In this case, regulating how a good is produced, even in a distant country, may be beneficial. Note that the WTO does allow a country to ban imports of goods that harm its environment directly . Importantly, the WTO allows countries to make treaties to reduce pollution. For instance, if the U.S. and Canada want to agree to reduce sulfur dioxide emissions which cause acid rain, the WTO will not restrict the agreement. Similarly, if countries in the world decide to reduce greenhouse gas emissions the WTO cannot oppose the treaty.
Many labor groups are opposed to free trade.
From our earlier discussion, this should not be a surprise. Thus, many unions point to poor labor standards in low-wage countries, such as the presence of child labor, long working hours, and unsafe conditions. However, the WTO says member countries cannot discriminate against imports based on how the product is produced . The WTO argument, again, is that it's a matter of national sovereignty. If a country chooses not to have more strict labor laws, other countries should not be allowed to discriminate against that country.