Possible trade strategies of Argentina against increasing environmental international constraints

This paper aims to identify analytically potential impacts on Argentinean international trade as a consequence of foreign environmental legislation emerging, which will impose progressive restrictions on exports. The results suggest a short-term negative impact on the tradable sectors of Argentina’s economy where there exist environmental barriers to trade. The intrinsic characteristics of each sector generates that the impact may take quite different dimensions in each case. In the medium and long term, the replacement of the traditional approach based on control of pollution by the other of pollution prevention, along with various policy alternatives, would allow productivity improvements, better external accounts and amelioration in the country’s environmental conditions.