Dumping

Concerns over environmental dumping often lead to calls for imposing countervailing or antidumping duties (labeled “environmental tariffs,” “green tariffs,” or “eco-tariffs”). Environmental dumping is increasingly discussed in relation to carbon leakage—where efforts to reduce emissions in one jurisdiction are offset by resulting increased emissions in another. Some trade and investment agreements provide that parties may not use low environmental protection to gain a competitive edge in trade and investments, requiring compliance and implementation of existing standards. Under certain circumstances, European Union law therefore determines ETC the existence of dumping based on a benchmark country with an “adequate level of social and environmental protection.