What if we were given a choice: a million dollars or clean air? Most if not all of us would without a doubt choose the former. This is exactly what Naomi Klein says in her book This Changes Everything. As she writes, “It is difficult to get a man to understand something, when his salary depends upon his not understanding it!”(Klein 40). She expresses the struggle to confront climate change when our lifestyles and income depend on our denial of the connection between fossil fuels and the climate problem. Klein argues that it is possible to attain both a healthy environment and a flourishing economy if we change our capitalistic system, which relies heavily on globalized free trade. Such trade practices depend on the excessive use of fossil fuels that heat our planet. In order to protect our planet, there is a clear need to change our current trade practices. This Changes Everything claims that neoliberalism is the primary culprit to this ongoing issue.
The rules of neoliberalism have encouraged the increase in globalized free trade. “The three policy pillars of this new era are familiar to us all: privatization of the public sphere, deregulation of the corporate sector and the lowering of income and corporate taxes, paid for with cuts to public spending” (Klein 17). These neoliberal rules allow privatization of the industrial sector that tends to focus on maximizing profit. This drive to maximize profit plays a key role in the establishment of free trade. Free trade refers to “a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs(to imports) or subsidies(to exports).”(The Editors of Encyclopædia Britannica). Agreements are drawn between countries to expand their business deals with each other. There are three types of trade agreements, unilateral agreement, bilateral agreement, and multilateral agreement. Unilateral agreement is a one way agreement posed by a country. Bilateral agreement is drawn between two countries to decrease trade restrictions between them. The final agreement, multilateral agreement is between three or more countries. The Trans-Pacific Partnership(TPP) and North American Free Trade Agreement(NAFTA) are two of the most well known trade agreements. These neoliberal rules are the main motivation for countries to get involved in trade practices which contributes greatly to our climate problems. The establishment of free trade and their agreement has lead to an increase in carbon dioxide emission.
Free trade motivates the import and export of products increasing the need for transportation services. Products are sent to and from other countries by ships or airplane, these transportations are one of the major contributors to our growing carbon footprint. “How would the vastly increased distances that basic goods would now travel-by carbon-spewing container ships and jumbo jets, as well as diesel trucks-impacts the carbon emissions that the climate negotiations were aiming to reduce?” (Klein 67). Klein expresses the struggles to reduce emission now that free trade has opened up a growing need to transport merchandise. According to the Environmental Protection Agency, “in 2015, greenhouse gas emissions from transportation accounted for about 27 percent of total U.S. greenhouse gas emissions, making it the second largest contributor of U.S. greenhouse gas emissions”(EPA) Those pro free trade might argue that the highest carbon dioxide emission comes from road transport which is rarely used in the process of import and export. While this is true that 74% of carbon dioxide emission from transport does come from road vehicles, aircraft and ships also emit a large amount of greenhouse gas. Aircrafts and ships emit a total of around 16% of carbon dioxide coming from transport. In addition to that, these transports increase the level of nitrogen oxides and are also the main source of black carbon, also known as soot. Black carbon has recently been categorized as the major cause to global climate change coming second to carbon dioxide. Free trade is the main culprit that encourages this increase in transportation services to deliver items across countries. These transportations does not only emit carbon dioxide but also other green house gases that are major contributors to global climate change. To successfully carry out free trade, agreements are drawn up between the parties involved.
Agreements such as the Trans Pacific Partnership and NAFTA reduces trade barriers between the countries involved. This eases the process of import and export of products including fossil fuels. Countries that have an abundant amount of fossil fuels are now able to export to those countries that are scarce of these resources. This expands the global market for fossil fuels. In addition to that, the ability to export merchandise, encourages these factories to increase production. This poses as a threat to our already deteriorating environment, since an increase in production means an increase in carbon dioxide emission. “When China became the “workshop of the world” it also became the coal spewing “chimney of the world.” By 2007, China was responsible for two thirds of the annual increase in global emissions. Some of that was the result of China’s own internal development. But a lot of it was directly tied to foreign trade: according to one study, between 2002 and 2008 48 percent of China’s total emissions was related to producing goods for export.”(Klein 70) Some might argue that even without these trade agreement these countries will still find ways to satisfy their need for fossil fuels. However, trade restrictions will encourage these countries to resort to cleaner energy sources. Without fossil fuels being easily available to them, countries will be encouraged to find alternative sources of energy that are readily available to them. The establishment of such trade barriers that help the environment are discouraged in free trade. Those pro free trade don’t believe that these barriers will help our economy flourish, which is their main priority. In addition to a greater demand in fossil fuels, the loosening of trade barriers allow different industrial sectors to maximize their production in order to export their products.
One of the sectors that greatly increases their production for export is the agriculture sector. The agriculture sector produces commodity that everybody consumes, however it is also the sector that produces the highest amount of greenhouse gas. The climates and soil fertility of different countries don’t always allow a certain crop to flourish in that specific region. With free trade, countries are able to specialize in growing a certain agriculture crop or raise certain animals and export them to other countries. This possible increase in profit is what appeals to people to join this sector. However, the increase in these agriculture production would also accelerate climate change. “And what that record tells us is that emissions are still rising: every year we release more greenhouse gases than the year before, the growth rate increasing from one decade to the next – gases that will trap heat for generations to come, creating a world that is hotter, colder, wetter, thirstier, hungrier, angrier” (Klein 452) As Klein mentions, the emission of greenhouse gases is rapidly rising, and this growing sector is one of the main factors effecting it. Methane is a greenhouse gas that accelerates global warming much faster than carbon dioxide, it also happens to be a common agriculture byproduct. Research has shown that animal agriculture is responsible for 10 to 25 percent of all greenhouse gas emission. Moreover, the increase in crop production also means an increase in the use of fertilizer, pesticides and equipments such as tractors, trucks, etc. All of which contributes to the increase in carbon footprint. Although some might argue that “the agricultural sector could be “broadly carbon neutral” by 2030, effectively negating the agricultural industry’s humongous carbon footprint.” (Dunn). This ideal process can only be carried out by countries that have the knowledge and means. Countries that rely heavily on their agriculture sector often don’t have the knowledge to implement such technologically forward methods. The growing interest in the agriculture sector is due to the possibility to import and export these highly sought out products which is allowed through free trade. To ease this process, trade agreements are drawn up even at the cost of the environment.
