Designing the Green Economy_ Support _ Constraints under by pptfiles

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									Designing the Green Economy:

   Support & Constraints
under International Trade and 
       Investment Law 
                                                                        Key
       Key policy instrument                Key objective          WTO Agreement
Environmental requirements, e.g.        Improve resource use &
Product/production specifications,      reduce pollutants, e.g.
                                                                   TBT Agreement
voluntary/mandatory, characteristics/   for energy efficiency,
performance, labelling                  forestry management
Price & market mechanisms, e.g.       Internalize env’tal costs,
                                                                       GATT
environmental taxes, ETS              e.g. for GHG emissions
Support programs, e.g. R&D, fiscal,   Promote development
price and investment measures         & deployment of green        SCM Agreement
                                      technologies
Green procurement, e.g. adoption of Promote sustainable
technical specifications & evaluation consumption and
                                                                       GPA
criteria that promote procurement of production
green goods & services
WTO Consultations According to 
    Agreement at Issue
WTO Respondents
Trends in the Use of the
WTO Dispute Settlement 
     Mechanism
                 Government Procurement Agreement
                        Article XVI: Offsets

1.         Entities shall not, in the qualification and selection of suppliers, 
products or services, or in the evaluation of tenders and award of 
contracts, impose, seek or consider offsets.(7)

     (7)     Offsets in government procurement are measures used
     to encourage local development or improve the balance-of-
     payments accounts by means of domestic content, licensing of
     technology, investment requirements, counter-trade or similar
     requirements. 

2.         Nevertheless, having regard to general policy considerations, 
including those relating to development, a developing country may at
the time of accession negotiate conditions for the use of offsets, such 
as requirements for the incorporation of domestic content. Such 
requirements shall be used only for qualification to participate in the 
procurement process and not as criteria for awarding contracts. 
Conditions shall be objective, clearly defined and non-discriminatory …
When is a ‘subsidy’ trouble at the WTO?
                        SUBSIDY =
                   financial contribution
                         + benefit

                                   PROHIBITED
              SPECIFIC          - export contingent
                               - domestic input req.


Material Injury     Serious Prejudice
    CVD              ACTIONABLE

                              - No environmental exceptions (?)
                              - Agriculture specific rules
                            Subsidies Agreement
                                  Article 2
                                 Specificity

2.1 …
   (b) Where the granting authority, or the legislation pursuant to which 
   the granting authority operates, establishes objective criteria or
   conditions[1] governing the eligibility for, and the amount of, a 
   subsidy, specificity shall not exist, provided that the eligibility is 
   automatic and that such criteria and conditions are strictly adhered to.  
   The criteria or conditions must be clearly spelled out in law, regulation, 
   or other official document, so as to be capable of verification.

   [1] Objective criteria or conditions, as used herein, mean criteria or 
   conditions which are neutral, which do not favour certain enterprises
   over others, and which are economic in nature and horizontal in
   application, such as number of employees or size of enterprise.
                                      NAFTA
                     Article 1106: Performance Requirements

1. No Party may impose or enforce any of the following requirements, or enforce 
any commitment or undertaking, in connection with the establishment, acquisition, 
expansion, management, conduct or operation of an investment of an investor of a 
Party or of a non-Party in its territory: 
(a) to export a given level or percentage of goods or services; 
(b) to achieve a given level or percentage of domestic content; 
… 
(f) to transfer technology, a production process or other proprietary knowledge to a 
person in its territory, except when the requirement is imposed or the commitment or 
undertaking is enforced by a court, administrative tribunal or competition authority to 
remedy an alleged violation of competition laws or to act in a manner not 
inconsistent with other provisions of this Agreement; or … 
… 
4. Nothing in paragraph 3 shall be construed to prevent a Party from conditioning 
the receipt or continued receipt of an advantage, in connection with an investment in 
its territory of an investor of a Party or of a non-Party, on compliance with a 
requirement to locate production, provide a service, train or employ workers,
construct or expand particular facilities, or carry out research and development, in
its territory. … 

								
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