A comprehensive, critical analysis of the interactions between investment, trade and the environment. It examines the consequences of existing multilateral investment and trade regimes, including the WTO and the MAI for the environment, and asks how they should be reformed to protect it. In doing so, the text shows how these regimes can be greened without erecting protectionist barriers to trade that frustrate the development aspirations of poorer countries. The solution seeks to offer a way out of one of the most difficult dilemmas in international policy: how investment and trade can protect the environment without encouraging protectionism by the industrialized world.
Eric Neumayer is lecturer in environment and development at the London School of Economics.
IPreface * Introduction * Part One: Foundations - Globalization: Investment, Trade and the Environment in an Integrating World Economy * The Current Multilateral Trade and Investment Regimes * Part Two: Investment - Pollution Havens: Do Developing Countries Set Inefficient Environmental Standards to Attract Foreign Investment? * Regulatory Chill: Do Developed Countries Fail to Raise Environmental Standards Because of Feared Capital Flight? * Roll-back: Do Foreign Investors Use Investor-to-State Dispute Settlement to Knock Down Environmental Regulations? * A Case Study: The Failed Attempt to Conclude a Multilateral Agreement on Investment * Part Three: Trade - Trade Liberalization and the Environment * GATT/WTO Dispute Settlement and the Environment * WTO Rules and Multilateral Environmental Agreements * Conclusions and Summary of Policy Recommendations * Appendix: Environmental Provisions in Regional and Bilateral Trade and Investment Agreements * Notes * References * Index