LEGAL ANALYSIS OF CARBON TARIFFS – IN TERMS OF THE ARTICLE XX OF THE GENERAL TARIFFS AND TRADE AGREEMENT IN INTERNATIONAL TRADE

Abstract

 This article examines the legality of carbon tariffs in terms of Article XX of the General Agreement on Tariffs and Trade (GATT). Carbon tariffs are not only related to international trade, but also to a measure to reduce greenhouse gas emissions, so they are regulated by both the World Trade Organization (WTO) and international laws on climate change. From a legal point of view, especially international law, carbon tariffs are essentially a unilateral measure of trade in environmental goods, and unilateral measures of trade in environmental goods are often seen as barriers to green trade.

Under the WTО, carbon tariffs can violate most favored nation and national treatment principles. Western scholars believe that carbon tariffs can comply with the above principles due to a certain institutional structure. Even if the above principles are violated, the environmental exception clause in Article XX of the GATT can be invoked to justify its legitimacy.

This article analyzes Articles XX, introduction, (b) and (g) of the GATT, which are the key to determining the legality of carbon tariffs, and the WTO dispute settlement decision also provides useful information to analyze this issue. It is concluded that while specific carbon tariff measures may constitute violations of the relevant GATT rules, the carbon tariffs themselves comply with Article XX (b) and (g) of the GATT.