98-4966  MORE PRESS RELEASE 
PRESS/TE/027  
9 December 1998 
 WTO COMMITTEE ON TRADE AND ENVIRO NMENT DISCUSSES SERVICES AND THE 
ENVIRONMENT;  RELATIONS WITH NGOs ;  ITEMS RELATEDTO THE LINKAGES 
BETWEEN THE MULTILATERAL ENVIRONMENT AND TRADE AGENDAS  
AND TO MARKET ACCESS;  AND ADOPTS 1998 REPORT 
AND 1999 SCHEDULE OF MEETINGS 
 
The Committee on Trade and Environment (CTE) met on 26-27 October 1998 under the 
chairmanship of Ambassador Chak Mun See,  Singapore's Ambassador to the WTO.  
Members of the CTE addressed trade in services and the environment; relations with non-
governmental organizations;  and items on the work programme related to the themes of the linkages 
between the multilateral environment and trade agendas, and market access.   
Under the theme of market access, Members discussed eco-labelling, and continued the 
sectoral analysis of the environmental benefits of trade liberalization.  Statements were made by Members on the agriculture, energy, fisheries and for estry sectors.  Three new papers were presented:  
Argentina's on non-trade concerns in the next agricultural negotiations;  Japan's addressing the 
environmental effects of agricultural trade liberali zation;  and Brazil's on the trade and environmental 
benefits of removing trade restrictions to trade in  ethanol.  Brazil and Canada announced initiatives to 
further discussions on the sustainable management of all types of forests to contribute to the ongoing work of the Intergovernmental Forum on Forests. 
In relation to the linkages between the multilate ral environment and trade agendas, Members 
commented briefly on the recent Appellate Body Report on US Import Prohibition of Certain Shrimp 
and Shrimp Products and the Secretariat's revi sed paper on GATT/WTO dispute settlement practice 
relating to Article XX.  The relationship betw een the TRIPS Agreement and the Convention on 
Biological Diversity was also addressed. 
The CTE adopted its 1998 Report to the WTO General Council (see Trade and Environment 
Bulletin No. 26 ).  Members also set out the CTE's  work programme and schedule of meetings for 
1999 (attached as an annex to this Bulletin).  Ob server status in the CTE was extended to the 
International Plant Genetic Resources Institute. 
A detailed report of the October meeting of th e CTE follows.  Papers referenced in the 
Bulletin can be accessed through the WTO web site at www.wt.org.  
TRADE AND ENVIRO NMENT BULLETIN PRESS/TE/027  
Page 2/3 
 
  MORE  
Item 9 The work programme envisaged in the Decision on Trade in Services and the 
Environment 
 Several Members, including Egypt, Norway, the US, and Canada said liberalization of 
environmental goods and services could yield "win-w in" gains for trade and environment, provided 
that adequate environmental policies were in place.  Members made reference to several papers by the 
US1, the WTO2 and UNCTAD3 on trade liberalization of envi ronmental goods and services. 
Egypt said that although the US described the l ack of environmental regulations as being the 
biggest obstacle to the growth of a domestic e nvironmental services industry, this issue should be 
addressed in relation to other concerns, such as povert y alleviation and economic and social financing.  
Egypt supported the conclusions of UNCTAD's E xpert Meeting on "Strengthening capacities in 
developing countries to develop their environmental services sector".  Transfer of environmentally 
sound technologies was crucial to achieving sustaina ble development.  Developed countries should 
give incentives to enterprises and multilateral institu tions to provide technology on fair conditions 
through capacity building and joint ventures.  Th is would help developing countries to address 
environmental problems and technology providers to maintain demand. 
Japan, Norway and the US were among the delegations which said that liberalizing 
environmental services would reduce costs and enab le services to be obtained through competition 
and technological innovation.  This would enhance the implementation of environmental policies.  
The US said the private sector has a critical role to  play with respect to technology transfer, which 
would be facilitated by liberalization. 
Norway said environmental concerns should be an  important element in future negotiations in 
the General Agreement on Trade in Services (GAT S).  Japan hoped that more Members would make 
GATS commitments on market access and national treatment in this area. 
Reference was made by several delegations, in cluding the US, Norway, and Canada, to the 
shift in analysis of environmental problems away  from end-of-pipe solutions to more integrated 
approaches.  Classification of environmental goods  and services should therefore be adjusted to 
reflect an integrated market for environmental good s and services.  Canada and Norway encouraged 
the CTE to provide input on environmental services to complement current work in the Council for 
Trade in Services.  Norway prop osed that the CTE, in cooperation with the Council for Trade in 
Services Bodies and other organizations, provide input on classification by compiling an illustrative 
list of barriers to trade in environmental goods an d services.  However, the US was not sure the CTE 
could contribute in this regard, especially sin ce APEC and the Council for Trade in Services were 
developing a definition of environmental services. 
UNCTAD recalled the main recommendations adopted at its Expert Meeting on 
"Strengthening capacities in developing countries to develop their environmental services sector", 
which were set out in WT/CTE/W/96.  The OECD pr esented its project to undertake inventories for 
some 30 countries on how they defined environmental services.  This would help to determine the 
principal barriers to services trade.  This project would clarify how the GATS environmental services 
categories could be elaborated to incorporate a definition reflecting the ways in which environmental services were provided.  Country inventories would be presented to the OECD Joint Session of Trade and Environment Experts and to the Working Part y of the Trade Committee in December 1998.   
                                                      
