Research Article

The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming?

Volume: 46 Number: 1 July 21, 2026
EN TR

The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming?

Abstract

This article examines the problematic interaction between two branches of public international law, namely, international environmental law and trade law, focusing on the growing tension between environmental commitments and the current World Trade Organization ("WTO") subsidy framework in the context of the green transition. It analyzes whether the existing WTO system was designed to accommodate and is capable of supporting comprehensive green subsidies that are increasingly adopted by states as part of their green industrial policies. Using a doctrinal, jurisprudential, and policy-based analysis of WTO subsidy rules, the article finds that the current WTO framework provides limited legal space and significant legal uncertainty for large-scale green subsidies. It further observes that this misalignment unfolds at a time when the WTO Dispute Settlement Body, which would normally provide multilateral remedies, remains dysfunctional due to the absence of a functioning Appellate Body. In this context, unilateral measures, i.e., countervailing duties ("CVDs"), are increasingly seen as the primary recourse, further intensifying trade tensions and potentially leading to an undesirable green CVD war. This article contributes to the literature by illustrating how the interaction between green industrial policies, WTO subsidy disciplines, and trade remedies generates new forms of conflict within the multilateral trading system, with significant implications for both environmental policy objectives and the stability of international trade relations.

Keywords

References

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Details

Primary Language

English

Subjects

Environmental Law, International and Comparative Law (Other)

Journal Section

Research Article

Publication Date

July 21, 2026

Submission Date

September 30, 2025

Acceptance Date

May 8, 2026

Published in Issue

Year 2026 Volume: 46 Number: 1

APA
Durmuş, M. T. (2026). The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming? Public and Private International Law Bulletin, 46(1), 227-253. https://doi.org/10.26650/ppil.2026.46.1.1793938
AMA
1.Durmuş MT. The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming? PPIL. 2026;46(1):227-253. doi:10.26650/ppil.2026.46.1.1793938
Chicago
Durmuş, Mustafa Taha. 2026. “The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming?”. Public and Private International Law Bulletin 46 (1): 227-53. https://doi.org/10.26650/ppil.2026.46.1.1793938.
EndNote
Durmuş MT (July 1, 2026) The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming? Public and Private International Law Bulletin 46 1 227–253.
IEEE
[1]M. T. Durmuş, “The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming?”, PPIL, vol. 46, no. 1, pp. 227–253, July 2026, doi: 10.26650/ppil.2026.46.1.1793938.
ISNAD
Durmuş, Mustafa Taha. “The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming?”. Public and Private International Law Bulletin 46/1 (July 1, 2026): 227-253. https://doi.org/10.26650/ppil.2026.46.1.1793938.
JAMA
1.Durmuş MT. The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming? PPIL. 2026;46:227–253.
MLA
Durmuş, Mustafa Taha. “The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming?”. Public and Private International Law Bulletin, vol. 46, no. 1, July 2026, pp. 227-53, doi:10.26650/ppil.2026.46.1.1793938.
Vancouver
1.Mustafa Taha Durmuş. The Discrepancy Between Environmental and Trade Commitments: Is a Green Countervailing Duty War Looming? PPIL. 2026 Jul. 1;46(1):227-53. doi:10.26650/ppil.2026.46.1.1793938