Abstract
Problem statement: The award of eco-labels to environmental friendly products or production and process methods of products is a measure to protect the environment by supporting environmental friendly products. WTO members award eco-labels to combine trade restrictions which are based on environmental protection and the general provisions of the WTO. Approach: This study examined the different types of Eco-labels and their characteristics and their legal status in the WTO. Therefore, this study is divided into three topics. In the first topic, the attributes of Eco-labels will be presented. Results: After that, the next topic deals with the legal status of eco-labels within the WTO and based on this a review of the WTO jurisprudence of products' attributes and products' product and process methods is made. Conclusion/Recommendations: In the last topic, the outcome of the WTO jurisprudence is applied to the legal status of Eco-labels within the WTO. Generally, Eco-labels are applicable to WTO-provisions, as long as they are voluntary.
Highlights
The use of environmental friendly labels aims to protect the environment by suggesting the consumer to buy an environmental friendly product and by encouraging producers to produce more of those products. eco-labels can be awarded based on the environmental friendliness of the product’s attributes or based on the product’s environmental friendly Production and Process Methods (PPMs).Since the beginning of the World Trade Organization (WTO), the application of PPMs has been discussed by the jurisprudence of the WTO
Conclusion of the WTO jurisprudence: In the first PPM cases, the view of the GATT and WTO jurisprudence was refusing towards PPMs
The Dispute Settlement Body (DSB) prohibited the application of import restriction based on the production or process of a product, because this was on the one hand against article I, III and/or XI of the GATT and on the other hand not covered by Article XX (b) or (g) of the GATT or of the Chapeau of article XX[26]
Summary
The use of environmental friendly labels (eco-labels) aims to protect the environment by suggesting the consumer to buy an environmental friendly product and by encouraging producers to produce more of those products. eco-labels can be awarded based on the environmental friendliness of the product’s attributes or based on the product’s environmental friendly Production and Process Methods (PPMs).Since the beginning of the World Trade Organization (WTO), the application of PPMs has been discussed by the jurisprudence of the WTO. Conclusion of the WTO jurisprudence: In the first PPM cases, the view of the GATT and WTO jurisprudence was refusing towards PPMs. The DSB prohibited the application of import restriction based on the production or process of a product, because this was on the one hand against article I, III and/or XI of the GATT and on the other hand not covered by Article XX (b) or (g) of the GATT or of the Chapeau of article XX[26].
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