An Argument for WTO Oversight of Ecolabels

When the World Trade Organization (WTO) determined that the U.S.’s “dolphin-safe” tuna labels violated WTO obligations, environmentalists disparaged the organization for “ensur[ing] thousands of dolphins horrible deaths in tuna nets.” When another decision found that the U.S.’s meat labeling rules violated WTO dictates, consumer protection groups similarly lambasted the international institution for “leading a race to the bottom in consumer protection.” But these decisions pushed U.S. regulators to institute stronger measures that are more protective of dolphin and consumer safety. These strengthened protections are not accidental. The WTO opposed the original measures because they created uneven burdens, distorting trade without corresponding environmental or consumer benefit. Its intervention thus pushed the United States to improve its labeling systems for wider environmental and consumer benefit. This paper argues that such regulation by the WTO can improve environmental marketing more broadly, despite traditional environmentalist opposition to WTO intervention.