Wto India-Ec Gsp Dispute
INTRODUCTION
The overall purpose of this case note is to highlight the relevance for international environmental law of the recent World Trade Organization (WTO) decision on the use of positive ' conditionality in the Generalized
System of Preferences (GSP) of the European Community
(EC).
1
Although the
India-EC GSP dispute was not directly concerned with environmental conditionality per se
, this WTO ruling has, nevertheless, broader implications for the EC 's capacity to use unilateral trade preferences as an incentive to promote developing countries ' compliance with international environmental regimes. This was recognized in the subsequent
GSP reform proposed by the European Commission.
2
More generally, this note will argue that the jurisprudential approach of the Appellate Body opens the way for WTO-consistent use of unilateral trade incentives linked to international environmental norms, in addition to the environment-related unilateral trade restrictions already permitted under the General Agreement on Tariffs and Trade (GATT), Article XX, general exceptions.
3
The first part of this case note provides an introduction to the current structure of the Community 's GSP, paying particular attention to the so-called GSP Environment '.
The second part presents the main conclusions of the Appellate Body 's decision in the
India-EC
GSP Case
, underscoring its relevance for the provision of additional trade preferences to developing countries complying with international environmental agreements.
The third part concentrates on the environmental component of the new GSP-plus ' proposed by the
Commission following this WTO ruling. The case note will conclude with a critical analysis of the potential improvements and drawbacks of this new incentive arrangement, not only in terms of WTO compatibility, but also in providing a meaningful mechanism for encouraging ratification and compliance with international
The overall purpose of this case note is to highlight the relevance for international environmental law of the recent World Trade Organization (WTO) decision on the use of positive ' conditionality in the Generalized
System of Preferences (GSP) of the European Community
(EC).
1
Although the
India-EC GSP dispute was not directly concerned with environmental conditionality per se
, this WTO ruling has, nevertheless, broader implications for the EC 's capacity to use unilateral trade preferences as an incentive to promote developing countries ' compliance with international environmental regimes. This was recognized in the subsequent
GSP reform proposed by the European Commission.
2
More generally, this note will argue that the jurisprudential approach of the Appellate Body opens the way for WTO-consistent use of unilateral trade incentives linked to international environmental norms, in addition to the environment-related unilateral trade restrictions already permitted under the General Agreement on Tariffs and Trade (GATT), Article XX, general exceptions.
3
The first part of this case note provides an introduction to the current structure of the Community 's GSP, paying particular attention to the so-called GSP Environment '.
The second part presents the main conclusions of the Appellate Body 's decision in the
India-EC
GSP Case
, underscoring its relevance for the provision of additional trade preferences to developing countries complying with international environmental agreements.
The third part concentrates on the environmental component of the new GSP-plus ' proposed by the
Commission following this WTO ruling. The case note will conclude with a critical analysis of the potential improvements and drawbacks of this new incentive arrangement, not only in terms of WTO compatibility, but also in providing a meaningful mechanism for encouraging ratification and compliance with international
References: The Function of the Community 's System of Preferences (GSP) for the Ten-Year Period from 2006–2015, COM (2004) 461 Generalized Tariff Preferences, COM (2004) 699 final (Brussels, 20 October 2004) (hereinafter ‘Commission 's Proposal '). (Marrakesh, 14 April 1994), Annex 1A (GATT), Article XX allows, under certain conditions, WTO members to impose unilateral trade Environmental Law (2002), 489–519; D Environmental Law (1998), 40–47.