The Impact Of Environmental Protection Commitments On The Implementation Of New-Generation Free Trade Agreements In Developing Countries: A Case Study Of Vietnam

Abstract

Rapid economic growth not only brings opportunities but also comes with
environmental risks as a result of production and business activities. In addition to
commitments on free trade, such as the existing free trade agreements, a new
generation of Free Trade Agreements (FTAs) raises the level of environmental
commitment to enhance reciprocity between trade and environmental policies,
thereby eliminating the negative impacts of trade and investment activities on the
fulfilment of environmental commitments. The critical role of international
environmental commitments in FTAs for environmental protection and
sustainable development is undeniable. However, the trend of increasing
environmental commitments in trade agreements poses significant challenges for
developing countries, including Vietnam, such as increasing production costs,
reducing the competitiveness of goods, aligning national laws with new
environmental standards, financial resources to implement environmental
commitments, etc. To clarify legal issues and assess the impact of environmental
protection provisions in FTAs on developing countries and Vietnam, the article
focuses on the core issues, including (i) The trend of formation and development
of environmental protection commitments in FTAs; (ii) Relationship between
economic development and environmental protection to achieve the SDGs; (iii)
Challenges of developing countries and Vietnam in implementing environmental
commitments in FTAs; and (iv) Recommendations for Vietnam to harmonise
economic interests and effectively implement environmental protection
commitments in FTAs and achieve the SDGs.