General Agreement on Tariffs and Trade (GATT)
History of the Negotiations of the TRIPS Agreement
By Carlos Correa
When the currently developed countries started their industrialization process, the intellectual property system was very flexible and allowed them to industrialize based on imitation, as it was notably the case of the United States. The international intellectual property system evolved since the end of the XIX Century based on a number of conventions on which the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) was later built on. Developing countries resisted the incorporation into the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) of broad disciplines on intellectual property, as they were conscious that they were disadvantaged in terms of science and technology and that a new agreement, with a mechanism to enforce its rules, would freeze the comparative advantages that developed countries enjoyed. Faced with the threat of not getting concessions in agriculture and textiles -that were crucial for their economies- they were finally forced to enter into negotiations of an Agreement, the terms of which were essentially dictated by developed countries. Coercion rather than negotiations among equal partners seems to explain the final adoption of this Agreement.
(more…)
How the EU’s Carbon Border Adjustment Mechanism discriminates against foreign producers
By Peter Lunenborg and Vahini Naidu
In April 2023, the European Parliament adopted the final text of the Carbon Border Adjustment Mechanism (CBAM) and revisions to the European Union (EU) Emissions Trading System (ETS). One of the stated objectives of CBAM is to create a level playing field for selected sectors in the EU market and to protect against the risk of ‘carbon leakage’. Based on an analysis and comparison between the legal texts of CBAM and ETS, this paper finds that CBAM discriminates against foreign producers in favour of EU domestic producers in many areas including with regard to the scope and type of emissions covered, free allocation of allowances, exemptions under EU ETS not mirrored in CBAM, buying and selling of ETS allowances in comparison with CBAM certificates, verification, penalties, authorization, use of credits from the Carbon Development Mechanism (CDM) and guarantees.
The paper also provides a brief overview of how the CBAM and ETS align with WTO rules, highlighting the potential discrepancies in the implementation as they apply to foreign and EU producers respectively. The paper provides several suggestions on how to make EU’s CBAM more WTO-compatible and a recommendation for further legal research.
(more…)
