Environmental issues figured prominently in last
week's street protests in Seattle. Some of them stem from legitimate concerns over the
World Trade Organization's attitude toward the environment. But the remedy advocated by
many of the protesters -- destroying the WTO -- is unjustified and could set back the cause
of improving respect for the environment.
Before discussing specific WTO-related environmental issues, we should note that
environmental protection need not be a casualty of expanded trade. In fact, expanded trade
and the growth it creates can actually improve environmental protection. Numerous studies
have shown that rising incomes almost always improve environmental protection; the simple
truth is that the desperately poor have little or no interest in protecting the
environment and, thus, often destroy rain forests, kill off endangered species and
increase pollution in their desperate effort to stay alive. Recognizing this reality, one
of the fundamental documents of the global environmental movement, known as the Brundtland
Report, specifically endorses efforts to improve economic growth as a tool for protecting
the environment.
As the Brundtland Report also recognizes, however, growth should be tied to policies
that ensure environmental protection. This creates a potential WTO conflict. Since
protectionist measures are often falsely represented as environmental measures, the WTO is
often forced to evaluate environmental claims in the context of trade disputes. In
practice, this means striking a balance between trade liberalization concerns and
environmental or health objectives. Allowing any measure billed as protecting the
environment to bypass WTO scrutiny would invite abuse and ultimately damage the
credibility of true environmental measures.
However, the WTO may have gone too far in the other direction. In a recent example that
gained much attention, a WTO panel ruled against U.S. laws limiting shrimp imports from
countries that did not protect sea turtles with so-called turtle excluders. The initial
panel decision was almost scandalous in its disregard for environmental interests. A
review improved the initial decision in many respects but still found against the U.S. law
and set a high standard for imposing sanctions to protect sea turtles.
Criticism of this and other panel decisions is likely increased by the WTO's penchant
for secrecy, and its refusal to accept sufficient input from environmental and other
non-governmental groups. Further, although conflicts are still only theoretical, there are
potential clashes between the WTO and various multilateral environmental agreements that
employ trade limits and sanctions to promote internationally agreed objectives, like the
protection of endangered species.
These problems could be largely remedied through the following achievable list of
environmental amendments to the WTO.
* Expand allowable exceptions to the WTO. The WTO already allows for some exceptions,
but these could be expanded to exempt restrictions imposed by the U.S. Endangered Species
Act along with similar foreign statutes. The United States should recognize, however, that
expanding such exceptions would have costs. For example, the European Union would likely
argue that its ban on meat imports from animals given artificial growth hormones is
broadly similar to U.S. protection of sea turtles and, in a negotiation, the United States
cannot simply dictate the outcome.
* Improve transparency. Opening WTO proceedings would go a long way to ease
environmentalists' suspicions. A combination of opening more WTO dispute- settlement panel
deliberations, providing more formal opportunities for environmental input, and perhaps
creating a WTO office charged with creating a formal link between the WTO and
environmental groups could go far to ease suspicions and perhaps improve the quality of
environmental analysis in dispute settlement panel deliberations.
* Grandfather existing multilateral environmental agreements. In order to avoid
conflict between the WTO and multilateral environmental agreements, the Convention on
International Trade in Endangered Species and similar accords could be specifically
exempted from the WTO.
These changes would not address all potential WTO/environment conflicts, but they would
go a long way toward a solution. Importantly, all these changes can be accomplished
without doing serious violence to the trade liberalization objectives of the WTO.
Expanded trade and enhanced environmental protection can go hand-in-hand. It would be a
mistake for environmentalists to lose sight of this and allow themselves to be exploited
by groups whose interests are in protectionism, not environmental protection.
Copyright 1999, Journal of Commerce
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