The Environment and Natural Resources Practice Group actively provides counsel on environmental issues arising in the context of international trade and on international transactions that include environmental concerns. There are several international environmental agreements that have a direct impact on international trade.  These include The Montreal Protocol on Substances That Deplete the Ozone Layer, the Convention of International Trade in Endangered Species of Wild Fauna and Flora (CITES) and the Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and Their Disposal.

Certain international trade agreements, although not directly environmental in nature, have important environmental implications. For example, the North American Free Trade Agreement (NAFTA) expressly provides authority to national governments to prohibit the entry of goods that do not meet domestic environmental requirements. Moreover, NAFTA explicitly recognizes a nation’s authority to enforce trade restrictions pursuant to international environmental agreements such as the Montreal Protocol, CITES and the Basel Convention. NAFTA stands in contrast to the General Agreement on Tariffs and Trade, commonly known as the GATT, which is generally viewed as antagonistic to both domestic and international environmental protection.

Unilateral environmental protection also has significant impact on international trade. Many nations such as the U.S. use trade measures to ensure the effectiveness of domestic environmental protection.

Additionally, as a general rule, businesses that produce or sell goods in foreign countries must comply with the host country’s applicable environmental laws and standards, and in many cases, will be subject to liability for acts or omissions taken within the host country. The national environmental laws and standards and the intensity of their enforcement, however, vary in almost every country.  Consequently, it is critical to seek counsel with the expertise to understand the numerous international environmental regulations and provide effective, valuable representation.