Economy Report: Canada Trade and Environment Policy and Practice

The document outlines Canada's transition from a defensive posture regarding trade-related environmental barriers to a 'maturing' policy that seeks synergies between trade and sustainable development. It details a comprehensive regulatory framework including import/export bans on hazardous wastes and ozone-depleting substances, and a commitment to the 'principle of openness' through multistakeholder advisory bodies and transparency in the Canada Gazette. Canada's international engagement is highlighted through its participation in the WTO, the North American Agreement on Environmental Cooperation (NAAEC), and various multilateral environmental agreements (MEAs).

• Canada's approach to trade and environment has evolved from a defensive stance, driven by the importance of its natural resource sector and fears of protectionist environmental policies, to a 'maturing' policy that recognizes both positive and negative linkages between trade and the environment.
• A central pillar of Canadian policy is the 'principle of openness,' which emphasizes the active participation of civil society and stakeholders in decision-making processes and ensures transparency to make that participation meaningful.
• Canada utilizes a diverse regulatory framework to manage trade and environment, including prohibitions on the import of chlorobiphenyls and chlorofluorocarbons, and strict regulations on the transboundary movement of hazardous wastes aligned with the Basel Convention.
• The North American Agreement on Environmental Cooperation (NAAEC) established the North American Commission on Environmental Cooperation (CEC), which is described as the only regional environmental organization originating from a trade liberalization agreement.
• Canada employs several national instruments for multistakeholder input, including the International Trade Advisory Committee's Working Group on Trade and Environment and the National Round Table on the Environment and the Economy (NRTEE), an independent agency reporting to the Prime Minister.
• Regarding environmental cost internalization, Canada has shifted over the last twenty years from prescriptive 'command and control' instruments toward more flexible market-based incentives, though it still uses a mix of taxes, subsidies, and voluntary agreements.

APA

Cosbey, A. (1998). Economy Report: Canada Trade and Environment Policy and Practice. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/canadatrade.pdf

Chicago

Cosbey, Aaron. Economy Report: Canada Trade and Environment Policy and Practice. International Institute for Sustainable Development, 1998. https://www.iisd.org/system/files/publications/canadatrade.pdf.

Wikipedia

{{cite report |last1=Cosbey |first1=Aaron |title=Economy Report: Canada Trade and Environment Policy and Practice |publisher=International Institute for Sustainable Development |date=1998 |url=https://www.iisd.org/system/files/publications/canadatrade.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cosbey1998economy, author = {Cosbey, Aaron}, title = {{Economy Report: Canada Trade and Environment Policy and Practice}}, institution = {International Institute for Sustainable Development}, year = {1998}, url = {https://www.iisd.org/system/files/publications/canadatrade.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }