Eco–labels and International Trade:Problems and Solutions

Abstract

Eco–labeling is one way to assure consumers of the environmental suitability of products they purchase. However, several arguments have evolved to show that the use of eco–labels poses barriers to international trade. This exploratory study seeks to determine whether or not the use of eco–labels is a barrier to international trade in reference to the World Trade Organization (WTO) and International Standards Organization (ISO) principles. Product related production processes and methods (PPMs) and non–product related production processes and methods (npr–PPMs) have been a major source of disagreement among researchers. Our study examined the ISO criteria for eco–labeling that demand that life–cycle assessment (LCA) including both PPMs and npr–PPMs be satisfied. One of the major problems uncovered is the difficulty in identifying corresponding environmental variables for LCA requirements since environmental conditions vary among countries. We provide some recommendations and conclude that eco–labeling is not intended to be a barrier to international trade provided that it is not advocated under the pretext of protectionism.

Sustainable Practices in Furniture Design: A Literature Study on Customization, Biomimicry, Competitiveness, and Product Communication

“…Environmental impacts of production and consumption can be communicated through eco-labels or environmental labels. Bonsi et al [60] and Iraldo et al [61] point out the important differences between these two types of labels; for the purposes of this paper, both terms will be used to express green communication about products.…”

ECO-labels as a multidimensional research topic: Trends and opportunities

“…16 on developing the ecolabeling concept, the norms needed to implement it (Lathrop and Centner, 1998), and the traditional usage of ecolabeling from an international perspective (Bonsi et al, 2008). In this way, future descriptive analysis and literature reviews should carry out more indepth research about the strategies that can capitalize on the value of ecolabeled products, as Rex and Baumann (2007) suggest.…”

Understanding the Importance of Eco-Labeling for Organic Foods at UNESCO Biosphere Reserves: A Case Study of the Cocoa Powder at the Dong Nai, Vietnam

“…To circumvent commercial interests, non-profit organizations administer the majority of eco-labels. Eco-labels make no distinction between applicants from various nations or regions [7]. Eco-labels can assist consumers, institutions, and governments in making environmentally responsible purchasing decisions while providing producers with a means to increase their market share [8].…”