1WT/CTE/W70, See Trade and Environment Bulletin No 21 . 
2WT/CTE/W/67/Add.1 and S/C/W/46. 
3WT/CTE/W/96 on UNCTAD's Expert Meeting on "S trengthening capacities in developing countries 
to develop their environmental services sector" held on 20-22 July 1998 in Geneva. PRESS/TE/027  
Page 4  
  MORE Item 10  Input to the relevant bodies in respect  of appropriate arrangements for relations 
with intergovernmental and non-governmental organizations referred to in WTO Article V 
The US recalled that at the WTO Ministerial Conference in May 1998, President Clinton 
made several proposals for improving transparency and the WTO's relationship with civil society.  
Canada's Minister of Trade also addressed the issu e of transparency and openness in the WTO at the 
May Ministerial Conference.  The US and Canada  attached great importance to these proposals.  
Work is underway in the WTO on some of these pr oposals.  The General Council is considering a 
joint Canada-US draft decision on document derestriction, which focuses on accelerating the document derestriction procedures, enhancing public  understanding of the WTO, and providing better 
access to dispute settlement reports. 
Based on the current rules with respect to dis pute settlement, the US said it could be several 
months before a report is released to WTO Members who were not parties to the dispute.  As this 
situation was unsustainable, the US hoped that a de cision on this matter would soon be taken by the 
General Council.  The US attached importance to opening the dispute settlement process to allow the 
public to better understand the WTO, which would help the implementation of dispute settlement 
decisions.  The Appellate Body's clarification in the Report on US Import Prohibition of Certain 
Shrimp and Shrimp Products concerning the provision of unsolicited material to panels by private 
parties was welcomed by the US. 
Canada supported greater dialogue with NGOs a nd felt that the NGO symposia organized by 
the WTO Secretariat were useful. 
MARKET ACCESS CLUSTER  
Item 3(b) The relationship between the provisions of the multilateral trading system and 
requirements for environmental purposes relating to products, including standards and technical regulations, packaging, labelling and recycling 
 
