University of Pennsylvania Journal of International Law
Publication Date
Winter 2025
First Page
299
Document Type
Article
Abstract
In this article, I set forth the policy considerations that militate in favor of a narrow interpretation of the border tax adjustments allowed under Articles II and III of the General Agreement on Tariffs and Trade (“GATT”) that would preclude the use of that exception to defend an import tax based on climate policies. The law of border tax adjustments does not attend to the environmental policies of exporting countries and is thus not tailored to serving environmental objectives. Instead, World Trade Organization (“WTO”) members restricting imports to reduce worldwide emissions of greenhouse gases should invoke the conservation exception in GATT Article XX(g). Under the rules developed under GATT Article XX, the conservation exception not only would do a better job of guarding against protectionist abuse of trade restrictions but also would allow trade measures that would reduce global emissions more effectively than border tax adjustments. Thus, WTO members should design trade restrictions for environmental purposes with GATT Article XX(g) in mind, free of the restrictions imposed by international trade law on border tax adjustments.
Repository Citation
Howard F. Chang,
Import Taxes Based on Climate Policies and International Trade Law,
46
U. Pa. J. Int’l L.
299
(2025).
Available at:
https://scholarship.law.upenn.edu/jil/vol46/iss2/1