IELTS Reading Practice: Impact of Global Trade Agreements on Environmental Sustainability

In this IELTS Reading practice, we’ll explore the complex relationship between global trade agreements and environmental sustainability. This topic is increasingly relevant in today’s interconnected world, where economic decisions can have far-reaching environmental consequences. Let’s dive into a comprehensive reading exercise that will test your understanding of this crucial subject while honing your IELTS Reading skills.

Global Trade and Environment

Passage 1 – Easy Text

The Basics of Global Trade Agreements

Global trade agreements are international treaties that govern commerce between nations. These agreements aim to reduce barriers to trade, such as tariffs and quotas, and to promote economic growth. However, as the world becomes increasingly aware of environmental challenges, there’s growing concern about how these agreements impact our planet’s sustainability.

Trade agreements can affect the environment in various ways. For instance, they may encourage increased production and transportation of goods, leading to higher carbon emissions. On the other hand, they can also facilitate the exchange of environmentally friendly technologies and promote sustainable practices across borders.

One of the most significant global trade agreements is the World Trade Organization (WTO) framework. The WTO not only regulates international trade but also addresses environmental issues through its Committee on Trade and Environment. This committee works to ensure that trade and environmental policies are mutually supportive.

Recent years have seen a shift towards incorporating environmental provisions directly into trade agreements. For example, the United States-Mexico-Canada Agreement (USMCA) includes a chapter dedicated to environmental protection, addressing issues such as air quality, marine litter, and sustainable forest management.

Questions 1-5

Do the following statements agree with the information given in the Reading Passage?

Write

TRUE if the statement agrees with the information
FALSE if the statement contradicts the information
NOT GIVEN if there is no information on this

1. Global trade agreements only focus on economic benefits and ignore environmental concerns.
2. The World Trade Organization has a committee that deals with environmental issues related to trade.
3. All countries involved in global trade agreements prioritize environmental sustainability equally.
4. The USMCA includes provisions for environmental protection.
5. Trade agreements always lead to increased carbon emissions.

Questions 6-10

Complete the sentences below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

6. Global trade agreements are international ___ that govern commerce between nations.
7. These agreements aim to reduce ___ to trade, such as tariffs and quotas.
8. Trade agreements can facilitate the exchange of ___ technologies across borders.
9. The WTO regulates international trade and addresses environmental issues through its ___.
10. Recent trade agreements have started to include ___ dedicated to environmental protection.

Passage 2 – Medium Text

Environmental Implications of Global Trade Agreements

The relationship between global trade agreements and environmental sustainability is multifaceted and often contentious. While proponents argue that trade liberalization can lead to more efficient resource allocation and technological diffusion, critics contend that it may exacerbate environmental degradation through increased production and transportation.

One of the primary concerns is the “race to the bottom” phenomenon, where countries might lower their environmental standards to gain a competitive advantage in the global market. This could potentially lead to the relocation of polluting industries to regions with lax environmental regulations, a process known as “pollution havens.”

However, empirical evidence on this matter is mixed. Some studies suggest that trade openness can actually improve environmental outcomes through the “technique effect,” where access to cleaner technologies and best practices leads to more sustainable production methods. For instance, a study by Antweiler, Copeland, and Taylor (2001) found that the overall impact of trade on sulfur dioxide concentrations was beneficial, primarily due to this technique effect.

Trade agreements can also serve as a platform for promoting environmental cooperation. The Environmental Goods Agreement (EGA), currently being negotiated by several WTO members, aims to eliminate tariffs on a wide range of environmental goods, potentially facilitating the global adoption of clean technologies.

Nevertheless, the carbon footprint associated with international shipping remains a significant concern. The International Maritime Organization estimates that maritime transport emits around 940 million tonnes of CO2 annually and is responsible for about 2.5% of global greenhouse gas emissions. As global trade expands, addressing these emissions becomes increasingly critical.

Trade and Sustainability Balance

Questions 11-14

Choose the correct letter, A, B, C, or D.