At its March meeting, the CTE agreed to inv ite the Secretariat of the Intergovernmental 
Forum on Forests (IFF) to brief Members on the tr ade-related developments at its second session, 
which was held from 20 August-4 September 1998.  As the IFF Secretariat was unable to participate, 
it circulated an informal note.  
As set out in its paper on forestry products
4, Canada said there was a need for governments to 
provide policy guidance on standards, certification a nd labelling schemes.  The concepts set out by the 
Intergovernmental Panel on Forests should be app lied to ensure that these schemes do not become an 
unjustified trade barrier or negatively affect sustai nable forest management.  The adoption of a policy 
approach where certification schemes were mark et-based, independent and voluntary, and which 
recognized equivalency of standards, would promote sustainable forest management.  As the lack of 
an internationally-agreed definition of sustainable fo rest management contributed to the difficulty of 
developing certification schemes , Canada and other non-European countries with temperate and 
boreal forests were seeking to define sustainable fo rest management through the Montreal Criteria and 
Indicators Process. 
New Zealand recalled that it had contributed a paper to the TBT Committee proposing the 
development of the concept of equivalency for volunt ary standards.  Voluntary instruments, such as 
standards, were becoming increasingly important in tr ade and, if they set out inappropriate criteria, 
could have serious trade impacts.  The value of e quivalency to take account of different approaches 
                                                      
4WT/CTE/W/82-G/TBT/W/61. PRESS/TE/027  
Page 5 
 
  MORE concerning standards should be recognized.  In th is respect, the Appellate Body Report on US Import 
Prohibition of Certain Shrimp and Shrimp Products supported exploring the concept of equivalency.  
Poland, ASEAN and Canada requested clarificati on from the EC on the draft legislation of the 
Netherlands for mandatory labelli ng of wood products and informa tion on the environmental risk 
assessment upon which it is based.  The EC res ponded that this legislation was before the 
Netherlands' Upper House of Parlia ment, which had requested it be notified to the TBT Committee.  
Comments made in the TBT Committee in this cont ext would be put forward to the parliamentary 
proceedings, only after which the Netherlands w ould decide whether or not to implement it. 
Item 4  The provisions of the multilateral trading system with respect to the 
transparency of trade measures used for environmental purposes relating to 
products, including standards and tec hnical regulations, packaging, labelling 
and recycling 
At its meeting in March 1998, the CTE agreed  to establish a WTO Environmental Database 
(EDB) covering environment-related notifications under WTO Agreements.  The Secretariat would 
up-date the EDB for 1998. 
Item 6 The effect of environmental measures on market access, especially in relation to 
developing countries, in particular to  the least developed among them, and 
environmental benefits of removing trade restrictions and distortions 
Sectoral analysis  
 
 Several Members said that concentrating on sp ecific sectors based on national experience was 
a useful way to further the analysis of the envir onmental benefits of removing trade restrictions and 
distortions under item 6.5  At this meeting of the CTE, Members addressed the following sectors:  
agriculture, energy, fisheries, and forestry. 
 
Agriculture 
  Article 20 of the WTO Agreement on Agricultu re establishes a mandate for the continuation 
of the reform process in agricultura l trade.  Agricultural negotiations will be initiated one year before 
the end of the implementation period, i.e. before th e end of 1999, and will also consider "non-trade 
concerns" (NTCs), such as the environment.  Annex 2 of the Agreement on Agriculture (referred to as 
the "Green Box") provides an exemption from the domestic support reduction commitments for certain NTC-related measures, such as payments un der environmental programme s, if they have no, 
or at most, minimal trade distorting effects on production. 
  Argentina presented a new paper
6 on NTCs in the next agricultural negotiations, which it had 
also submitted to the Agriculture Committee.  The paper addressed whether agricultural trade 
liberalization was environmentally beneficial.  If prices  reflected the efficiency and relative scarcity of 
resources used in agriculture production, trade te nded to correctly allocate economic resources and 
diminish the pressure of production on the environment.  The CTE should recommend the elimination of export subsidies in the upcoming agricultural negotiations as these were the best example of 
policies which distorted international prices.  
Japan introduced a new non-paper which set out  that agriculture has positive and negative 
environmental impacts depending on a country's ag ricultural conditions.  If agriculture with positive 
impacts became uncompetitive and was abandoned, these positive externalities would disappear.  
                                                      
