engleski

Implementation of Kyoto Protocol in Connection to WTO Rules

This paper explores the possibilities for countries that have ratified the 1997 Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) to implement the Protocol and to deal with possible comparative disadvantages vis-&#224 ; -vis third parties that do not adhere to the Protocol, in a manner permissible by the World Trade Organisation (WTO) Rules. Namely, the implementation of the Protocol by some states and not by others may cause competitive disadvantage to implementing state products on the international WTO free market. On the other hand, in &#8216 ; saving&#8217 ; its products competitiveness, the Protocol implementing country might get into the conflict with the WTO rules. In this paper we discuss the possible domestic policies for the implementation of the Kyoto Protocol and their compliance with the world trade law. We conclude that, provided main principles of world trade law are respected, and given the pertinent case law, domestic policies, and border tax adjustments in particular, are compatible with the WTO Rules, and defensible before the WTO dispute settlement mechanism.

Kyoto Protocol; WTO; implemetation; domestic policies; competitivness; unilateral measures; environment

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