Sustainabletradingslides
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This document discusses the legal challenges to sustainable trading between nations. It provides an overview of the current legal frameworks that govern international trade, including the WTO and various multilateral environmental agreements. Some of the key challenges identified include the fragmentation and lack of harmony between different legal regimes, developing countries lacking resources to implement policies, and the insufficient nature of the WTO to deal with particular environmental concerns. The document concludes that the legal community must work to make approaches and legislation more realistic and enforceable in order to harness law as a force for achieving sustainable development and trading standards.
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Sustainabletradingslides
- 1. What are the legal challenges to sustainable trading??
- 2. Introduction • Purpose of law • Global society experienced extensive economic integration • What are we covering? • Not looking in detail to environmental litigation • Trade/environment conflict realized in multiple legal domains • Policy agenda broader, still evolving
- 3. The importance of definitions • What is sustainable trade ? • Start with the concept of ‘sustainable development’ • Acceptance that trade policy needs to reflect the potential effects of trade on the environment
- 4. Current legal framework • Network of legal frameworks developed to facilitate international trade and reduce transaction costs • Myrid of legal norms • Central to this Gatt • Article XX • Creation of WTO
- 5. WTO • Goal of the WTO • Not looking for answers to environmental problems • Political pressure forced environment and sustainable development onto the agenda • Sustainable development included in preamble Marrakesh agreement • Dispute settlement body • Committee on Trade and Environment
- 6. Legal framework • International laws • Policy • Principle 21 Stockholm Declaration • Most states belong to the WTO and rules of international trade affect how UK and EU regulates environmental protection • E U legal framework – Directives, Regulations • Multilateral agreements
- 7. Multilateral Agreements • Treaty signed and binding upon more than two states • Currently 200 MEA’s in force • A critical issue in trade/ environment debate is relationship between trade rules and mulitlateral agreements e.g. Kyoto Protocol, Cites • Relationship between MLA and WTO rules is still unresolved
- 8. Other Developments • Role of business • Trade and social issues • Increase in CSR reporting • Increasing role of international standards • Development of Eco-labelling • Disputes over ‘like products’ • Market mechanisms
- 9. Challenges • Fragmentation, lack of harmony • Developing countries lack of resources • Domestic challenges in implementing policies and laws • Environmental laws often overlap/ conflict rather than complement • Post Copenhagen • Policy – still evolving • WTO insufficient to deal with particular environmental concerns • Regulatory effects of trade agreements
- 10. Challenges (2) • Handling of disputes • Arbitration • ICJ • WTO • What about domestic disputes? • Lack of public participation • Weakness of government institutions • Enforcement
- 11. Challenges (3) • Voluntary implementation of ‘sustainability’ • Not all states can participate in development of international standards • Creation of international trading schemes with harmanonised rules on reporting
- 12. Conclusions • Law must not be considered an absolute in adoption of climate and trade policies • WTO • Recognize major role trade can play in achieving sustainable development • Ensure development international standards not unduly restricted • Encourage behaviour that lead to sustainable trading – CSR/ Supply chain management • Develop conflict resolutions mechanisms
- 13. Conclusions • Legal community is powerful force to harness • International jurists, legal scholars and professionals including lawyers and the media can make a strong contribution • Make approach more realistic • Make legislation more enforceable • Critical role of law
Editor's Notes
- Purpose of law is to create an institutional setting Over the past 50 years trade growth in the global economy has been enormous and has led to trade liberalization. We accept that trade is critical to global economic development. The link between trade and the environment was fist recognized in the 1970s ( Rachel Carson’s silent spring) and in 1973 Stockholm conference on Human Environment was held regarding the impact of economic growth and social development and the environment . The liberalization of trade has allowed companies to choose the most cost effective place for doing business. The impact of this has been to tranformtradtional economies of scale from a nation to global level. Production is seen in global not just regional terms. This has lead to large scale production of The impact on environmental laws . Large scale production located in areas where there are insufficent environmental controls to manage impacts. It is clear that as the global econnomy has grown there is a correlation of a growing environmental crises facing the planted and its inhabitants that trade/ enviironemtnal relationship is critical
- To answer the question of what sustainable trading is , one has to consider the definition of sustainable development.987 Bruntland Report – pursues three competing principles environmental protection, economic development and social development No set definition but implies a trading system that does not harm the environment or deteriorate social conditions while promoting ecomonical growth.