5See the Secretariat's document WT/CTE/W/67 and Trade and Environment Bulletin No.23.  
6 WT/CTE/W/97. PRESS/TE/027  
Page 6  
  MORE Appropriate production prac tices were essential as decoupled measures could not preserve the land 
conservation function of paddy field farming.  It  would be essential to seek WTO-consistent policies 
to maintain or enhance the multifunctional role of agriculture.  NTCs, including conservation, food 
security and rural development, shoul d be appropriately reflected in the next agricultural negotiations. 
Several delegations, including Chile, Morocco, Australia and Canada, said that Argentina's 
paper raised valid points relating to export subsid ies and their potential environmental damage.  The 
CTE had a role to play in discussing export subsid ies and would not be duplicating work in the 
Agriculture Committee.  The CTE had extensivel y discussed trade distorting policies in several 
sectors where environmental impacts were a significa nt consequence of production;  agriculture had 
been a focus of the discussions due to the size of the market distortions in this sector in several 
northern hemisphere developed countries, Austra lia said.  Several Members, including Morocco, 
Argentina, Brazil and Australia, said that the CTE should make recommendations for the upcoming 
agricultural negotiations. 
The US, Australia and others said that NTCs shoul d not be used as excuses not to liberalize.  
This would counter the CTE's agreed view th at trade liberalization along with appropriate 
environmental policy was the best way to obtain "w in-win" outcomes.  The US recalled its suggestion 
in the Agriculture Committee to ex amine how that Agreement addresses NTCs in the context of its 
provisions on domestic support and how to deal w ith NTCs so as to reduce negative externalities 
(especially production subsidies) and minimize trade distortions.  The flexible nature of the Annex 2 
"Green Box" was important, whereby countries can address negative externalities related to NTCs.  
While some refinements to Annex 2 may be approp riate, the basic concept was sound, i.e. channel 
support to agriculture into minimally or non-trade distorting measures.  
Canada said some WTO Members had increased e xport subsidies as a result of the current 
agricultural crisis, thus causing negative environmen tal effects.  Canada also supported the polluter 
pays principle as a way of ensuring that the full co sts and benefits of agricultural production were 
reflected in market prices.  NTCs could be reflec ted in trade agreements if the measures to support 
them were restricted to the provision of public goods and did not increase commodity production.  
Based on its experience, New Zealand said that  removing agricultural subsidies also had 
important environmental benefits.  Prior to 19 84, agricultural support and resource development 
policies had encouraged farming systems and land u se patterns in New Zealand which in some areas 
were not sustainable.  The artificial profitabilit y of livestock farming, particularly sheep, had 
encouraged farmers to run stock numbers which exc eeded the long term productive capacity of land 
resources.  Following the removal of these agricultur al subsidies, environmental benefits had been 
realized, demonstrating the environmental bene fits of moving away from unsustainable and 
distortionary agricultural policies.  
Work on the relationship between agricultural trad e and the environment, particularly in the 
OECD, points to the wide variation in agricultural and environmental conditions  and the difficulty in 
generalising about the environmental benefits of trad e liberalization.  Where agriculture had a mixture 
of environmental effects, complementary envi ronmental policies were vital to maximize 
environmental benefits, Australia and Norway said.  As the aggregate effect of trade liberalization 
was not clear, Korea felt that net environmental im pacts should be quantified, such as through the use 
of the OECD green environmental indicators. 
According to the EC the conclusion in Argentin a's paper that any type of production and trade 
distortive agricultural support is environmentally harmful should be qualifie d;  the environmental 
impacts of trade liberalization were ambiguous, and the linkages not automatic.  Agriculture generated 
a range of environmental effects which maintained  traditional landscapes, preserved biodiversity, and 
contributed to the sustainable management of water and soil.  It could also lead to pollution, degradation of habitats and biodiversity, and so il erosion.  When agricultural activities were PRESS/TE/027  
Page 7 
 
