Environmental dumping

Environmental dumping can refer to two distinct but interrelated types of dumping: One is the trans-frontier shipment and improper disposal of hazardous waste (household waste, industrial/nuclear waste, etc.), and the second is environmentally harmful product dumping, the unethical marketing in and exporting to developing countries of new products that are inferior in economic, environmental, and technical performance, with these products often requiring the use of obsolete and/or hazardous chemicals. The export of used products (commercial buses and trucks, heavy equipment) with poor energy-efficiency and environmental performance also falls into this category of dumping as does products that are at or near end-of-life. In all cases, the goal is to take advantage of countries with less strict environmental laws or environmental laws that are not well-enforced. The economic benefit of this practice is cheap disposal or recycling of waste outside of the economic and environmental regulations of the country of origin or the maximization of revenue from old products that are unwanted or not permitted for sale in the country of origin.

The dumping of hazardous waste has been possible because less-developed countries often did not: 1) know what entering the country through importers, 2) know the hazards and trade-offs, 3) have the enforcement structure in place to apprehend and halt imports, or 4) possess the political consensus and necessary independence to look out for their own national interests.

With the industrialization and globalization of China and other developing countries, environmental dumping can involve both developing and developed countries as origin and destination. Now, environmental harmful product dumping is analogous to economically harmful price dumping controlled under the World Trade Organization (WTO), which occurs when goods and services are sold in the importing country at prices below the selling price and/or cost of production in the country of export.

An example of an attempt at environmental dumping is the story of the decommissioned French aircraft carrier, the FS Clemenceau, which was originally sold to a ship breaking yard in Gujarat, India, to be demolished and recycled as scrap. The Indian Supreme Court ruled in 2006 that it could not enter Indian waters due to the high level of toxic waste and 700 tons of asbestos present on the ship, forcing the French government to take the Clemenceau back. The ship was subsequently blocked from entering the Suez Canal for the same reason. In 2009, the task of recycling the vessel was ultimately taken over by specialist recyclers at Hartlepool in the United Kingdom.