This paper reviews efforts towards addressing environmental issues in the multilateral trading system, both in the past as well as in several current initiatives. It concludes by suggesting further steps that Members may consider in order to move towards a more environmentally conscious WTO while taking into account the needs and interests of developing and least-developed countries.
The growth of international trade in the latter half of the 20th Century has happened side by side with increase in pollution and emissions, and extreme weather phenomenon. It can be argued that international trade and environment are inextricably linked, impacting each other in various ways. This link has been recognised within the multilateral trading regime, even before the formation of the WTO. Various measures such as the creation of the GATT-EMIT Group and the Tokyo Round of negotiations were important precursors towards an environmentally conscious trading system.
These efforts were accelerated after the WTO was established, creating the Committee on Trade and Environment (CTE) in order to have focused discussions on environmentally sustainable trade. Some trade and environmentally issues were also included in the Doha Round of negotiations. At present, various efforts are being taken by WTO Members to initiate discussions and take crucial steps towards trade and environment sustainability, sustainable plastics trade, fossil fuel subsidy reform, trade and climate change, to name a few, to ensure that the WTO contributes to the achievement of Sustainable Development Goals (SDGs).
This paper has attempted to track the efforts in the multilateral trading system, both in the past as well as several current initiatives, and concludes by suggesting further steps that Members may consider in order to move towards a more environmentally conscious WTO while taking into account the needs and interests of developing and least-developed countries.