REPORT (2016) OF THE COMMITTEE ON TRADE AND ENVIRONMENT
1. In 2016, under the Chairmanship of the Ambassador of Chile, Mr.
Héctor Casanueva, the Committee on Trade and Environment in Regular Session
(CTE) held two formal meetings, one on 30 June[1] and one on 14 (afternoon) and 15 November[2], and one informal meeting on 14 November, morning.
2.
The work of the
CTE was organized in accordance with the mandate established by the
Doha Ministerial Declaration, Paragraphs 32, 33 and 51.[3] Discussions took place mainly on environmental requirements and
market access issues under Paragraph 32(i) ("The effect of environmental
measures on market access, especially in relation to developing countries, in
particular the least-developed among them, and those situations in which the
elimination or reduction of trade restrictions and distortions would benefit
trade, the environment and development").
Other items addressed by the CTE were item 1[4] and item 4.[5]
3.
No discussion
took place under Paragraph 32(ii) (relevant provisions of the
TRIPS Agreement); Paragraph 32(iii) (labelling requirements for
environmental purposes); Paragraph 33 (technical assistance, capacity building
and environmental reviews); and Paragraph 51 (developmental and
environmental aspects of the negotiations).
1 PARAGRAPH
32
1.1 Paragraph 32(i)
"The effect of environmental measures on
market access, especially in relation to developing countries, in particular
the least-developed among them, and those situations in which the elimination
or reduction of trade restrictions and distortions would benefit trade, the
environment and development."
4.
At the June
meeting, Canada briefed delegations on its forest and forest product governance
and regulations, which are founded on sustainable forestry management principles.
Canada explained that these laws and regulations ensured that products
originating from Canada were from sustainable and legal sources and third-party
sustainable forest management standards provided assurances that companies
operating in Canada do so legally, sustainably and in compliance with
world-recognized standard's for sustainable forest management. Additionally, the Wild Animal and Plant Protection and Regulation of
International and Interprovincial Trade Act enforced the
Convention on International Trade in Endangered Species of Wild Fauna and Flora
(CITES) in Canada and controlled imports of non-CITES species that had been
obtained illegally, which consequentially made it unlawful to import forest
products that had been obtained.
5.
Some delegations noted
the challenge to ensure that the rights of indigenous peoples whose livelihoods
were attached to the forest would go hand-in-hand with sustainable forest
management. Several delegations inquired about Canada's and other Members'
technical assistance programmes related to forest sustainability. One
delegation expressed interest in the impact of Canada's sustainable forestry
measures on imports from developing countries, while another delegation requested
additional information on the challenges faced by developing countries and least-developed
countries in overcoming illegal logging and associated trade issues.
6.
Several
delegations noted that Members' presentations should be limited to the mandate
of the CTE and should address the effects of environmental measures on market
access, in particular of developing countries. One delegation stated that
Canada's presentation fit into previous CTE discussions on illegal logging
and asked the WTO Secretariat to prepare a summary of such discussions. However,
several other delegations were opposed to such a Secretariat report.
7.
In addition to
domestic experiences, delegations were also briefed by the International
Tropical Timber Organization (ITTO), via videoconference, on its recent
activities related to forest law enforcement and cooperation with CITES. Two
specific programmes were mentioned: the Thematic Programme on Forest Law
Enforcement, Governance and Trade; and the ITTO‑CITES Programme. Several
delegations expressed satisfaction with the implementation of ITTO's
programmes. One delegation expressed concern about the effect of illegal
logging on forest degradation, biodiversity and erosion of governance and
revenues.
1.1.2 Organic Agricultural Certification
8.
At the June
meeting, Ecuador presented on the process and challenges related to organic
agricultural certification for small and medium-sized enterprises (SMEs). Some
of the problems faced by small-holder Ecuadorian farmers included:
administrative costs, a complex and long certification process, and the lack of
harmonization between different certification schemes.
Ecuador supported preferential tariff treatment for organic products as a means
to incentivize production, promote sustainable consumption and contribute to
global environmental protection. One delegation welcomed Ecuador's efforts in
promoting organic production and noted that certification posed non-tariff
barriers to small producers, who in addition faced high costs and a lack of
profitability in some cases.
9.
At the June and
November meetings, New Zealand, on behalf of the Friends of Fossil-Fuel
Subsidy Reform,[6] presented on recent developments, including: the presentation
of the Fossil-Fuel Subsidy Reform Communiqué at the United Nations Framework
Convention on Climate Change Conference of the Parties (CoP) 21 in Paris and
CoP 22 in Marrakesh; the inclusion of fossil fuel subsidy reform in Nationally
Determined Contributions (NDCs); and the reaffirmation in the Addis Ababa
Agenda and Sustainable Development Goal 12 of the commitment to rationalize
inefficient fossil fuel subsidies.
