Latin America/Caribbean Environment Program (LACEP)
The importance of the December 1994 Summit of the Americas Agreements
and other US government commitments to Latin America and Caribbean (LAC)
countries is significantly heightened in the context of ongoing trade
negotiations and the Administration’s emphasis on economic growth
through strategic alliances. Today, more than ever, the vision to create
a Free Trade Area of the Americas resonates throughout the hemisphere.
NAFTA has been a successful model for integrating natural trade partners,
and the U.S. has also recently signed an accord with Chile and is in
the process of negotiating CAFTA with the countries of Central America.
The continued integration of LAC countries into the international economy
requires their private sector companies to become stronger regional and
global competitors. However, to do so successfully, firms must incorporate
environmental considerations into their business operations and maximize
efficiencies. Through the Latin America/Caribbean Environment Program
(LACEP), USAID has been committed to institutionalizing the principles
of cleaner production (CP) and environmental management systems (EMS)
as means to assure economic competitiveness compatible with sustainable
development objectives. Over the past seven years, LACEP has offered
critical technical support to 14 industries in ten countries in the LAC
region.
LACEP’s CP programs work closely with both the private and public
sectors, although ultimately, the individual firms in the private sector
engage in trade and therefore are the most direct targets for CP programs.
Furthermore, in many LAC countries, a large percentage of GDP depends
upon attracting tourism that, in turn, is vitally dependent on a clean
environment. Maintaining a clean plant environment is key to worker productivity
as it reduces health problems and attracts additional investment. The
management and protection of a country's natural resource base is crucial
for the long-range development of key sectors of the economy.
LACEP’s cleaner production activities have worked hard to raise
awareness, build local technical capacity, and promote U.S. goods and
services. At its core, CP is a business management technique that directs
attention toward inefficiencies and waste that erode profits and competitiveness,
reducing the environmental sustainability as well as increasing the economic
viability of a company. Indeed, to modernize effectively and participate
in an open economy, firms must incorporate environmental considerations
into daily operations, including measures to improve natural resource,
water, materials and energy use.
In many LAC countries, local companies have achieved significant efficiency
gains through understanding and incorporating best practices and adopting
new technology, know-how, and equipment. Through CP principles, SMEs
reduce energy usage, increase water reuse/recycle and lower materials
and feedstock costs. For USAID, programs have begun with training and
the development of case studies and demonstration projects. While environmental
audits reveal areas for improvement, they more importantly serve to empower
companies to prioritize process changes. Ultimately, they lead to technology
transfer and trade as firms purchase new equipment.
The U.S. has long been recognized as a world leader in environmental
technology, and LACEP is well positioned to further foster trade in environmental
goods and services. In Peru, USAID (with LACEP support) has even gone
one step further by creating a DCA loan guarantee for CP investments,
which makes it possible for SMEs to access financing in order to purchase
U.S. environmental technologies, services, and know-how.
While positive movement in these areas has a favorable effect on trade
capacity and thus economic growth, the process works both
ways. As trade and economic growth increase, improved environmental management
occurs at a country level. Thus, trade acts as a mechanism to improve
the overall well being of the populace.
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