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The major critique against the WTO by environmentalists is that trade always trumps the environment in case of conflict under the WTO dispute settlement system. However, we can discover from the decisions described above, that firstly, GATT/WTO rulings don’t against member governments take domestic environmental measures that they consider to be necessary, however, WTO rules contain basic principles including non-discrimination. Secondly, one country has no right invokes an environmental agreement to take action against other countries that has not signed the environmental agreement.
Conclusion
Trade and environment relationship is extremely complicated. As we have described above, both theoretical economic models and empirical evidence exist suggest that trade liberalization might lead to deterioration of environmental quality even if the adequate environmental policies have been put in place, because other beneficial effect of trade liberalization can not compensate the increasing of environmental degradation and nature resource expended. Therefore, the leading issue that human beings have to face is how to keep sustainable development to ensure us live with ecological limits.
Dr. Klaus Töpfer(Executive Director, UNEP) said, “The need to ensure that trade and environment policies are mutually supportive is more pressing today than ever before. However, successful integration of these policies can only be achieved through a constructive dialogue based on far broader awareness and understanding of the complex interlinkages between trade and our environment.” As an international trade organization, the WTO, developed through a series of trade negotiations, or rounds, provides a forum to the ‘constructive dialogue’ between members. The objectives of environmental protection and sustainable development have been stated in the preamble to the Agreement Establishing the WTO. The Ministerial Decision on Trade and Environment states that the aim of the work of the Committee on Trade and Environment is to make “international trade and environmental policies mutually supportive”. WTO, the successor of GATT, has brought environmental and sustainable development issues into its mainstream work. Trade and environmental policies can complement each other. Environmental protection preserves the natural resource base on which economic growth is premised, and trade liberalization leads to the economic growth needed for adequate environmental protection. To address this complementarity, the WTO’s role is to continue to liberalize trade, as well as to ensure that environmental policies do not act as obstacles to trade, and that trade rules do not stand in the way of adequate domestic environmental protection.
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