A Proposal for Dedicated Multilateral Discussions on
the Trade Aspects
and Implications of Certain Environmental Measures
Communication
from Samoa on behalf of the African, Caribbean and
Pacific Group of States (ACP)
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1 Background
1.1. Home to around 1.25 billion people[1], across three continents, the ACP Group countries span a diverse range
of states comprising "Least-Developed Countries (LDCs), Small Island
Developing States (SIDS), Small Vulnerable Economies (SVEs), Landlocked
Developing Countries (LLDCs), Preference Dependent Economies (PDEs), Net Food
Importing Developing Countries (NFIDCs), Highly Indebted Poor Countries (HIPC),
limited commodity-exporting countries, and countries in war, post-conflict, and
post-natural disaster situations"[2].
1.2. While nationals of African,
Caribbean and Pacific Group of States (ACP) member countries represent around
15% of the global population worth around 8 billion total in 2023, a
conservative estimate of the percentage of global greenhouse gas emissions
produced by ACP World Trade Organization (WTO) Member countries represents less
than 4%[3]. Greenhouse gas emissions are the most significant cause of climate
change[4] resulting in the sharp increase of extreme weather patterns; natural
disasters; drought; desertification; significant shortage of crops and food;
and biodiversity loss[5]. To achieve net zero CO2 emissions by 2050, it is essential to achieve
a fair and just transition towards a carbon-neutral economy and global trading
system. In addition, cooperation is essential to support developing countries
in meeting their Nationally determined contributions (NDCs).
1.3. At MC12, Ministers highlighted the
critical role of trade and the multilateral trading system in promoting
sustainable development and the need to provide "relevant support to
developing country Members, especially LDCs, to achieve sustainable development,
including through technological innovations"[6]. The ACP Group welcomes the reinvigoration of the Committee on Trade
and Environment (CTE) to pursue dedicated discussions on issues and areas at
the nexus of trade and environmental measures, including a focus on the needs
and priorities of developing countries. Against the backdrop of new forms of
industrial policy with a significant environmental dimension introduced across
advanced economies, the call by trade Ministers at MC12 resonates further and
renders cooperation within the WTO on this matter all the more urgent.
2 Possible themes for the CTE to
address
2.1. The focus of the discussions within
the CTE can draw inspiration from several Initiatives and Declarations rooted
in the ACP region, which outline the priorities and needs of ACP members and
developing countries in a broader sense. The Bridgetown Initiative[7], a global appeal led by Barbados, underscores the vital need for reform
of the international financial architecture and the urgent need to ramp up investment
towards developing countries for governments to respond to a triple planetary
crisis, induced by a sharp increase in the cost of living, the debt explosion,
and the climate crisis.
2.2. The African Leaders Nairobi
Declaration on Climate Change and Call to Action[8], launched on 8 September 2023, calls for the development of
"global standards, metrics, and market mechanisms
to accurately value and compensate for the protection of nature, biodiversity,
socio-economic co‑benefits, and the provision of climate service".
This is illustrated by the role of carbon sinks that the African continent
provides in abundance. The CTE could provide an avenue to discuss possible
harmonization and mutual recognition of such standards, especially in light of
the complex nature of the discussions related to deforestation regulations.
2.3. Another relevant area highlighted
by the African Leaders for the CTE to consider could be to explore the role of trade in scaling up the diffusion of
renewable energy, notably in coordination with international financial
institutions. We must highlight for instance that Kenya is already a
leading country "in the number of solar panel systems installed per
person"[9]. Furthermore, the African Leaders refer to the important role of
facilitating "access to, and transfer of environmentally sound
technologies", which could be discussed in the context of the CTE in
coordination with the Working Group on Trade and Transfer of Technology.
2.4. The 2050 Strategy for the Blue
Pacific Continent[10] highlights the essential role of the ocean within the earth's ecosystem
and the need to preserve the oceans' resources while eradicating pollution. The
Strategy envisioned by the Pacific Islands countries underscores the need to
"strengthen regional coordination and cooperation, including policy,
regulatory and legislative measures that reflect a precautionary approach to
address both the sustainable use and environmental conservation of ocean and
land-based environment."
