Trade Leakage Concerns Sample Clauses

Trade Leakage Concerns. A major concern for the negotiators of Montreal was the potential for “trade leakage,” whereby the production of ozone depleting substances would merely shift from the parties to the Protocol to non-parties, in other words, from the industrialized countries to the developing countries.60 Under such a scenario, the Montreal Protocol would only serve to redistribute, rather than reduce, the production and consumption of ozone depleting substances. In this way, trade leakage would merely serve to increase the payoffs for non-cooperation, and hence, would undermine participation and compliance. From the outset of negotiations, the parties therefore worked hard to include measures to stop trade leakage.61 Negotiations, focused on two solutions: (1) to create incentives for developing countries to also assume obligations for the public good, and (2) to implement tough trade measures to encourage participation.62 However, this did not prove to be easy. Specifically, developing countries felt that they were responsible for only a small portion of the ozone problem, and therefore argued