SPRING 2011 44
39 H.R. 3036, supra note 29; H.R. 6316, supra note 32; H.R. 2454, supra
40 H.R. 2454, supra note 35; H.R. 6316, supra note 32.
41 Obama Criticizes Border Tax Adjustments in House Climate Bill, supra
note 28, at 2.
42 Id. at 4.
43 Kyoto Protocol to the United Nations Framework Convention on Climate
Change, Dec. 10, 1997, 37 I.L.M. 22, http://unfccc.int/resource/docs/convkp/
kpeng.pdf (emphasis added).
45 Fariborz Zelli & Harro Van Asselt, The Overlap Between the UN Climate
Regime and the World Trade Organization: Lessons for Climate Governance
Beyond 2012, in global climate governance beyonD 2012: architecture,
agency, anD aDaptation (2010).
46 worlD traDe org. & uniteD nationS env’t programme, traDe anD
climate change (2009), www.wto.org/english/res_e/booksp_e/trade_climate_
47 See GATT 1994, supra note 1, at art. III: 2 (“The products of the territory
of any contracting party imported into the territory of any other contracting
party shall not be subject, directly or indirectly, to internal taxes or other inter-
nal charges of any kind in excess of those applied, directly or indirectly, to like
domestic products. Moreover, no contracting party shall apply internal taxes .
. . to imported or domestic products in a manner contrary to the principles set
forth in paragraph 1.”). See also id. at art. III:1 (providing that internal taxes
“should not be applied to imported or domestic products so as to afford protec-
tion to domestic production.”); Id. at Addendum to art. XVI (“The exemption of
an exported product from duties or taxes born by the like product when destined
for domestic consumption, or the remission of such duties or taxes in amounts
not in excess of those which have accrued, shall not be deemed a subsidy.”).
48 Andrew Hoerner, The Role of Border Tax Adjustments in Environmental
Taxation: Theory and U.S. Experience 6-7 (Ctr. for a Sustainable Economy,
Working Paper presented at the International Workshop on Market Based
Instruments and International Trade of the Institute for Environmental Studies,
49 Obama Criticizes Border Tax Adjustments in House Climate Bill, supra
note 28. See also Lawrence Herman, Energy Trade, Carbon Emissions, and the
WTO, 2 J. worlD energy l. & buS. 196, 203-04 (2009).
50 See henrik horn & J.h.h. weiler, am. law inSt., european communitieS
– meaSureS aFFecting aSbeStoS anD aSbeStoS-containing proDuctS (2003),
51 See Daniel McNamee, Climate Change, the Kyoto Protocol, and the World
Trade Organization: Challenges and Conﬂicts, SuStainable Dev. l. & pol’y
41, Winter 2006.
52 Ryan Vanden Brink, Competitiveness Border Adjustments in U.S. Climate
Change Proposals Violate GATT: Suggestions to Utilize GATT’s Environmental
Exceptions, 21 colo. J. int’l envtl. l. & pol’y 85, 85 (2010).
53 Hoerner, supra note 48, at 7.
54 Report of the Panel, United States – Restrictions on Imports of Tuna, ¶
5.13, DS21/R–39S/155 (Sept. 3, 1991), GATT B.I.S.D. (39th Supp.) at 155
55 Hoerner, supra note 48, at 8.
56 Id. See U.N. Econ. & Soc. Council [ECOSOC], Second Session of the Pre-
paratory Commission of the United Nations Conference on Trade and Employ-
ment, Verbatim Report: Ninth Meeting of Commission A, 18-19, U.N. Doc. E/
PC/T/A/PV/9 (June 5, 1947), http://gatt.stanford.edu/bin/object.pdf?90240083.
57 Report of the Panel, Japan – Customs Duties, Taxes, and Labeling Prac-
tices on Imported Wines and Alcoholic Beverages, L/6216 (Oct. 13, 1987),
GATT B.I.S.D. (34th Supp.) at 83 (1987).
58 Report of the Panel, United States – Measures Affecting Alcoholic and Malt
Beverages, DS23/R–39S/206 (Mar. 16, 1992), GATT B.I.S.D. (39th Supp.) at
59 Report of the Panel, United States – Taxes on Automobiles, DS31/R (Oct.
60 United Nations Framework Convention on Climate Change, art. 3, May 9,
1992, 1771 U.N.T.S. 107.
