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ArtikelNon-intervention is Not Enough: The Case for an Environmentally Activist World Trade Organisation  
Oleh: Butcher, Bill
Jenis: Article from Proceeding
Dalam koleksi: SIBR-Thammasat 2014 Conference on Interdisciplinary Business & Economics Research June 5th- 7th, 2014 di Emerald Hotel Bangkok, page 1-2.
Fulltext: b14-129.pdf (18.39KB)
Isi artikelA fundamental principle of the World Trade Organisation (WTO) is a commitment to the protection of the environment. However, difficulties arise due to the competition between that commitment and the WTO’s perceived overarching mission of advancing open world trade. WTO dispute panels periodically confront cases where the will to combat trade restrictions and the promotion of environmental protection come into direct conflict. While there are mechanisms in WTO rules to excuse certain trade restrictions on the basis of their environmental protection intent and effect, these are typically subject to an overriding requirement that the impugned policy is not trade protectionism in disguise. This may be seen as a legitimate condition, given the WTO’s role as an open trade body rather than an overtly environmental protection agency. However, the fact remains that while on one hand the WTO does assert for itself a role in environmental protection, its rules, as interpreted and applied, can lead to harmful effects on the environment. The literature in this area focusses in large part on how WTO member countries might better design their policies in order to match WTO rules. This paper argues for a different approach, proposing instead a reconsideration of the WTO rules themselves to actively encourage policies that clearly produce positive environmental outcomes. A current WTO dispute highlighting the benefits of such an approach is the complaint brought by the United States, the European Union and Japan against China for its policy of export restrictions, including quotas and increased taxes, on the export of rare earth elements. China’s policy in many respects improves the situation for the environment, but lies on shaky legal ground because of itsseemingly protectionist motives and the attendant economic and trade implications. The paper proposes that instead of apparent protectionism being an absolute prohibition, a more environmentally supportive approach be taken. The suggested approach is that the WTO should actively incentivise domestic environmental protection policies by allowing a degree of protectionism (that would otherwise be proscribed) if that protectionism were implemented in the context of a broader environmental protection policy: any regulation, in which protectionism is a relatively minor element; which is part of a larger strategy of environmental protection; and whose environmental benefits clearly outweigh the economic and trade costs, should be considered compliant with WTO obligations. The country concerned would gain the benefit of some degree of protectionism for its domestic producers and while thiscould come at some economic cost to its competitors it would bring with it wider environmental benefits. With a particular focus on Articles XI and XX of the General Agreement on Tariffs and Trade (GATT) the paper argues for either a rewriting of the Articles themselves, or for a new interpretation of them, to give effect to such an activist approach.
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