11. According to the passage, the “race to the bottom” refers to:
    A) Countries competing to have the most environmentally friendly policies
    B) Countries lowering environmental standards for economic gain
    C) Industries relocating to more developed countries
    D) The global decline in environmental quality

12. The “technique effect” in the context of trade and environment refers to:
    A) The relocation of polluting industries
    B) The adoption of cleaner technologies due to trade openness
    C) The increase in carbon emissions from transportation
    D) The lowering of environmental standards

13. The study by Antweiler, Copeland, and Taylor found that trade:
    A) Had a negative impact on sulfur dioxide concentrations
    B) Had no significant impact on environmental outcomes
    C) Benefited environmental outcomes, particularly regarding sulfur dioxide
    D) Led to increased pollution in developing countries

14. The Environmental Goods Agreement (EGA) aims to:
    A) Increase tariffs on environmentally harmful goods
    B) Reduce tariffs on a range of environmental goods
    C) Ban the trade of goods that harm the environment
    D) Promote the relocation of green industries

Questions 15-19

Complete the summary below.

Choose NO MORE THAN TWO WORDS from the passage for each answer.

The impact of global trade agreements on environmental sustainability is complex. While some argue that trade liberalization leads to more efficient (15) allocation, others worry about increased environmental degradation. One major concern is the potential creation of (16) , where polluting industries move to areas with weaker regulations. However, trade can also promote the spread of (17) technologies. The (18) is an example of how trade agreements can encourage environmental cooperation. Despite these potential benefits, the (19) ___ from international shipping remains a significant environmental challenge.

Passage 3 – Hard Text

Balancing Trade and Environmental Policies: A Global Challenge

The intricate interplay between global trade agreements and environmental sustainability presents policymakers with a formidable challenge. As international commerce continues to expand, the need for a harmonious coexistence between economic growth and ecological preservation becomes increasingly paramount. This delicate balance requires a nuanced approach that considers both the potential benefits and pitfalls of trade liberalization in the context of environmental stewardship.

One of the most contentious issues in this domain is the potential conflict between trade rules and environmental regulations. The “non-discrimination principle” enshrined in many trade agreements, which mandates that countries treat foreign and domestic products equally, can sometimes clash with domestic environmental policies. For instance, a country’s efforts to promote renewable energy through subsidies or preferential treatment may be challenged as discriminatory under certain trade agreements.

The landmark case of “US – Shrimp/Turtle” (1998) at the World Trade Organization (WTO) exemplifies this tension. The United States had banned the import of shrimp caught using methods that endangered sea turtles. While the WTO ultimately ruled that environmental protection could justify trade restrictions, it also emphasized that such measures must be applied in a non-discriminatory manner. This case underscored the need for careful policy design that aligns environmental objectives with international trade obligations.

Conversely, trade agreements can serve as powerful instruments for advancing global environmental goals. The inclusion of “environmental chapters” in modern trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), represents a significant evolution in this regard. These chapters typically include commitments to enforce domestic environmental laws, combat illegal wildlife trade, and promote sustainable forest management.

Furthermore, trade can facilitate the diffusion of environmentally friendly technologies and practices. The concept of “environmental leapfrogging” suggests that developing countries can bypass polluting stages of industrial development by adopting clean technologies through international trade and investment. For example, some African countries have rapidly adopted solar power technologies, partly due to reduced trade barriers and increased foreign investment in the renewable energy sector.

However, critics argue that the environmental provisions in trade agreements often lack “teeth” – that is, robust enforcement mechanisms. While most agreements include dispute settlement procedures, environmental commitments are frequently couched in non-binding language or subject to weaker enforcement compared to core trade provisions. This disparity has led to calls for more stringent and enforceable environmental clauses in future trade negotiations.

The emergence of “border carbon adjustments” (BCAs) represents a novel approach to reconciling trade and climate policies. BCAs aim to level the playing field between domestic producers subject to stringent climate regulations and foreign competitors operating under laxer environmental regimes. The European Union’s proposed Carbon Border Adjustment Mechanism (CBAM) is a prime example of this strategy. However, the implementation of such measures must be carefully calibrated to avoid running afoul of WTO rules and potentially sparking trade disputes.

