Climate and trade in a divided world: can measures adopted in the north end up shaping climate change legislative frameworks in the south?

This chapter seeks to explore to what extent climate change policies in the North may end up shaping policies in the South by obliging exporters from developing countries to comply with specific climate change requirements. The essay begins by highlighting carbon leakage and competitiveness concerns as reasons why an industrialized country may consider targeting imports from developing countries. The chapter then focuses on United States legislative initiatives at the federal level proposing to link imports from developing countries to climate change policy. It then examines whether the current international trade rules enshrined in the World Trade Organization Agreements allow for such domestic climate change measures and what options are open to developing countries in case of a climate and trade dispute. It seeks to determine, in particular, whether relying on the multilateral trading system would actually benefit these countries. The conclusion suggests a way forward.