likelihood of losing the case if it were to be referred to the GATT Panel, Austria amended its law. Under the amended law the labelling requirement is (like any other eco-labelling program) voluntary, and the quality mark can now be issued to all kinds of timber and timber products from sustainable managed forest.

From the discussion above we can see that the eco-label is an effective way to protect environment and has less negative implication to free trade. In order to avoid dispute the key issue is that the trade impact of ever-growing environmental labelling programs will depend substantially on how the schemes are administered. This is also recognised by the CTE, which stated "well-designed eco-labelling schemes/programs can be effective instruments of environmental policy to encourage the development of an environmentally-conscious consumer."25

Aiming to the effectiveness of eco-labelling schemes, the following proposals should be incorporated into the Eco-labelling program in the future:

Harmonisation. There are many different Eco-labelling scheme standards among different labelling scheme countries in the world, even some are diverse. At the same time, different standards increase costs for producers if they have to meet a variety of labelling requirements in different countries. Harmonisation can help mitigate the adverse effects and decrease the cost of products while maintaining environmental goal. It is important to small foreign suppliers and those from the developing countries.

Mutual Recognition. It means to recognise the validity of divergent environmental criteria and ensures that trade interests are not unduly affected by this diversity. It can escape the condemn of discrimination and extrajurisdiction. Mutual Recognition will be much easier between countries having compatible levels of economic development.

Transparency. Because eco-labelling scheme primarily focus on domestic condition, it is difficult for foreign producers to gain access to the information to comply with those schemes. Promoting transparency to all interested parties, including exporting and developing countries, can help the interest of other countries, and facilitate environmental objectives and trade. It also can alleviate political pressure from other countries.

Technical Assistance. Providing technical assistance to developing countries may help reduce the potential negative trade effects of environmental labelling on developing countries. Technical assistance can play an important role in helping developing countries establish their own programs and will consequently lead to international deliberations.
Conclusion:

Whether there is conflict or not between free trade and environmental protection in theory, in practice there is controversy between the two issues which are both important to us. However, WTO is a trade organization anyway, so environmentalists are concerned with and disappointed to the approach of WTO existing system. Hence, more and more countries prefer eco-label program, especially voluntary scheme to protect environment. The idea behind is to encourage more and more people to care about environmental protection. If more and more consumers are concerned with the environment, we can have more and more clean water, clean air, clean everything. We have only one earth, so what we do tomorrow? Where we go tomorrow? Let’s do something!----“Heal the world!”(song by Michael Jackson)

Footnotes:

1 <The Marrakesh Agreement establishing the World Trade orgnization> was concluded on 15 April 1994, in Marrakesh, and entered into force on 1 January 1995, see http://www.wto.org

2 It was set up by the 1994 Ministerial Decision on Trade and Environment. It came into being with the WTO on 1 January 1995. See http://www.wto.org/english/tratop_e/envir_e/issu1_e.htm

3 The theory of the comparative advantages was established by David Ricardo in his book The Principles of Political Economy published in 1817. It continues to form the basis of co

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