Environmental Impacts of Trade Liberalization in the Organic Agriculture Sector of the Lao PDR

This research paper analyzes the environmental impacts of trade liberalization on the organic agriculture sector in Lao PDR. It examines how increased market access to the EU, US, and ASEAN countries creates opportunities for 'organic by default' products but also poses risks such as deforestation and the potential shift toward intensive agriculture due to irregular supply and a lack of formal certification systems.

• Lao PDR's agricultural sector is characterized by a divide between upland agriculture, which is 'organic by default' due to low inputs, and lowland irrigation agriculture, which uses more chemical fertilizers and pesticides.
• The country lacks a domestic legal and regulatory framework for organic certification, meaning most products are 'organic by default' and not recognized on international markets. Certification is currently handled by international bodies, with costs reaching approximately US$3,000 per year for a single farm or group.
• Trade liberalization presents a 'scale effect' where increased access to markets in the EU, US, and ASEAN (specifically Thailand, Vietnam, and China) could lead to deforestation and encroachment on protected areas as more land is required for organic production.
• Investment in organic technology and structural shifts toward organic production can prevent environmental damage associated with standard agriculture, such as chemical pollution, the introduction of genetically modified organisms (GMOs), and large-scale land use changes.
• The organic sector faces significant barriers to export performance, including irregular supply, a lack of quality control systems (such as ISO 9000, ISO 14000, or HACCP), and high administrative and transport costs due to the country being landlocked.
• Specific organic export successes include the Lao Farmer’s Products Co., which exported 300 tons of non-certified organic rice and 50 tons of non-certified organic tea to Europe in 2005 under the Fair Trade Label Max Havelaar.

APA

Manivong, P. (2007). Environmental Impacts of Trade Liberalization in the Organic Agriculture Sector of the Lao PDR. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/rtea_lao_organic_agri.pdf

Chicago

Manivong, Phengkhouane. Environmental Impacts of Trade Liberalization in the Organic Agriculture Sector of the Lao PDR. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/rtea_lao_organic_agri.pdf.

Wikipedia

{{cite report |last1=Manivong |first1=Phengkhouane |title=Environmental Impacts of Trade Liberalization in the Organic Agriculture Sector of the Lao PDR |publisher=International Institute for Sustainable Development |date=December 2007 |url=https://www.iisd.org/system/files/publications/rtea_lao_organic_agri.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{manivong2007environmental, author = {Manivong, Phengkhouane}, title = {{Environmental Impacts of Trade Liberalization in the Organic Agriculture Sector of the Lao PDR}}, institution = {International Institute for Sustainable Development}, year = {2007}, month = dec, url = {https://www.iisd.org/system/files/publications/rtea_lao_organic_agri.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }