Trade in Environmental Goods: A Review of the WTO Appellate Body’s Ruling in US — Countervailing Measures (China)

Authors

Rachel Brewster, Duke Law SchoolFollow
Claire Brunel
Anna Maria Mayda

Document Type

Article

Publication Date

2016

Keywords

international trade, WTO, environmental goods, countervailing duties, Appellate Body

Abstract

In this paper we claim that, in the WTO Appellate Body (AB)’s ruling in US-Countervailing Measures (China), the AB decision has essentially left unchanged the practice of imposing countervailing duties (CVDs) on environmental goods. While the US has formally “lost” the case, a change in the procedures and tests used to motivate the CVD will allow the US to continue using this policy tool. From an economic point of view, this is not welcome news since CVDs have the standard distortionary effects of tariffs and could go against environmental goals. From a political-economy point of view, the CVDs in this case appear driven by pressure of domestic manufacturers of clean energy technology and products.

Citation

Rachel Brewster et al., Trade in Environmental Goods: A Review of the WTO Appellate Body’s Ruling in US — Countervailing Measures (China), 15 World Trade Review 327-349 (2016)