Rapid Trade and Environment Assessment (RTEA) National Report for Lao PDR

The Rapid Trade and Environment Assessment (RTEA) for Lao PDR examines the intersection of trade liberalization—driven by ASEAN, WTO accession, and GMS integration—and environmental sustainability. The report identifies that while resource-intensive sectors like hydropower, mining, and forestry drive GDP growth, they place significant pressure on forests, water, and biodiversity. Conversely, 'green' niche sectors such as organic agriculture, ecotourism, and silk handicrafts offer sustainable export potential. The assessment emphasizes that the net environmental outcome depends on the government's ability to implement and enforce regulatory frameworks, strengthen institutional capacity, and engage the private sector in corporate social responsibility (CSR).

• Lao PDR's economic growth is heavily dependent on natural resources, with hydropower, mining, and wood products serving as primary exports, which increases the burden on the natural resource base.
• The wood and wood products sector faces significant environmental threats, including deforestation, forest degradation, and biodiversity loss, exacerbated by illegal trade and low-value exports.
• Silk handicrafts have a low environmental footprint currently but may face increased water consumption and chemical pollution from bleaching as production scales up.
• Trade liberalization through the ASEAN Investment Area (AIA) may complicate environmental regulation by granting pre-establishment rights to ASEAN investors after 2015, potentially hindering the implementation of land concession moratoriums.
• Existing bilateral investment treaties (BITs) from the 1990s may constrain environmental oversight because their vague definitions of expropriation could allow investors to challenge non-discriminatory environmental regulations.
• Lao PDR's ability to benefit from trade agreements is limited by supply-side constraints and the need to meet strict non-tariff barriers, such as sanitary and phytosanitary (SPS) measures and certification requirements.
• Environmental governance and institutional capacity in Lao PDR are currently insufficient to keep pace with the rapid influx of foreign direct investment (FDI).

APA

Shaw, S., Cosbey, A., Baumüller, H., Callander, T., & Sylavong, L. (2007). Rapid Trade and Environment Assessment (RTEA) National Report for Lao PDR. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/rtea_national_lao.pdf

Chicago

Shaw, Sabrina, Aaron Cosbey, Heike Baumüller, Tom Callander, and Latsamay Sylavong. Rapid Trade and Environment Assessment (RTEA) National Report for Lao PDR. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/rtea_national_lao.pdf.

Wikipedia

{{cite report |last1=Shaw |first1=Sabrina |last2=Cosbey |first2=Aaron |last3=Baumüller |first3=Heike |last4=Callander |first4=Tom |last5=Sylavong |first5=Latsamay |title=Rapid Trade and Environment Assessment (RTEA) National Report for Lao PDR |publisher=International Institute for Sustainable Development |date=24 September 2007 |url=https://www.iisd.org/system/files/publications/rtea_national_lao.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{shaw2007rapid, author = {Shaw, Sabrina and Cosbey, Aaron and Baumüller, Heike and Callander, Tom and Sylavong, Latsamay}, title = {{Rapid Trade and Environment Assessment (RTEA) National Report for Lao PDR}}, institution = {International Institute for Sustainable Development}, year = {2007}, month = sep, url = {https://www.iisd.org/system/files/publications/rtea_national_lao.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }