Enviroment, Law, Highway Traffic / Pollution Control

8/12/2019 Enviroment, Law, Highway Traffic / Pollution Control

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Trade and Environment

Dr. M.P Chengappa


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Importance of environment inTrade

Without environmental safeguards, trade may Couseenvironmental harm by promoting economic growththat results in the unsustainable consumption ofnatural resources and waste production.

Trade rules and trade liberalization often entailmarket access agreements that can be used to overrideenvironmental regulations unless appropriateenvironmental protections are build into the structure

of the trade system. Trade restrictions should be available as leverage to

promote world wide environmental protection, particularly to address global or trans boundaryenvironmental problems and to reinforce internationalenvironmental agreement.


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The environmental impact of trade Trade may make a significant positive contribution by

providing the opportunity for the global spread ofenvironmental technologies and services to addressparticular environmental problems.

Trade may foster economic efficiency and growth, raisingincomes and providing more money for environmentalprotection. If there is marker or intervention failure,however, trade may lead to degradation and depletion ofnatural resources. The market failures occur when marketsdo not reflect environmental values. Intervention failureoccurs when public policies do not correct for, create orexacerbate market failures. Such failures can distort theincentives for protecting the environment.


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The Aspects of WTO and Environment

Environment and trade policies should be mutuallysupportive . An open multilateral trading systemmakes possible a more efficient allocation and useof resources and thereby contributes to anincrease in production and income and tolessening demands on the environment. It thusprovides additional resources needed foreconomic growth and improved environmentalprotection. A sound environment, on the otherhand provides the ecological and other resourcesneeded to sustain growth and underpin continuingexpansion of trade

Trade and Environment both seek to regulate Economic Activity.


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Article XX of the GATT prohibits the use ofquantitative restrictions such as quotas, importand export licenses. However, there is a generalexceptions to protect human, animal or plant lifeor health as well as measures designed toconserve exhaustible natural resources, providesuch measures are not applied in a manner whichwould constitute a means of arbitrary or

unjustifiable discrimination between countrieswhere the same conditions prevail or a disguisedrestriction on international trade.


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What is trade measure?

When a trade measures is used to protect theenvironment it is known as an environmentaltrade measures. Among the most common

trade measures are quantitative restrictions,procedures based on information and consentrequirements, and labeling requirements.Import or export quantitative restrictions areemployed basically to eliminate supply anddemand of products with direct negativeeffects on the environment.


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The GATT exceptional provisions represent anattempt to strike a balance betweenpermitting the regulation of trade to promotenon-commercial goals in certain recognizedareas, such as health and environment.


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The committee on Trade andEnvironment

Need for rules to enhance positive interaction betweentrade and environment with special consideration toneeds of developing countries

Avoidance of protectionist trade measures and toestablish a responsive multilateral trading system withbalances from Rio and Agenda 21

Art. XX of GATT: nothing shall prevent a state fromadopting or enforcing any trade related measure if

It is necessary to protect human, animal or plant life or health Relating to conservation of exhaustible natural resources, if such

measures are made effective in conjunction with restriction ondomestic production or consumption


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Constitution and structure of thecommittee on Trade and Environment

The Committee on Trade and Environment is composedof the entire membership of the WTO.

Mandate of the Committee on Trade and Environment

the primary aim of the committee is to establish aconstructive relationship between trade andenvironment.

To identify the relationship between trade andmeasures and environmental measures, in order topromote sustainable development.

To make appropriate recommendations with regard tothe multilateral trading system.


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Multilateral Environmental Agreement

MEAs allow imposition of trade barrierswhereas the WTO does not

Labeling requirements for environmentalpurposes- eco labeling is the tool to providenecessary information to the environmentconscious consumers on products that haveless environmental impact than other similarproducts.


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Agreement on Technical Barriers toTrade

The TBT Agreement respects standards andregulations of all countries provided theystand to protect human, animal or plant life orhealth and not as a pretext to promoteprotectionism.


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Preamble of WTO The WTO is the mechanism for implementing the

GATT agreement. Only International Organization dealing with

global rules of trade between nations Preamble speaks about the use of worlds

resources: in accordance with the objective ofsustainable development, seeking both to protectand preserve the environment .. a mannerconsistent with their respective needs andconcerns at different levels of economicdevelopment


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The Agreement on sanitary andphytosanitary standards

This agreement deals with standards necessary toprotect humans, animals and plants from certainhazards associated with associated with the movementof plants, animals and foodstuffs in international trade.

