The World Trade Organisation and the Environment

1
Lecture 6

• The World Trade Organisation and the Environment

2
Trade Environment

• WTO provides stronger platform for polluters/
  ignores the environment
• WTO considers the environment/ balances interests
  (Sampson, 2001 Kelly 2003)

3
An Overview

• Established in 1995 148 members based in
  Geneva.
• Helps remove trade barriers, monitors existing
  agreements, settles trade disputes.
• Hierarchy ministerial conference, director
  general, general council, sectoral committees.

4
Committee on Trade and the Environment CTE

• Established in January 1995, reports to General
  Council, can make recommendations on future
  agreements guides members, NGOs excluded.
• Tends to point finger at environmental regimes
  rather than WTO rules.

5
Environment Trade Regimes

• Long-term
• Ambiguous
• Ambitious
• Preventative
• Indirect gains
• Relatively new
• Regulation
• Paradigm challenge

• Short-term
• Clear
• Pragmatic/ specific
• Pro-active
• Direct benefits
• Long tradition
• Deregulation
• Confirm paradigm

6
Problems

• Flow from domestic to international
• Focus on like or end-result products, not
  process

7
Clashes between Trade and Environment

• Dispute Settlement Consultation gt WTO Panel gt
  Appellate Body
• Climate Change UN and WTO acknowledge/ tolerate
  each other. Question is HOW? Issues tax, rebate,
  subsidies, import regulation.
• Genetically Modified Organisms clash between EU
  and the USA
• Shrimp-Turtle Case (1997)US versus India,
  Malaysia, Pakistan, Thailand. Issue
  extraterritorial application of domestic
  standard.

8
Options

• Waiver granted under special circumstances,
  needs ¾ approval, time limited
• Exceptions if necessary, requires justification.
• Ignore WTO rules be prepared to pay the price.
• Change future direction

9
Conclusions

• Despite acknowledgment of environment, WTO is a
  trade organisation
• Questions regarding WTO legitimacy in
  dispute-settling
• Need for holistic framework