Committee on Technical Barriers to Trade - Thematic session on the role of the TBT Agreement in decarbonization - Tenth triennial review - Proposal from China

Thematic session on the role of the TBT Agreement in Decarbonization

TENTH TRIENNIAL REVIEW

Proposal from China

The following submission, dated 31 May 2024, is being circulated at the request of the delegation of China.

 

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1  BACKGROUND

1.1.  To address climate change and keep global warming within the targets set in The Paris Agreement, a transition to a low-carbon economy is likely to entail a transformation of most economic activities, including international trade. In this regard, decarbonization is needed in working towards a world of carbon neutrality or net-zero emission by all members.

1.2.  A growing number of environmental measures are taken by Members to support their decarbonization efforts. Among which, the TBT-related measures including performance requirements (emission limits, energy efficiency requirements), labelling requirements, and conformity assessments (tests and certification requirements) appear as the most common[1], aim to decrease GHGs emissions directly or indirectly arising from the production, use and disposal of both domestically produced and imported goods.

1.3.  While the types of those measures are broadly similar across Members, there is significant divergence or fragmentation in the details and specific requirements that hints at a lack of international coordination and causes unnecessary trade costs. More international cooperation and coordination can reduce trade costs as well as support regulatory efforts through sharing of best practices.

1.4.  Those measures might constitute de facto "low-carbon" or green barriers to international trade when they are not consistent with WTO rules or their commitments under other international frameworks, especially if they are intended to protect their own industries at the expense of competitive goods imported from other members. In this context, the important roles of the GATT and the TBT Agreements need to be further explored and highlighted by all members.

1.5.  The Ministerial Declaration on strengthening regulatory cooperation to reduce technical barriers to trade[2] adopted at the MC13 reaffirms that the TBT Agreement remains relevant to measures taken to address climate change, and urges the TBT Committee to promote its work in relevant areas of climate change. In addition, the thematic session on regulatory cooperation between Members on climate change[3] and the "Trade Forum for Decarbonization Standards"[4] have constituted a good basis for further discussion on the relevance of TBT Agreement and decarbonization.

2  PROPOSAL

2.1.  China proposes to hold a thematic session to explore the role of the TBT Agreement in decarbonization, with a view to re-examining the instruments of the TBT Agreement that intersect with decarbonization and to providing guidance to members on reducing technical barriers to trade. Meanwhile, members can also share good regulatory practices in their domestic decarbonization, and identify common interested topics for further discussion by the TBT Committee.

2.2.  Topics and areas could include:

a._         Members' regulatory system related to establish technical regulations, standards and conformity assessment procedures in the area of decarbonization.

b._         Relevant international standards system related to decarbonization, such as ISO, IPCC, etc.

c._         Challenges faced by industries in decarbonization and their expectation to the WTO/TBT Committee, such as iron and steel, green hydrogen, etc.

d._         Opportunities and challenges faced by developing members including LDCs.

e._         Relevant research and suggestions from international organizations, such as WTO secretariat, UNFCCC secretariat, Villars framework, OECD, UNCTAD, etc.

 

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[1] UNCTAD 2022: Making trade work for climate change mitigation: The case of technical regulations.

[2] _WT/MIN(24)/35, _WT/L/1190.

[3] Held by the TBT Committee on 7 March 2023.

[4] Held by the WTO Secretariat on 9 March 2023.