Environmental Impacts of the ASEAN-China Free Trade Agreement on the Greater Mekong Sub-Region

This report analyzes the environmental impacts of the 2004 ASEAN-China Free Trade Agreement (ACFTA) on the Greater Mekong Sub-region (GMS), specifically focusing on trade flows and pollution levels between China and Cambodia, Lao PDR, Vietnam, Myanmar, and Thailand.

• Trade between China and the Greater Mekong Sub-region (GMS) has grown significantly following the ACFTA, particularly for goods with reduced tariff rates. In Cambodia, some exports like fish, live animals, and cassava have grown more slowly because exporters struggle to meet China's import standards.
• Trade volume between China and GMS countries is split between pollution intensities: two-thirds of products are in the least polluting sectors (under 500 pounds of toxic pollution per million USD of production), while one-third are in the most polluting sectors (over 1,500 pounds per million USD). China is the primary producer of goods in the most polluting sectors, meaning much of the region's pollution intensity originates there.
• In Cambodia, importing goods from China's most polluting sectors has resulted in an environmental 'gain' for Cambodia, though this has caused environmental degradation within China.
• Increased trade in natural resources—including wood, minerals, and agricultural commodities—raises risks of resource depletion. This is especially critical in Cambodia due to its reliance on these exports to China, weak environmental regulation, and existing issues such as biodiversity loss, degradation of coastal resources, depletion of inland fisheries, and loss of forest cover.
• The ACFTA lacks provisions for environmental cooperation, which the report identifies as a significant shortcoming in regional economic policy. To mitigate negative environmental effects, the report argues that environmental issues must be integrated into trade negotiations and agreements.
• The Cambodian government, donors, and civil society should prioritize improving natural resource governance. Current obstacles include poor physical facilities, insufficient budget allocations, shortages of skilled staff, and overlapping functional areas among agencies.

APA

Jalilian,, V. H. (2008). Environmental Impacts of the ASEAN-China Free Trade Agreement on the Greater Mekong Sub-Region. International Institute for Sustainable Development. https://www.iisd.org/publications/report/environmental-impacts-asean-china-free-trade-agreement-greater-mekong-sub

Chicago

Jalilian,, Vutha Hing,Hossein. Environmental Impacts of the ASEAN-China Free Trade Agreement on the Greater Mekong Sub-Region. International Institute for Sustainable Development, 2008. https://www.iisd.org/publications/report/environmental-impacts-asean-china-free-trade-agreement-greater-mekong-sub.

Wikipedia

{{cite report |last1=Jalilian, |first1=Vutha Hing,Hossein |title=Environmental Impacts of the ASEAN-China Free Trade Agreement on the Greater Mekong Sub-Region |publisher=International Institute for Sustainable Development |date=14 October 2008 |url=https://www.iisd.org/publications/report/environmental-impacts-asean-china-free-trade-agreement-greater-mekong-sub |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jalilian2008environmental, author = {Jalilian,, Vutha Hing,Hossein}, title = {{Environmental Impacts of the ASEAN-China Free Trade Agreement on the Greater Mekong Sub-Region}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = oct, url = {https://www.iisd.org/publications/report/environmental-impacts-asean-china-free-trade-agreement-greater-mekong-sub}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }