Footprint of recycled water subsidies downwind of Lake Michigan

Continental evaporation is a significant and dynamic flux within the atmospheric water budget, but few methods provide robust observational constraints on the large-scale hydroclimatological and hydroecological impacts of this ‘recycled-water' flux. We demonstrate a geospatial analysis that provides such information, using stable isotope data to map the distribution of recycled water in shallow aquifers downwind from Lake Michigan. The δ2H and δ18O values of groundwater in the study region decrease from south to north, as expected based on meridional gradients in climate and precipitation isotope ratios. In contrast, deuterium excess (d = δ2H − 8 × δ18O) values exhibit a significant zonal gradient and finer-scale spatially patterned variation. Local d maxima occur in the northwest and southwest corners of the Lower Peninsula of Michigan, where ‘lake-effect' precipitation events are abundant. We apply a published model that describes the effect of recycling from lakes on atmospheric vapor d values to estimate that up to 32% of recharge into individual aquifers may be derived from recycled Lake Michigan water. Applying the model to geostatistical surfaces representing mean d values, we estimate that between 10% and 18% of the vapor evaporated from Lake Michigan is re-precipitated within downwind areas of the Lake Michigan drainage basin. Our approach provides previously unavailable observational constraints on regional land-atmosphere water fluxes in the Great Lakes Basin and elucidates patterns in recycled-water fluxes that may influence the biogeography of the region. As new instruments and networks facilitate enhanced spatial monitoring of environmental water isotopes, similar analyses can be widely applied to calibrate and validate water cycle models and improve projections of regional hydroecological change involving the coupled lake-atmosphere-land system. Read More: http://www.esajournals.org/doi/abs/10.1890/ES12-00062.1

Energy subsidies from a climate and trade perspective

A short paper for dissemination based on a research piece published by the E15Initiative: Subsidies, Clean Energy, and Climate Change, February 2015. Implemented jointly by ICTSD and the World Economic Forum, the E15Initiative convenes world-class experts and institutions to generate strategic analysis and recommendations for government, business, and civil society geared towards strengthening the global trade and investment system. The paper is also published in Spanish and Portuguese.

Subsidies, Clean Energy, and Climate Change

Estimates show that fossil fuel subsidies average USD 400–600 billion annually worldwide while renewable energy (RE) subsidies amounted to USD 66 billion in 2010 and are predicted to rise to USD 250 billion annually by 2035. Domestic political rationales for energy subsidies include promoting innovation, job creation and economic growth, energy security, and independence. Energy subsidies may also serve social and environmental goals. Whether and to what extent subsidies are effective to achieve these goals or instead lead to market distortions is a matter of much debate and the trade effects of energy subsidies are complex. This paper offers an overview of the types of energy subsidies that are used in the conventional and renewable energy sectors, and their relationship with climate change, in particular greenhouse gas emissions. While the WTO’s Agreement on Subsidies and Countervailing Measures (ASCM) is mostly concerned with harm to competitors, this paper considers the extent to which the Agreement could also discipline subsidies that cause harm to the environment as a global common. Beyond the existing legal framework, this paper surveys a number of alternatives for improving the ability of subsidies disciplines to internalize climate change costs of energy production and consumption. One option is a new multilateral agreement on subsidies or trade remedies (with an appropriate carve-out in the WTO regime to allow for it if such an agreement is concluded outside it). Alternatively, climate change-related subsidies could be included as part of another multilateral regime or as part of regional agreements. A third approach would be to incorporate rules on energy subsidies in sectorial agreements, including a Sustainable Energy Trade Agreement such as has been proposed in other ICTSD studies.

Climate Change and International Law. Exploring the Linkages Between Human Rights, Environment, Trade and Investment

Mapping the relevant principles and norms of international law, the paper discusses scientific evidence and identifies current legal foundations of climate change mitigation adaptation and communication in international environmental law, human rights protection and international trade regulation in WTO law. It briefly discusses the evolution and architecture of relevant multilateral environmental agreements, in particular the UN Framework Convention on Climate Change. It discusses the potential role of human rights in identifying pertinent goals and values of mitigation and adaptation and eventually turns to principles and rules of international trade regulation and investment protection which are likely to be of crucial importance should the advent of a new multilateral agreement fail to materialize. The economic and legal relevance of rules on tariffs, border tax adjustment and subsidies, services and intellectual property and investment law are discussed in relation to the production, supply and use of energy. Moreover, lessons from trade negotiations may be drawn for negotiations of future environmental instruments. The paper offers a survey of the main interacting areas of public international law and discusses the intricate interaction of all these components informing climate change mitigation, adaptation and communication in international law in light of an emerging doctrine of multilayered governance. It seeks to contribute to greater coherence of what today is highly fragmented and rarely discussed in an overall context. The paper argues that trade regulation will be of critical importance in assessing domestic policies and potential trade remedies offer powerful incentives for all nations alike to participate in a multilateral framework defining appropriate goals and principles.

Internationale Kontrolle lokaler Verwaltung in einer Konfliktregion. Das Experiment „Freie Stadt Danzig“ (1920-1939)

The Free City of Danzig was founded by the Allies after World War One to settle the conflict between Poles and Germans as to which territory the town belonged. The League of Nations was designated to be the guarantor of its status. British and American experts and policy advisors saw it as an experiment on the way to new forms of statehood, by means of which nationalism as the founding principle of territorial entities could be overcome. However, the „Free City“ status was rejected by both the city’s inhabitants and German and Polish government agencies, with the result that the League and its local representative, the High Commissioner, were constantly confronted with difficulties in the interpretation of the international treaties and conventions relating to Danzig. In addition, hardly anyone in Danzig, Germany or Poland was interested in the economic and financial situation of the Free City, but were more interested in winning political battles than in the well-being of the city and its inhabitants. As a result, the situation in Danzig became more and more hopeless. The city became increasingly dependent on (illegal) German subsidies, while the High Commissioners generally cared more about their own prestige and that of their home countries than about the interests of the League of Nations. But as no political means of modifying the city’s status had been provided for, nothing changed formally in Danzig until Germany started the Second World War and annexed the city in September 1939. In retrospect, the international control of local government could not contribute to a long-term solution for Danzig. It merely postponed its violent solution for twenty years.

The Protection and Promotion of Cultural Diversity in a Digital Networked Environment : Mapping Possible Advances to Coherence

The present paper is the result of a four-year-long project examining the concept and the policies of cultural diversity and the impact of digital media upon the regulatory environment where the goal of cultural diversity is to be achieved. The focus of the project was primarily on the international level and in particular on the World Trade Organization (WTO) and the United Nations Educational Scientific and Cultural Organization (UNESCO), which also epitomise the often framed as opposing pair of trade and culture. In the broad context of the project, we sought to pinpoint the essential elements of an international trade-and-culture conducive framework that can also overcome the existing fragmentation in the field of international law and move towards more coherent solutions. In a narrower context, we sketched some possible improvements to the WTO law that can make it more suitable to the digital networked environment and to the objective of diverse media that some states aspire. . Our key messages are: (1) Neither the WTO nor UNESCO currently offers appropriate solutions to the trade and culture predicament and allows for efficient protection and promotion of cultural diversity; (2) The trade and culture discourse is overly politicised and due to the related path dependencies, a number of feasible solutions appears presently blocked; (3) The digital networked environment has profoundly changed the ways cultural content is created, distributed, accessed and consumed, and may thus offer good reasons to reassess and readjust the present models of governance; (4) Access to information appears to be the most appropriate focus of the discussions with view to protecting and promoting cultural diversity in the new digital media setting, both in local and global contexts; (5) This new focal point demands also broadening and interconnecting the policy discussions, which should go beyond the narrow scope of audiovisual media services, but cautiously account for the developments at the network and applications levels, as well as in other domains, such as most notably intellectual property rights protection; (6) There are various ways in which the WTO can be made more conducive to cultural policy considerations and these include, among others, improved and updated services classifications; enhanced legal certainty with regard to digitally transferred goods and services; incorporation of rules on subsidies for services and on competition.

The WTO and Food Security: What’s Wrong with the Rules?

The WTO Agreement on Agriculture (AoA) is the predominant multilateral legal framework governing agricultural trade. The objective of the AoA is to liberalise trade in agriculture through reductions in tariffs, domestic support and export subsidies. The AoA has not, however, ‘levelled the playing field’ and has not resulted in the equitable distribution of food, particularly for the poorer developing countries. On the other hand, support for small farmers does not ensure food security for the poor. While food security has no simple solutions such as “free trade is good for you”, reform proposals for trade rules which only address agricultural policy instruments fail to account for consumer and other interests: neither tariff reductions and subsidy disciplines, nor safeguards and other measures of producer protection can automatically increase food security. Rather, what is needed is the full and proper implementation of a number of commitments which the international community has already entered into in various human rights treaties, but which even the envisaged results of the now failed Doha Round negotiations could not ensure without revisiting relevant multilateral trade and investment rules.

Do WTO rules improve or impair the right to food?

The global food crisis of 2007–08 seems to be forgotten. Media attention at the time focused on food riots in Haiti and Mozambique, while world leaders and more than a dozen international organizations gathered for several food summits, calling for immediate relief measures. But not a single government seems to remember its obligations under the Right to Food (R2F) which the United Nations (UN) had enshrined back in 1948. Today we have to acknowledge that the R2F still lacks an adequate response under the present multilateral rules and disciplines applying to food production and trade. This chapter examines the present rules and disciplines under the AoA and of those contemplated in the Doha Development Round. Here we find that despite claims to the contrary they contribute precious little to the R2F. Some of the present rules, or the lack thereof, can even act as disincentives for global and national food security. Various forms of production and export subsidies, food aid abuse and export restrictions, are still WTO-legal, with few remedies available to food insecure developing countries. This amounts to a violation of their R2F obligations by many WTO Members.

Swiss Policies for more Food Security

Resource-poor yet blissful Switzerland is also one of the most food-secure countries in the world: there are abundant food supplies, relatively low retail prices in terms of purchasing power parity, with few poverty traps. Domestic production covers 70% of net domestic consumption. A vast and efficient food reserve scheme insures against import disruptions. Nonetheless, the food security contribution by the four sectoral policies involved is mutually constrained: our agriculture is protected by the world’s highest tariffs. Huge subsidies, surface payments, and some production quotas substitute market signals with rent maximisation. Moreover, these inefficiencies also prevent trade and investment policies which would keep markets open, development policies which would provide African farmers with the tools to become more competitive, and supply policies which would work against speculators. The paralysing effect of Swiss agricultural policies is exacerbated by new “food security subsidies” in the name of “food sovereignty” while two pending people’s initiatives might yet increase the splendid isolation which in effect reduce Swiss farmer competitiveness and global food security. Is there a solution? Absent a successful conclusion of the Doha Round (WTO) or a Transatlantic Trade and Investment Partnership Agreement (TTIP) further market openings and a consequent “recoupling” of taxpayer support to public goods production remain highly un-likely. To the very minimum Switzerland should resume the agricultural reform process, join other countries trying to prevent predatory behaviour of its investors in developing countries, and regionalise its food reserve.

Legal Aspects of Sino-­African Tied Aid: The Art of Playing with a Legal Grey Area

Sino-African trade has seen a fifty-fold increase in the years 1999 to 2008. In some African regions, particularly in sub-Saharan Africa, China has even replaced the US as the most important trading partner today. But China holds not a single FTA on the African continent, while other major trading partners of African economies rely on an extensive framework of different trade agreements. What is, thus, the legal basis of the recent increase of Sino-African trade? Interestingly, Sino-African trade has seen a particularly strong increase in countries that have entered into tied aid agreements with China. These agreements are commonly known under the term ‘Angola-Model’ and consist of a multifaceted network of barter-trading-systems, aspects of tied aid and concessions for oil and other commodities linked with a state loan. It is likely that these agreements have an impact on the trade-flows between African countries and China. This paper discusses the legal character of this new form of economic cooperation, or modern version of tied aid. Critical legal aspects related to this form of tied aid refer to violation of the principle of most-favoured nation (MFN), illegitimate export subsidies, market access, public procurement and transparency in the international trading system. However, despite the recent outcry of the foremost Western community against the strategy of the Chinese government on the African continent, the practice of the Angola-Model based tied aid is not entirely new, and neither is it against the law. The case of tied aid is situated in a legal grey area that should be examined thoroughly in order to strengthen the international trading system and to support developing countries in their attempt to gain from tied aid arrangements.

