GATTing the Greens: Not Just Greening the GATT
Environmentalists, traditionally hostile to free-trade advocates, argue for "greening" the General Agreement on Tariffs and Trade. But a stronger approach would be to "GATT" the greens and create an honest institutional broker to resolve transnational environmental disputes.
Until recently, trade policymakers and environmental officials worked on separate tracks, rarely perceiving their paths as intersecting. Now that environmental protection has become a central issue on the public agenda, trade and environmental policies seem deeply intertwined and in some cases badly tangled. Environmentalists are calling the General Agreement on Tariffs and Trade (GATT) outdated or worse and are demanding a "greening" of the GATT to reflect environmental concerns. Trade experts have responded with a sharp defense of the international trade regime and have expressed fear that further progress toward free trade will be undermined by protectionism in the guise of environmentalism.
The battle lines between trade and environmental policymakers need not become entrenched. Both camps defend principles that foster long-term security and prosperity, deter irresponsible shifting of costs to other nations or generations, and face a constant threat of erosion from special interests. Much of the discussion to date has focused on possible legal refinements to the GATT to build environmental sensitivity into the international trading system. But creating a new parallel international regime designed to defend the environment as a necessary element of a prosperous global economy and to coordinate policies with the GATT would offer the prospect of a broader peace between the trade and environmental communities. Like GATT, it would provide a bulwark against domestic political pressures that undermine long-term thinking and serve as an honest broker for the economic future, allocating costs, benefits and responsibilities in transnational disputes. In sum, instead of just "greening" the GATT, we should "GATT" the greens.
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The WTO is often portrayed as a dangerous threat to the environment. But this reputation is largely undeserved, because the trade body has in fact developed principles that accommodate both trade and environmental concerns. There are several steps it can take, however, to make sure the green trend continues.
The Defense Department's new report on East Asia reads as if the Cold War is ongoing. For Japan, the report signals U.S. acceptance of its ruinous trade deficits. For other Asian nations, it signals the hollowness of American superpower pretensions. The report masks the failure of the Clinton administration's trade policy. By insisting Japan remain a U.S. protectorate, Washington encourages Tokyo's reactionaries. The real threat to Asian security is not China but U.S. distrust of Japan as a true ally. Cold War military power is irrelevant to the economic challenges posed by East Asia's dynamism. Someone should tell the Pentagon.
The logic of free trade does not apply to currency convertibility, as the Asian currency crisis should have made clear.

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