  MORE environmentally harmful, the polluter pays principle should apply, the EC and Japan said.  Norway 
said that if agriculture only had negative externaliti es, subsidies should be e liminated and appropriate 
taxes put in place. 
Switzerland said that not all forms of subsid ies have negative environmental impacts and 
NTCs play an important role in agriculture.  At the March 1998 meeting, Switzerland presented a 
study by the Swiss Ministry of Agriculture which showed that th e policy of direct payments for 
environmental services was beginning to bear resu lts and that fertilizer use in Switzerland had 
declined since 1996.  Concerning possible CTE reco mmendations for future negotiations, Switzerland 
and the EC felt the CTE's work programme should be  addressed in a balanced manner. The EC said it 
would not be possible for the CTE to make recomme ndations to the Agriculture Committee or to any 
other WTO Committee. 
Many Members, including Argentina, ASEAN, Australia, Ecuador, Canada, Chile, Colombia, 
New Zealand, Uruguay, and the US, supported a requ est from Brazil for the Secretariat to prepare a 
factual paper based on notifications of agricultural subsidies, which would fo llow the format of the 
paper on fisheries subsidies7 and, as proposed by Egypt, include a section on net food-importing 
developing countries.  The EC said it would cons ult on this proposal and respond in due time.   
Reference was made to the negotiations for a Biosafety Protocol to the Convention on 
Biological Diversity which would be finalized in February 1999.  Chile was concerned that trade 
restrictions on agricultural products would be introd uced due to environmental concerns just prior to 
negotiations in the WTO Agriculture Agreement.  Chile felt that the CTE should be the forum to 
negotiate these issues.  The US and Canada did not necessarily see a conflict between trade and environment in the Biosafety Protocol, but were con cerned about the lack of trade policy expertise.  
This could lead to trade restrictions which were not needed to achieve the Protocol's objectives and 
was an example of where integration of trade and environment policy-making was required.   
Energy 
Brazil presented a new paper
8 on its national experience with ethanol, which illustrated the 
contribution of this renewable energy source to reducing greenhouse gas emis sions, particularly in 
light of the objectives of the UN Framework C onvention on Climate Change (UNFCCC).  As the 
world's largest ethanol producer, Brazil was concer ned that despite the expansion of the ethanol 
market, its exports were limited due to high levels of tariff protection in several developed countries.  
Additional duties could constitute a seventy two per cent increase over the original imported price.  
Enhancing market access for this cleaner energy sour ce, through tariff reductions and elimination of 
trade distortions, would have envir onmental benefits.  The CTE could play a role in analyzing how to 
improve market access for alternative energy sources, such as ethanol.   
The US, Australia and Burundi were among the de legations which welcomed Brazil's paper.  
Having an understanding of how Braz il's ethanol programme worked was an important contribution to 
the CTE's work.  The US supported ethanol use and saw  the value of undertaking research in this area 
as ethanol was expected to play a role in the redu ction of transportation ge nerated greenhouse gases.  
Australia said that the paper illustrated the positive climate change and local emissions benefits of 
ethanol and showed how this industry reflected th e importance of internalization of environmental 
costs.  The potential for improved market access in this area merited consideration in the CTE.   
Burundi said that traditional energy consum ption and trade in petroleum products had 
devastating environmental effects, such as deforestat ion.  Environmental damaging effects, such as air 
pollution, resulted from the overexploitation of hydrocarbon-based energy.  Burundi proposed the 
                                                      
7WT/CTE/W/80, see Trade and Environment Bulletin No. 18. 
8WT/CTE/W/98. PRESS/TE/027  
Page 8  
  MORE promotion of alternative and renewable energy sources.  Burundi had several projects for which 
feasibility studies were being undertaken, particular ly for hydro and solar power and biomass gas, and 
was awaiting external financing and investment.   
The CTE should explore situations where trade liberalization could facilitate the 
accomplishment of the UNFCCC commitments undertaken  in Kyoto, the EC said.  Although the EC 
recognized the environmental contribution of the use of bioethanol to reducing greenhouse gases, 
other environmental aspects should not be underest imated, i.e. increased use of pesticides and 
fertilisers, loss of biodiversity from monoculture, and deforestation to gain extra land for cultivation. 
Agricultural negotiations would start in 2000 when ta riffs would be reduced, including for bioethanol. 
Fisheries 
 