Ernährungssicherheit in der Schweiz

Viele Länder verankern die Versorgungs- oder Ernährungssicherheit als staatspolitisches Ziel in ihrem Grundgesetz. Neuerdings wird auch das Recht auf Nahrung und auf die Erfüllung weiterer Grundbedürfnisse aufgeführt. Das Schweizer Parlament hat darüber hinaus sogar den Grundsatz der Ernährungssouveränität im Landwirtschaftsgesetz verankert. Die zur Förderung dieser Ziele genannten Aufgaben und Eingriffsrechte des Staates sind jeweils unterschiedlich und unterschiedlich präzise formuliert. Dabei gibt es für jedes Land eigentlich nur zwei Möglichkeiten zur Ernährung: Inlandproduktion und Einfuhr. Eine zusätzliche Option ist die Bildung von Nahrungsmittelreserven zur Überbrückung von Versorgungsengpässen. Die Schweiz benützt und fördert alle drei Möglichkeiten zu ihrer Ernährungssicherheit, im Wesentlichen mit vier Politiken: Versorgungs-, Aussenwirtschafts-, Agrar- und Entwicklungspolitik. Bei Störungen sollen die durch Grenzabgaben finanzierten Pflichtlager während rund sechs Monaten die Inlandnachfrage sichern. Die Optimierung und die Abstimmung unter den verschiedenen Sektorpolitiken, welche unter Berücksichtigung der internationalen Rahmenbedingungen eine grösstmögliche Ernährungssicherheit herbeiführen, gehört zu den Kernaufgaben jedes Staates. Die Umsetzung der genannten Sektorpolitiken ist jedoch in der Praxis nicht immer kohärent, geschweige denn konfliktfrei. Dieser Artikel beschreibt zunächst die internationalen rechtlichen und ökonomischen Parameter für die Schweizer Versorgungspolitik und ihre Beziehung zur Wirtschaftsfreiheit im Allgemeinen, und speziell auf ihre Zweckmässigkeit hinsichtlich der Ernährungssicherheit. Die Analyse der Wechselwirkungen und der Konflikte bei der Umsetzung zeigt, dass die Schweizer Ernährungssicherheitspolitik (food security) in Wirklichkeit eine Politik zur einheimischen Produzentensicherheit ist (farm security). Den Abschluss bilden einige Vorschläge zur Minderung der sektorpolitischen Inkohärenzen und der festgestellten negativen Auswirkungen der Agrarpolitik auf die Schweizer und globale Ernährungssicherheit.

Energy Export Restrictions in the WTO Between Resources Nationalism and Sustainable Development

This chapter aims at contributing to the trade and energy debate by focusing on the specific issue of export restrictions. It starts from the premise that a balanced and efficient regulation of export barriers in the energy sector would contribute to tackle emerging energy concerns such as energy security and the elimination of fossil fuel subsidies in light of the challenge of climate change mitigation. It assesses the adequacy of existing WTO rules on export restric­tions and accordingly identifies the main gaps and inconsistencies inherent in the current disciplines from an energy-specific perspective. Finally, it discusses the merits of an energy-specific approach to advance existing disciplines in the most deficient area of export duties based on the systematisation of the Russian ‘model’. Such approach could raise the overall level of commitments in the energy sector while still allowing for the systemic applicability of GATT environmental exceptions in a manner consistent with the principle of sus­tainable development recognised in the Preamble of the WTO Agreement.

Learning by Not Doing: Subsidy Disciplines in Services Trade

This paper explores the hitherto futile quest for developing disciplines on the trade- and investment-distorting effects of services subsidies. It sheds light on the multiplicity of factors that have weighed on the conduct of negotiations on subsidy disciplines in a services trade context at both the global and preferential levels, and advances a few thoughts on what the future may hold for the adoption of such disciplines. The analysis suggests that it is rather unlikely that WTO Members will any time soon reach a consensus on the matter of subsidy disciplines for services beyond those that currently (and timidly) obtain in the GATS and in many preferential trade agreements. The main reason behind such a conclusion stems from a marked rise in the value of preserving policy space in a trading environment characterized by considerably greater global market contestability than two decades ago.