30 Dec 2021
Carbon Border Adjustment Mechanism + WTO = Impasse Totale?
Policy Brief by Christian Häberli published by the Jean Monnet Network on Transatlantic Trade Politics (2021).
This policy brief argues that the World Trade Organization (WTO) stands in the way of climate change mitigation. This is because the WTO’s “holy law” of non-discrimination conflicts with the differentiation commitments under the Paris Climate Agreement. This conflict points to the need for a thorough review of the WTO rules and disciplines, which is difficult in an organization whose member states diverge even on how to resuscitate a binding dispute resolution mechanism to respect existing rules and disciplines. However, global warming will not wait for trade experts to sort out the present WTO stalemate. A trade organisation must do more than moving deckchairs on the Titanic.