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| Author: | Horn, H. |
| Title: | The burden of proof in trade disputes and the environment |
| Journal: | Journal of Environmental Economics and Management
2011 : JUL, VOL. 62:1, p. 15-29 |
| Index terms: | environmental policy liberalization world trade organization free trade information transfer |
| Language: | eng |
| Abstract: | The WTO leaves discretion over environmental policies to its members, but requests a fundamental non-discrimination principle be respected: National Treatment (NT). The provision aims to prevent protectionist use of domestic policy instruments, requesting that when an imported product is similar enough to a domestic product, they must receive uniform treatment. WTO adjudicators will often face serious informational problems in environmental disputes. Therefore, the allocation of the burden of proof (BoP) is important for the practical implementation of NT. This article highlights basic implications of the BoP for the occurrence of judicial errors, for the environment and for welfare, with a setting where NT plays its intended role of supporting negotiated tariff liberalization. The results imply that NT may indeed constrain environmental policies, but that it may be desirable considering efficiency. Also, BoP rules benefitting the environment may not improve global welfare, and conversely. |
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