Some trade agreements such as NAFTA and TPP have trumped actions to preserve the environment. Under these agreements, foreign companies are allowed to sue the United States for any regulations that hinder them from gaining maximum profit. This means that these foreign companies are able to sue if an environmental regulation gets in the way of them obtaining profit. “And indeed, that’s currently happening with the Keystone XL pipeline, which President Obama rejected in 2015. TransCanada, the company behind the pipeline, has filed a $15 billion lawsuit against the US for not allowing the pipeline to move forward.” (Varinsky). Under NAFTA, TransCanada is allowed to sue since the rejection of their proposal prevented them from obtaining their profit. Klein shares another example in her book, “In 2010, for instance, the United States challenged one of China’s wind power subsidy programs on the grounds that it contained supports for local industry considered protectionist. China, in turn, filed a complaint in 2012 targeting various renewable energy programs in the European Union, singling out Italy and Greece. Washington, meanwhile, has launched a World trade Organization attach on India’s ambitious Jawaharlal Nehru National Solar Mission, a large, multiphase solar support program-once again, for containing provisions, designed to encourage local industry, considered to be protectionist.”(Klein 56) She mentions how countries fight to undermine each other. These countries are allowed to do so through the different agreements that are drawn up between them. Nevertheless, these agreements could also potentially aid the availability of environmentally friendly products. The agreements do in a way help the environment, however the damage they do on the environment is far worst than the benefits they have on the environment. All the actions carried out to preserve the environment are hindered by these trade agreements which are necessary in a capitalistic economy. These different factors greatly contribute to the increase in the emission of greenhouse gases which is a major factor to this issue of climate change.
As Klein mentions in her book This Changes Everything, we are able to attain both a healthy environment and a flourishing economy through change in our economic system that does not heavily rely on globalized free trade. These trade practices depend on the excessive use of fossil fuels which is heating our planet. The lengths taken to attain a flourishing economy is to improve the standards of living. However, climate change impacts brought forth by free trade will destroy the planet we live in which will leave us with no earth to improve. This way the standards of living of the poor will not improve either. It is important that the people with a capitalistic mindset keep in mind that environmentalist that are trying to preserve the earth, are fighting for the same cause as them. They must keep in mind that balance between economy and environment is required to actually improve standard of living. “Because what is overwhelming about the climate challenge is that it requires breaking so many rules at once— rules written into national laws and trade agreements, as well as powerful unwritten rules that tell us that no government can increase taxes and stay in power, or say no to major investments no matter how damaging, or plan to gradually contract those parts of our economies that endanger us all”(Klein 460). As Klein mentions, some changes need to be made to the current economy: (1) Trade agreements should be modified to have a clause that protects the environment and does not allow corporations to profit at the cost of the environment; (2) Awareness needs to be raised on the implications that their actions have on the environment; And (3) government needs to start recognizing climate change as one of the most crucial issues that needs to be taken care of. Knowing all the implications that free trade has on our life and our environment, will the choice between money and the environment still be the same?
Works Cited
- Cosbey, Aaron. Trade and Climate Change Linkages. www.iisd.org/pdf/2007/ trade_climate_linkages.pdf.
- Dunn, Collin. “6 Ways Agriculture Impacts Global Warming.” TreeHugger, Treehugger, 12 Sept. 2017, www.treehugger.com/green-food/6-ways-agriculture-impacts-global- war ming.html.
- The Editors of Encyclopædia Britannica. “Free Trade.” Encyclopædia Britannica, Encyclopædia Britannica, Inc., 17 Jan. 2014, www.britannica.com/topic/free-trade.
- Elbein, Saul. “A Final Fight for the Keystone Pipeline.” Rolling Stone, Rolling Stone, 11 Oct. 2017, www.rollingstone.com/politics/features/a-final-fight-for-the-keystone-pipeline- w508153.
- EPA. “Sources of Greenhouse Gas Emissions.” EPA, Environmental Protection Agency, 14 Apr. 2017, www.epa.gov/ghgemissions/sources-greenhouse-gas-emissions#transportation.
- Klein, Naomi. This Changes Everything: Capitalism vs. the Climate. Penguin Books, 2015.
- Lilliston, Ben. “The Climate Cost of Free Trade.” Institute for Agriculture and Trade Policy, Sept. 2016, www.iatp.org/climate-cost-of-free-trade.
- Tamiotti, Ludivine, et al. Trade and Climate Change. 2009,https://www.wto.org/english/res_e/ booksp_e/trade_climate_change_e.pdf
- Trade and Climate Change Policy Beyond 2015 . unctad.org/en/PublicationsLibrary/ presspb2015d8_en.pdf.
- Varinsky, Dana. “Trump’s Plan to Rethink Free Trade Agreements Could Have a Silver Lining for the Environment.” Business Insider, Business Insider, 4 Dec. 2016, www.businessinsider.com/rethinking-free-trade-environment-2016-12.
- “WORLD TRADE ORGANIZATION.” WTO | Trade and Environment – The Impact of Trade Opening on Climate Change, www.wto.org/english/tratop_e/envir_e/ climate_impact_e.htm.