Climate Change and Trade Regimes: The Quest for Compatibility

Introduction

Governments have so far only had limited success in agreeing an international policy regime to address global warming. Efforts in this direction will continue. In the meanwhile, however, governments in a number of countries will introduce policies that increasingly constrain carbon emissions by industry. As countries do this with different speed and intensity, industries are likely to complain about the adverse competitive effects of differentiated carbon restraint policies. The issue of carbon leakage will also arise, such that production and plant location decisions could result in more output from less carbon-constrained economies, which in turn lessens the effectiveness of stricter policies elsewhere. In the face of this situation, governments may be tempted to turn to trade policy in order to “level the playing field”. Such action could have far-reaching implications for international trade relations.

About the Speaker

Dr Patrick Low is Chief Economist (Director of Economic Research and Statistics) at the World Trade Organization. He was first appointed Chief Economist in May 1997 and then served as Director-General Mike Moore’s Chief of Staff from September 1999 to December 2001, after which he returned to his previous post of Chief Economist. From 1995-1997 he was in the WTO’s Trade in Services Division. He worked from 1990-94 in the World Bank’s research complex (International Trade Division). Prior to that, he taught at El Colegio de México in Mexico City and worked as a consultant, from 1987-90. From 1980-87, Patrick Low worked at the GATT secretariat in Geneva. He holds a PhD in economics from Sussex University in the United Kingdom, and has written widely on a range of trade policy issues.

Presentation

To download Dr Low’s presentation in PDF format, click here.

Media