Reassessing ‘Like Products’
Summary
The author challenges the notion that GATT prohibits distinctions between products based on their production methods (PPMs). By analyzing the ambiguity of the term 'like products' and highlighting the TRIPS Agreement as a successful application of PPMs for intellectual property, the paper suggests that environmental PPMs are possible. The author argues that the focus should shift from whether such measures are permissible to how they can be implemented through a rule-based agreement developed by environmental experts and then integrated into the WTO framework to avoid 'pollution havens' in commodity markets.
Key insights
- The interpretation of 'like products' is central to the GATT/WTO system, specifically regarding most-favoured nation treatment and national treatment, but the term is intentionally ambiguous to reflect real-world complexities where products may be equivalent but not 'like'.
- The TRIPS Agreement serves as a practical example of the trade regime utilizing PPMs, as it distinguishes products based on whether intellectual property rights were respected during production rather than on the inherent characteristics of the product itself.
- Environmental PPMs are primarily needed for commodity markets (such as tuna, shrimp, and forest products) to make the environmental impact of extraction transparent and to internalize environmental costs.
- While there is no conclusive evidence of a general move of production to 'pollution havens', some evidence suggests that commodity production has shifted from high-regulation to low-regulation jurisdictions due to factors like cheap labour and the availability of environmental resources.
- To resolve the conflict between trade liberalization and environmental protection, the author proposes that an agreement on environmental PPMs should be developed by environmental specialists and then integrated into the GATT/WTO rule-based structure.
Cite the original document
- APA
- von Moltke, K. (1998). Reassessing ‘Like Products’. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/likeproducts.pdf
- Chicago
- von Moltke, Konrad. Reassessing ‘Like Products’. International Institute for Sustainable Development, 1998. https://www.iisd.org/system/files/publications/likeproducts.pdf.
- Wikipedia
- {{cite report |last1=von Moltke |first1=Konrad |title=Reassessing ‘Like Products’ |publisher=International Institute for Sustainable Development |date=1998 |url=https://www.iisd.org/system/files/publications/likeproducts.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{vonmoltke1998reassessing, author = {von Moltke, Konrad}, title = {{Reassessing ‘Like Products’}}, institution = {International Institute for Sustainable Development}, year = {1998}, url = {https://www.iisd.org/system/files/publications/likeproducts.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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