Abstract
Trade restrictions in form of eco-tariffs have so far not become part of environmental or trade policy. However, they have been deliberated by policy makers in the context of domestic pollution1: Policy proposals have been formulated to introduce tariffs to offset international differences in environmental policy stringency. Yet, current GATT/WTO rules do not sanction such eco-tariffs; neither does the work of the CTE indicate changes which would make eco-tariffs in the context of domestic environmental problems consistent with multilateral trade rules. However, if environmental policy is pursued by means of taxes, border tax adjustments might become possible for both product and PPM taxes.
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