SPS measures refers to any measure, procedure,requirement or regulation, taken by governments toprotect human, animal, or plant life or health from therisks arising from the spread of pests, diseases, diseasecausing organisms or from additives, toxins, orcontaminates fond in food, beverages, or feedsstuffs.


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Trade Related aspects of Intellectual PropertyRights (TRIPS) and the Environment .

The protection of enforcement of Intellectual PropertyRights should contribute to the promotion of technologicalinnovation and to the transfer and dissemination oftechnology, to the mutual advantage of producers andusers of technological knowledge and in a mannerconducive to social and economic welfare and to balance ofrights and obligation.

Article 27 allows the exclusion from patentability ofinventions, which is necessary to protect public order ormorality, including to avoid serious prejudice to theenvironment.

Article 27(3) (b) requires that members to provide for the


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Provide for the protection of plant varieties and also dealswith the relationship between intellectual propertyprotection and the protection of biodiversity.

TRIPs and the Transfer of Environment friendly technology:Trips plays a vital role in facilitating access to and transfer ofenvironmentally sound technology and products.

Patents are considered to be one of the importantelements in contributing to the environment and itspreservation. Like for example patents concerninginventions help in the preservation of the Ozone layer, lessuse of energy, to grow plants so as to absorb more carbondioxide, to reduce the impact of the obsolete technologyon the environment.


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Effective implementation of the TRIPS wouldfoster innovations, including environmentallysound technology and products and ultimatelypromote sustainable development ad use ofthe resources of the earth.


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WTO and Agriculture The birth of the Agreement on Agriculture was

from the Uruguay Round of multilateral tradenegotiations.

Salient Features of the AoAMarket Access- non tariff barriers such as quotas,

minimum support price to goDomestic support and

Export subsidies- Banana case- EU alloted 7./. Of itsmarket to African Colonies under Lome treaty, itwas challenged by US the preferential treatmentwas found to be discriminatory by the WTO.


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Cases at the WTO Dispute SettlementBody or Appellate Body

Tuna Dolphins case US v Canada/Mexico US imposed import restriction on import of tunaproducts from Canada, as a retaliation for, Canadaseizing 19 fishing Vessels in Canadian waters.

It imposed Quantitative restriction on the import oftuna fishes from Mexico.WTO panel held this decision as unreasonable of Art.XX

disguised restriction on international trade cannot beimposed unless it is justified and necessary to protect human,animal or plant life or health; or in relation to conservation ofnatural resources


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The Asbestos case In 1996, the French Government adopted a decree

banning the use and import of asbestos and productscontaining asbestos, for the purposes of protecting theconsumers, workers, and the manufacturers, ondomestic market. The authorities justified their ban onpublic interest and health.

Canada which was a major exporter of asbestos toFrance complained that due to this ban Canada hadlost 4000 jobs and argued that asbestos posed no greatthreat to human life and health.[Art. XX [b]


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Outcome of the turtle case There is a nexus between protection of global common

and trade restriction under WTO. Thus USA may claimextra territoriality in cases of such ban for the protection ofshrimp outside USA.

Extra territorial trade measures must relate to domesticmeasures to conserve exhaustible natural resources

Unilateral trade sanctions are permissible instruments tocoerce members of the WTO to change their domesticpolicies

Trade restriction can be imposed on a product, if the way itis processed has deleterious environmental consequencesas determined by the importer

International environmental conventions support theexceptions within Art XX.


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Cigarette Import Ban in Thailand Thailand banned imported US cigarettes but not domestic

cigarettes The U.S. Cigarette Exporters Association (CEA) alleged that the

target countries restrictive trade policies with respect to

tobacco constitute unfair trade practices. CEA filed an unfair trade practices petition against Thailand. Thai officials maintained that the prohibition of foreign

cigarettes was a legitimate measure necessary to protect thehealth of Thai Citizens.

GATT panel found that Thailand's import ban could not be justified under Art. XX (b) of the GATT and decided infavor ofthe United States.


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Enviroment, Law, Highway Traffic / Pollution Control

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