Trade vs the Environment

Trade vs the Environment - Trade vs. the Environment Trade...

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Trade vs. the Environment
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Trade Liberalization Trade liberalization = free trade Multilateral trade agreements result in G.A.T.T. and then the W.T.O. “most favored nation” principle- cannot impose different tariffs for same product on different countries “national treatment” principle- if product is the same, cannot discriminate against foreign
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G.A.T.T. Exceptions Article XX- the exception clause Measures necessary to preserve human, animal, and plant life and health Conservation of exhaustible resources if domestic measures are already in effect
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Cornucopian Worldview Pro: trade liberalization will help the environment As wealth increases, so does environmental protection (after an initial decrease) Environmental Kuznets Curve
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“Race to the Bottom” Con: trade liberalization hurts the environment Free trade = more trade = more resource exploitation and pollution, which hurts the environment
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“California Effect” “Neutral”/(pro or con): trade
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Trade vs the Environment - Trade vs. the Environment Trade...

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