Trade and Decarbonization: Opportunities and Challenges

Abstract

Trade and decarbonization are two inseparable things. Both primary legal issues are the gap between environmental protection and its implementation as a covert protection instrument. The relevant rules are Article XX GATT, and the Technical Barriers to Trade Agreement which have multiple interpretations. This research used a normative approach that focuses on legal materials. The results showed that decarbonization and trade still require strong policies from WTO countries. Implementation of Article XX GATT and TBT Agreement related to decarbonization is determined through decisions in Appellate Body. WTO policy reformulation relating to the application of the principles of sustainable development requires a special agreement while taking into account the principle of special treatment for developing countries. This effort is to create justice and legal certainty. Opportunities for multilateral negotiation are still open, while the challenge is a gap between developed and developing countries.