Environmental Impacts of Trade Liberalization in the Medicinal Plants & Spices Sector of the Lao PDR

This research paper examines the environmental impacts of trade liberalization within the medicinal plants and spices sector of Lao PDR. It analyzes the tension between the economic goals of poverty reduction and export growth and the resulting pressures on biodiversity, specifically highlighting the risks of unsustainable wild harvesting versus the potential of cultivation and certification.

• Trade liberalization and increased international demand, particularly from China, Vietnam, and Thailand, have positioned the medicinal plants and spices sector as a key growth area in the National Export Strategy 2006-2008. This growth is evidenced by an increase in traditional medicine production in both public and private pharmaceutical factories.
• The sector faces significant environmental threats due to a lack of scientific harvesting approaches, absent cultivation plans, weak enforcement of laws, and limited biodiversity awareness among rural populations. These factors contribute to the over-harvesting of wild resources.
• Certain high-value species are currently under threat due to unsustainable extraction. For example, Coscinium sp. processing factories in the north have been forced to move south because of decreasing resource availability, and the rare orchid Anoectochilus sp. is becoming harder to source from forests for export to China and Japan.
• The extraction of berberine from Coscinium sp. serves as a case study for unsustainable harvesting, where local villagers sometimes collect roots along with the liana, a method described as very destructive to forest biodiversity and the survival of the species.
• The distillation of agarwood (Aquilaria sp.) is presented as a more sustainable model because of a shift toward cultivation. Efforts include propagation via seeds and plant tissue culture to ensure a sustainable supply for domestic use and export to Arabic countries and Brunei.
• The Government of Lao PDR utilizes a three-category classification system for medicinal plants under Decree No. 155 (2003) to manage sustainability: Category I for rare and endangered species (requiring Ministry of Health approval), Category II for high commercial value species (requiring a management plan), and Category III for abundant species (unrestricted).
• To ensure long-term sustainability, the author recommends implementing certification schemes—similar to those used in Nepal—and providing private sector incentives such as temporary tax reductions for plantations to discourage the unsustainable harvesting of wild plants.

APA

Sydara, K. (2007). Environmental Impacts of Trade Liberalization in the Medicinal Plants & Spices Sector of the Lao PDR. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/rtea_lao_plants_spices.pdf

Chicago

Sydara, Kongmany. Environmental Impacts of Trade Liberalization in the Medicinal Plants & Spices Sector of the Lao PDR. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/rtea_lao_plants_spices.pdf.

Wikipedia

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

BibTeX

@techreport{sydara2007environmental, author = {Sydara, Kongmany}, title = {{Environmental Impacts of Trade Liberalization in the Medicinal Plants \& Spices 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_plants_spices.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }