Environmental Regulations as Non-Tariff Barriers

Environmental Regulations as Non-Tariff Barriers

The current debate about the dispute resolution of environmental regulations as non-tariff barriers is one that is hotly contested in the WTO. Compared to the European Union and NAFTA, the WTO’s mission, goals, diverse membership, and rule structure make it decidedly difficult to create decision rules for these disputes. This paper suggests criteria for dispute resolution of cases within Multilateral Environmental Agreements (MEAs) and between WTO members. There are several different types of disputes likely to come before the WTO; they include direct trade restrictions on specific goods, product standards, process standards, and the use of eco-labeling. The policy suggestions put forth in this paper are rooted in GATT Article XX as well as basic principles of sovereignty and economic incentives. Perhaps most importantly, the dispute resolution criteria must be accompanied by international cooperation that facilitates the transfer of environmentally friendly technology and promotes sustainable development.

I. Background: Trade and the Environment

Under the direction of the World Trade Organization, the global economy is gradually breaking down its barriers to trade. Agreements on the elimination of quantitative trade restrictions, tariff rate reductions, and the removal of export subsidies are well underway. The stampede of global economic integration cannot be ignored, and its progress is at the heart of WTO negotiation rounds.

At the same time, there is an increasing amount of attention drawn to the consequences of trade liberalization on the environment. Environmental advocates worry that the lure of wealthy international markets encourages behaviors d...

... middle of paper ...

... of Rule Development.” American Journal of International Law. April 1997, Volume 91, Issue 2, pp. 231-268.

Steinberg, Richard H., ed. The Greening of Trade Law: International Trade Organizations and Environmental Issues. New York: Rowman and Littlefield Publishers, 2002.

Switzer, Jacqueline V. Environmental Politics: Domestic and Global Dimensions. Third ed. Pp. 219-241; 295-310. New York: Bedford/St. Martins, 2001.

Vogel, David. Trading Up: Consumer and Environmental Regulation in a Global Economy. Cambridge: Harvard University Press, 1995.

Vogel, David. International Trade and Environmental Regulation. In Vig, Norman J. and Kraft, Michael E. (eds) Environmental Policy. Fourth ed. Pp. 350-369. Washington, D.C.: CQ Press, 2000.

World Trade Organization Committee on Trade and the Environment. http://www.wto.org/english/tratop_e/envir_e.htm