• IISD Home
• Our Knowledge
• About IISD
• Media Room
• Publications Centre
• Contact Us
• Site Index

• International Trade Home
• Publications
• Our Work

Research

Conducting sectoral and commodity chain analysis

The project involves the three product chain studies. Through the application of a Global Commodity Chain Analysis, the following product chains will be studied:

• The forest product chain
  The environmental sensitivity of the forest product chain is well known. Its importance has been accentuated by measures adopted in China to protect domestic forests. As a consequence, China is importing increasing amounts of logs and lumber from temperate and tropical forests alike. Between 1990 and 2005, Chinese imports of all wood increased from 40 million m³, accounting for over 50 per cent of Chinese industrial wood consumption. Meanwhile, about 75 per cent of wood imported to China was processed into finished wood products and re-exported, mainly to western countries. This sectoral analysis aims to assess sustainability impacts of production, consumption and trade in the forestry sector related to China; identify economic actors who are best placed to "drive" change towards full-cost internalization of product chain activity; and put forward policy recommendations on mobilizing market power to encourage good forestry practices in China and among its trading partners.

• The cotton chain
  China is the leading exporter of cotton textiles, a position that was reinforced with the 2005 elimination of most tariffs and quotas on textiles. China produces cotton, but also increasingly imports large amounts of it to meet its domestic and export needs. Projections are for a reduction in cotton production, meaning that China will be importing a growing proportion of the raw material. In 2005, China's cotton imports accounted for 29 per cent of the world's total cotton trade and 27 per cent of the total cotton consumption in China. Meanwhile, China's exports of textiles and garments exceeded US$110 billion in 2005, a growth rate of more than 20 per cent in three consecutive years. Given China's prominent role in the global cotton textile product chain, it would be extremely useful to take a close look at the global cotton product chain related to China, and identify challenges and opportunities for China through a global commodity chain sustainability analysis.

• The electric-electronic product chain
  China has become one of most significant countries in the production, consumption and export of electrical and electronic products. Electronic products accounted for more than 26 per cent of China's total exports in 2006. China supplies about 30 per cent of the world's refrigerators; and up to 70 per cent of all air conditioners, microwave ovens and small home electrical appliances. Meanwhile, waste electrical and electronic equipment (WEEE) is a major environmental problem in China, plus China is now one of major importers of WEEE from EU and North America. Through a global commodity chain sustainability analysis, the project aims to identify and assess the sustainability impacts of production, consumption and trade in the electrical and electronic sector in China, and to identify promising mechanisms to reduce environmental impacts of Chinese electrical and electronics product consumption, production and trade based on shared responsibility for global product chain management.

In addition to the above three product chain analyses, the project also involves an overall sustainable development strategy study. The purpose of the study is to build the "supply chain" approach into the overall strategy and to link to other aspects of sustainability challenges of China's trade policy.

Research teams consisting of Chinese and non-Chinese researchers have been formed to undertake the sectoral analyses and the overall SD strategy study. Each of the sectoral research teams will carry out the research according to a common methodological framework—Global Commodity Chain Sustainability Analysis. A preliminary workshop was held to discuss what will be included in the trade strategy study.

Web Master - Copyright © 2008 International Institute for Sustainable Development