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Professional paper

https://doi.org/10.22598/iele.2024.11.2.10

REGIONAL TRADE AGREEMENTS: TOOL TO PROMOTE CLIMATE – SMART AND SUSTAINABLE TRADE

Katerina Toshevska-Trpchevska orcid id orcid.org/0000-0001-5778-7105 ; Faculty of Economics – Skopje, Ss. Cyril and Methodius University in Skopje, Skopje, Republic of North Macedonia
Weng Chi Lei ; Faculty of Business and Law, University of Saint Joseph, Macau, Peoples Republic of China
Ljuben Kocev orcid id orcid.org/0000-0002-5039-6643 ; Faculty of Economics – Skopje, Ss. Cyril and Methodius University in Skopje, Skopje, Republic of North Macedonia *
Jasna Tonovska orcid id orcid.org/0000-0002-8150-7633 ; Faculty of Economics – Skopje, Ss. Cyril and Methodius University in Skopje, Skopje, Republic of North Macedonia

* Corresponding author.


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Abstract

Balancing economic prosperity with environmental sustainability is crucial in today’s global landscape. As climate change poses urgent challenges, economic development remains a priority, particularly in disadvantaged regions. This paper examines the rise of environmental and climate-related provisions in trade agreements, focusing on the Asia-Pacific and Western Balkans regions. Historically, trade agreements had minimal environmental focus, but recent trends show a surge in such provisions, reflecting a growing recognition of environmental challenges. The Asia-Pacific region, heavily impacted by climate change, increasingly incorporates environmental clauses in Regional Trade Agreements (RTAs), as seen in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Similarly, amid European Union integration, the Western Balkans embed environmental clauses in trade pacts like Central European Free Trade Agreement (CEFTA-2006), influenced by EU accession aspirations. The paper examines the emergence of environmental and climate-smart provisions in free trade agreements, before focusing on regional trade agreements in the Asia-Pacific Region and the Western Balkans. In addition, a qualitative analysis using NVivo 14 software is conducted, employing text search and word frequency analyses, to assess regional trade agreements in the Asia-Pacific and Western Balkan countries. The results show varying levels of commitment to environmental standards across the examined agreements, with the Asia-Pacific countries generally showing greater integration of climate considerations compared to the Western Balkans. Going forward, broader cooperation is essential for fostering sustainable trade practices globally.

Keywords

regional trade agreements; climate-smart trade; sustainable trade; Asia-Pacific countries; Western Balkans countries; NVivo software

Hrčak ID:

327009

URI

https://hrcak.srce.hr/327009

Publication date:

30.12.2024.

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