Fossil Fuel Subsidies and the WTO:

'A Missed Opportunity'?

Garvita Sethi

 

ABSTRACT: The aim of this research is to contribute to the ongoing debate over the issue of phasing out of fossil fuel subsidies provided by member states and the role that the World Trade Organization (WTO) is expected to play in this respect, especially considering that its Preamble includes protection of environment and promotion of sustainable development as its objectives. The absence of disputes challenging these subsidies is a matter of concern when there is a specialized agreement in place to deal with them. It is submitted that the WTO is an effective forum to provide a mutually benefitting solution to this conflict between trade and climate change. However, it does require inter alia some transparency and modifications in its already existing set of rules.