61 M. Benjamin Eichenberg, Greenhouse Gas Regulation and Border Tax
Adjustments: The Carrot and the Stick, 3 golDen gate u. envtl. l. J. 283, 317
63 Vanden Brink, supra note 52, at 101-05.
64 GATT 1994, supra note 1, at art. III.
65 Joost Pauwelyn, U.S. Federal Climate Policy and Competitiveness Con-
cerns: The Limits and Options of International Trade Law 21 (Nicholas Inst. for
Envtl. Policy Solutions, Duke University, Working Paper 07-02, 2007).
66 Joseph Stiglitz, A New Agenda for Global Warming, 3 economiStS’ voice
1, 2 (2006). Joseph Stiglitz has served as chair of President Clinton’s Council
of Economic Advisers and Chief Economist and Senior Vice President of the
69 Steven Nathaniel Zane, Leveling the Playing Field: The International
Legality of Carbon Tariffs in the EU, 34 b.c. int’l & comp. l. rev. 199, 203
70 ctr. For int’l SuStainable Dev. law, the principle oF common but DiF-
FerentiateD reSponSibilitieS: originS anD Scope (2002), http://www.cisdl.org/
71 United Nations Conference on Environment and Development, Rio de
Janeiro, Braz., June 3-14, 1992, Rio Declaration on Environment and Develop-
ment, U.N. Doc. A/CONF.151/26/Rev.1 (Vol. I), Annex I (Aug. 12, 1992), http://
72 Stiglitz, supra note 66, at 3.
73 Pauwelyn, supra note 65, at 15.
75 Agreement on Subsidies and Countervailing Measures, Apr. 15, 1994,
Marrakesh Agreement Establishing the World Trade Organization, Annex 1A,
the legal textS: the reSultS oF the uruguay rounD oF multilateral traDe
negotiationS 275 (1999), 1867 U.N.T.S. 14.
76 Obama Criticizes Border Tax Adjustments in House Climate Bill, supra 28,
77 GATT 1994, supra note 1, at art. II, III.
78 Obama Criticizes Border Tax Adjustments in House Climate Bill, supra 28,
79 GATT 1994, supra note 1, at art. XX.
80 Id. at art. XX (b).
81 Id. at art. XX (g); see also Obama Criticizes Border Tax Adjustments in
House Climate Bill, supra 28, at 4.
82 gatt 1994, supra note 1, at art. xx.
83 Pauwelyn, supra note 65, at 3.
84 Obama Criticizes Border Tax Adjustments in House Climate Bill, supra 28,
85 See Panel Report, United States–Standards for Reformulated and Con-
ventional Gasoline, WT/DS2/R (Jan. 29, 1996) (ﬁnding that a state arguing a
measure excepted under Article XX must show that the measure is “necessary”
to meet the Article XX objective and be the least restrictive measure possible
under the circumstances).
86 Vanden Brink, supra note 52, at 86.
87 Pauwelyn, supra note 65, at 3.
88 See Pan Jiahua & Xie Laihui, Border Tax Adjustments (BTAs): for Climate
Protection or as a Barrier to Trade?, contemp. int’l rel., Mar. 2009. See also
ZhongXiang Zhang, The U.S. Proposed Carbon Tariffs, WTO Scrutiny and Chi-
na’s Responses (Munich University Library, Munich Personal RePEc Archive
No. 19063, Dec. 2009), http://mpra.ub.uni-muenchen.de/19063.
89 In March 2010, India declared that it would bring a WTO challenge
against any “carbon taxes” that rich countries impose on Indian imports. See
India Threatens WTO Case Against Proposed ‘Carbon Border Taxes,’ briDgeS
weekly traDe newS DigeSt, Vol. 10, No. 6 (Int’l Ctr. for Trade & Sustainable
Dev., Geneva, Switz.), Apr. 6, 2010, at 5-6, http://ictsd.org/downloads/biores/
90 nat’l envtl. comm’n, Dep’t oF climate change, gov’t oF chile,
national climate change action plan 2008-2012 17 (2010), http://www.
mma.gob.cl/1257/articles-49744_Plan_02.pdf. In this sense, Chile is within the
exception initially considered in U.S. Senator Lieberman’s Project.
91 Id.; u.n. Dev. programme, human Development report 2007/2008, 69
92 CO2 Emissions (kt) – Millennium Development Goals Indicators 1998,
2004, encyclopeDia oF the nationS, http://www.nationsencyclopedia.com/
WorldStats/MDI-indicators-co2-emissions.html (last visited Apr. 19, 2011).
93 Pilar Moraga, Evolución de la Política Nacional Energética Frente a la
Regulación del Cambio Climático, in pilar moraga, centro De Derecho ambi-
ental FacultaD De Derecho univerSiDaD De chile, el nuevo marco legal
para el cambio climático 122 (2009).