WTO policing also enables regulation of unlawful trade restrictions. An example was when the “WTO trade panel ruled that the United States had wrongfully blocked imports of Venezuelan and Brazilian gasoline, which the United States claimed violated its clean-air laws”. (Weinstein 2001)
Another subsequent argument would be to give all countries an equal footing in competitive trade. Developed nations with high environmental policies, would thus be under unfair trade conditions when competing with nations operating free from stringent regulations.
Reasons against WTO policing environment related issues though trade regulations is also evident in the “Shrimps, Turtles and the WTO” case. Malaysia, India and Pakistan’s export income would be greatly jeopardized under import restrictions from America. Nations which greatly depend on agricultural exports as a source of economic income would also face losses. In Iceland, marine and fish account for half of the country’s export earnings. (French 1993) Malaysia by itself supplies over sixty percent of world tropical timber exports, which nets the country $1.5 billion in foreign exchange. (French 1993) With rich developed nations driving home environmental conformity policies, smaller countries that are unable to comply with large trading nation’s demands will thus face financial difficulties – possible worldwide recession posing a far greater problem.
Environmental consideration may sometimes be overlooked in pursuit of economic development, but at what cost? It is far beneficial for the WTO to make positive grounds towards the betterment of our future environment though policing environment related issues through trade regulations and to find alternative ways to help those nations who are agriculturally export dependent, than to have nothing left in the future to trade at all.
References
French, H. F., 1993, ‘Costly Tradeoffs: Reconciling Trade and the Environment’, World Watch Institute, , accessed September 2nd 2002.
Hill, C.W.L., 2002, Global Business Today, 2nd ed., New York, McGraw-Hill.
Rose J., 2001, ‘Greening the WTO's Disputes Settlement Understanding: Opportunities and Risks’, New Zealand Treasury. http://www.treasury.govt.nz/workingpapers/2001/twp01-28.pdf
Weinstein, M. M. and S. Charnovitz (2001), "The Greening of the WTO", Foreign Affairs.
World Trade Organization, 2002,
“Frequently asked questions on trade and environment - Why did the WTO rule against the US measure for protecting an endangered species?”. , accessed September 2nd 2002.