10.
Several
delegations acknowledged the importance of fossil fuel subsidy reform, shared
their experience in this area, and supported continued discussions of the topic
in the CTE. Several other delegations highlighted that fossil fuel subsidy
reforms had no linkage to the WTO, and were of the view that the WTO was not
the appropriate venue to discuss such matters.
1.1.4 Other topics
11.
At the June
meeting, the United Nations Conference on Trade and Development (UNCTAD)
presented on its recent report "Trading
into Sustainable Development: Trade, Market Access, and the Sustainable
Development Goals (SDGs)". Among the key findings were that developing
countries' share in world trade and exports of environmental goods was
increasing, and that non-tariff measures were a key policy interface between
the SDGs and international trade. The European Union and Chile
shared briefly their experience with integrating sustainable development and
trade policy. Some delegations were interested to continue discussing this
relationship in the CTE. One delegation expressed concern with the impact of
rapid increases in certification requirements on SMEs.
12. The Organization for Economic Co-operation and Development (OECD)
presented on its 2014 working paper on the stringency of environmental
regulations and trade in environmental goods. Among its key conclusions were
that ambitious environmental policies affected how countries specialized and
that well-designed, stringent environmental policies increased trade in
environmental goods.
13.
At the November
meeting, the Food and Agriculture Organization of the United Nations (FAO)
presented on the recent 2016 State of World Fisheries and Aquaculture (SOFIA)
report. The representative highlighted the important role of fish in food
security and provided some information on fish trade. Several delegations showed interest in the
report's findings and, in accordance with SDG 14.6, some delegations stressed
the need to prohibit certain forms of fisheries subsidies which contributed to
overcapacity and overfishing, and to eliminate subsidies that contributed to
illegal, unregulated and unreported (IUU) fishing.
14.
The International
Organization for Standardization (ISO) updated delegations on ISO/TS 14067:2013
on "Greenhouse gases - Carbon footprint of products - Requirements and
guidelines for quantification and communication", and on the multi-party
group created by Technical Committee 207 to examine the issue of barriers to
trade and standards used in legislation. The group was expected to issue its
report by the end of 2017.
2 Other items on the CTE's work programme (Items 1, 2,
3(a), 4, 5, 7, 9, and 10)[7]
"The relationship
between the provisions of the multilateral trading system and trade measures
for environmental purposes, including those pursuant to multilateral
environmental agreements."
15.
At the June meeting,
the United Nations Framework Convention on Climate Change (UNFCCC)
briefed delegations on the main features of the Paris Agreement adopted at CoP
21. Some delegations noted that the Paris Agreement was a historic landmark in
climate action cooperation. Some delegations noted that UNFCCC provisions were
applicable to the Paris Agreement and that obligations continued to
differentiate on the basis of development. One delegation also noted that many
concepts and modalities under the Paris Agreement still needed to be defined.
16.
At the June and
November meetings, Singapore, Mexico, China, Brazil
and Chile presented their respective Intended Nationally Determined
Contribution (INDCs) and related national strategies. One delegation stated
that the CTE could play a constructive role in ensuring coherence between
climate action and WTO rules. Another delegation noted that developing Members
were in a different position as compared to developed Members in addressing
climate change and highlighted the need to cooperate internationally. At the June
meeting, Chinese Taipei presented on its renewable energy policy and
projects and highlighted the growth in its exports of renewable energy
technologies and at the November meeting, the delegation briefed the CTE on its
policies related to climate change.
17.
At the June
meeting, the Republic of Korea presented a proposal submitted jointly
with Canada and Costa Rica on "Deepening the understanding of the
relationship between the climate change and trade regimes”. The proposal
contemplated further discussions on trade and climate change in the CTE and
other appropriate WTO bodies. Several delegations expressed support for the
proposal and reiterated the importance of enhanced understanding of the links
between trade and climate change. However, several other delegations requested
clarification on the proposal and expressed some concerns, including that the
discussions in the CTE should not focus on one issue to the detriment of others
within the CTE mandate and with an impact on the market access for developing
Members. Some delegations also objected to the proposal as they were of the view that climate change
issues could only be discussed in the UNFCCC.
18.