2.5. In this regard, the WTO can play a
fundamental role in shaping novel multilateral mechanisms to support developing
countries' recovery from climate disasters, notably through existing structures
such as the Working Group on Trade, Debt and Finance that could establish
linkages with the CTE in crafting common recommendations and policy options.
2.6. The CTE could explore ways to promote cooperation as governments design regulatory
measures that preserve the oceans, while also creating opportunities for
sustainable and novel forms of business and trade derived from the blue economy
such as seaweed for food consumption and products derived from plastics
substitutes[11]. It should be highlighted that Mauritius has pursued an ambitious goal,
under its "Vision 2030", to expand its blue economy to serve its
broader Sustainable Development Goals (SDGs). It has provided financial
incentives for investment in sustainable forms of fishing and aquaculture. It
also introduced new legislation the "Environment Protection Act" and
"Climate Change Act" to protect its coastal environment.[12]
3 Areas for enhanced cooperation and
initiatives
3.1. Between 2009 and 2022, ACP
countries notified a total of 1'599[13] trade related environment measures. The most common type of measure
notified by our Group consists of technical regulation and conformity
assessment related procedures with a total of 1'022 and accounting for around
64% of all notified measures. This highlights the scope for enhanced cooperation for mutual recognition and promoting
harmonization of technical regulations and conformity assessments aimed at
environmental conservation and protection that are already in place across ACP
countries and those adopted by ACP trading partners. The Technical Barriers
to Trade (TBT) Committee held a thematic session on regulatory cooperation
between Members on climate change[14] and highlighted this dimension. An example was provided in relation to
wind turbines and the existence of over 400 different regulatory
requirements worldwide[15].
3.2. The organic trade sector is another
area of particular interest to the ACP Group in which its Members can develop a
comparative advantage. However, there is room for progress in terms of scaling
up and diversifying production across subsectors. For instance, through
investment and training, ACP countries can utilize raw materials for
transformation into higher value-added finished goods such as pharmaceutical
products, perfumery, and other forms of higher value-added products. There should be a concerted effort in the CTE to take
account of the natural methods and traded products in developing countries that
are environmentally friendly and adapted. This is an opportunity for all
WTO Members. These products should be supported and there should not be
additional constraints on trade in those products.
3.3. Ghana, Vanuatu and Switzerland, in
collaboration with the United Nations Development Programme, unveiled at COP27
a novel form of enhanced cooperation involving a voluntary approach to transfer
mitigation outcomes in exchange for training of farmers in the case of Ghana
and increasing access to renewable energy in the case of Vanuatu[16]. For Ghanaian farmers, the training can enhance their ability to reduce
methane emissions and better manage water consumption. For Vanuatu, the
collaboration supports efforts in meeting its objectives under its NDCs
Implementation Roadmap by promoting sustainable energy consumption.
3.4. In the context of the Pacific
region, an important initiative pertains to the decarbonization of shipping
under the "Pacific Blue Shipping Partnership" involving Fiji,
Kiribati, the Marshall Islands, Samoa, the Solomon Islands, Tuvalu and Vanuatu,
wherein the partnering countries aim to entirely decarbonize the sector by
2050.[17]
4 Comment on recent proposals
4.1. The recent proposals by India and
the Africa Group on the issue of technology transfer underscore
the critical role played by environmental technologies to promote a transition
towards a carbon-neutral global economic system. In this regard, to build
on the issues highlighted in those proposals, the WTO
Secretariat could support in preparing a note that maps existing technologies
relevant to adapting and mitigating the impact of climate change as well as
supporting the adoption of renewable energy.
4.2. The CTE could also assist in
efforts to convene a series of workshops and webinars to highlight the work of
international institutions and stakeholders to promote the uptake of
environmental technologies. The WTO Environmental Database
could also serve as a gateway to explore on a dedicated page of the Database
relevant environmental technologies available to support the transition towards
novel forms of production and services.
