Publications

Trade aspects of climate change under the auspices of the WTO

Anna Gladshtein.
Zaporizzhya State NGO “Istyna”, Materials of International Academic and Practical Conference “Role of Law in Ensuring Law and Order” as of 31 August 2012

Trade aspects of climate change under the auspices of the WTO

Seeking both to protect and preserve the environment with the objective of sustainable development and to enhance the means for doing so is one of the major WTO incentives established in the Marrakesh Agreement Establishing the World Trade Organization.

Ukraine joined Marrakesh Agreement on 5 February 2008 having signed the Protocol on Accession of Ukraine to WTO, which was ratified by the Law of Ukraine № 250-VI “On Ratification of the Protocol on Accession of Ukraine to WTO” as of 10 April 2008 and became effective from 16 May 2008.

In addition to the main WTO goal focused on substantial reduction of tariffs and other trade barriers and elimination of discriminatory treatment in international trade relations, the desire to protect the environment amplifies and extends the scope of the organization.

The essential element of WTO contribution to sustainable development and environmental protection is promotion of trade in goods and services aimed at facilitating economic development and creation of stable and transparent conditions that increase the possibility of innovation.

It promotes the efficient allocation of resources, economic growth and rising income levels, which in turn, provides with additional opportunities for environmental protection.

A number of WTO rules may be relevant to measures aimed at mitigating climate change. These include:

  • disciplines on tariffs (border measures), essentially prohibiting members from collecting tariffs at levels greater than that provided for in their WTO scheduled consolidation;
  • general prohibition against border quotas;
  • a general non-discrimination principle, consisting of the most-favoured-nation and national treatment principles;
  • rules on subsidies;
  • rules on technical regulations and standards, which may not be more restrictive than necessary to fulfil a legitimate objective. Technical regulations and standards must also respect the principle of non-discrimination and be based on international standards, where they exist. There are also specific rules for sanitary and phytosanitary measures which are relevant for agricultural products;
  • disciplines relevant to trade in services, imposing general obligations such as most-favoured-nation treatment, as well as further obligations in sectors where individual members have undertaken specific commitments;
  • rules on trade-related intellectual property rights. These rules are relevant for the development and transfer of climate-friendly technologies and know-how[1].

While there is no specific agreement dealing with the environment, under 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. In particular, pursuant to part 4 of the Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 in order to minimize any incidental protective effects, a Member shall administer restrictions in a transparent manner.

Application of the principle of transparency is provided in the Doha WTO Ministerial Conference, approved 20 November 2001, Article X of GATT 1994 and in a number of WTO multilateral trade agreements.
In the Doha Round, WTO members are negotiating certain aspects of the link between trade and the environment, particularly the relationship between the WTO’s agreements and those of other agencies, and market access for environmental goods and services.

The 2001 Doha Ministerial Declaration which launched the current negotiations Ministers also called on the Trade and Environment and Trade and Development committees to act as forums for identifying and debating the environmental and developmental aspects of the negotiations, in order to help achieve the objective of sustainable development.

In particular, negotiations on facilitating access to environmental 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 protection of the environment and combating climate change.

WTO as a forum for negotiations provides an opportunity for consultation among members of the organization not only in multilateral trade relations in matters dealt with agreements, but also on issues that agreements are not specifically regulated. Furthermore, the WTO promotes environmental protection and sustainable development within the Doha Development Agenda.

Doha program includes, among other issues, negotiations on trade and environment and cooperation in the Trade and Environment Committe (СTE).

The CTE was set up by the 1994 Marrakesh Ministerial Decision on Trade and Environment, which essentially mandates the committee to:
identify the relationship between trade measures and environmental measures in order to promote sustainable development
make appropriate recommendations on whether any modifications of the provisions of the multilateral trading system are required, compatible with the open, equitable and non-discriminatory nature of the system.

According to the data released on WTO website the working program of the CTE includes the following issues (some are now being negotiated): Trade Rules, environment agreements, and disputes; Environmental protection and the trading system; How taxes and other environmental requirements fit in; Transparency of environmental trade measures; Environment and trade liberalization; Domestically prohibited goods; Intellectual property; Services; The WTO and other organizations.

Since one of the principles of sustainable development is environmental consciousness, the WTO does not stand apart informing and cooperating with other organizations in the area of ??climate change.
In the joint report of the WTO / UNEP “Trade and Climate Change” as of 25 June 2009 trade aspects of climate change are analyzed from four perspectives: the science of climate change, economy, multilateral efforts to combat climate change, and national policy climate change and its impact on trade.

The report begins with a description of the current state of scientific knowledge about climate change and the possible responses to climate change, including mitigation and adaptation. As one of the options for adapting to climate change is considered the introduction of environmentally friendly technologies.

In the second part of the report examines the impact of trade on greenhouse gases. Particular attention is paid to the role of the transportation of goods and services within the framework of trade between the countries and the direct impact of these species to climate change.

The part concerning “international policy” regarding climate change, describes multilateral efforts to reduce greenhouse gas emissions and adapting to climate change (mainly through the UN), and discusses the role of ongoing trade negotiations and the environment in promoting trade in technologies aimed at mitigating the effects of climate change.

In the final part of the report provides an overview of activities and national policy states (Finland, Canada, Japan, Denmark, Norway, Germany, New Zealand and others.), Which were used to reduce greenhouse gas emissions and improve energy efficiency. It presents the key features in the design and implementation of this policy in order to draw a clearer picture of their overall effect and potential impact on the environment, sustainable development and trade [2].

Therefore, WTO, paying considerable attention and working towards mitigation and adaptation to the adverse effects of climate change, argues that today climate change is the biggest challenge of sustainable development, which the international community had ever faced.

СПИСОК ВИКОРИСТАНИХ ДЖЕРЕЛ

1.http://www.wto.org/english/tratop_e/envir_e/climate_measures_e.htm
2.Trade and Climate Change WTO-UNEP Report, 2009
http://www.wto.org/english/res_e/booksp_e/trade_climate_change_e.pdf