There is an intense debate ongoing nowadays due to disagreement about the impact of international trade rules on the environment. Many people criticize the World Trade Organization's stiff trade rules which have caused a decline in global environmental upliftment. 

One of the most significant issues is on how environmental measures should be implemented for trade purposes.  Some big-time cases on import bans concerning environmental matters have been obstructed by the WTO.

Trade liberalization advocates argue that the decisions are fair, and that environmental concerns should be controlled through measures other than eco-labelling trades.  Developing countries are skeptical in that environmental concerns in some sectors are only disguise to protect their own interest.  Environmentalists are arguing that the WTO has not incorporated environmental protection into its mandate.

The WTO is allowing environmental concerns as exceptions from its rules provided that these policies are implemented without discrimination and should not attempt to disguise as restriction on international trade.

A conflict between actions of WTO regarding environmental issues, and   non-WTO environmental aspects have been on the rise and so far, no action has been taken under an international environmental agreement affecting trade that has been challenged in the GATT-WTO system.

The United States is calling for reduction in tariffs on environmental goods such as goods that are universally agreed-upon as environmental and a list of proposed environmental goods.  The debate is focused on the definition of environmental goods which are generally understood to be goods or services that are to be used for the environment or goods that can provide environmental protection.

Examples of these goods are air-pollution control, recycling, incineration, and measuring and monitoring equipment.
Brazil, Mexico, Malaysia and China believe that the lists reflected an unfair treatment on goods exported by developed countries.  Several developing countries have asked for additional special and differential treatment to be included in the proposal.

Can developing countries cope up with WTO’s standards?  Developing countries frequently encounter problems in implementing regulations designed by developed countries because the policies are too stiff, change is too dynamic, and are not always clearly backed-up by scientific evidence.  The cost of enforcement is also a major obstacle.

Implementation of these policies is almost impossible among developing countries because they lack funds, have insufficient infrastructure and have no stake in the process because they are more of standard-takers rather than standard-makers.

Then, how can WTO assist developing countries in addressing environmental issues?  An environmental regulation becomes fair and effective only if developing countries can have a stake in the standard-setting process. Developing countries can be provided with financial aid from developed countries thru capacity building and technical assistance.  They can adopt innovative means to secure funding for standard setting from rich countries who have a stake in the program. 

The additional problem of standard setting could be covered up by the benefits from re-designing future WTO environmental regulation that considers the needs and concerns of developing countries.  In the light of this scenario, the WTO can display its effective role in addressing the world’s environmental problems.