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Conclusion

The ongoing implementation of climate change policies could raise several unresolved issues in WTO law. GATT Article XX will play an important part in determining the WTO consistency of climate change measures. The scope of paragraphs (b) and (g) in GATT Article XX still needs to be defined in many aspects, as does the relationship between these two paragraphs. Multilateral environmental agreements on climate change will probably be relevant to determining the consistency of climate change measures with GATT Article XX and the provisions of the TBT Agreement. However, it is unlikely that GATT Article XX will be applied to the SCM Agreement, the Agreement on Agriculture or the TBT Agreement. Its application to provisions in other agreements in Annex 1A will have to be analyzed on a case-by-case basis.

If processing and production methods are relevant to determining the issue of “like products” in GATT Articles I and III, the SCM Agreement, the Antidumping Agreement and the TBT Agreement, then this may provide an alternative analytical approach to determine the WTO consistency of climate change measures. Again, this will have to be analyzed on a case-by-case basis in light of specific climate change measures. However, if environmental subsidies are designed so that they are not specific to certain enterprises, they will be not be subject to multilateral action under Part III or unilateral action under Part V. Ifthe subsidies apply to agricultural products, they will have to comply with the commitments of Members under the Agreement on Agriculture. In the case of export subsidies, compliance with the Agreement on Agriculture may shield subsidies on agricultural products from action under SCM Agreement Article 3.1(a). However, opinion differs on this issue. In the case of subsidies contingent on the use of domestic products, it will be necessary to comply with both the SCM Agreement and the Agreement on Agriculture.

 
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