Using the WTO to Facilitate the Paris Agreement: A Tripartite Approach

Abstract

Climate change is undeniably the greatest threat humanity has ever faced, and its challenges can only be addressed through multilateral means. Lacking in accountability and enforcement mechanisms, however, the Paris Agreement requires additional support to achieve its full effect. This paper proposes a novel approach for refocusing the multilateral trading system and facilitating the Paris Agreement. Although not perfectly aligned with the goals of the Paris Agreement, the WTO’s multilateral framework could provide the necessary flexibilities to work towards meeting the Paris Agreement’s targets. There are three prongs to using the WTO as a vehicle to achieve progress on climate change. First, the preamble to the Agreement Establishing the WTO explicitly recognizes sustainable development as a goal, seeking to protect and preserve the environment. It also recognizes the need for developing countries to share in the growth in international trade. Giving meaning and effect to sustainable development is key to facilitating the Paris Agreement. The second prong recognizes that certain types of climate change mitigation measures may require violating WTO rules. In such circumstances, limited carve-outs in the mold of the Public Stockpiling Exception relating to food security, with additional built-in sunset provisions, would provide support for countries working to meet their targets, allowing them the ability to break from WTO rules to support domestic industries. Finally, the third prong envisions the negotiation of a multilateral or plurilateral agreement to help give effect to the Paris Agreement, much as the WTO already works in tandem with WIPO in relation to TRIPS and with the WCO in relation to the Trade Facilitation Agreement (TFA). Key to this agreement would be special and differential treatment (S&DT) provisions. The TFA contains next generation S&DT provisions, which could be leveraged in the context of a future plurilateral or multilateral agreement to help give effect to the Paris Agreement.