Environmental policies meet international trade law using WTO’s biofuels dispute to forecast the fate of EU’s deforestation ACT

Resumen

This article examines the intersection between environmental policies and international trade law by analyzing the World Trade Organization (WTO) Panel Report on the European Union (EU) biofuel regulations and forecasting the implications for the EU’s Deforestation Act. The EU’s strict measures on biofuels, particularly those affecting palm oil-based products, were challenged by Malaysia within the WTO framework. The findings of the Dispute Resolution Panel, which scrutinized the application of the Technical Barriers to Trade (TBT) Agreement and the General Agreement on Tariffs and Trade (GATT), provide a precedent for understanding the compatibility of the EU’s Deforestation Act with international trade law. Using a comparative methodology, the panel’s interpretations and their implications for environmental and trade policies are assessed. The EU’s Deforestation Act may face similar legal challenges. This analysis helps elucidate the complex balance between promoting trade liberalization and creating space for environmental measures. The study’s findings highlight the potential for conflict and convergence between trade obligations and environmental objectives, suggesting a future trajectory for international trade disputes involving environmental legislation.