ECO-LABELLING AND INTERNATIONAL TRADE

The growing use of ecolabels reflects an important change in social attitudes to the environment, and is part of a wider movement towards the use of market-based instruments. Eco-labels are intended to bring significant environmental benefits through their positive influence on consumers` purchasing decisions.

The transparency, access and credibility of ecolabel schemes has emerged as an important concern in the trade and environment context. Transparency at the development stage increases the opportunities for access by exporters. It is also important to provide opportunities for input from the public if the resulting ecolabels are to command credibility from consumers. The design of ecolabels need to take account of the GATT and the Technical Barriers to Trade Agreement. It is also of vital importance that schemes should be rigourous and even-handed in the testing and certification of products for awarding the ecolabel. Technical assistance to developing countries is needed in a number of areas, including environmental testing, environmental auditing, life cycle analysis, certification and participation in international technical committees.

To tackle the trade issues raised by non-product related issues in ecolabels, it could be useful to explore a proposal for identifying sensitive traded products on which it is particulary important to involve developing countries in ecolabel proposals. In the longer term, the most fruitful approach could be to examine the scope for mutual recognition or equivalence between ecolabelling schemes. A common set of good practice principles would be needed to provide a basis for equivalence.

OECD Workshop on Ecolabelling and International Trade, London, 1994