The trade regime and the climate regime: institutional evolution and adaptation

This article addresses concerns that the multilateral trade regime centered in the WTO and the emerging climate regime may conflict in ways that could be damaging to either or both. The article discusses the institutional and diplomatic context of these concerns, and it identifies the kinds of issues that are in question. The analysis suggests that there are opportunities for win-win outcomes in the interactions of the two regimes, for instance in the possibility of reducing fossil fuel subsidies. However, there are also problematic areas where they intersect. A core issue-and as yet an unresolved one-is whether and how emission credit trading and other activities envisioned by the Kyoto Protocolwould be subject toWTOrules. The resolution of this issue will affect many other issues as well. Additional specific issues about the interactions of particular provisions inWTOagreements and theKyoto Protocol are analyzed in a subsequent companion article in Climate Policy .