Balancing Trade Growth and Environmental Protection in the ASEAN: Case studies from the Mekong subregion

This report examines the tension between trade liberalization and environmental conservation in the Greater Mekong Subregion (GMS). It highlights how rapid economic growth and infrastructure development have exacerbated illegal wildlife and timber trade and increased vulnerability to climate change, while regional governance remains hampered by non-binding agreements and limited administrative capacity.

• The Greater Mekong Subregion (GMS) is transitioning from agricultural to industrial economies, with intra-GMS exports growing by an average of 19 percent between 1994 and 2006. However, intraregional trade only represents 24 percent of total trade due to limited complementarities.
• The GMS possesses extreme biodiversity, including 20,000 plant species and 430 mammal species, with 1,068 new species discovered between 1997 and 2007. This biodiversity is threatened by illegal timber and wildlife trade driven by rising affluence in China, Thailand, and Vietnam, as well as demand from the US, Europe, and Japan.
• Infrastructure projects, specifically hydropower plants and economic corridors, have caused environmental degradation. In Lao PDR, three major plants—Theun Hinboun (operational March 1998), Nam Leuk (completed May 2000), and Nam Theun 2 (supplying Thailand since March 2010)—illustrate this development. Transportation corridors have led to soil erosion and increased pressure from illegal trade and unsustainable logging.
• Climate change poses a significant risk to the Mekong basin; a study by Eastham et al. predicts a basin-wide temperature increase of 0.79˚C and increased flooding in all parts of the basin by 2030, with the most severe impacts expected in downstream catchments.
• Environmental governance in the GMS is weak because environmental ministries are often low in the government hierarchy and lack the capacity to enforce regulations. Regional cooperation is further limited by the 'ASEAN Way,' which relies on non-binding 'soft law' and lacks sanctions mechanisms.
• While ASEAN has initiatives like the Regional Action Plan on Trade in Wild Fauna and Flora 2005–2010 and the ASEAN Wildlife Enforcement Network (ASEAN-WEN), and the Singapore Declaration on Climate Change (November 2007), these commitments have not been integrated into formal, binding trade agreements.

APA

International Institute for Sustainable Development (n.d.). Balancing Trade Growth and Environmental Protection in the ASEAN: Case studies from the Mekong subregion. https://www.iisd.org/system/files/publications/balancing_trade_growth_mekong_synthesis.pdf

Chicago

International Institute for Sustainable Development. Balancing Trade Growth and Environmental Protection in the ASEAN: Case studies from the Mekong subregion. n.d. https://www.iisd.org/system/files/publications/balancing_trade_growth_mekong_synthesis.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Balancing Trade Growth and Environmental Protection in the ASEAN: Case studies from the Mekong subregion |url=https://www.iisd.org/system/files/publications/balancing_trade_growth_mekong_synthesis.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopmentndbalancing, author = {{International Institute for Sustainable Development}}, title = {{Balancing Trade Growth and Environmental Protection in the ASEAN: Case studies from the Mekong subregion}}, institution = {International Institute for Sustainable Development}, url = {https://www.iisd.org/system/files/publications/balancing_trade_growth_mekong_synthesis.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }