ABSTRACT SYAM ABDI MASYKUR 2013 LEGAL OVERVIEW OF THE IMPLEMENTATION OF THE ECOLABELLING PROGRAMS IN WORLD TRADE ORGANIZATION

(WTO) MEMBERS ( iv, 109) pp, tab l.

(Wardah, S.H., M.H., LL.M.) Eco-labelling claim, which indicates the environmental aspects of a product or service, has been one of the more controversial aspects of the work-program of the WTO Committee on Trade and Environment (CTE). The CTE recognizes that well designed eco-labelling programmes can be effective market instruments to foster environmental awareness amongst consumers. At the same time, these programs raise some concerns about their possible trade effects and their potential of becoming a disguised restriction on international trade, especially among developing countries. Thus, WTO through TBT Agreement in accordance with article 2, 4, and annex 3 try to prevent eco-label from creating unnecessary barriers to trade. The purpose of this thesis is to comprehend the compability of eco-labelling programs with the provisions established in WTO and to know the implementation of the eco-labelling programs among WTO members. The method that will be used in conducting the research is library research. Library research is conducted toward reading text books, regulation prevails, as well as scholars opinions that pertinent to the problems. Result of the research emphasizes that TBT Agreement covers eco-labelling programs, not only government-sponsored, but also private sectors through its provisions, namely technical regulation which means mandatory and standard that reflects voluntary. In the meaning of standard, central governments are burdened to encourage private sectors exerting the Code of Good Practice in order to reach transparency and credibility. Another problem still remain is non-PPMs or LCA that award eco-label to products based on process and production methods. In accordance with GATT provisions, it is considered as violation to GATT, if treat imported products less favourable than national like products or other members products base on the methods used in process and production although that products may harm the environment during their process. Moreover, according to article XX(b) of GATT, less favourable treatment is permissible to protect human, animal or plant life or health, but this condition prevail only in consumption stage, not when the production. However, non-PPMs-based eco-label may be not inconsistence with TBT Agreement since it adopts certain international standard with the meaning of Article 2.4. Eco-labels that considered creating trade barriers could be diminished toward harmonization, mutual recognition, transparency, and technical assistance.