Climate Change and Environmentalism's Effect on International Trade

Environmental issues are at the heart of the news. This collective awareness, driven by a more militant and active youth through social networks, has led to a profound upheaval in international trade. Quality and price are no longer the only sales arguments today. Companies must also be irreproachable in their commitment to protecting the environment and biodiversity. 

The impact on international trade is undeniable, whether in the internal organization of companies or the design of the products themselves. Taking environmental constraints into account has limited the circulation of some highly exported products around the world. This is the case of palm oil and its derivatives, which are increasingly challenged on the international market. EU even ban its member states from using palm oil-based biofuel. This situation is directly related to the role played by palm oil production in deforestation in Asia and West Africa.

Environment, climate change, and the preservation of biodiversity have also influenced the international development strategy of several companies. Some SMEs and large companies limit their supply of raw materials to geographical areas close to their production sites to reduce their carbon footprint. This is the case, for example, of LEA NATURE, one of the European leaders in organic cosmetics, which limits its imports of raw materials to Spain, Morocco, and some European Union countries because of its commitment to preserving the environment and biodiversity. The company has also designed its development model, taking into account this environmental commitment. Thus, since 2015, as a precautionary principle, LÉA NATURE has stopped any new registration for sale in stores in the Chinese market because the Chinese authorities did not provide formal guarantees of the absence of animal testing. 

This example of LEA NATURE shows how environmental issues continue to change international trade profoundly, and this trend will increase in the years to come. 

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