Climate Change, Competitiveness and Trade
The second main section of the report considers the relationship between the Kyoto Protocol and the WTO. Kyoto's present provisions do not contain any specific trade measures, but some of the measures taken to implement the Protocol could overlap with WTO rules. The temptation to use more overt trade measures to offset competitiveness losses will grow as Parties consider more stringent targets under future commitment periods or successors to the Protocol. The analysis here asks what trade law might be applicable to each of the various possible instruments states might use to address climate change and competitiveness concerns.