TRADE AND ENVIRONMENT - PPMS AND NATURAL-RESOURCES

In the past few years, a trade and environmental policy debate has focussed on process and production methods (PPMs). The debate centres on whether trade measures such as general import bans or product restrictions, should be allowed because its production method is environmentally unfriendly. PPMs can be distinguished on the basis Of whether they are product-related (i.e. the process used affects the final characteristics of the product) or non-product-related (i.e. examination of the product does not reveal what process was used). Current trade law as embodied in the GATT/WTO allows countries to impose import restrictions on certain products in the interest of protecting ifs national environment provided that similar restrictions apply to domestic goods. In other words, trade restrictions can be used for product-related PPMs. Generally speaking, however, trade measures cannot be used for non-product-related PPMs. Although operators should be fully aware of this policy debate and the implications of any proposals to modify existing trade rules, there are no imminent changes that could seriously effect sustainable production of minerals and metals in Canada.