At an informal
meeting held on 14 November 2016 and at the formal meeting on 15 November
2016, the CTE continued its discussions concerning the proposal. The Republic of Korea
informed delegations that Mexico and Chinese Taipei had joined the proposal as
co-sponsors, and briefed the CTE on their consultations with interested
delegations since the June meeting. The co-sponsors indicated that they
were flexible regarding the format of the discussions on the relationship
between trade and climate change. Several delegations reiterated previously
raised concerns and objections while several others showed support for a debate
on trade and climate change to take place either in a formal or informal
meeting of the CTE.
2.1.2 Convention on International Trade in Endangered Species of Wild
Fauna and Flora (CITES)
19.
At the November
meeting, the Convention on International Trade in Endangered Species of Wild
Fauna and Flora (CITES) briefed delegations on CoP 17 held in Johannesburg
in October 2016. The main developments included the listing of 500
additional species under Appendixes I and II; the adoption of critical
decisions to improve the sustainability, legality and traceability of trade in
wildlife; and the initiation of decisive steps to combat illegal trade in
wildlife.
20.
The European
Union (EU) presented the EU Action Plan against Wildlife Trafficking,
adopted in February 2016, which set a roadmap for the EU strategy against
wildlife trafficking until 2020. The goals of the Action Plan were to: (i) put
wildlife trafficking higher on the political agenda of the EU and its member
States; (ii) turn commitments into concrete deliverables; and (iii) to
reinforce EU action against wildlife trafficking in the EU and globally.
21.
The United
States (US) updated the CTE on the work of its Presidential Task Force on
Wildlife Trafficking, which included representation and participation from a
wide range of US government agencies. The Task Force prepared the US
National Strategy for Combating Wildlife Trafficking, issued in February 2014,
which included the following key priorities: (i) strengthening
enforcement; (ii) reducing demand for illegal taken and traded wildlife; and
(iii) expanding international cooperation and commitment. In the latter
category, the National Strategy specifically called on the United States to use
existing and future US free trade agreements (FTAs), environmental cooperation
mechanisms and other trade-related initiatives to help curb wildlife
trafficking and strengthen environmental protection. The United States provided
examples of how it was implementing the National Strategy, including through
numerous trade capacity building projects with FTA partners.
2.1.3 Convention on Biological Diversity (CBD)
22.
At the November
meeting, Mexico presented on the preparation of CoP 13 of the Convention
on Biological Diversity (CBD) that was scheduled to take place in Cancun,
Mexico from 4 to 17 December 2016. In this context, Mexico noted that CBD
was the most important multilateral instrument to promote biodiversity and
equal distribution of benefits from the use of genetic resources and indicated
that the theme of CoP 13 was “Integrating Biodiversity for Well-being”.
2.1.4 MEAs dealing with chemicals and wastes (the Basel, Rotterdam and
Stockholm (BRS) Conventions)
23.
At the November
meeting, the Basel, Rotterdam and Stockholm (BRS) Conventions briefed
the CTE on the outcome of the 2015 meetings of the conferences of the parties
to the BRS conventions and introduced the preparation of the 2017 meetings
of the conferences of the parties to the BRS conventions. In addition, the BRS
Conventions presented on its work regarding the management and recycling of e-waste.
24.
The United
Nations Industrial Development Organization (UNIDO) presented on its work
regarding the sustainable management of e-waste, the main barriers to proper
e-waste management, in particular for developing countries.
25.
Chile presented its Framework Law for Waste Management, Extended Producer
Responsibility and Promotion of Recycling from June 2016. The main objectives
of the framework law were to: contribute to SDG 12 by substantially reducing
waste generation; incorporate producer responsibility for waste management; and
promote the value of residues and the formalization of the recycling sector.
26.
Canada presented its Chemical Management Plan and its contribution towards
meeting the goal set at the 2002 World Summit on Sustainable Development to
achieve sound management of chemicals and waste by 2020. Canada explained that the
Plan consisted of domestic measures underpinned by the 1999 Canadian
Environmental Protection Act and was supported by Canada's engagement under
international agreements (the BRS Conventions), regional and bilateral
cooperation (e.g. OECD and the United States), and global policy frameworks
(Strategic Approach to International Chemicals Management).
27.
Chinese Taipei briefed delegations on its recycling programme, launched in 1997,
aimed at implementing the concept of a circular economy. The programme focused
on raising public awareness regarding the provision and importance of recycling
services. It also rewarded enterprises, non-governmental organizations and
entrepreneurs for successful projects.
2.2 Item 4
"The provisions of the multilateral
trading system with respect to the transparency of trade measures used for
environmental purposes and environmental measures and requirements which have
significant trade effects."
28.