4.3. Synergies could be developed in the
discussions under the Work Programme on Electronic Commerce and identify
relevant services delivered electronically such as weather forecasts and early
warning systems of impending natural disasters, to facilitate the scaling up
and diffusion of such services. There is also value in discussing trade-related
environmental measures and policies based on certain guiding principles as the
Africa Group outlines in its communication. Such principles can provide a
reference point and guidance in the design of green industrial policy to reduce
trade frictions and avoid disguised restrictions.
4.4. Given that most developing
countries and least developed countries account for a fraction of the effects
of industrialization recorded over the last two centuries, it is essential that
the discussions within the WTO and the CTE in particular, factor in the
historical responsibility of industrially advanced economies. In other words, a
transition to a carbon-neutral global economic and trading system must not be
viewed in a vacuum and in isolation from the broader context and setting in
which countries have developed throughout the industrial era. It is worth
recalling that after the entry into force of the General Agreement on Tariffs
and Trade (GATT) and subsequently the WTO, some of the economic policies that
previously benefitted the development of the current advanced economies such as
high tariffs and large subsidies are not allowed under the current trade
regime.
4.5. The CTE can
provide a forum for more in-depth exploration of the relevant means to better
mainstream development and the priorities of developing countries and least
developed countries in the context of the policy discussions on trade and
environment. This would entail identifying, based on consensus and
transparency, the policy tools and flexibility in the rules available for
developing countries and least developed countries to embrace carbon-neutral
pathways to industrialize. In particular, in light of the evolving
comparative advantage induced by climate change, Members could potentially
identify emerging green sectors and bio products naturally traded in our
countries that would benefit from increased investment.
4.6. Furthermore, as highlighted by the
Africa Group, due to the challenges related to harmonization, developing countries and LDCs would greatly benefit from
the opportunity to comment on and shape emerging environmental standards and
regulations that impact market access. The CTE could play a pivotal role in
this regard in work on how to facilitate mutual recognition of existing
standards in place in developing countries and LDCs.
5 Possible pathways forward
5.1. The reinvigoration of the CTE can
be buttressed through active outreach and synergies with other relevant WTO
bodies and WTO processes to develop coherent policy recommendations to support
each WTO Member and operate a fair and just transition towards a net zero
future in line with national priorities and needs. We must recall that many
small delegations face capacity constraints to engage in every trade policy
discussion and deliberation at the WTO, due to conflicts of schedule and
overlapping meetings. To provide transparency concerning the discussions to be
held in the various thematic groups and various configurations of the CTE, we
would call for regular updates by the Chair of the CTE to the Chair of the
General Council during regular or informal sessions open to all Members. This
could also provide an additional spotlight on the various issues covered in the
CTE and send a strong signal to the international community of the trade
community' resolve to tackle climate change.
5.2. Concerning MC13, the WTO Membership
could identify the key outcomes at COP28 that international trade could support
in operationalizing. In addition, the WTO Membership could highlight core
thematic areas corresponding to Members' collective priorities around which the
discussions within the CTE would seek to articulate key trade policy
recommendations to promote cooperation.
5.3. The ACP membership will also work
with the Coalition of Trade Ministers on Climate, and we encourage other WTO Members
to consider supporting and joining the Coalition of Trade Ministers on Climate.
As it stands, the Coalition will provide the impetus to enhance the
conversation on the importance of climate discussions within the trade context
and how the WTO can make meaningful contributions to the United Nations
Framework Convention on Climate Change (UNFCCC) conference and relevant climate
negotiations. Consideration of Members can also be provided for the WTO to
develop a new process or re-launch climate change conversation within the CTE
with the support of the secretariat. The new process should provide a platform
for WTO Members States to share their experiences on the nexus between trade
and climate and what could be the focus of the WTO in terms of addressing the
climate challenges. This process is geared towards ensuring the achievement of
tangible results that would enable the WTO to allocate targeted support towards
the mapping exercise and the relevant follow-up support to Members as
highlighted in the paper.
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