The WTO and the Kyoto Protocol: interaction issues

This article builds upon the broad survey of climate-trade interactions in Part 1, by focusing upon the specific issues in the interaction of the WTO and the Kyoto Protocol.1 It classifies the various issues into three groups according to their potential to cause problems and relative urgency. The article gives special attention to issues that are problematic because of the likelihood of occurrence of specific conflicts and the significance of their economic and/or political consequences. It concludes that although there are many interactions that are not problematic and some that offer the potential for win—win outcomes, the possibility of offsetting border measures that could be applied against energy-intensive imports from the USA may become a particularly nettlesome issue.