The Future of Trade and Environment: A Roadmap for Reconciling Two Competing Goals

Abstract

The global market has experienced an unprecedented increase in cross-border trading, culminating in substantial economic growth for numerous nations. However, this extensive process of economic integration has cast a shadow on various associated domains. Trading activities, intricately linked to the environment due to their reliance on natural resources for production, have indisputably left their mark on global environmental conditions. International trade and environmental preservation, as distinct disciplines, operate under separate sets of laws and regulations. Environmental laws encompass multilateral environmental agreements, and regional and national regulations, while trading activities are governed by the multilateral agreements of the World Trade Organization (WTO) and bilateral agreements. The integration of international trade with environmental measures has become a contentious subject. Proponents of trade argue that it facilitates global access to environment-friendly goods and technologies, thereby facilitating the maintenance of high environmental standards. In contrast, environmentalists contend that international trade laws and practices often impede the governmental efforts to implement regulatory measures aimed at pollution prevention and environmental restoration. The WTO has faced criticism for its perceived inaction in addressing environmental concerns ensuing from trade, despite acknowledging environmental protection as an objective in the preamble of the Marrakesh Agreement. The global discourse on environmental protection has intensified, seeking to accord environmental issues the same weight as trade disputes. This article endeavours to delve into the multifaceted interactions between international trade and environmental protection, scrutinizing their regulatory mechanisms while highlighting the underlying grounds for the disputes that arise between these two realms. Agreement on Fisheries subsidies, Committee on Trade and Environment, Environmental Protection, Free Trade, GATT, Multilateral Environmental Agreements, WTO