chapter  4
33 Pages

Processes and Production Methods

Processes and production methods (PPMs) relate to the manner in which products are made and natural resources are extracted, grown or harvested. Many PPMs can negatively affect the environment and human health. For example, production methods can pollute the air or water, and certain methods of harvesting can lead to resource depletion or harm to endangered species. Most countries have adopted policies and rules aimed at avoiding or mitigating the harmful effects caused by PPMs. These policies, referred to as ‘PPM-based measures’, can affect international trade. Trade-affecting PPM-based measures include, among other things, import and export restrictions on products produced in a certain way, labelling requirements regarding the production method used to produce a product, tax schemes based on production methods, and border tax adjustments levied on imported products to counterbalance PPM-based domestic taxation.