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• W1489883243 abstract "This Article has two objectives. First, Article will develop a conceptual framework for analyzing interrelationship between trade restraints and environmental protection policy. Second, it will draw from experiences of two federal-type political systems--the United States and European Community--potential lessons for international institutional treatment of trade and environment issues. The Article does not deal with many other aspects of trade and environment issues, such as use of pollution-control subsidies, or impact of trade liberalization on environmental quality, or whether treaty negotiations should be subject to environmental assessment procedures. Nor does it offer a detailed review of relevant legal texts and decisions. Its aim is to provide an analytical structure for thinking through issues of law and policy presented by trade-related environmental regulation.I. THE FREE TRADE REGIMEThe cornerstone of case for free trade is mutual economic benefit resulting from trade among nations with differences in comparative advantage in producing goods and services. This concept has been characterized by Paul Samuelson as the sole proposition in Social Sciences which is both true and non-trivial.(1) In classic Ricardian conception, comparative advantage was based on relative differences in factor endowments--such as character of agricultural land, climate, timber, and mineral resources--among nations.(2) But an enlarged conception of comparative advantage has come to include differences in human capital and industrial and technological infrastructure. No reason exists in principle why comparative advantage should not also encompass differences in national economic, social, and regulatory policies and legal and administrative systems. Economists also regard national differences in ability of ecosystems and populations to assimilate pollution as an element of comparative advantage.(3)There are additional reasons, beyond comparative advantage, why free trade should enhance welfare of all nations engaging in trade.(4) A wider market enhances opportunity to realize economies of scale. It also promotes specialization, with attendant gains in productivity. A greater array of suppliers stiffens efficiency-promoting discipline of competition. The wider network of international contacts accelerates diffusion of knowledge and technological innovation.(5)Experience confirms economic benefits of a free trade regime (FTR). Empirical studies show a strong correlation between degree of trade liberalization and economic growth rates among different nations and a similar correlation between changes in trade policy and growth in individual nations.(6)The economic benefits from a common market and perceived detriments from trade rivalry among states under Articles of Confederation were an important impetus for ratification and adoption of United States Constitution.(7) The expected gains from creation of a common market and common currency were not purely economic; it was thought that economic integration would advance political integration and mutual security. Similar considerations propelled creation and subsequent strengthening of European Community. Economic rivalry was thought to stimulate political conflict and to have contributed to outbreak of three large-scale wars in Europe within seventy-five years. Europeans believed that economic integration would ameliorate causes of political and military conflict.Economic integration was seen as a global imperative after World War II. Many western leaders thought that restrictive trade policies by major nations in response to Great Depression were a major cause of continued economic stagnation of 1930s. The development of a coordinated international monetary policy at Bretton Woods and promotion of trade liberalization through General Agreement on Tariffs and Trade(GATT)(8) were cornerstones of global prosperity. …" @default.
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• W1489883243 date "1992-10-01" @default.
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• W1489883243 title "International Trade And Environment:Lessons From The Federal Experience" @default.
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