Does the World Trade Organization Care about Ecosystem Health? The Case of Trade in Agricultural Products

ABSTRACT

We now live under a comprehensive international trading system which affects what we eat, wear, buy, and produce. As of January 1995, the General Agreement on Tariffs and Trade 1947 (GATT 1947) was replaced by the World Trade Organization Agreement (WTOA) which sets out rules affecting practically all trade in goods and services worldwide.

The implications for trade in agricultural goods are enormous. Today, not only are rules concerning trade in goods generally applicable to trade in agricultural goods, but new rules specific to trade in such products are set out in the WTOA’s Agreement on Agriculture. The WTOA promises to limit national agricultural policies which impede international trade in agricultural products. The new WTOA rules should increase efficiency of and decrease friction arising in trade in agricultural products. These developments represent truly positive economic and political outcomes.

But what will be the environmental effects of changes in trade flows facilitated by WTOA rules and institutions? How will the new rules affect ecosystem health? The truth is that the worlds of trade law and ecosystem health are light-years apart. Advocates for free trade and those for the environment often distrust each other and think that the interests of one can be advanced only through the sacrifice by the other. The first part of this article traces some of the reasons for the evolution of this seemingly zero-sum game. The second section of the article examines the historical development and current treatment of environmental measures under the WTOA.

The agricultural sector is then highlighted as a microcosm of how the new WTOA rules will produce environmental effects which positively, although perhaps unintentionally, affect agroecosystems. The article concludes with speculation as to whether it is not now time to reorient the acrimonious trade/environment debate to one which is less adversarial and more focused on achieving ecosystem health while continuing to improve international market access and trade relations.