Informational Session

WTO &
Environmental
Protection

Emerson O
O. St
St. G
G. Bryan
Information & Document Management Officer
Caribbean Regional Negotiating Machinery
 Assignment Question

Evaluate whether WTO disputes on

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environmental issues have been supportive of

environmental protection?
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 Session Outline:

First Things, First…

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Structure of the WTO

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Dispute Settlement Mechanism

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Trade Disputes on Environmental Issues

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Conclusion

10/04/2010
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First Things, First…

 First things, first…

Why do we need to examine this?

The Parties to this Agreement,

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g
Recognizing g that their relations in the field of trade and
economic endeavour should be conducted with a view to
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raising standards of living, ensuring full employment and a

large and steadily growing volume of real income and
effective
ff ti demand,
d d andd expanding
p di th the production
p d ti off andd
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trade in goods and services, while allowing for the optimal

use of the world’s resources in accordance with the
objective of sustainable development,
development seeking both to
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protect and preserve the environment and to enhance the

means for doing so in a manner consistent with their
respective
p needs and concerns at different levels of
economic development
Marrakesh Agreement Establishing the WTO
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What is the WTO?

 What is the WTO? (1)

Organization of 152 Member States;

Created Through the Uruguay Round of Trade
Negotiations;
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Successor to the General Agreement on Trade & Tariffs -

GATT (1948
(1948--1994);
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Supported by a Secretariat in Geneva;

System of Rules to govern trade between nations;
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A forum for negotiations;

A means for settling trade disputes;
Si l undertaking
Single d t ki off d decisions.
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(Source: Marrakesh Agreement, 1994)

 What is the WTO? (2)
Simple Structure of the WTO
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 What is the WTO? (3)

Ministerial Conference
Meets once every 2 years
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General Council
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(i) Oversees the operations of the WTO and its ministerial decisions;
((ii)) Acts as a dispute
p settlement body;
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(iii) Trade review mechanism.

Subsidiary Bodies:
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Goods Council
Services Council
TRIPS Council
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Dispute Settlement
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Mechanism
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 Dispute Settlement Mechanism (1)

Th di
The dispute settlement
l procedures
d ffor trade
d hhave bbeen
strengthened since the Uruguay Round.
Round. There is now
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a unified settlement p
procedure covering g the areas of:
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goods, services and investment.

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Annex 2, Marrakesh Agreement

 Dispute Settlement Mechanism (2)

Understanding on Rules & Procedures Governing

the Settlement of Disputes (DSU)
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DSU Article 3.2

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“The
The dispute settlement system of the WTO is a
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central element in providing security and

predictability to the multilateral trading system”
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 Dispute Settlement Mechanism (3)

Method of bringing a complaint, establishing a panel, appealing-

appealing-
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Source: WTO website

 Dispute Settlement Mechanism (4)
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Source: WTO Trade & Environment Division

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Trade Disputes on
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Environmental Issues
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 Trade Disputes on Environmental Issues (1)

6 under GATT 4 under WTO

ƒ US--Gasoline
US
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ƒ US--Canadian Tuna
US
ƒ Canada--Salmon & Herring
Canada ƒ US--Shrimp
US p ((US Shrimp
p Art. 21.5))
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ƒ Thailand--Cigarettes
Thailand ƒ EC--Biotech Products
EC

ƒ US--Tuna (Mexico)
US ƒ Brazil--Rethreaded Tyres
Brazil
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ƒ US--Tuna (EEC)
US
ƒ US--Automobiles
US
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 Trade Disputes on Environmental Issues (2)

WTO Principles:
Non--discrimination:
Non
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Most Favoured Nation (MFN):

Art. I-
I-GATT, Art. II-
II-GATS, & Art. IV
IV--TRIPS
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National Treatment:
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Art. III-
III-GATT, Art. XVII-
XVII-GATS, & Art. III-
III-TRIPS
 Trade Disputes on Environmental Issues (3)

GATT Article XX (General Exceptions)

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Exceptions for measures:

(b) Necessary to protect human
human, animal or plant life or health
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(g) Relating to the conservation of exhaustible natural resources

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Natural resources:
ƒ “Chapeau” not applied in a manner which constitutes:
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ƒ a means of arbitrary/ unjustifiable discrimination or a disguised restriction on

international trade.
 Trade Disputes on Environmental Issues (4)

Steps to be followed in a dispute:

There must be an inconsistency with a GATT rule;

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The Member whose measure is inconsistent with the

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GATT has to follow a 2 tiered analysis and should

demonstrate:
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1. First,, that the measure comes within the scope of one of the exceptions
First
2. Second, that the measure does not constitute an abuse under Article XX
Second,
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chapeau

Source: WTO Trade & Environment Division,

Division 2007
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Conclusion
 Conclusion

Issues with trade & environment

disputes in the WTO
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ƒ No real test of the DSU (disputes so far?..Settled through mutual

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agreement)
ƒ Legal Capacity Issues
ƒ Protectionism can be introduced under the guise of a T & E
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dispute
ƒ Development hindering for the South
ƒ
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T E overloads
T& d the Negotiating Agenda
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ƒ WTO is only competent to deal with trade matters
ƒ Time for a World Environmental Organization?
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Any Questions?