New Zealand said that there was an increasing awareness of the environmental and trade 
benefits that would result from removing fishing subsidies.  New Zealand's paper
9 addressed the 
problems caused by high levels of subsidization in terms of their encouragement to over capacity and 
over supply and the consequential e ffect in driving down fish prices and encouraging other forms of 
protectionism.  Subsidies removal would not only be nefit the environment, but also provide economic 
benefits to countries for whom fish eries constituted an important part  of their economy, particularly 
developing and least-developed countries.  All subsid ies encouraged unsustainable fishing practices 
and were directly or indirectly trade di stortive and environmentally damaging.   
Work is being undertaken to raise awareness releva nt to fish subsidies.  APEC, for example, 
is studying fisheries subsidy progra mmes and how these relate to the categorization of subsidies in the 
WTO Subsidies Agreement.  New Zealand said that th e CTE should clarify that fisheries was an area 
where removing trade distortions and achieving envi ronmental objectives was complementary.  It said 
concern about the use of subsidies was heightened  as many were potentially inconsistent with the 
WTO Subsidies Agreement.  Members which mainta ined such environmentally damaging policies 
risked having their policies challe nged through dispute settlement.   
Forestry 
Brazil pointed to the lack of understanding on the relationship between trade and environment 
issues in the forest sector and diverging views as to  how to protect all types of forests at the second 
session of the Intergovernmental Forum on Forests (IFF).  To contribute to the IFF discussions, Brazil was planning a seminar on the trade-related aspects of the sustainable management of all types of forests.  Organized with UNCTAD, the ITTO and the IFF, this seminar would discuss market access, 
illegal trade in wood and non-wood products, and cer tification and labelling.  The seminar was 
scheduled for the end of February in Geneva, with participation open to government and non-
governmental representatives.  
Canada said it would convene jointly with Costa Rica inter-sessional meetings of the IFF to 
build consensus on the potential elemen ts of legally-binding instruments for all types of forests.  This 
initiative entailed meetings of expert s through 1999 to build consensus in advance of the final meeting 
of the IFF in February/March 2000, and the CSD in April 2000.   
In response to a request by Ecuador and ASEAN,  the US said a bill had been introduced in 
the New York City Council in 1997 which, if  enacted, would prohibit the purchase of tropical 
hardwood products unless certified by the For est Stewardship Council as having come from 
sustainably managed forests.  Since the Council was in recess, no action would likely take place this 
year.  This measure related to government proc urement.  If it were considered to violate WTO 
obligations, it should be addressed in th e Government Procurement Agreement. 
                                                      
9WT/CTE/W/52, see Trade and Environment Bulletin No.18.  PRESS/TE/027  
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  MORE LINKAGES BETWEEN THE MULTILATERAL ENVIRONMENT AND TRADE AGENDAS 
Items 1& 5 The relationship between the provisi ons of the multilateral trading system and 
trade measures for environmental pur poses, including those pursuant to 
multilateral environmental agreements (M EAs);  and the relationship between 
the dispute settlement mechanisms in th e multilateral trading system and those 
found in MEAs 
Several Members, including the EC, Australia, Canada, New Zealand, said that the Appellate 
Body (AB) Report on US Import Prohibition of Certain Shrimp and Shrimp Products (Shrimp-
Turtle)10 had made an important contribution to WT O jurisprudence and the interpretation of 
Article XX.  Taking into account this Report, th e Secretariat had revised its background note on 
GATT/WTO dispute settlement practice relating to Article XX.11  
Australia, Canada, the EC and New Zealand sai d the AB Report on Shrimp-Turtle confirmed 
that a key consideration in dete rmining the existence of unjustifia ble discrimination under Article XX 
was whether cooperative multilatera l approaches had been pursued to address an environmental 
problem.  This Report also highlighted the importanc e of fairness in due process and flexibility in the 
administration of measures if they were to meet Article XX requirements.  Australia felt this was a 
signficant guiding principle which deserved atten tion.  New Zealand noted that the Shrimp-Turtle 
Report encouraged the use of equivalency to accommodate different environmental standards. 
Canada recalled its proposal at the July 1998 meeting for the CTE to develop a statement on 
the interaction between MEAs and WTO rules.  Th e AB Report on Shrimp-Turtle would be useful in 
the formulation of such a statement. 
The requirements in the chapeau of Article XX, the EC said, were an increasingly important 
parameter in its interpretation, which might contri bute to increasing consistency in dispute settlement 
practise with respect to Article XX.  The AB Repor t set out a broad interpretation of the concept of 
exhaustible natural resources in Article XX(g).  Th is confirmed, as noted in the CTE's 1996 Report, 
that Article XX contained valuable scope to acco mmodate a broad range of environmental issues.  
As the AB Report on Shrimp-Turtle had yet to be discussed in the Dispute Settlement Body 
(DSB), Hong Kong, China and others said that it w as premature to discuss it in the CTE.  Several 
Members, including Switzerland, said that they we re still in the process of analyzing this Report. 
The EC and Canada expressed their appreciation for UNEP's statement at the July 1998 MEA 
Information Session12 and UNEP's offer to cooperate in developing a framework to clarify the 
relationship between MEAs and the WTO Agreem ents.  Cooperation between UNEP and the CTE, 
the EC said, should also be explored with resp ect to UNEP's work to increase coherence among 
MEAs and to elaborate core environmental principles.  The EC encouraged UNEP to examine 
selected environmental principles, including the prec autionary principle, and their implementation.  
The US said that although UNEP could usefully co ntribute to CTE work, it would be important to 
deal with all relevant environmental principles. 
                                                      
