Environment and Trade: A Handbook

Preface vii
Acknowledgements viii
Abbreviations xi
1. Introduction 1
1.1 Global trends 1
1.2 Environment and trade linkages 2
1.3 Differing perspectives 3
2. International environmental management 7
2.1 Origins 7
2.2 Principles 8
2.3 National environmental management 10
2.4 Multilateral environmental agreements 11
2.4.1 Structure 11
2.4.2 The principal MEAs 13
2.4.3 Implementation and dispute settlement 15
2.4.4 Trade measures in MEAs 16
3. The basics of the WTO 21
3.1 Structure of the World Trade Organization 21
3.1.1 The Committee on Trade and Environment 24
3.2 Functions of the WTO 26
3.3 The core principles 26
3.4 The key agreements, with a special consideration of 27
those related to the environment
3.4.1 The General Agreement on Tariffs and Trade, 1994 27
3.4.2 The Agreement on Technical Barriers to Trade 31
3.4.3 The Agreement on the Application of Sanitary and 31
Phytosanitary Measures
3.5 Other agreements 32
3.6 Regional trade agreements 32
3.7 Dispute settlement 32
4. Physical and economic linkages 35
4.1 Product effects 35
4.2 Scale effects 36
4.3 Structural effects 39
5. Legal and policy linkages 41
5.1 Environmental standards and process and production methods 41
5.2 Environmental standards and competitiveness 44
5.3 Environmental standards, science and precaution 45
5.4 Ecolabelling and environmental management system 46
certification programs
5.4.1 Ecolabels 47
5.4.2 Environmental management system certification 47
5.4.3 Ecolabels, EMS certification and international trade 48
5.5 Subsidies 49
5.6 Agriculture 51
5.7 Intellectual property rights 53
5.7.1 TRIPS and the Convention on Biological Diversity 55
5.7.2 TRIPS and agriculture 56
5.8 Investment 57
5.9 Government procurement 59
5.10 MEAs and the WTO 60
6. Institutional issues 67
6.1 Openness in trade policy-making 67
6.2 Environmental assessment of trade agreements 69
7. Environmental aspects of regional trade agreements 73
7.1 The North American Free Trade Agreement 73
7.1.1 Investment: Chapter 11 73
7.1.2 Standards: Chapters 7 and 9 74
7.1.3 International environmental agreements: Chapter 104 75
7.2 The European Union 75
7.3 Mercosur 77
8. Conclusion 79
Index 81