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Environment and StatecraftThe Strategy of Environmental Treaty-Making$
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Scott Barrett

Print publication date: 2005

Print ISBN-13: 9780199286096

Published to Oxford Scholarship Online: October 2005

DOI: 10.1093/0199286094.001.0001

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Trade Leakage and Trade Linkage

Trade Leakage and Trade Linkage

(p.307) 12 Trade Leakage and Trade Linkage
Environment and Statecraft

Scott Barrett (Contributor Webpage)

Oxford University Press

The previous chapters developed a theory of environmental cooperation in isolation of other international affairs. This chapter considers the possibility of linking different issues, focusing on linkage to international trade. It explains that for many environmental problems, trade is automatically linked. One consequence of this is trade “leakage”. Cooperation to reduce pollution by some countries may, through the trade mechanism, cause other countries to increase their pollution. It explains how trade restrictions can more than neutralize this trade leakage; they can actually help in sustaining more cooperation without harming international trade. The theory is illustrated by reference to sea turtle protection, tuna conservation, and the Fur Seal and Montreal Protocol agreements.

Keywords:   international trade, issue linkage, trade leakage, trade restrictions, credible punishments, multilateral trade rules, World Trade Organization

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