Global Impacts of a Bilateral Trade Policy on Ballast Water-Mediated Species Spread Risk: A Case Study of Sino-US Trade

Abstract

A trade policy could generate both economic and environmental impacts. This work is focused on the impacts of a bilateral trade policy on ballast water-mediated nonindigenous species (NIS) spread risk. Taking the hypothetical Sino-US trade restriction as an example, we integrate a computable general equilibrium model and a higher-order NIS spread risk assessment model to examine the impacts of bilateral trade policy on both the economy and NIS spread risks. We have two important findings. First, the Sino-US trade restriction would cause decreases in NIS spread risks to China and the US, as well as to three quarters of worldwide countries/regions. However, the rest one fourth would experience increased NIS spread risks. Second, the relationship between changes in exports and changes in NIS spread risks might not be directly proportional. This is observed with 46% of countries and regions that would see their exports increase but their NIS spread risks drop, with positive impacts on both their economies and environment under the Sino-US trade restriction. These results reveal both broader global impacts as well as the decoupled economic and ecological impacts of a bilateral trade policy. These broader impacts demonstrate the necessity for national governments, which are parties to bilateral agreements to give due consideration to the economic and environmental impacts on countries and regions outside of the agreement.