Question

In 1998 the World Trade Organization issued a ruling in which it stated that the U.S. was wrong to prohibit shrimp imports from countries that failed to protect sea turtles from entrapment in the nets of shrimp boats. The basic position of the WTO was that while environmental considerations are important, the primary aim of international trade agreements is the promotion of economic development through unfettered free trade. Justify a position that the WTO in decoupling trade and environmental policy is proper or not proper within the scope of its charge.

Answer 1

The position taken by the WTO in decoupling trade and environmental policy is proper within the scope of its charge because it protects the developing countries from the intentional restrictions to free trade imposed by the competitors in the name of environmental protection to prevent their growth. It is evident in the case of the ruling against US in the case of shrimp imports from certain countries. US was trying to prevent the shrimp imports from Asian countries by prohibiting imports from countries that failed to protect sea turtles from entrapment in the nets of shrimp boats. They required the countries to use turtle excluder devices to allow shrimp imports. But WTO identified this as a move to restrict or discriminate the Asian countries from shrimp trade because US provided the technical and financial assistance to other countries in western hemisphere including the Caribbean and only Asian countries suffered due to the restriction. If the WTO focuses on environmental protection without decoupling trade and environmental policy, it would not have given importance to the trade impact on Asian countries and it would have been injustice to those countries. But at the same time WTO ensures the right to take trade actions that protect the environment in genuine cases without any discrimination. Hence the position of WTO is proper in this regard.