WTO ENVIRONMENT COMMITTEE FOCUSES ON PROCEDURAL ISSUES

WTO Members at the special (negotiating) session of the Committee on Trade and Environment (CTE), meeting from 12-13 October, continued their discussions on the relationship between WTO rules and multilateral environmental agreements (MEAs). Members focused on a submission by Australia on its national experiences on negotiating and implementing specific trade obligations (STOs) in MEAs. Members also discussed a proposed list by Chinese Taipei of possible environmental goods. Mirroring past meetings, debates on both topics revolved mainly around procedural issues, i.e. whether discussions should follow a practical or a conceptual approach, or both.

During the regular CTE session on 14 October, Members discussed a new submission by the EC on addressing developing country concerns regarding the effects of environmental measures on market access. The Committee also debated an EC proposal to hold a workshop on paragraph 51.

MEAs-WTO: National experiences versus principles

Australia in its submission (TN/TE/W/45) presented its national experience in negotiating and implementing the Basel Convention on trade in hazardous waste, the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) and the Montreal Protocol on ozone-depleting substances. Australia stressed the need for effective coordination at the national level between domestic agencies and stakeholders as a "key to achieving compatibility between countries' different international obligations and their smooth domestic implementation". While acknowledging the importance of national coordination, the EC stressed that coordination at the international level was equally important.

Australia's submission gave rise to a general debate on the best approach to the negotiations (see BRIDGES Trade BioRes, 25 June 2004). Australia is a firm supporter of a 'practical' approach to the discussions based on national experiences, arguing that this can help improve understanding of STOs in MEAs and their relationship with WTO rules. While supporting this approach, the EC and Switzerland also stress the need for a complementary debate on basic principles underlying the WTO-MEA relationship. Noting a widespread support for the practical approach, Chair Ambassador Toufiq Ali of Bangladesh encouraged Members to focus efforts on this avenue for the time being.

Environmental goods: list versus definition

Chinese Taipei formally submitted its proposed list of possible environmental goods, which had already been circulated as an informal document at the last CTE meeting. The list includes primarily the more traditional (i.e. end-of-pipe) environmental goods, mirroring a list developed by APEC (Asia-Pacific Economic Cooperation). Several Members welcomed in particular the concept of a "direct use" characteristic for identifying environmental goods, i.e. goods that "directly control pollution".

The EC noted that Members in addition to submitting their proposed lists might want to consider the principles underlying their decision to include certain goods. Such principles could relate to the classification of goods under the Harmonised System (i.e. codes used by customs officials), non-tariff barriers, or goods with multiple end-uses. The US expressed concern that Members could get bogged down in the debate on principles, favouring instead a more concrete discussion.

Korea and Switzerland announced their intention to submit their proposed lists by the next CTE meeting. Qatar, supported by Venezuela, again referred to its submission on natural gas technologies which it would like to see taken up in the negotiations (TN/TE/W/14). The EC also suggested that Members might want to hold an informal meeting between now and the next CTE meeting if they felt that enough material was available for further debate.

Members widely welcomed the papers presented by the UN Conference on Trade and Development (UNCTAD) (TN/TE/INF/7) and the OECD (TN/TE/INF/8). The World Customs Organisation also presented at the meeting on the difficulties that might arise when including environmental goods in the Harmonised System. He noted that the System only distinguished between products based on their physical characteristics, and that it therefore did not lend itself to denoting goods depending on the process and production methods (PPM) used or on their end-use (i.e. environmental or otherwise).

Regular session discusses market access, paragraph 51

The EC paper (WT/CTE/W/239), submitted under paragraph 32(i) of the Doha Declaration (effect of environmental measures on market access), provides information on reforms carried out in the EC policy making process that contribute to addressing -- in the development and implementation stages of legislation -- concerns highlighted by developing countries. Specifically, the paper describes efforts to enhance up-stream transparency, consultation mechanisms, down-stream information mechanisms and supportive/accompanying measures. The EC concludes by putting forward proposals for further cooperation, including improving bilateral dialogue, multilateral cooperation among relevant organisations (such as UNEP, UNCTAD, the WTO and World Bank), and synergies with the private sector.

While Members generally welcomed the submission as helpful, they also used the opportunity to vent their frustration with the EC process. India referred back to its earlier submission under this agenda item (WT/CTE/W/207), dated 21 May 2002, in which it had put forward a number of proposals to ensure that environmental requirements were applied in a manner that would minimise the adverse effects on market access for developing countries. Members felt that some of India's proposals should be pursued in future discussions.

Regarding paragraph 51 of the Doha mandate -- which mandates the CTE and the Committee on Trade and Development to ensure that sustainable development is adequately reflected in the negotiations -- the EC suggested holding a workshop next year. According to the EC, the workshop should include international organisations presenting ideas on ways to move forward how to ensure that sustainable development is reflected in the Doha Round. Chair Naéla Gabr (Egypt) asked Members to submit their suggestions for the structure of the workshop as well as suggest speakers to the Secretariat, which could prepare a draft agenda.

The next meeting of the CTE special session will be held in February 2004. For further details on the WTO Workshop on environmental goods, held just prior to the CTE meeting, see BRIDGES Weekly, 13 October 2004.

ICTSD reporting.