Summary: Efforts to strengthen capacities in the environmental services sector in developing countries are aimed primarily at addressing and eventually solving environmental problems. They can also result in developing countries' ability to become international providers in this field. They can help them to increase their capacity to meet environmental requirements in importing markets, become more appealing destinations for foreign direct investments, obtain easier access to capital and strengthen other domestic sectors, such as tourism. Trade in environmental services is relatively free of restrictions, but there is scope for further liberalization, especially for foreign commercial presence and movement of natural persons. Trade in environmental services may also be affected by lack of market access in other sectors, such as engineering, consulting, analytical and legal services. However, the benefits of trade liberalization may not be realized if certain preconditions are not satisfied. Appropriate domestic environmental legislation and economic incentives have to be set up. Transfer of environmentally sound technologies (ESTs) should be pursued, and domestic firms need to develop the skill to absorb and adapt ESTs. International cooperation and financing are essential to enable developing countries to address environmental problems. Education and information, political willingness and a participatory process may make it possible to devote additional efforts and resources to environmental improvement
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International Institute for Trade and Developement : UNCTAD Collection
