COMERCIO INTERNACIONAL Y DESARROLLO SUSTENTABLE
Summary
This executive summary analyzes the relationship between trade liberalization, economic growth, and environmental impact in Argentina during the 1990s. It distinguishes between the manufacturing sector, where trade opening did not significantly clean the export basket, and the agricultural sector, where technological adoption led to a 'virtuous cycle' of increased production and environmental benefits.
Key insights
- Between 1990 and 1997, Argentina experienced significant economic growth and trade expansion following structural reforms, including trade liberalization, privatizations, and the 1991 Convertibility Plan. GDP grew at an average annual rate exceeding 6% from 1990 to 1997, and GDP per capita (PPP) rose from u$s 5,120 in 1991 to u$s 9,950 in 1997.
- Trade liberalization did not result in a 'cleaner' export basket for the manufacturing sector. Industries with high or medium pollution potential represented 72% of total manufacturing exports in 1990 and remained at 69% in 1997. For exports to OECD countries, the share of high and medium pollution potential branches actually increased from 68% to 76% over the same period.
- While the manufacturing export pattern remained largely unchanged, increased competition and access to international machinery led large exporting firms to improve environmental management to reduce costs. However, these improvements are not yet aligned with international best practices, particularly in small and medium enterprises, and absolute emission levels likely did not decrease.
- The agricultural sector in the Pampas region saw a massive production increase from 26 million tons in 1988/89 to over 63 million in 1997/98. This was driven by a 30% increase in land for main crops (wheat, corn, soy, and sunflower), higher use of fertilizers (rising from 300,000 to over 1,500,000 tons), and increased spending on agrochemicals (from u$s 300 million in 1992 to over u$s 900 million in 1997/98).
- Agricultural intensification in the Pampas created a 'win-win' scenario where production growth coincided with environmental benefits. The adoption of 'no-till' farming (siembra directa) expanded from 300,000 hectares in 1990/91 to 5.5 million in 1997/98, helping recover soil organic matter and potentially sequestering 100 million metric tons of carbon equivalent.
- The adoption of transgenic soy starting in 1997 is viewed as a positive externality because it reduced the total amount of agrochemicals and shifted usage toward herbicides of rapid degradation and low residual impact on soil and water.
- The document identifies a latent threat regarding the expansion of complementary irrigation using groundwater due to a lack of specific regulations to ensure the sustainability of well yields.
- The authors argue that agricultural subsidies in the European Union negatively impact global environmental efficiency by discouraging investments in friendly technologies in countries with comparative advantages and inducing unsustainable intensification in the EU.
Cite the original document
- APA
- Chudnovsky, D., Rubin, S., Cap, E., & Trigo, E. (1999). COMERCIO INTERNACIONAL Y DESARROLLO SUSTENTABLE. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/xprt1990ssum_s.pdf
- Chicago
- Chudnovsky, Daniel, Sebastián Rubin, Eugenio Cap, and Eduardo Trigo. COMERCIO INTERNACIONAL Y DESARROLLO SUSTENTABLE. International Institute for Sustainable Development, 1999. https://www.iisd.org/system/files/publications/xprt1990ssum_s.pdf.
- Wikipedia
- {{cite report |last1=Chudnovsky |first1=Daniel |last2=Rubin |first2=Sebastián |last3=Cap |first3=Eugenio |last4=Trigo |first4=Eduardo |title=COMERCIO INTERNACIONAL Y DESARROLLO SUSTENTABLE |publisher=International Institute for Sustainable Development |date=1999 |url=https://www.iisd.org/system/files/publications/xprt1990ssum_s.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{chudnovsky1999comercio, author = {Chudnovsky, Daniel and Rubin, Sebastián and Cap, Eugenio and Trigo, Eduardo}, title = {{COMERCIO INTERNACIONAL Y DESARROLLO SUSTENTABLE}}, institution = {International Institute for Sustainable Development}, year = {1999}, url = {https://www.iisd.org/system/files/publications/xprt1990ssum_s.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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