10WT/DS/58/ABR. 
11WT/CTE/W/53. 
12WT/CTE/W/94. PRESS/TE/027  
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  MORE Item 8 The relevant provisions of the Agreement on Trade-Related Aspects of 
Intellectual Property Rights (TRIPS) 
The US referred to the July 1998 meeting of  the CTE at which Colombia and India had 
suggested that the TRIPS Agreement be amended to  require that patent applications indicate the 
origins of genetic samples and re ference whether living organisms had been extracted in accordance 
with the norms of the country of origin.  The US  said that companies developing genetic resources 
should explore and implement benefit sharing arrange ments with source countries.  While the US felt 
that there was no conflict between the TRIPS Agre ement and MEAs, each Member should ensure that 
its implementation of one agreement also complied with its obligations under the other.  In other 
words, one agreement should not be used to enforce the other.  
Many uses of genetic resources or indigenous kn owledge were not patentable, the US said, 
and were used commercially without patent protecti on.  Such a use, if out of compliance with a 
country's access and benefit sharing regime, would not  be detected through the patent application 
process.  A patent application need only comply with  the patent requirements of the country in which 
it was filed.  If the invention were the result of r esearch undertaken by several scientists and the origin 
of the material was not clear (for example if it had been taken legitimately from an ex situ  pre-CBD 
genebank), it may be impossible to indicate the country of origin and whether a certificate of 
compliance with the source country's law had be en issued.  Such a requirement would produce 
inefficiencies to the patent application process and place a burden on benefit sharing, which would 
diminish the number of patents applied for, a nd the amount of research being undertaken.  If less 
research were undertaken, particularly in those pr ojects which integrated elements of developing 
countries' indigenous knowledge or genetic resource s, there would be fewer benefits to share.  
Reference was made to the need for the CTE to explore the synergies between the CBD and 
the TRIPS Agreement, particularly in preparati on for the 1999 review of the TRIPS Agreement.  
ASEAN felt the CTE should examine how to define  terms such as plants, animals, microorganisms 
and biological processes, plant varieties and effective sui generis  systems.  Argentina recalled that the 
CBD contained obligations that could relate to in tellectual property rights (IPRs), such as in Articles 
15.7, 16.3 and 16.4, in compliance with which CBD  Parties might enact national legislation.  
According to Article 63 of the TRIPS Agreement, Members should notify IPR-related measures.  In 
light of these obligations, Argentina proposed that the Secretariat determine if there had been any 
TRIPS notifications related to the CBD.   
The US did not object to discussing the relationship between the TRIPS Agreement and the 
CBD, but doubted whether the CTE should work on issues of definition.  If information could be 
derived from TRIPS notifications, the US did not object to Argentina's proposal, although the 
implementation of CBD obligations would be, in mo st cases, through measures related to a country's 
IP regime.  To address the synergies between the TRIPS Agreement and the CBD, it was agreed that 
the Secretariat would prepare a paper on CBD-rela ted notifications to the TRIPS Agreement. 
1998 Report of the CTE  
The CTE adopted its 1998 Report
13 to the General Council, and its work programme and 
schedule of meetings for 1999 (attached as an annex to this Bulletin).  Observer status was extended 
to the International Plant Genetic Resources Institute. 
The EC said it would be natural for the CTE's wo rk to take into account preparations for the 
1999 Ministerial and developments in discussions for a new Round.  Both clusters of the work 
programme and all Members' interests should be  the basis upon which to provide any concrete 
proposals that the CTE may wish to make to the Ge neral Council.  The EC we lcomed the Secretariat's 
                                                      
