Chapter 1: Overview and Summary ..................................................3SUMMARY 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
..........................................................283-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