Evaluating the WTO's Two Step Test for Environmental Measures Under Article XX

42 Pages Posted: 22 Nov 2006  

Nita Ghei

Mercatus Center at George Mason University

Date Written: November 21, 2006

Abstract

There has been considerable dissatisfaction expressed by both free trade proponents and environment activists with respect to the WTO's exercise of authority on the impact of environmental measures on international trade. The Article first sets out a analytical framework, based on public choice theory, which examines the incentives to implement measures to achieve environmental goals which function effectively as disguised barriers to trade. This is followed by a careful examination of the WTO's jurisprudence in the area, which suggests that the WTO's focus on the measure being implemented is correct. Furthermore, the two step test under Article XX, as conceived and applied by the various WTO panels, seems to be reasonably effective in weeding out measures that are functionally barriers to international trade.

Keywords: International trade, WTO, GATT, environment, trade barriers, interest group, Article XX

JEL Classification: D72, F13, F18, F53

Suggested Citation

Ghei, Nita, Evaluating the WTO's Two Step Test for Environmental Measures Under Article XX (November 21, 2006). George Mason Law & Economics Research Paper No. 06-48. Available at SSRN: https://ssrn.com/abstract=946462 or http://dx.doi.org/10.2139/ssrn.946462

Nita Ghei (Contact Author)

Mercatus Center at George Mason University ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://www.mercatus.org

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