Status Quo of Negotiation on Trade and Environment

1
??????????Status Quo of Negotiation on Trade and
Environment
Chang Nan-hsun
2
TRADE AND ENVIRONMENT AT THE WTO

• In the Preamble to the Marrakesh Agreement
  Establishing the WTO, reference was made to the
  importance of working towards sustainable
  development
• In April 1994, a Ministerial Decision on Trade
  and Environment was adopted, calling for the
  establishment of a Committee on Trade and
  Environment (CTE)

3
TRADE AND ENVIRONMENT AT THE WTO

• In preparation for the Singapore Ministerial
  Conference, in December 1996, the CTE summarized
  the discussions which it held since its
  establishment, as well as the conclusions reached
  in a report presented at the Conference. Since
  then, it has met approximately three times a
  year.

4
TRADE AND ENVIRONMENT AT THE WTO

• In November 2001, at the Doha Ministerial
  Conference, it was agreed to launch negotiations
  on certain issues related to trade and
  environment.
• These negotiations are conducted in a Committee
  established for this purpose, the Committee on
  Trade and Environment Special Session (CTESS).

5
TRADE AND ENVIRONMENT AT THE WTO

• The CTE Special Session (CTESS) has been
  established to deal with the negotiations
  (mandate contained in paragraph 31 of the Doha
  Ministerial Declaration).
• The CTE Regular deals with the non-negotiating
  issues of the Doha Ministerial Declaration
  (paras. 32, 33 and 51)

6
The Doha Mandateon Trade and Environment

• Paragraph 31 of the Doha Ministerial Declaration
  launched negotiations, "with a view to enhancing
  the mutual supportiveness of trade and
  environment
• Paragraph 31(i) mandatesthe relationship between
  WTO rules and specific trade obligations set out
  in MEAs.

7
The Doha Mandateon Trade and Environment

• Paragraph 31(ii) mandate procedures for
  information exchange between MEAs and the
  relevant WTO committees, and on the criteria for
  the granting of observer status in WTO bodies
• paragraph 31(iii) mandatethe reduction or, as
  appropriate, the elimination of tariff and
  non-tariff barriers to environmental goods and
  services

8
The Doha Mandateon Trade and Environment

• Paragraph 32
• The effect of environmental measures on market
  access and the win-win-win situations
• The relevant provisions of the TRIPS Agreement
• Labelling requirements for environmental purposes

9
The Doha Mandateon Trade and Environment

• Paragraph 33
• technical assistance, capacity building and
  environmental reviews
• Paragraph 51
• Sustainable Development Forum.

10
The Relationship between WTO rules and MEAs

• EC Global governance(TN/TE/W/39)
• Multilateral environmental policy should be made
  within MEAs
• Chinese Taipei(TN/TE/W/41)
• such negotiation shall not prejudice the WTO
  rights of any Member that is not a party to the
  MEA in question

11
The Relationship between WTO rules and MEAs

• Australia experience sharing (TN/TE/W/45)
• Ministers did not mandate us to make changes for
  changes sake, which is why a practical, focused
  discussion based on real experiences rather than
  theoretical or hypothetical scenarios is the best
  way to advance our discussions.

12
The Relationship between WTO rules and MEAs

• Australia experience sharing (TN/TE/W/45)
• Ministers did not mandate us to make changes for
  changes sake, which is why a practical, focused
  discussion based on real experiences rather than
  theoretical or hypothetical scenarios is the best
  way to advance our discussions.

13
Environmental Goods and Services

• Definition
• Criteria to decide what are environmental good?
• pollution management category end-of-pipe
  pollution management equipment, chemicals and
  catalysts for water and waste treatment
  monitoring and testing equipment specifically
  designed and made for environmental purposes
  materials and equipment for remediation and
  clean-up
• PPMs (processes and production methods )?
• Entire plants or technology systems?

14
Environmental Goods and Services

• Definition
• Criteria for deciding what are environmental
  good?
• EPPs(Environmental Preferable Products )
• products that cause significantly less
  "environmental harm" at some stage of their "life
  cycle" than alternative products that serve the
  same purpose ( UNCTAD )
• organic agricultural products tropical produce
  certain forestry products natural fibres such
  as jute, coir, ecological packaging products ,
  recyclable products (environmental protection)
  bio-pesticides and products made using natural
  dyes (non-toxic)

15
Environmental Goods and Services

• Definition
• The problems of adopting the EPPs criteria
• recourse to PPMs as the sole criterion
• the absence of a negotiating track
• difficulties in transposing product
  characteristics into HS codes (most EPPs).
• capacity constraints of customs to administer
  products subject to special treatment.

16
Environmental Goods and Services

• Definition
• The problems of inclusion of EPPs
• recourse to PPMs as the sole criterion
• the absence of a negotiating track
• difficulties in transposing product
  characteristics into HS codes (most EPPs).
• capacity constraints of customs to administer
  products subject to special treatment.

17
Environmental Goods and Services

• Definition
• goods that are defined by their superior
  environmental performance. (OECD)
• energy-efficient electrical appliances
• Problem
• technical regulations and standards relating to
  energy performance vary widely from country to
  country
• Tariff classification

18
Environmental Goods and Services

• Chinese Taipei ( TN/TE/W/44 )
• the APEC list offers the most practical approach
  to identifying the possible coverage of
  environmental goods
• The APEC experience suggests that this direct
  use characteristic could be a practical and
  effective criteria for Members to use in
  negotiations, for identifying environmental goods
  in the category of pollution management.

19
Environmental Goods and Services

• Chinese Taipei ( TN/TE/W/44 )
• Air Pollution Control
• Waste Water Management
• Solid/Hazardous Waste Management
• Remediation/Clean-up of Soil and Water
• Noise/Vibration Abatement
• Monitoring/Analysis and Assessment