Trade Provisions in Multilateral Environment Agreements: Whether a Correct Approach Towards Sustainable Development

Abstract

Recently, the agenda of environment protection has taken the centre stage at the international forum. In order to address the growing need of environment protection, the concept of sustainable development has been discussed and implemented by many nations. Multilateral Environment Agreements has been in the forefront in dealing with the depletion of environment. However, few major multilateral environment agreements contain trade restrictive provisions which are in violation of the GATT provisions. Approach: The entire relationship between international trade and environment can be accounted for, by three major factors: trade, environment and development. Each one of them is inter-related and each factor tends to have an impact on the other. In order to strike a balance between all the three sectors trade and environmental multilateral agreements seems to be a feasible solution. At the present scenario, these agreements seem to have failed due to various reasons. One may agree that few of the reasons for the failure are inadequate implementation of the trade provisions in multilateral environment agreements (MEAs) at the national level, unfair competition and lack of dispute settlement bodies. Trade provisions in MEAs seem to have created hurdles for developing countries, for market access. Arguably this problem of market access arises due to coercive dispute settlement regimes which force developing nations to cater to the environmental regulation on the cost of development. Moreover one may agree that in order to maintain or reach certain environment standards transparency and participation has to be considered as the major characteristics of the international environment policies. According to Brundtland Report, ...sustainable development is the development which meets the needs of the present without compromising the ability of the future to meet their own needs. This very concept of sustainable development can be regarded as the major aim through the use of trade provisions in MEA's and not hindrance to development. Conclusion: GATT principles and trade restrictive provisions have not come into conflict yet but they do have a potential for conflict. The MEAs which have a potential for conflict might have an adverse impact on economic development of underdeveloped nation. An attempt has been made to suggest a solution which might be able to strike a balance between trade, environment and development through correct implementation of trade provisions in MEAs. A solution can be found in implication of International Law and setting up of effective dispute settlement bodies.