| The purpose of this research was to assess current initiatives for the consideration of environmental issues associated with international trade and FDI and identify opportunities for improvement. Environmental aspects of international trade and foreign direct investment (FDI) have received attention since the early 1990s. At times, the topic has led to animosity and conflict among the relevant actors, including national governments, intergovernmental organizations, industry, and non-governmental organizations. Dialogue among these actors has led to an increased understanding of environmental issues associated with international trade and FDI, but little progress has been made for their resolution. Concurrent to these discussions, criticisms have been aimed at multinational corporations and the environmental aspects of their international operations. Corporations have responded with voluntary commitments to act in a certain manner and have used environmental management tools to implement these commitments.; An interdisciplinary research strategy was used to identify the opportunities that are available to different actor groups to address environmental issues associated with international trade and FDI. The potential role of industry and non-regulatory policy options were specifically noted due to the lack of such a focus in most work. A mixed methodology approach was used to explore three research propositions based on both existing information and original data. This included a comprehensive interdisciplinary literature review, analysis of policy documents and processes, seventy-one key informant interviews, a comparative case study of three multinational companies, action research within the Canadian government and the World Trade Organization, and monitoring of current negotiations and disputes at the multilateral level.; It was found that efforts at the multilateral level are limited in terms of what they can achieve due to restricted mandates and political barriers. However, there are unrecognized opportunities available to national governments and through the actions of multinational corporations. Environmental management tools and voluntary environmental agreements (VEAs) can play a role in these activities. However they must be complemented by a strengthening of political will to address environmental issues and a shift in mind set that sees environmental issues as a threat to competitiveness and secondary to economic goals. Further, policy makers must recognize how they can provide incentives for industry to integrate environmental considerations into their business strategy. A detailed proposal was developed for linking current voluntary environmental agreements involving multinational corporations to the investor rights that are being sought through treaties. Specific recommendations for improved action to address environmental issues associated with international trade and FDI were directed at seven actor groups. |
