MAKERERE UNIVERSITY

SCHOOL OF LAW
MASTER OF LAWS

NAME: LEILA LINDA NAJJEMBA

STUDENT No.:

REG. No.:

COURSE UNIT: LAW OF THE WORLD TRADE ORGANISATION

LECTURERS: DR. PHIONA MPANGA

DR. EMMANUEL BAGENDA

Question

Climate change continues to present global challenges to States. With the aid of examples,
examine the extent to which the WTO law and policy can effectively bolster Uganda and EAC’s
strategies to adapt to these challenges.
Climate change is having a profound impact on people’s lives across the world. Mitigating and
adapting to climate change will require major economic investment and coordinated action to
transition to a sustainable, low-carbon economy. The WTO already plays an important part in
helping countries to tackle climate change by maintaining a predictable trading environment
underpinned by WTO rules that enable international trade in the goods and services needed to
cope with the consequences of climate change (World Trade Organization Report on Climate
Change, 2022).

World Trade Organization is the only multinational institution that deals with the global rules of
trade between nations. The World Trade organization’s main function is to ensure that trade
flows as smoothly, predictably, and freely as possible, and with great openness.

Following World War 2, the architects of the Bretton Woods Agreement (1944) during the UN
Moneta in a summit held in New Hampshire, USA proposed the formation of an international
trade organization to oversee a new multilateral system of international trade. The 730 delegates
in the summit by this agreement created the International Monetary Fund and the World Bank.
The former was intended to sit alongside the international trade organization. However, this
never came to existence due to resistance from the US Congress, which was much concerned
with the concept of state sovereignty. It is this that led to the negotiation of a provisional
agreement, the General Agreement on Tariffs and Trade (GATT, 1947).

Various negotiations including the Uruguay (8th Round of 1986-1994) multilateral trade
negotiations initially relating to tariff reductions but later evolving to non-tariff measures and
anti-dumping were conducted and overtime, the GATT therefore evolved into the creation of the
World Trade Organization, 1994.

The World Trade organization was created by the 1994 Marrakesh Agreement of 15 th April 1994.
The WTO has since been considered as the biggest reform of international trade since the Second
World War.

According to the Appellate Body Report, Argentina Footwear (EC) 2000, the WTO and all other
annexed agreements represent an inseparable package of rights and disciplines which have to be
considered in conjunction. It is from these primary sources of WTO law that the rules governing
global trade are enshrined.
 The law of the WTO deals with in broad areas which inter alia include tariffs and import quotas.
It would actually be true for one to assert that the entire structure of the WTO rotates around a
set of rules and principles accompanied by exceptions.

Sustainable development and protection of the environment are fundamental goals of the WTO.
They are enshrined in the preamble of the Marakesh Agreement which established the WTO.

Uganda like any other state in the world is a country highly vulnerable to climate change and
variability and its economy and the well-being of its people are tightly bound to climate.

In Uganda, the National Climate Change Act, 2021 governs Uganda's national response to climate
change. One of the stated purposes of the Act is to give effect to the UN Framework Convention
on Climate Change, the Kyoto Protocol, and the Paris Agreement to which Uganda is a party.

The Kyoto Protocol which was adopted on 11th December 1997 commits state parties to reduce
greenhouse gas emissions, based on the scientific consensus that global warming is occurring and
that human-made CO₂ emissions are driving it, the umbrella objective being combating climate
change.

Intrinsically linked to all 16 of the other Goals of the 2030 Agenda for Sustainable Development.
Sustainable Development Goal 13 calls for urgent action to combat climate change and its
impacts.

Uganda’s National Development Plan III, in the exploitation of resources requires all actors are
expected to ensure sustainable development. It requires focus on institutional design and planning
for oil-sector efficiency; balancing petroleum resources developments with protection and
conservation of natural environment; and strategic investment of petroleum revenues to promote
equitable socioeconomic and infrastructural transformation of the whole economy.

The need for sustainable exploitation of petroleum resources is further stressed in the EAC Vision
2050, which calls for all countries in the region to emphasize access, capacity, efficiency and
sustainability of natural resources. Additionally, the Uganda Vision 2040 envisages the
commercialization of oil and gas in a feasible and sustainable manner.

Despite the enactment of the Act, Uganda continues to experience significant impacts of climate
change, which include changing weather patterns, drop in water levels, and increased frequency of
extreme weather events like floods, as well as drought, whose social economic impacts make
communities very Vulnerable.
In the present day and age, it is believed that just few things can be found more threatening than
the ever-increasing implications of climate change. It is estimated for instance, that by 2050 the
average global temperature will rise to 6 degrees Celsius beyond the recommended 2 degrees and
that air pollution will become the world’s largest environmental cause of deaths. It is also
predicted that there will be a slight decrease in total annual rainfall in most of the country, with
slightly wetter conditions over the west and north-west under both RCP 4.5 and RCP 8.5. Rainfall
totals might drop significantly over Lake Victoria (-20% from present) (Uganda Climate Action
Report 2016).

More-over human activities for example burning fossil fuels, releasing chemicals into the
atmosphere, reducing the amount of forest cover, and the rapid expansion of farming,
development, and industrial activities are mostly to blame for the change in climate system.

Overall, those changes will require a number of adaptation strategies to combat the resultant
impacts including drought, floods, pests, famine and diseases and loss of assets and livelihoods. It
is already widely accepted that extreme weather events have been increasing and have been more
severe in recent years.

While many low-developing countries have least contributed to this crisis, the overall effects do
not spare them either. It is thus incumbent on each and every person to rise up to the challenge of
mitigating these issues, adopting amongst other mechanisms that the new reality demands of them.

