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

29 Pages Posted: 21 Sep 2015

See all articles by Rachel Brewster

Rachel Brewster

Duke University School of Law

Claire Brunel

American University School of International Service

Anna Maria Mayda

Georgetown University - Department of Economics; IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2015

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.

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

JEL Classification: F12, F13, K33, Q20

Suggested Citation

Brewster, Rachel and Brunel, Claire and Mayda, Anna Maria, Trade in Environmental Goods: A Review of the WTO Appellate Body's Ruling in US — Countervailing Measures (China) (July 1, 2015). Available at SSRN: https://ssrn.com/abstract=2654379 or http://dx.doi.org/10.2139/ssrn.2654379

Rachel Brewster (Contact Author)

Duke University School of Law ( email )

210 Science Drive
Box 90362
Durham, NC 27708
United States

Claire Brunel

American University School of International Service ( email )

4400 Massachusetts Ave, NW
Washington, DC 20016
United States

Anna Maria Mayda

Georgetown University - Department of Economics ( email )

Washington, DC 20057
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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