World Trade Organization - Harvard Model United Nations

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World Trade Organization agreement (to limit trade in ozone-depleting substances) is not compromised. 73 Environmental Goods One of the major challenges in the environmental goods debate is the lack of an internationally agreed definition of an environmental good. Working definitions do exist. Both the APEC and OECD define environmental goods as goods that “measure, prevent, limit, minimize or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems... [including] cleaner technologies, products and services that reduce environmental risk and minimize pollution and resource use.” This is however a very broad development that can encompass goods of almost any sort. 74 The lack of an internationally agreed definition leads to another problem. Negotiators have trouble addressing “problematic” environmental goods. These include environmental goods have multiple uses, some of which are not “environmental,” and goods that are defined by their superior environmental performance over comparable goods. These goods are problematic for several reasons. For example, the inclusion of some goods as environmental goods would create incentives to bribe customs officials to have certain goods be classified more favorably. The inclusion of other goods would require would require an international consensus on the criteria for creating new distinctions between products. 75 Some examples of environmental goods with multiple end users include centrifuges. Separating harmful waste products from waste streams require centrifuges but centrifuges are also used in food processing and medicine. A report from the mid-1990s estimated that approximately only 10% of all centrifuges sold that year were for environmental purposes. So the question is: should centrifuges be an environmental good that receives preferential trade treatments? 76 Thus, any international agreement regarding environmental goods must develop some procedures for ensuring that the product description and categorizing of goods are consistent and efficient. “One of the major challenges in the environmental goods debate is the lack of an internationally agreed definition of an environmental good...” Relevant Action Canada vs. European Communities: Asbestos In 1999, Canada challenged France’s ban on chrysotile asbestos as unnecessarily restrictive to trade because “controlled use” of the substance eliminated any harm to humans and the environment. The implications of this ruling were significant. Since asbestos is one of the most thoroughly studied toxic substances, a WTO’s ruling overturning France’s ban would’ve put into question which substances could indeed be banned. The WTO panel ruled in favor of France and the European communities based on Article XX of the GATT that stated that restrictive trade measures could be enacted when “necessary to protect animal, human, plant life or health.” 77 Shrimp-turtle case In 1997, Indian, Malaysia, Pakistan, and Thailand challenged the US ban on the import of certain shrimps and shrimp products. The issue of turtles was at the core of the debate. The US Endangered Species Act requires that shrimp trawlers to use “turtle excluder devices” (TEDs) in their nets when fishing for shrimp. Another US law also bans the importation of shrimp and shrimp products that are not harvested using this technology. 78 The WTO panel ruled against the US but for surprising reasons. It made clear that countries have the right to trade restrictions to protect the environment. However, the basis for the ruling was on non-discriminatory trade policies. While the US had the right to restrictions under Article XX, it did not apply its ban equally across all countries. Instead, it provided technical and financial assistance to countries in the Western hemisphere that helped the fishermen there acquire TEDs and avoid the ban. 79 EU vs. US: Automobile Taxes In 1994, the European Union filed a complaint against three US automobile measures. They were the luxury tax on cars, the gas guzzler tax, and the Corporate Average Fuel Economy regulation (CAFE). The European Union believed that their cars were at a competitive disadvantage in the US market due to these legislations. The WTO panel found that the luxury and gas guzzler taxes were consistent with GATT articles while CAFE was ruled as inconsistent. The reason lied in the US having a separate foreign car accounting system 20 Specialized General Assembly Agencies
World Trade Organization that discriminated against foreign cars and in a system that relied on the “basis of factors relating to control or ownership of producers or importers, rather than on the basis of factors directly related to the products as such.” 80 Venezuela, Brazil vs. US: Gasoline The first dispute adjudicated by the WTO was the Venezuela/Brazil vs. US on the issue of national treatment of gasoline. The US had stricter rules on the chemical content of imported gasoline than it did on its domestic supplies. Venezuela believed that the US violated the national treatment principle and could not justify it by Article XX of the GATT. The WTO ruled in favor of Venezuela because the US was found to have discriminated against gasoline imports. 81 The Convention on International Trade in Endangered Species Representatives of 80 countries signed the CITES conservation agreement in 1973. The agreement seeks to regulate trade of certain species as well as their parts and goods made from them. The Conference of the Parties, the governing body, maintains a list of protected species under recommendation of the scientific community. Restrictions on trade range from prohibition to partial licensing systems. CITES has been characterized by unusually active NGO participation and has expanded in recent years to include new species whose trade volumes the scientific community has deemed to be unacceptable. 82 Proposed Solutions Trade-related Provisions Many MEAs include trade restrictions as trade provisions to ensure compliance. Past examples include the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) which uses a permit system to regulate export and import of certain endangered species. Another example is the US banning imports from Thailand due to Thailand’s violation of CITES provisions. Because MEAs with trade-related provisions are so effective, one approach to reconciling differences between WTO rules and environmental agreements is the exemption of MEAs from WTO challenge. Ways of accomplishing this include an amendment to the Final Act of the WTO or a legally binding WTO decision. Another approach is to come up with a list of criteria that a MEA must meet in order to be exempt from challenge. General Assembly Of course, there must be a minimum number of countries as signatories as well as strong cases supporting the necessity of trade restrictions. 83 Questions A Resolution Must Answer How should the WTO address the issue of national treatment? Should the WTO continue to put legal emphasis on the production process’ effect on the environment? What are the exceptions that would justify barriers to trade? How can the WTO hold nations accountable to their environmental agreements without going outside of its jurisdiction? Should the WTO extend oversight into MEAs? What are the criteria for an environmental good? Bloc Positions OECD The Organization for Economic Cooperation and Development consists of most of the world’s industrialized countries. Four principles guide the organization in trade and environment discussions. The first is the polluter pays principle, which says that polluters should bear the economic and financial costs of satisfying environmental regulations. The second is the harmonization principle, saying that governments must seek to make policies that result in mutual supportiveness between trade rules and environmental policies. The third is national treatment and nondiscrimination principle, which is the same as the one stated in the GATT. The last principle is the compensating import levies and export rebates principle. This says that if a producing country has stricter environmental regulations and higher costs of compliance, that country’s government should not aid its domestic companies by levying higher tariffs on imports, giving tax rebates, or subsidizing exports. 84 United Nations The UN Conference on Environment Development has focused on the changing relationship between the developing world and the developed world. It explores what roles developed countries should play in helping developing countries meet their environmental goals. Financial resource distribution is a key issue and there have been talks about the creation of a “green fund.” 85 21
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