sumption patterns, could help induce a technological shift to a low-carbon economy. A system of tradable emissions can be devised on an equitable basis, based on the Rio principle of "common but differentiated responsibil­ity." In the event of some countries refusing to participate in a globally-mandated GHG protocol, such "free-riding" can be discouraged by allowing all participating countries to use WTO rules-sanctioned import duties, based on direct and indirect carbon content of products, on export from non-participating countries. Since the opportunity costs of not using forests in an extractive manner are very high, in terms of the foregone livelihoods of some of the poorest peoples, a system of international payments for "avoided defores­tation" would combine justice with achieving a necessary measure for reducing global carbon emissions.
19. Hazardous waste is often exported for disposal in countries with lax or poor enforcement of environ­mental regulations. Without leading to a loss of jobs in developing  countries, the  disposal  of hazardous wastes could be regulated by international coordination of these regulations, supported by civil society and other actions to secure their implementation.

3.1       Context
The influence of national, regional and international trade regimes, agreements, intellectual property rights and the re­gions' response to them and the role of AKST in addressing these is assessed in this chapter. After a broader context set­ting on trade agreements and regimes, the assessment on WTO and AKST elaborates on impact of biotechnology along with issues of intellectual property rights. The combi­nation of the changing composition of demand for agricul­tural commodities in favor of higher quality foods, like fish and meat products and the comparative advantage of la­bor-abundant Asian developing countries in the production of labor-intensive agricultural commodities, have together brought a change in the composition of agricultural output. Globally as well as in this region, there has been concern about the effects of trade agreement on environment, health and other social dimensions (see 3.6).

     The structure of world trade is changing. From the early trade of manufactured goods for raw materials, in the post-Second World War period there was a growth of inter-firm trade, as firms became transnational and set up vertically integrated production bases in different countries. More recently, however, there has been a globalization of produc­tion and supply chains, in general a globalization of value chains. With this, rather than vertical integration within a country or corporation, there is a splitting up of parts of a value chain across countries. Trade figures don't capture the change in trade within value chains, since, other than in transport equipment and machinery, a distinction is not made in trade between components and whole products. But there are many analyses of the growing importance of intra-industry trade, referred to as "outsourcing" (Feenstra, 1998) or "vertical specialization" (Yeats, 1998).     
With this change in the structure of trade, in which Asia has participated perhaps more than any other region, there has been a double shift, one in the composition of trade and two, in the poles of world trade. In the composition of commodity trade there has been a shift from agricultural products (food and agricultural raw materials) which used to account for nearly 50% of exports in 1960 to just 7% in 2001 and a corresponding increase in exports of manufac­tured goods from les than 20% in 1960 to almost 70% in 2001 (Table 3-1).
     The growth of the Asian economies and the greater im­portance of trade in their economies have together made Asia an important pole of world trade. The triad of world trade (US, EU and Japan) has turned into a quad, with "Asia other than Japan" joining in as a new pole of world trade (Gibbon and Ponte, 2005). Within this pattern of world trade there is also a growth of South-South trade. In 2001 in developing Asia 41.5% of exports went to developing Asia itself (UNCTAD, 2004). But this trade is concentrated in the economies of East Asia. It is mainly of a production-sharing type, resulting in a "tri­angular trade" pattern, i.e., the more advanced economies within East Asia, e.g., Republic of Korea, export intermediate products to China, where they are inputs for production to be re-exported to developed countries (UNCTAD, 2005).