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Trade in Environmental Goods: A Review of the WTO Appellate Body’s Ruling in US — Countervailing Measures (China)

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  • Rachel Brewster
  • Claire Brunel
  • Anna Maria Mayda

Abstract

In this paper we claim that, in the WTO Appellate Body (AB)’s ruling in US — Countervailing Measures (China), the AB decision has not put in question the practice of imposing countervailing duties (CVDs). While the US has formally “lost” the case, a change in the procedures and tests used to motivate the CVD will allow the US to continue using this policy tool on the specified products. From an economic point of view, this is not welcome news since CVDs have the standard distortionary effects of tariffs and could go against environmental goals. From a political-economy point of view, the CVDs in this case appear driven by pressure of domestic manufacturers of clean energy technology and products.

Suggested Citation

  • Rachel Brewster & Claire Brunel & Anna Maria Mayda, 2015. "Trade in Environmental Goods: A Review of the WTO Appellate Body’s Ruling in US — Countervailing Measures (China)," RSCAS Working Papers 2015/69, European University Institute.
    • Handle: RePEc:rsc:rsceui:2015/69
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    References listed on IDEAS

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    Keywords

    Environmental goods; countervailing duties; WTO.;
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