Trade Leakage and Trade Linkage

Scott Barrett

in Environment and Statecraft

Published in print November 2005 | ISBN: 9780199286096
Published online October 2005 | e-ISBN: 9780191602832 | DOI:
 Trade Leakage and Trade Linkage

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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

Chapter.  12778 words.  Illustrated.

Subjects: Economic Development and Growth

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