CIESIN Reproduced, with permission, from: U.S. Office of Technology Assessment. 1992. Trade and the environment: Conflicts and opportunities. Report no. OTA-BP-ITE-94. Washington, D.C.: Government Printing Office.

Contents

..................................................Page

Chapter 1: Overview and Summary ..................................................3

SUMMARY AND FINDINGS .........................................................5

Road Map to the Rest of This Paper .........................................................11

Chapter 2: Issues and Institutional Players .........................................................15

THE CONTEXT .........................................................15

Issues at GATT .........................................................15

The North American Free Trade Agreement .........................................................17

Competitiveness Concerns .........................................................17

Other Issues .........................................................18

INSTITUTIONAL PLAYERS .........................................................19

General Agreement on Tariffs and Trade .........................................................22

Environmental Issues and the Dunkel Draft .........................................................24

The Organisation for Economic Co-operation and Development .........................................................25

United Nations .........................................................27

U.S. Government Efforts To Address Trade and Environment Issues .........................................................27

Chapter 2 Annex: Some GATT Provisions and Principles Pertinent to

Environmental Matters .........................................................31

Environmental Regulations as Nontariff Barriers; National Treatment and

Most-Favored-Nation Rules .........................................................31

Subsidies...............................................32

"General Exceptions" (Article XX) .........................................................32

Dispute Resolution Under GATT .........................................................33

Chapter 3: Role of Trade Measures in Environmental Policy .........................................................37

ASSESSING THE EFFECTS OF TRADE ON THE ENVIRONMENT .........................................................38

USE OF TRADE MEASURES .........................................................42

Trade Measures and GATT .........................................................46

ENVIRONMENT/TRADE AND DEVELOPING COUNTRIES:

THE NORTH-SOUTH DEBATE .........................................................52

Chapter 4: Effects of Environmental Regulations on Trade and Competitiveness ..................................59

ENVIRONMENTAL REGULATIONS AS TRADE BARRIERS .........................................................59

EFFECTS OF LAX FOREIGN REGULATIONS ON MANUFACTURING

TRADE AND COMPETITIVENESS .........................................................64

GOVERNMENT ENVIRONMENTAL ASSISTANCE TO MANUFACTURING FIRMS .........................................................68

Chapter 5: Trade and Environment Decisionmaking .........................................................73

GUIDELINES AND TRADE/ENVIRONMENT INTERACTIONS .........................................................73

ADDRESSING TRADE/ENVIRONMENT ISSUES IN GATT .........................................................76

Dispute Resolution Procedures .........................................................77

U.S. INSTITUTIONS .........................................................77

Appendix A: Some Trade Disputes Pertinent to Trade/Environment Interactions ............................................81

Appendix B: Selected Bills on Trade/Environment Issues: 102d Congress ................................................91

Appendix C: Selected Congressional Hearings Relating to Trade and Environment .............................................93

Appendix D: Trade in Environmental Goods, Services, and Technologies .........................................................94

Appendix E: Assessing Trade and Competitiveness Impacts of Environmental Regulations on U.S. Manufacturing ...............97

Index ...................................................107

Boxes

2-A. The European Community and Trade/Environment Issues ..........................................................20

2-B. United Nations Conference on Environment and Development:

Selected Agenda 21 Issues ..........................................................28

3-A. The Global-Local Continuum ..........................................................47

3-B. Financing Sustainable Development and Environmental Measures in Developing Countries ..........................................................53

5-A. Trade/Environment and Sustainable Development: The UNCED Perspective ..............................................74

Tables

2-1. Multilateral Environrnental Agreements by Subject, 1933-90 ...........................................................16

2-2. Selected International Organizations Concerned With Trade, Development, and Environmental Matters ...........................................................22

2-3. Key Federal Agencies With Responsibilities Pertinent to Trade/Environment Policy ...........................................................29

E-l. Estimated Per Capita Expenditures on Environmental Goods and Services ..................................................102