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In solving the potential incompatibility between the GATT and MEAs, there are three ways pointed out particularly. One is, the GATT could be amended to include a new ‘sustainability clause’ setting out agreed principles of environmental policy; secondly, the GATT could be amended to create a presumption of compatibility with MEAs, by means of an extension of the exemptions set out in Article XX to permit trade measures pursuant to MEAs; last one is the GATT already contains a waiver clause (in Article XXV) which would permit the contracting parties to decide on a case-by-case basis to waive any sections of the GATT which were felt to be incompatible with MEAs.
Effectively, this would remove the right of WTO disputes panels to question aspects of the trade measures, such as their necessity or purpose, while retaining their power to ensure that the measures are applied in accordance with the head-note to Article XX (no disguised protectionism, etc.) the behavior of GATT disputes panels in the two tuna-dolphin cases has given rise to much of the concern about compatibility. They have proved increasingly prone to interpret the GATT text in the narrowest possible way, regarding trade impacts as the only matter of concern.
IV. RELATIONSHIP: WTO, REGIONAL AND MEAS
A. Regional Environmental Agreement
Regional Environmental Agreement is an independent system as the WTO system. Generally, they are both trying to solve the environmental problems and the sustainable development, while promoting the regional/world trade. However, in the some specific areas, there are some conflicts between them. It is important to note that the trend is avoiding the conflicts. When the regional environmental agreement could not cover some cases, the principles of WTO could cover them, vice-versa.
B. Issues in Group
That trade measures taken pursuant to MEAs could conceivably conflict with GATT provisions which could work to inhibit if not prevent a desirable conclusion of a future MEA.
Through better coordination, even if possibilities of conflicts will arise in the future over the trade provisions contained in MEAs, it will be minimized between trade and environment officials in national capitals. “That remains a sine qua non for cooperative action at the multilateral level. A process of enhanced policy coordination is underway already in many countries; it will certainly contribute to reducing unnecessary tensions in this area.”
The GATT does not prevent any member countries from adopting appropriate domestic environmental policies. It provides member countries considerable scope to use trade-related policies to protect national environmental resources without calling into question their GATT obligations. Meanwhile, these policies should be applied without discrimination to domestic products and imported products which are from different sources.
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