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Environmental Regulations and Corporate StrategyA NAFTA Perspective$
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Alan Rugman, Julie Soloway, and John Kirton

Print publication date: 1999

Print ISBN-13: 9780198295884

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198295884.001.0001

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Trade and Environment Regimes in Operation: The North American Auto Industry

Trade and Environment Regimes in Operation: The North American Auto Industry

(p.183) 10 Trade and Environment Regimes in Operation: The North American Auto Industry
Environmental Regulations and Corporate Strategy

Alan Rugman

John Kirton

Julie Soloway

Oxford University Press

The new NAFTA regime offers several instruments for capacity building, convergence, coalition building, and regulatory communication. These constitute improved mechanisms for dealing with environmental regulatory protectionism when certain conflicts arise between governments, firms, and environmental non-government organizations (ENGOs). Also, to reduce regulatory barriers, the NAFTA regime entails instruments that advocate proactive cooperation. As such, this regulatory regime not only utilizes international commerce in improving the competitiveness of firms, but also enhances and protects the natural environment. The North American automotive industry demonstrates the creation and implementation of some of these new cooperative instruments. In this chapter, we illustrate the automotive industry case in which vehicle emissions were being reduced, and in which maintenance and operational inspection also proved to be important elements.

Keywords:   regulatory communication, coalition building, convergence, capacity building, NAFTA regime, automotive industry, cooperative instruments, vehicle emissions

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