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Using the flexibilities in GATT Article III to produce a WTO-consistent shift toward more climate-friendly consumption patterns Julian Wyatt ( Université de Genève). Two propositions:
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Using the flexibilities in GATT Article III to produce a WTO-consistent shift toward more climate-friendly consumption patterns Julian Wyatt (Université de Genève) • Two propositions: • Greenhouse gas consumption measures allow States keen to act on global climate change to overcome many of the defects of the UNFCCC/ Kyoto system presently plaguing mitigation with policies that can substantially reduce global greenhouse gas emissions even in today’s difficult political and economic climate. • ‘Mitigating Failed Attempts at Mitigation: Using Unilateral Consumption-Based Measures to Remedy the UNFCCC / Kyoto System’s Failure to Stabilise Global Greenhouse Gas Emissions’, 25p. pdf online at: http://ssrn.com/paper=1965249 • A greenhouse consumption tax programme can be designed around flexibilities in GATT article III:2, thereby avoiding any unsafe reliance on the article XX exceptions, and nonetheless shift consumption patterns toward more climate-friendly goods to an extent capable of meaningfully contributing to global greenhouse gas emissions reductions. • ‘Using GATT Flexibilities to Produce a WTO-Consistent Shift Toward More Climate-Friendly Consumption Patterns: An Analysis of GATT Article III from the Perspective of Greenhouse Gas Consumption Taxes’, 44p. pdf online at: http://ssrn.com/paper=1959367 Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Using the flexibilities in GATT Article III to produce a WTO-consistent shift toward more climate-friendly consumption patterns Julian Wyatt (Université de Genève) A series of questions: 1. Why greenhouse gas consumption measures? 2. How, to what extent and in what circumstances would GHG consumption measures, particularly taxes, actually operate to reduce global GHG emissions? 3. Is there a way around the applicable WTO law anti-discrimination rules for GHG consumption taxes without depending on GATT article XX? • 4. Where are the flexibilities in GATT Article III:2 second sentence? • a) Which products should be compared under the “not similarly taxed” criterion? • b) How would the “so as to afford protection to domestic production” requirement apply to linear, comprehensive GHG consumption tax programmes? Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Figure 1 Share of Global Manufacturing (in value-added terms) 1999-2030(World Bank Data with three-year average rate projections from 2010 onwards) Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Figure 2 Annex I and Chinese GDP and GHG emissions according to best case Copenhagen Accord outcomes Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Figure 3 Annex I vs Non-Annex I actual/projected shares of world consumption, GDP & value added manufacturing (World Bank & IMF Data) Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Figure 4 Systems-Based View of U.S. GHG Emissions (2006) (From: US EPA Report, Opportunities to Reduce Greenhouse Gas Emissions through Materials and Land Management Practices, September 2009) Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Figure 5 Tabular summary of the GATT’s anti-discrimination provisions Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Figure 6 Different forms of GHG consumption taxes representedaccording to WTO discrimination criteria Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Figure 7 Chile – Alcohol Tax Rates – The Applied Rate and a Sample Linear Rate Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)
Using the flexibilities in GATT Article III to produce a WTO-consistent shift toward more climate-friendly consumption patterns Julian Wyatt (Université de Genève) The four questions: 1. Why greenhouse gas consumption measures? 2. How, to what extent and in what circumstances would GHG consumption measures, particularly taxes, actually operate to reduce global GHG emissions? 3. Is there a way around the applicable WTO law anti-discrimination rules for GHG consumption taxes without depending on GATT article XX? 4. Where are the flexibilities in GATT Article III:2 second sentence? • The two propositions: • Greenhouse gas consumption measures allow States keen to act on global climate change to overcome many of the defects of the UNFCCC/ Kyoto system presently plaguing mitigation with policies that can substantially reduce global greenhouse gas emissions even in today’s difficult political and economic climate. • A greenhouse consumption tax programme can be designed around flexibilities in GATT article III:2, thereby avoiding any unsafe reliance on the article XX exceptions, and nonetheless shift consumption patterns toward more climate-friendly goods to an extent capable of meaningfully contributing to global greenhouse gas emissions reductions. Trade & Climate Change: GHG consumption taxes & GATT article III Julian Wyatt (Sciences Po, Paris, 27 January 2012)