Provisions of the Montreal Protocol Affecting Trade

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The Montreal Protocol on Substances That Deplete the Ozone Layer1 provides for the phase-out, by the year 2000, of CFCs and other chemicals damaging to the ozone layer.2 These chemicals are widely used in a number of industries–as refrigerants, solvents, foam blowing substances, aerosols, and fire extinguishers. The phaseout of these substances has serious trade implications for both Parties and non-Parties to the Protocol.

To encourage countries to join the Protocol, and to prevent companies that manufacture or use CFCs from shifting their operations to non-Party countries, the Protocol restricts trade in CFCs and CFC-related products with non-Parties. In addition to restricting trade with non-Parties, the Protocol contains a number of provisions that restrict trade in controlled:substances between Parties. Finally, the Protocol contains provisions for financial assistance and transfer of technology to help developing countries meet their obligations under the Protocol.

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