Environmental Goods and Services in the World Trade Organization

Abstract

As part of the current round of global trade negotiations underthe World Trade Organization (WTO), nations will be negotiating the liberalization of environmental goods and services (EGS). The EGS negotiations constitute a new and proactive approach to reconciling trade and environment concerns, providing an arena in which concrete progress can be made in environment and development. Although the negotiations show strong promise for sustainable development, this promise will only be realized if the liberalization takes into account existing market asymmetries and the needs of developing countries. This article examines the potential benefits and adverse impacts of EGS liberalization, the challenge of defining and classifying EGS in the WTO, and some policy suggestions for ensuring that EGS negotiations work toward sustainable development in the world economy.