Publication

This paper addresses concerns regarding the effect of the Kyoto Protocol on economic competitiveness of Canadian firms with respect to those based in the US. While Canadian industries face mandatory emissions constraints, those in the US do not; they are instead subject to only voluntary measures. The issue of US subsidiaries based in Canada, and the possibility of transfers of pollution credits are also discussed. The author further examines the role of the World Trade Organisation (WTO), exploring a scenario wherein trade measures are invoked by those party to the Kyoto Protocol against those not, in order to meet their emissions targets.