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Linkage of the Climate Change Regime and the Trade Regime



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June 20 Oct 1 2004 Kyoto and Geneva Linkage of the Climate Change Regime and the Trade Regime Jeffrey Frankel Harpel Professor Harvard University Broadening Climate Discussion The Linkage of Climate Change to Other Policy Areas conference organized by FEEM MIT Venice Italy June 2004 The author would like to thank Joe Aldy Thomas Brewer and Steve Charnovitz for exceptionally useful comments on an earlier draft Maral Shamloo for research assistance and the Savitz Fund for research support Abstract The multilateral regime to address the problem of global climate change is manifest in the Kyoto Protocol negotiated in that city in 1997 and likely soon to enter into force The multilateral regime to address international trade is manifest in the World Trade Organization established in Geneva in 1995 Are these two regimes likely to come into conflict This short paper considers some of the potential conflicts and also some of the potential complementarities The overall picture is more optimistic than some proenvironment critics of the WTO fear Kyoto and Geneva Linkage of the Climate Change Regime and the Trade Regime Jeffrey Frankel Global Climate Change GCC policy is a large and complicated subject It cuts across many academic disciplines agencies interest groups and so on If you live in the world of climate and Kyoto and you run up against yet another area such as the world of trade and the WTO you may be tempted to react along lines like the following Things are complicated enough already Our efforts to address GCC are legitimate and important If trade policy and the WTO are sincere and legitimate they should not create obstacles or constraints to what we are doing So we should be able to ignore them and they should be able to work around us Unfortunately one can t entirely ignore the interconnections between climate policy and trade policy They are sufficiently deep and numerous that each needs to be aware of the other and some amount of coordination is desirable So the



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