Course Description

This course serves as a foundational exploration of the intersection between international trade and the environment. It is designed to be accessible to students with a basic understanding of Public International Law (taught as a mandatory course at NLSIU). While prior exposure to International Trade Law (taught as a mandatory course for Batch of 2022-2027 but not for Batch of 2025-2030) is desirable, it is not a prerequisite. Students who have not yet undertaken a course in International Trade Law may also take up this course as it covers the legal aspects of WTO Law relevant to this course.

This course is broadly divided into four parts – the conceptual framework (the “why” and “how” of the  trade-environment nexus); the jurisprudential evolution (extremely relevant as most of the action has  happened in the context of WTO disputes); environmental provisions in trade agreements; and the  contemporary developments and issues. Together, these four components offer a foundational  understanding of the complex and growing interaction between international trade and environmental  regimes. While the course discusses environmental measures in the context of WTO dispute settlement and a case study on EU’s carbon border tax measure, it does not intend to cover specific measures such  as sustainable biofuels, renewable energy subsidies, etc. and their regulation under the relevant WTO  Agreements, which is more suited for an advanced course on this topic.

The course assumes a basic understanding of Public International Law (PIL) and thus, excludes a dedicated discussion of PIL principles. With respect to International Trade Law, this course covers the legal concepts relevant to the trade-environment interface. This course approaches the topic from the perspective of international trade law and policy; students should note that an environmental law practitioner might take a different approach to these same issues.

The reading material is deliberately curated to cover both theoretical and practical perspectives. Primary sources include WTO legal texts (e.g., GATT) as well as WTO Panel and Appellate Body Reports. Select excerpts from these Reports would help the students understand the evolution in the treatment the environment as a “non-trade” issue to a key issue in global trade governance. Secondary literature includes articles from seminal scholars (e.g., Esty and Charnovitz) to provide the theoretical foundation for understanding the relationship between the two competing regimes. Given the dynamic nature of this topic, the material also includes recent working papers, news reports, and dispute consultations to ensure students engage with the most topical developments and grasp the increasing relevance of the issues being discussed.

The pedagogical method includes a combination of lectures and Socratic discussions. Students will be expected to engage critically with the assigned readings to explore the nuances of the trade-environment nexus. The faculty will employ a “law and policy” approach, drawing from her extensive professional experience as a trade lawyer and policy advisor to the Government of India. Furthermore, the course incorporates a problem-solving exercise. This component requires students to apply the conceptual and legal frameworks learned in the course to a hypothetical problem, bridging the gap between theory and practice.

Brief Description of the Course: The relationship between international trade and the environment has long been one of the most controversial issues on the global trade policy agenda. In an era of growing environmental challenges and the climate change crisis, this interface has become more critical than ever. This course aims to provide students with foundational knowledge and critical understanding of the intersection between international trade and the environment. It explores the evolving global policy landscape, including key frameworks such as the Multilateral Environmental Agreements (MEAs), World Trade Organization (WTO) disciplines, and Free Trade Agreements (FTAs). Through interactive sessions and case studies, students will critically examine the interplay between trade rules, environment, and inclusive economic growth.

Course Structure: The course begins with a discussion on the rationales behind the trade-environment linkage, tracing the evolution of environment from a ‘non-trade’ issue to a key issue in contemporary global trade governance. It covers the core WTO disciplines relating to environment, and the inter-relationship between Multilateral Environmental Agreements (MEAs) and the WTO. Discussions dedicated to the WTO Panels and the Appellate Body jurisprudence will provide a deep dive into how adjudicatory bodies have treated environment within the context of WTO law. Building on this, the course will discuss the integration of environmental provisions in free trade agreements, including a discussion on India’s evolving approach. It will also discuss the recent trends in environment-driven unilateral trade measures, and the implications for the multilateral trade regime.

Target audience: This course is designed to serve undergraduate and postgraduate students interested in the legal and policy issues at the intersection of trade and environment/ climate change.