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The WTO and Environmental Provisions: Three Categories of Trade and Environment Linkage

 Introduction: The linkage of trade

measures and environmental provisions  The economic basis for differentiating cases of trade and environment linkage  Environmental Provisions in WTO Agreements  Environmental protection in the WTO dispute settlement

The WTO and Environmental Provisions

 The WTO jurisdiction is unclear and lacks economic 


reasoning. Three separate dimensions of environmental damage- domestic, cross-border and global pollution. If trade measures are not imposed, the effectiveness of climate change policies is undermined. Also used for masked protectionist ambitions It has not paid due consideration to economic arguments in its dispute settlement.


 Lack of pricing on environmental resources leads

to negative external effects  Best solution is domestic environmental regulation  Three categories of pollution: domestic, crossborder and global environmental damage  Depending on type of pollution three trade measures can be used: direct trade interventions, supporting trade provisions and trade inducements

Environmental provisions in WTO agreements

Preamble to the WTO agreement refers to the relationship between trade and environment. Pillars of WTO regulatory system  principle of non-discrimination  Principle of national treatment Exemptions from the non-discrimination rules and the general provisions of GATT are laid out in GATT Article XX Article XX sets out that measures are compatible with GATT/WTO rules

In the Tokyo Round (1973-1979) the Standards

Code was agreed upon, also called the GATT s Agreement on Technical Barriers to Trade (TBT).
The Uruguay Round (1986-94) extended the scope of the TBT to include product characteristics and their related process and production methods (PPMs) as well. WTO members created the Uruguay Round s Agreement on Sanitary and Phytosanitary Measures (SPS). These two agreements that promote harmonization of national standards

Other international treaties

 Comprehensive Test Ban Treaty  The Kyoto Protocol  Montreal Protocol  Non Proliferation Treaty  United Nations Framework Convention on


Japanese Environment Minister, addressing the final plenary session of the United Nations Global Warming Conference, Kyoto, Japan, December 1 10,1997