At the November
meeting, the WTO Secretariat introduced the 2013 Environmental Database (EDB), circulated in May 2016, highlighting key trends in
measures notified. Several delegations expressed their appreciation for the
tool and the efforts made to compile the information for the database. Some
delegations suggested that to facilitate dissemination and ease of use the
database could be improved with a web-based interface. The Secretariat noted
that it was already exploring such improvements subject to the availability of
resources.
3 Other Business
3.1 Environmental Provisions
in Regional Trade Agreements (RTAs)
29.
At the June
meeting, several delegations presented their experience with the negotiation
and implementation of environmental provisions in Regional Trade Agreements
(RTAs). The European Union noted that the rationale for including
environmental provisions in RTAs was rooted in the recognition that
environmental policies were an integral part of sustainable development.
Examples of relevant provisions included provisions that recalled United Nations
and other international instruments, addressed domestic environmental laws,
signalled agreement to facilitate trade and investment in environmental and
climate-friendly products, and set good practices for environmental
policy-making. New Zealand presented its approach to environmental
provisions in RTAs. These provisions aimed to: (i) demonstrate the commitment
of the Parties to
sustainable development; (ii) ensure that each Party benefited from their
comparative advantages; and (iii) provide a means for Parties to engage on
trade and environment issues.
30.
Chinese Taipei provided details on the environmental chapter of its FTA with New
Zealand and noted that environmental provisions in FTAs could both facilitate
trade and support sustainable development. Switzerland indicated that
the European Free Trade Association had systematically included a chapter on
sustainable development in its FTAs. The Republic of Korea noted it had
concluded FTAs with 51 partners, of which nine had separate chapters dedicated
to environmental issues. These environmental provisions covered dispute
settlement procedures, cooperation, civil society engagement, sustainable use
of biological diversity and traditional knowledge, and the sovereign right of
Parties with respect to natural resources and access to genetic resources. Chile explained
that it had signed 25 trade agreements with 64 economies that included
environmental provisions varying in form, content and depth. Recent
developments included: the signature of the Trans-Pacific Partnership
Agreement, which contained an environmental chapter; the inclusion of
environmental matters in on-going negotiations with Uruguay; the development of
several biannual environmental cooperation work programmes covering a wide
range of issues; and the establishment of a coordination network among relevant
institutions.
31.
At the November
meeting, Canada indicated that, in negotiating and implementing
environmental provisions in FTAs, the key principle it followed was to promote mutual supportiveness between trade liberalization and environmental
protection. Some of the core environmental provisions in its FTAs included
commitments on: pursuing high levels of environmental protection; effectively
enforcing environmental laws; and promoting public participation,
accountability and transparency. New Zealand presented on the
implementation of environmental provisions in its RTAs, providing concrete
examples of bilateral cooperation under its agreements.
32.
The WTO
Secretariat made a presentation on environmental provisions in RTAs
notified to the WTO based on a WTO staff working paper published in August 2016.
33.
At the June and
November meetings, Australia updated delegations on the status of the Environmental
Goods Agreement (EGA) negotiations launched in July 2014. In July 2016,
G20 trade ministers had provided a solid boost to the negotiations when
they agreed to aim to conclude the EGA by the end of 2016, a goal that had been
reaffirmed a few months later by G20 leaders gathered in Hangzhou, China.
Once concluded, the EGA would provide significant commercial benefits, boosting
exports and providing cheaper access to environmentally beneficial
technologies, while helping to overcome serious environmental challenges such
as climate change. Some delegations did not support this initiative, which in
their view could undermine efforts at the multilateral level.
34.
At the June and
November meetings, the United Nations Environmental Programme (UNEP)
briefed delegations on its work related to the implementation of the 2030
Agenda, including initiatives to promote synergies between trade and
environment policies at national, regional and global levels. UNEP also
presented the decisions adopted at the second United Nations Environmental
Assembly (UNEA-2), held in Nairobi in May 2016, and noted the landmark deal
adopted under the Montreal Protocol in October 2016 to curb the use of hydrofluorocarbons.
3.4 Other topics
35.
At the November meeting,
Australia, briefed other delegations on the Workshop "The WTO and
Agenda 2030", which was jointly organized by Mexico, Indonesia, the
Republic of Korea, Turkey and Australia (MIKTA). The workshop, held on 12
October 2016, had provided an opportunity to highlight key trade-related
outcomes of the 2030 Agenda, including the SDGs, and to explore how the WTO
could engage in the areas of financing and Aid for Trade, services,
agriculture, and fisheries.
36.
At the June
meeting, the United States stated that over the years, the CTE had
provided an important international forum to discuss issues at the centre of
trade and environment. As the WTO evolved and matured, the United States was
interested in further energizing the work in the CTE. Some delegations expressed
the view that the CTE agenda should not be changed.
