EU, SWITZERLAND DISTANT FROM OTHER MEMBERS IN WTO-MEA TALKS

Differences persist among WTO Members on the content of a potential text that could serve as the basis for future negotiations on the relationship between WTO rules and specific trade obligations (STOs) set out in multilateral environmental agreements (MEAs).

Discussions on 2 November in the Committee for Trade and Environment - Special Session (CTE-SS) on an informal compilation prepared by the WTO Secretariat, of ideas in submissions from Members including Australia, Argentina, the EU, Taiwan, and the US (see BRIDGES Weekly, 9 May 2007).

The compilation, intended to facilitate an outcome from the discussions, was divided into four parts: Reflecting the Doha mandate; observations drawn from discussions in the CTE-SS; the importance of domestic co-ordination in the implementation of MEAs; and dispute settlement.

One delegate said that dispute settlement was the major bone of contention. The text on dispute settlement, which drew from an EU submission (TN/TE/W/68), would have WTO panels seek and defer to MEA expertise while examining environment-related issues. This met with opposition from developing countries as well as Australia, Argentina and the US. The EU and Switzerland supported the idea.

According to a trade delegate, the 'centre of gravity' appeared to rest with the Australia-Argentina submission (TN/TE/W/72/Rev.1), which simply asked the CTE-SS to recommend ways in which Members could structure specific trade obligations in MEAs to ensure that they and WTO rules support each other. In contrast, the EU proposal was more ambitious, as it sought to develop principles for clarifying the relationship between WTO dispute settlement and MEA trade obligations.

One source said that the divide seemed to hinge on different interpretations of the mandate, and hopes for the scope of the outcome.

Chair Ambassador Mario Matus (Chile) is set to continue consultations to try to bridge the split between the EU and Switzerland and the rest of the Membership on the issue.

ICTSD reporting.

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