competition and cooperative development. The harmonious developmentbetween economic and trade growth and environment at the regional level becomes aworthwhile research topic. From a theoretical study of trade and environment under thecondition of regional economic integration, this dissertation analyzes the basic frameworkof regional economic growth, trade and environment. On this basis, empiricalinvestigation and quantitative analysis should be made on the trade and environmentaleffects of various types of regional economic integration organizations. Especially anin-depth study is done on North American Free Trade Area (NAFTA) similar to EastAsian Free Trade Area (EAFTA). In the light of China's practice of regional economicintegration, trade and environmental experience and the orientation toward policyadjustment are probed into according to the strategy of China's regional economicintegration. With the basis on theoretical research and the test through practice, trade andenvironmental problems existing in the establishment of EAFTA are analyzed. On thebasis of the summary of and learning from the experience of regional economicintegration of Europe and the US, concerning policy it is suggested that trade andenvironment of EAFTA should be coordinated.The basic conclusion reached by this dissertation through research is as follows:North-North horizontal regional economic integration promotes both trade andenvironment in the region; South-South horizontal integration produces comparatively bigenvironmental problems while there is development in economy and trade. South-Northvertical integration enhances the trade in the region without obvious environmentalchanges in the member developing countries. The cooperation mechanism of regionaleconomic integration and the binding force of environmental agreements are of vitalimportance to the developing countries violable to pollution transfer. Environmentalregulation and policy adjustment are conducive to the harmonious development of tradeand environment. This dissertation puts forward the following new ideas. First, on the basis of regionaleconomic growth model of resource division, it is proposed that the building of EAFTAshould be based on the recycle of resources and the East Asian model that the sustainabledevelopment of regional economy and trade is promoted through circular economy shouldbe established to guarantee the harmonious development of trade and environment.Second, beneficial to the coordination of trade and environment in China and even in EastAsian countries, EAFTA characterized by vertical cooperation is the best choice forChina's participation in regional economic integration. Third, China should adhere to thestrategy of placing top priority on environment when it participates in the regionaleconomic integration. Fourth, in view of the coordination of trade and environment inEAFTA, the specific policy suggestions include: the environmental policy and systemframework of EAFTA should be made; the cooperation in resources, energy andenvironment serves as the breakthrough point in EAFTA; the mechanism of enduringeffect should be established with circular economy to promote the economic and tradegrowth in the region; the high and new technology industries and intra-industry trade ofservice industries in EAFTA should be propelled; China should take part in the linking ofJapan and Korea's manufacturing industry chain; upgrading of the industrial structureshould be modulated through rational industrial transfer.