Current Issues Surrounding the Trade and Climate Change Interface
| DOI | 10.1177/0015732515120203 |
| Published date | 01 July 2012 |
| Date | 01 July 2012 |
| Author | Mitali Das Gupta |
| Subject Matter | Article |
58
Current Issues Surrounding the Trade
and Climate Change Interface
Mitali Das Gupta
The interface between trade and climate change is a complex issue
though institutionally both the WTO and the UNFCCC are
mutually supportive and leave sufficient policy space for one
another in their respective operation. In this paper, three issues
viz. carbon leakage and the border issue; the problem of unilateral
trade measures; and finally, the issue of technology transfer and
IPRs have been discussed. While the first two issues show how
climate mitigation arises conflict within the WTO system, the
third issue will discuss just the reverse, i.e. how the trade and
technology transfer could arise conflict in international climate
talks. The reason why trade intersects with climate change is
due to the numerous implications that climate change may have
in terms of its potential impacts and the intense regulatory and
economic changes that are required to mitigate and adapt to these
impacts. Hence, there is an intense need for a successful conclusion
to the current negotiations on both climate change and trade.
The paper concludes by saying that a successful conclusion of the
WTO negotiations on trade liberalization will definitely help
improve access to climate-friendly goods and technologies which
are a pre-requisite to address climate change concerns. On the
other hand, a successful round of the UNFCCC negotiations is
likely to promote a supportive and open international economic
system that would lead to sustainable economic growth and
development thereby addressing the problems of climate change
better.
Introduction
THE debate surrounding trade and environment is a sensitive and
complicated issue. The issue has gathered further momentum as
it became intertwined with economic development, climate change
and sustainable development. International trade, like any other
economic activity, has several environmental implications. For
ISSUES SURROUNDING TRADE & CLIMATE CHANGE INTERFACE 59
Instance, climate change is a global phenomenon that affects the entire
world. Similarity, greenhouse gas emissions (GHGs) is a cause for
concern. All this demands top priority for both national and
international agendas, and increasingly special attention has been
given to the relationship between the WTO and the emerging
international regime on climate change.
The multilateral organizations that are currently addressing these
important issues are WTO, UN, UNFCCC, etc.
WTO and Environment
The World Trade Organization (WTO) provides a forum for
negotiating agreements aimed at reducing obstacles to international
trade and ensuring a level playing field for all, thus contributing to
economic growth and development. However, the international trade
regime has recognized the connection between trade and environment
for some time. During the GATT era, trade-related environmental issues
were often discussed in the negotiating rounds. The WTO era also
has seen important progress in linking trade and environment. In the
Marrakesh Agreement establishing the WTO, members established a
clear link between sustainable development and trade liberalization
to ensure that market opening goes hand in hand with environmental
and social objectives. The Committee on Trade and Environment (CTE)
was created which outlined the broad issues between trade and
environment that promote sustainable development. The Doha
Ministerial Declaration adopted on 14 November 2001 lists several
objectives concerning trade and environment. Paragraph 31 of the
Declaration mandates negotiations on three issues: (i) the relationship
between the WTO rules and specific trade obligations set out in
multilateral trade agreements (MEAs); (ii) procedures for regular
information exchange between MEA secretariats and the relevant
WTO committees; and (iii) the reduction or elimination of tariffs and
non-tariff barriers to environmental goods and services. Paragraph
32 of the Declaration instructs the CTE to work on the effect of
environmental measures on market access, especially in relation to
developing countries.
UNFCCC and Trade
Recognition of climate change as a major global environmental
challenge has driven policy-makers to adopt an array of climate-
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