Trade and the environment

This research paper by Konrad von Moltke examines the complex relationship between international trade and environmental protection, specifically focusing on the World Trade Organization (WTO). The author argues that the trade regime must integrate environmental concerns and sustainable development to maintain its political legitimacy and operational effectiveness, particularly as it approached the 'Millennium Round' of negotiations in 1999.

• The World Trade Organization (WTO) has struggled to integrate environmental issues because the environmental agenda does not fit the traditional trade negotiation model of 'demandeurs' making concessions for market position. Consequently, the Committee on Trade and Environment (CTE) has been largely ineffective, focusing on the impact of environmental regulation on trade rather than the reverse.
• Political support from environmental organizations in the United States was decisive for the ratification of both NAFTA and the Uruguay Round. The author suggests that future trade agreements will likely fail ratification in OECD countries unless they include sufficient environmental provisions to satisfy a significant portion of the environmental community.
• The author proposes the creation of an Agreement on Environment and Trade-Related Environmental Measures (TREMs) to establish a rules-based system for environmental distinctions in trade. This would address the core conflict regarding Processes and Methods of Production (PPMs), allowing the trade regime to distinguish between sustainably and unsustainably produced goods without relying on risky case-by-case dispute settlements.
• Investment disciplines should not be incorporated into the WTO. The author cites NAFTA Chapter 11 as a cautionary example, where investor-state dispute processes use commercial arbitration procedures that make almost every government environmental measure prone to dispute.
• Sustainable development in the Global South is hindered by the decline of commodity prices and the deterioration of terms of trade. The author argues that the WTO must explicitly recognize the link between commodity prices and the prospects for sustainable environmental management to avoid alienating developing countries.
• The author recommends the establishment of a Standing Conference on Trade and Environment (SCTE) as a light institutional structure to coordinate environmental interests across governments, civil society, and the private sector, providing the coherence currently lacking in international environmental governance.

APA

von Moltke, K. (1999). Trade and the environment. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/canberra.pdf

Chicago

von Moltke, Konrad. Trade and the environment. International Institute for Sustainable Development, 1999. https://www.iisd.org/system/files/publications/canberra.pdf.

Wikipedia

{{cite report |last1=von Moltke |first1=Konrad |title=Trade and the environment |publisher=International Institute for Sustainable Development |date=25 August 1999 |url=https://www.iisd.org/system/files/publications/canberra.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vonmoltke1999trade, author = {von Moltke, Konrad}, title = {{Trade and the environment}}, institution = {International Institute for Sustainable Development}, year = {1999}, month = aug, url = {https://www.iisd.org/system/files/publications/canberra.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }