Purpose - An environmental protection measure will have an effect on international trade when it affects the market access of goods and services. The General Agreement on Tariff and Trade (GATT) and the World Trade Organization (WTO), both has the environmental provisions enacted in order to acquire balance between international trading and environmental protection. Therefore, Malaysia, as a member of the WTO, need to abide to the rules of the GATT and the WTO in carrying out trade – related environmental measures.The objectives of this paper are to explore the international trade rules that need to be complied by the government of Malaysia in respect to invoking an environmental protection measure and secondly, to look into the government’s compliance to these international trade rules when invoking such measure. This is important as
the study will show how far Malaysia could comply with the international trade rules in respect to
invoking an environmental protection measure and to find balance between international trade and
environmental protection. This could assist Malaysia in producing trade – related environmental measures that can comply with the international trade rules and take into consideration the concern of all parties affected. Meagher (2015) has questioned whether the WTO panels’ have the ability to resolve any issues in respect to the balance of domestic policy and trade interests and whether developing countries has struggled in complying with regulatory standards imposed by developed countries due to unfair regulatory convergence.Therefore, here it is believed that it is up the government involved to have a good domestic policy.Elsig (2015) claimed that there are a first order compliance and second order compliance. The first order compliance is in respect to the ability of states to carry out their obligation under the international treaty and whether their national policies and enforcement are in conformity with the agreement.This study could establish Malaysia ability to comply with the international trade rules