In light of the statement, while there is no specific agreement dealing with climate change or the
environment, under the WTO rules, members can adopt trade-related measures aimed at
protecting the environment provided a number of conditions to avoid the misuse of such
measures for protectionist ends are fulfilled.

The WTO contributes to the protection of the environment through its objective of ensuring
sustainable development and avoiding protectionism. WTOs contributions to efforts on
environmental protection have been recognized in such forums as the 1992 Rio Summit, 2002
Johannesberg Summit, the 2005 UN World Summit and the UN 2030 Agenda for sustainable
development.

Some of the key clauses under the WTO framework that aim at conserving the environment
include the Agreement on Technical Barriers to Trade that provides for product regulation,
Agreement on Sanitary and Phytosanitary Measures (which under Art, 8 concerns itself with
food safety, animal and plant health alongside providing for the scope for environmental
objectives to be followed and for necessary trade-related measures to be adopted, Art. 20 of
GATT that provides for environmental measures.

The WTO dispute settlement framework is very critical with environment moreso climate change
issues for instance in the US-Gasoline Case (clean air case). Other cases include; -

In the US-Shrimp dispute (on sea turtles), the WTO pushed members towards strengthening of
their environmental collaboration, it required that a cooperative environmental solution be sought
for the protection of sea turtles between the parties to the conflict.

Similarly, in the Brazil-Retreated Tyres dispute on human, animal and plant life, the appellate
body recognized that the tension on international trade may exist. However, on the other hand,
public health and environmental concerns can not be left out. This is why the exceptions to such
rules are particularly important in the trade and environment context.

It is paramount to note that according to the WTO Report on Climate Change, 2022, the WTO
members are currently discussing ways to ensure a harmonious co-existence between WTO rules
and specific trade obligations in various agreements that have been negotiated multilaterally to
protect the environment. Given the present consensus in the international community for
multilateralism and concerted actions to combat climate change, the importance of these
negotiations aimed at a harmonious relationship between trade and environment regimes cannot
be overemphasized

Additionally, WTO members are seeking GATS-specific commitments on activities that may be
directly relevant to policies aimed at mitigating climate change. During the Uruguay Round,
negotiations focused on sewage services, refuse disposal services, and sanitation services, which
are listed in the environmental services sector of the Services Sectoral Classification List
(MTN.GNG/W/120). Other environmental services, which are commonly understood to be
covered by the category “Other” in this list, attracted limited attention at the time. Among them,
services such as “cleaning of exhaust gases” and “nature and landscape protection services” are
directly relevant to climate change mitigation measures.

Furthermore, under the ongoing negotiations on mutual supportiveness of trade opening with the
environment, WTO members are working to eliminate trade barriers in the goods and services
that can benefit the environment. Facilitating access to products and services in this area can help
improve energy efficiency, reduce greenhouse gas emissions, and have a positive impact on air
quality, water, soil, and natural resources conservation. A successful outcome of the negotiations
on environmental goods and services could deliver a triple-win for WTO members: a win for the
environment, a win for trade, and a win for development.

Environmental goods can cover a number of key technologies that may contribute positively to
the fight against climate change. Reducing or eliminating import tariffs and non-tariff barriers in
these types of products will reduce their price and make them more accessible. Increased
competition will foster technological innovation in areas related to the protection of the
environment and combating climate change. According to a recent World Bank study on trade
and climate change, the elimination of both tariffs and non-tariff barriers to clean technologies
could result in a 14 percent increase in trade

And with the above work that is ongoing at the WTO, if EAC and partner states like Uganda
complies with guidance and rules as have been or as may be given by the WTO, I am certain the
dangers brought about by climate change shall be averted.

In conclusion, climate change is a global environmental challenge that calls for collective
solutions, multilateral cooperation, and coherent action in line with the international community's
wider ambitions for economic growth and sustainable development. Trade and trade policy can
and must be a part of the policy "toolbox" to achieve shared climate goals at the depth and speed
required by the climate emergency. Trade plays a crucial role in the transition to a global low-
carbon economy and a greener, more sustainable society. In light of the jurisprudence up to date,
it is fair to say that the WTO rules provide ample space for environmental concerns to be
accommodated. Under the TBT, WTO members have a right to adopt measures to protect the
environment. Therefore, in light of the above statement, I wish to opine that through its goals,
rules, institutions, and forward-looking agenda, the WTO provides an important means of
advancing international environmental goals that countries like Uganda and regional groups like
EAC can capitalize on to avert the dangers associated with climate change and to ensure
environmental sustainability in general.
List of References

Treaties and Instruments

The Agreement creating the World Trade Organization and the General Agreement on Tariffs
and Trade

The General Agreement on Tariffs and Trade (GATT) 1947 and GATT 1994

The General Agreement on Trade Services (GATS)

The Agreement on Sanitary and Phytosanitary Measures

Textbooks & Articles

Henrick Horn and Petros C. Mavroids, Still Hazy after all these years: The interpretation of
National Treatment in the GATT/WTO Case-law on Tax Discrimination.

J.H.H. Weiler, Sungjoon Cho, Isabel Feichtner, Julian Arato, The international and regional trade
law: The Law of the World Trade Organization. Unit V: The Most Favored Nation Principle.

M Trebilcock and R Howse, The regulation of international trade (fourth edition, 2013).

Peter Van den Bossche, The Law and Policy of the World Trade Organization, Text, Cases and
Materials Page 390. Maastricht University

Stephen A. Silard, International Economic Institutions: The Challenge of Coordination,

American University International Law Review 4, No. 1 (1989) Pg 67-89.

WTO Dispute Settlement: One Page Summaries (1995-2014) (available at

https://www.wto.org/english/res e/booksp_e/dispu_settl_1995_2014_e.pdf)