As the global community grapples with pressing environmental challenges, particularly climate change, the role of trade agreements in either exacerbating or mitigating these issues will likely come under increased scrutiny. The concept of “climate clubs” – coalitions of countries committed to ambitious climate action – has gained traction as a potential way to align trade and environmental objectives. By offering trade benefits to members while imposing penalties on non-members, climate clubs could create powerful incentives for countries to adopt more stringent environmental policies.

In conclusion, the relationship between global trade agreements and environmental sustainability is neither inherently antagonistic nor synergistic. Rather, it is a complex dynamic that requires thoughtful policy design, innovative approaches, and a willingness to reassess traditional paradigms of international commerce. As the world moves towards a more sustainable future, the evolution of trade agreements to more explicitly address environmental concerns will be crucial in ensuring that global economic integration does not come at the cost of ecological integrity.

Questions 20-23

Choose the correct letter, A, B, C, or D.

20. The “non-discrimination principle” in trade agreements can potentially:
    A) Always support environmental policies
    B) Conflict with certain domestic environmental regulations
    C) Eliminate the need for environmental protection measures
    D) Guarantee fair treatment of all countries in environmental matters

21. The “US – Shrimp/Turtle” case at the WTO demonstrated that:
    A) Environmental protection cannot justify trade restrictions
    B) Trade agreements always take precedence over environmental concerns
    C) Environmental measures can justify trade restrictions if applied non-discriminatorily
    D) The WTO is not concerned with environmental issues

22. According to the passage, “environmental leapfrogging” refers to:
    A) Developing countries surpassing developed nations in environmental technology
    B) The rapid adoption of clean technologies by developing countries
    C) A method of avoiding environmental regulations
    D) A type of environmental degradation caused by rapid industrialization

23. The concept of “climate clubs” is presented in the passage as:
    A) A proven solution to align trade and environmental objectives
    B) A potential way to create incentives for stricter environmental policies
    C) A mechanism to exclude developing countries from global trade
    D) A replacement for existing trade agreements

Questions 24-26

Complete the sentences below.

Choose NO MORE THAN THREE WORDS from the passage for each answer.

24. The inclusion of ___ in modern trade agreements represents a significant evolution in addressing environmental concerns.
25. Critics argue that environmental provisions in trade agreements often lack robust ___ mechanisms.
26. The European Union has proposed a ___ as an example of a border carbon adjustment mechanism.

Questions 27-30

Do the following statements agree with the claims of the writer in the Reading Passage?

Write

YES if the statement agrees with the claims of the writer
NO if the statement contradicts the claims of the writer
NOT GIVEN if it is impossible to say what the writer thinks about this

27. The relationship between trade agreements and environmental sustainability is straightforward and easy to manage.
28. Environmental chapters in trade agreements always have the same enforcement power as core trade provisions.
29. Border carbon adjustments could potentially conflict with WTO rules.
30. The future of global trade agreements will likely involve more explicit consideration of environmental issues.

Answer Key

Passage 1

1. FALSE
2. TRUE
3. NOT GIVEN
4. TRUE
5. FALSE
6. treaties
7. barriers
8. environmentally friendly
9. Committee on Trade and Environment
10. chapters

Passage 2

11. B
12. B
13. C
14. B
15. resource
16. pollution havens
17. cleaner
18. Environmental Goods Agreement
19. carbon footprint

Passage 3

20. B
21. C
22. B
23. B
24. environmental chapters
25. enforcement
26. Carbon Border Adjustment Mechanism
27. NO
28. NO
29. YES
30. YES

This IELTS Reading practice test on the impact of global trade agreements on environmental sustainability covers a range of important concepts and challenges in this complex field. By engaging with these passages and questions, you’ll not only improve your reading skills but also gain valuable insights into a crucial global issue.

Remember, success in the IELTS Reading test comes from regular practice and developing effective strategies for different question types. As you review your answers, pay attention to the specific language used in the passages and how it relates to the questions. This will help you improve your ability to identify key information and make accurate inferences.

For more practice on related topics, you might find these articles helpful:

• How Automation is Reshaping Global Supply Chains
• Impact of Renewable Energy Subsidies on the Global Market
• The Role of International Trade in Promoting Economic Development

Keep practicing and stay informed about global issues to enhance both your language skills and your understanding of the world around you. Good luck with your IELTS preparation!