· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece in the Financial Times or enjoy below:
🗞️ Driving the news: UN trade chief Rebeca Grynspan criticizes rich countries for leveraging green policies to economically disadvantage developing nations
• She highlights how subsidies and environmental protectionism in the US and EU, under the guise of environmental concern, exploit outdated World Trade Organization rules to the detriment of poorer countries
🔭 The context: Grynspan points to the challenges faced by developing countries, locked out of markets due to rapid technological changes and new barriers erected by wealthy nations
• She underscores the growing digital divide and the resurgence of industrial policy in developed countries, impacting the competitive abilities of developing nations
🌍 Why it matters for the planet: This issue highlights the tension between environmental goals and equitable global trade
• While developed countries advance their green agendas through subsidies and policies, developing nations struggle without similar fiscal capabilities, leading to trade restrictions or additional taxes
⏭️ What's next: The challenge lies in reforming international trade rules and agreements, such as the Agreement on Trade-Related Investment Measures, to create a more equitable system
• The ongoing dispute between the EU and Indonesia over nickel exports exemplifies the complexities and potential conflicts in aligning global trade with environmental goals
💬 One quote: “The whole issue of common but differentiated responsibility has been marginalized. Paris is not a restaurant menu that you can choose from. That was an integral part of the deal” (Rebeca Grynspan, UN Trade Chief)
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