Climate change and trade agreements – Friends or foes?

The Economist Intelligence Unit's March 2019 Report  examines the degree to which the WTO and four contemporary free trade agreements (CPTPP (Comprehensive and Progressive Agreement on Trans-Pacific Partnership), EU–Singapore, EU–Canada and Korea–Australia) are supporting, or hindering, countries' climate change goals.

The Report identifies seven opportunities for boosting climate-friendly trade flows – Removal of tariff (1) and non-tariff (2) barriers on environmental goods and services; (3) Explicit limits on fossil fuel subsidies; (4) Border adjustment carbon taxes; (5) Green procurement; (6) Approval of non-discriminatory green subsidies; and (7) International co-operation on Climate Change goals. 

While most of the Report's recommendations are laudable and pragmatic, its recommended introduction of a “climate waiver” permitting countries unilaterally  to impose trade-restrictive climate policy response measures may serve to drive a wedge between advanced and developing countries at a different stage of development under the guise of Paris Agreement obligations. 

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