13 see Trade and Environment Bulletin No. 26.  PRESS/TE/027  
Page 11 
 
  MORE intention to convene another MEA information sessi on in 1999.  It would also be interesting to 
organize, at an appropriate stage, another NGO sympos ia in 1999, as had been done in 1997 and 1998.  
The EC thanked the Chairman for his guidance wh ich had permitted the CTE to make progress on 
understanding the relationship between trade and the environment. 
 PRESS/TE/027  
Page 12  
  END ANNEX 
Work Programme and Schedule of Meetings for 1999 
 
1. The 1998 Report of the Committee on Trade and Environment (WT/CTE/3) sets out that the CTE will advance the analysis of all the items on its  work programme based on the "cluster approach" 
under the themes of market access and the linkages between the multilateral environment and trade 
agendas.  The contribution of Members, includi ng where possible their national experience, on the 
items of the work programme should enrich th ese discussions and move forward the process of 
fulfilling the tasks mandate d in the terms of refe rence of the CTE.  Time will be allotted for 
Members, if they so wish, to return to Items discussed at the previous meeting. 
 2. The CTE meeting of 18-19 February will address those Items relevant to the theme of market access, including:  
 
Item 2:  the relationship between environmenta l policies relevant to trade and environmental 
measures with significant trade effects and the provisions of the multilateral trading system; 
Item 3:  the relationship between the provisions of the multilateral trading system and:   (a) charges and taxes for environmental purposes; 
  (b) requirements for environmental purposes relating to products, including 
standards and technical regulations, packaging, labelling and recycling; 
Item 4:  the provisions of the multilateral tradin g system with respect to the transparency of 
trade measures used for environmental purposes and environmental measures and requirements which have significant trade effects;  and 
Item 6:  the effect of environmental measures on market access, especially in relation to 
developing countries, in particular to  the least developed among them, and 
environmental benefits of removing trade restrictions and distortions. 
 3. At a meeting on 29-30 June the CTE will discu ss the Items related to the linkages between the 
multilateral environment and trade agendas, including:  
 
Information session with selected Secretariats  of Multilateral Environmental Agreements; 
Item 1:  the relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral environmental agreements; 
Item 5:  the relationship between the dispute settlement mechanisms in  the multilateral trading 
system and those found in multilate ral environmental agreements; 
Item 7:  the issue of exports of domestically prohibited goods;  and Item 8:  the relevant provisions of the Agre ement on Trade-Related Aspects of Intellectual 
Property Rights. 
 
4. On 12-13 October, the CTE's discussions will include:   Items under the market access cluster (Items 2, 3, 4 and 6); Items under the linkages between the multilateral envir onment and trade agendas cluster (Items 1, 5, 7  
and 8); 
Item 9:  the work programme envisaged in  the Decision on Trade in Services and the 
Environment;   
Item 10: input to the relevant bodies in respect of appropriate arrangeme nts for relations with 
intergovernmental and non-govern mental organizations referred to in Article V of the 
WTO;  and adoption of the 1999 Report of the CTE.