From Protectionism to Green Multilateralism: Trade Diplomacy and Environmental Accountability in the Global South

Abstract

Countries in the Global South are negotiating the shift from traditional protectionist trade policies to green multilateralism, which incorporates climate concerns into trade diplomacy. This study examines how developing economies view and challenge new climate-related trade standards, including the EU’s Carbon Border Adjustment Mechanism (CBAM) and the WTO’s Environmental Goods Negotiations and Voluntary Sustainability Standards. The Global South often perceives developed countries’ efforts to promote decarbonization through trade as a “one-size-fits-all” approach that could limit their development opportunities. Through qualitative case studies like India’s objections to CBAM, South Africa’s challenge at the WTO, BRICS climate-trade coordination, and ASEAN’s efforts for a fair EU Free Trade Agreement (FTA), the paper identifies key tension areas. Findings show that climate-related trade measures have the potential to accelerate low-carbon transitions, but without equity safeguards, they risk reinforcing a ‘hierarchical global order’ where developing nations bear disproportionate costs. The research argues that multilateral cooperation must include special and differential treatment, technology transfer, and capacity-building support for the Global South. This study connects theory to practice in the evolving trade-environment nexus. It highlights that effective green multilateralism necessitates balancing climate objectives with developmental equity.