- International environmental law is dynamic , characterized by high degree of experimentation Major challenges facing international environmental law is need to integrate myrid legal norms for environmental protection and integrate environmental rules with rules governing international trade and finance, protection of intellectual property, human rights and other areas. Also public international law is mainly about rights and duties of states and in the environmental sphere has not been greatly concerned with the rights of individuals within states. But the limits to this approach are beginning to appear as some international law obligations effectively’bite on individuals and companies. Article XX provided a special regime for states and public welfare in other areas, even if this meant breaching trade obligations to do so. At the same time , At xx placed specific conditions on states when they exercised this right. The WTO is the outcome of the reform of GATT
- Goal of the WTO is to liberalize trade, ensure trade rules do not hinder domestic environmental protection and ensure environmental policy does not act as obstacle to international trade1994 specific reference to sustainable development Wto dispute settlement body has dealt with a variety of policy objectives, from conservation of sea turtles to human health posed by air pollution. Wto jurisprudence has affirmed WTO rules do not take precedence over environmental concerns. The Committee on Trade and Environment is a forum for dialogue on trade on the environment. One of the issues raised has been the relationship between WTO and multilateral agreements.
- As the understanding of global nature of environmental impact grows , not just trade and environment, there is increasing recognition that principles and rules must be developed in international arena to address common issues. Cannot look at environmental laws without looking at how polices affect certain objectives . Law is central to managing the environment despite the increasing use of voluntary approaches and market mechanisms such as taxes, subsidies and instruments that affect the behavior of consumers. Principle 21- foundational texts of international environmental law- encapsulates the tension at the heart of international environmental law. On one hand states can exploit their own resources according to their environmental polices, , on other hand an obligation not to harm other states or areas beyond their jurisdiction.
- A multilateral agreement is a treaty signed by and binding upon more than two states. Many multilateral agreements create international institutions or international organizations.About 20 include provisions that can affect trade. The question is whether measures under a multilateral agreement are compatible with WTO rules. For example a multilateral agreement could authorize trade win a specific product between parties, but ban trade in some countries that have not signed the agreement.Appellate Body of WTO has recognized the importance of MEAs to understanding the application of trade rules ( Shrimp Turtle case between US and Malaysia, India, Pakistan and Thailand
- One cannot consider the legal challenges to sustainable trading without looking at the role of business in seeking to gain competitive advantage as well as manage its reputation by recognizing and reporting on its impact on the environment . Sustainable trading also involves social issues. The vast expansion in trade and investment has had a profound effect on labor practices around the world. Should there be a link between the right of nations to engage in international trade and respect the basic rights of labour? The increase in corporate social reporting, managing sustainability of supply chains, arguably increases the need for the law to meet the challenge of change. Increasing role of international standards relating to sustainable development are beginning to play. International standards are non legally binding instruments that may be developed and applied by industrial grpi;s, NGO’s and formal standard setting bodies such as the International Standards Organiszation (Iso) and more. These groups are increasingly turning their attention to environment, social and human rights issues that together make up the complete notion of sustainable development. The development of eco labeling has in the EU become regulated under EU Directive for certain products, whereas many eco labels are voluntary and outside the control of WTO rules. There are tensions between those that support eco-labels as a critical tool in harnessing market forces in support of SD and other argue that it hinders market access unfairly and often without any consideration of the actual environmental conditions in the country where the product is made.Issue is future disputes likely to arise on what are like products
- Fragmentation and lack on harmony in international law Many developing countries lack financial, scientific, technical or economic capacity to meet trade law obligations to enact environmental protection. There are also domestic challenges in implementing policies and laws The rules require careful linkages between the level of environmental protection being sought and the measure to achieve them. Some of the conditions and tests that mist be met ( such as scientific risk assessments require a high level of capacity and financial requirements and very few developing countries can meet these requirements.
- Environmental disputes at a domestic and international level are becoming more frequent. Resolving disputes at international level is problematic as generally only states are parties and both states must accept jurisdiction of the court or tribunal. Not all disputes are legal disputes. At international level non legal routes are preferred. If they need to be resolved formally they tend to be settled by arbitration. Very little resort is made to the ICT ( UN body consisting of 15 judges elected by General Assemblies and security council. The appellate body of the WTO can hear environment cases. Nongovernmental organizations have not been allowed as observers to negotiations. WTO began a series of workshops between the Secretariat, NGO and national delegation representatives Enforcement is an issue as there are not usually an enforcement body with the power to impose effective sanctions. This means a range of other methods are used to induce compliance . International law cannot be enforced in the same ay as domestic law and even EC law. The limited role or the courts in resolving international environmental disputes is also not clear.
- WTO pivotal in helping to strike an appropriate balance between the interests of states to trade feeling and maintain control over questions of environment and natural resource protection Ensure that development of international standards are not unduly restricted. And effort should be made to ensure they remain effective tools an also are developed and applied in an appropriate way for developing countries
- Since environmental problems often transed national borders, the response must involve a concerted effort at the international level.