Chap4

41999CRCPressLLCKeyInternationalAgreementsCONTENTSGeneralAgreementonTariffsandTrade(GATT)NorthAmericanFreeTradeAgreement(NAFTA)TreatyofRome,1952,SingleEuropeanAct,1987,andtheMaastrichtTreaty,1992DeclarationoftheUnitedNationsConferenceontheHumanEnvironment(1972)TheRioDeclarationOnEnvironmentAndDevelopment(1992)WorldCharterforNature(1982)GENERALAGREEMENTONTARIFFSANDTRADE(GATT)Issuesrelatingtotradeand/ortheenvironmenthavebeenaddressedinkeymultilateral,bilateral,orregionalagreements.Nationallawsdesignedtoprotecthumanhealthandtheenvironmenthavebeendeterminedtopresentbarrierstotradesuchasrestrictionsonimportationofgoodsortariffs.TheWorldTradeOrganization(WTO),whichreplacedtheGeneralAgreementonTariffsandTrade(GATT)in1995,isamajormultilateralagreementoninternationaltrade.WTOisacomprehensiveseriesofagreementsandobligationscomposedoftheoriginal1947agreementandaccompanyinglegalinstruments,theUruguayRoundProtocoltotheGATT,andotherUruguayRoundAgreements.EnvironmentalexceptionstoGATTallownationstoadoptprograms“necessarytoprotecthuman,animalorplantlifeorhealth”orrelatingtothe“conservationofexhaustiblenaturalresourcesifsuchmeasuresaremadeeffectiveinconjunctionwithrestrictionsondomesticproductionorconsumption.”GATTcontainsthreemainprinciples,alldesignedtoreducetradebarriers.ArticleI–GeneralMost-Favoured-NationTreatment“1.Withrespecttocustomsdutiesandchargesofanykindimposedonorinconnectionwithimportationorexportationorimposedontheinternationaltransferofpaymentsforimportsorexports,andwithrespecttothemethodoflevyingsuchdutiesandcharges,andwithrespecttoallrulesandformalitiesinconnectionwithimportationandexpor-tation,andwithrespecttoallmattersreferredtoinparagraphs2and4ofArticleIII,anyadvantage,favour,privilegeorimmunitygrantedbyanycontractingpartytoanyproductoriginatinginordestinedforanyothercountryshallbeaccordedimmediatelyandunconditionallytothelikeproductoriginatinginordestinedfortheterritoriesofallothercontractingparties…”Thisarticleevenstheplayingfieldbyrequiringallcountriestobetreatedthesame.Nofavoritismordiscriminationisallowed.ArticleIII–NationalTreatmentonInternalTaxationandRegulation“1.Thecontractingpartiesrecognizethatinternaltaxesandotherinternalcharges,andlaws,regulations,andrequirementsaffectingtheinternalsale,offeringforsale,purchase,Chap4.fmPage21Sunday,August19,200112:09PM1999CRCPressLLCtransportation,distributionoruseofproducts,andinternalquantitativeregulationsrequiringthemixture,processingoruseofproductsinspecifiedamountsorproportions,shouldnotbeappliedtoimportedordomesticproductssoastoaffordprotectiontodomesticproduction.2.Theproductsoftheterritoryofanycontractingpartyimportedintotheterritoryofanyothercontractingpartyshallnotbesubject,directlyorindirectly,tointernaltaxesorotherinternalchargesofanykindinexcessofthoseapplied,directlyorindirectly,tolikedomesticproducts.Moreover,nocontractingpartyshallotherwiseapplyinternaltaxesorotherinternalchargestoimportedordomesticproductsinamannercontrarytotheprinciplessetforthinparagraph1.3.Theproductsoftheterritoryofanycontractingpartyimportedintotheterritoryofanyothercontractingpartyshallbeaccordedtreatmentnotlessfavourablethanthataccordedtolikeproductsofnationalorigininrespectofalllaws,regulationsandrequirementsaffectingtheirinternalsale,offeringforsale,purchase,transportation,distributionoruse.Theprovisionsofthisparagraphshallnotpreventtheapplicationofdifferentialinternaltransportationchargeswhicharebasedexclusivelyontheeconomicoperationofthemeansoftransportandnotonthenationalityoftheproduct.”Asdescribedinthesethreeparagraphs,domesticandforeignproductsmustbetreatedthesame,withoutdiscriminationordomesticprogramsdesignedtoprotecttheirownproducts.ArticleXI–GeneralEliminationofQuantitativeRestrictions“Noprohibitionsorrestrictionsotherthanduties,taxesorothercharges,whethermadeeffectivethroughquotas,importorexportlicensesorothermeasures,shallbeinstitutedormaintainedbyanycontractingpartyontheimportationofanyproductoftheterritoryofanyothercontractingpartyorontheexportationorsaleforexportofanyproductdestinedfortheterritoryofanyothercontractingparty.”NORTHAMERICANFREETRADEAGREEMENT(NAFTA)NAFTAisdesignedtoeliminatetradebarriersbetweenthethreeNorthAmericancountriespartytothisagreement:Canada,theUnitedStates,andMexico.NAFTAwassignedbythethreepartiesonOctober7,1992,andsignedintolawbyPresidentClintononDecember8,1993.Thislandmarkagreementcontainsenvironmentalprotectionprovisionsinthemainbodyoftheagreementbutaddeda“sideagreement”calledtheSupplementalAgreementoftheEnvironmentthatdealsspe-cificallywithenvironmentalissues.ThemajorityofenvironmentalprovisionsarecontainedinArticles904,905and907ofChapter9(Standards-RelatedMeasures)oftheagreement.ThischapterisacomponentofPartThree,TechnicalBarrierstoTrade.Article904allowspartiestoimplementstandards-relatedmeasurestoprotecttheenvironment.Ifapartydoesnotcomplywithsuchmeasures,theissuingpartycanbanimportationofgoodsortheprovisionofservice.Paragraph2ofArticles904and905allowtheestablishmentofappropriatelevelsofprotectionbasedoninternationalsta