WTO and the Legality of a Carbon Footprint Labeling Scheme: A Role for International Trade in the Fight Against Global Warming

Abstract:     
The overwhelming global consensus is that man-made greenhouse gas (GHG) emissions must be reduced to mitigate climate change and support reasonable accommodations and adaptations to potentially catastrophic annual global warming. The international community should use carbon footprint labeling (CFP label) on products to help fight the battle against annual global warming. A product CFP label is a government measure that may impact international trade and be subject to challenge under the World Trade Organization Agreement. It is simply unacceptable to ignore or undermine environmental concerns by claiming unfair trade practices when there is a global consensus on those concerns. On the other hand, compliance with World Trade Organization (WTO) law and policy is beneficial and supports environmental concerns.

Number of Pages in PDF File: 24

Keywords: WTO, greenhouse gases, carbon footprint, label, trade measure, international trade, environmental protection, climate change, global warming

JEL Classification: F42, K32

working papers series