_______________
Annex
1: Items of the CTE Work Programme
Item 1: The relationship between the
provisions of the multilateral trading system and trade measures for
environmental purposes, including those pursuant to multilateral environmental
agreements.
Item 2: The relationship between
environmental policies relevant to trade and environmental measures with
significant trade effects and the provisions of the multilateral trading
system.
Item 3(a): The relationship between the provisions
of the multilateral trading system and charges and taxes for environmental
purposes.
Item 3(b): The relationship between the provisions
of the multilateral trading system and requirements for environmental purposes
relating to products, including standards and technical regulations, packaging,
labelling and recycling.
Item 4: The provisions of the multilateral
trading system with respect to the transparency of trade measures used for
environmental purposes and environmental measures and requirements which have
significant trade effects.
Item 5: The relationship between the dispute
settlement mechanisms in the multilateral trading system and those found in
multilateral environmental agreements.
Item 6: The effect of environmental measures
on market access, especially in relation to developing countries, in particular
to the least developed among them, and environmental benefits of removing trade
restrictions and distortions.
Item 7: The issue of exports of domestically
prohibited goods.
Item 8: The relevant provisions of the
Agreement on Trade-Related Aspects of Intellectual Property Rights.
Item 9: The work programme envisaged in the
Decision on Trade in Services and the Environment.
Item
10: Input to the relevant bodies
in respect of appropriate arrangements for relations with intergovernmental and
non-governmental organizations referred to in Article V of the WTO.
_______________
Annex 2: Parts of the Doha MINISTERIAL DECLARATION that
relate to the work of the CTE
Regular
32. We
instruct the Committee on Trade and Environment, in pursuing work on all items
on its agenda within its current terms of reference, to give particular
attention to:
(i) the effect of environmental measures on market access, especially
in relation to developing countries, in particular the least-developed among
them, and those situations in which the elimination or reduction of trade
restrictions and distortions would benefit trade, the environment and
development;
(ii) the relevant provisions of the Agreement on Trade-Related
Aspects of Intellectual Property Rights; and
(iii) labelling
requirements for environmental purposes.
Work on these issues should
include the identification of any need to clarify relevant WTO rules. The Committee
shall report to the Fifth Session of the Ministerial Conference, and make
recommendations, where appropriate, with respect to future action, including
the desirability of negotiations. The outcome of this work as well as the
negotiations carried out under paragraph 31(i) and (ii) shall be
compatible with the open and non-discriminatory nature of the multilateral
trading system, shall not add to or diminish the rights and obligations of
members under existing WTO agreements, in particular the Agreement on the
Application of Sanitary and Phytosanitary Measures, nor alter the balance of
these rights and obligations, and will take into account the needs of
developing and least-developed countries.
33. We
recognize the importance of technical assistance and capacity building in the
field of trade and environment to developing countries, in particular the
least-developed among them. We also encourage that expertise and experience be
shared with members wishing to perform environmental reviews at the national
level. A report shall be prepared on these activities for the Fifth Session.
51. The Committee on
Trade and Development and the Committee on Trade and Environment shall, within
their respective mandates, each act as a forum to identify and debate developmental
and environmental aspects of the negotiations, in order to help achieve the
objective of having sustainable development appropriately reflected.
__________
[1] Available through WT/CTE/M/61,
"Report of the Meeting held on 30 June 2016", Note by the
Secretariat.
[2] To be circulated through WT/CTE/M/62,
"Report of the Meeting held on 14-15 November 2016", Note by the
Secretariat.
[3] The CTE Work Programme and the parts of the Doha Development Agenda
that are relevant to the work of the CTE Regular are included in Annexes 1 and
2 respectively.
[4] Item 1 of the CTE Work Programme
reads: "The relationship between the provisions of the multilateral
trading system and trade measures for environmental purposes, including those
pursuant to multilateral environmental agreements."
[5] Item 4 of
the CTE Work Programme reads: "The provisions of the multilateral trading
system with respect to the transparency of trade measures used for
environmental purposes and environmental measures and requirements which have significant
trade effects."
[6] The Friends of Fossil Fuel Subsidy Reform is a group of non-G20
countries that support the reform of inefficient fossil fuel subsidies. The
Friends group (New Zealand, Costa Rica, Denmark, Ethiopia, Finland,
Norway, Sweden and Switzerland) was formed in June 2010 to support G20 and APEC
leaders' commitments to phase out inefficient fossil fuel subsidies.
[7]
See Annex 1, the original CTE work programme which includes these items.