RESTRICTED
WORLD TRADE WT/CTE/W/46
29April 1997
ORGANIZATION(97-1839)
Committee onTrade andEnvironment
PROVISIONS OFTHE MULTILATERAL TRADING SYSTEM WITH RESPECT
TOTRANSPARENCY OFTRADE MEASURES USED FOR ENVIRONMENTAL
PURPOSES AND ENVIRONMENTAL MEASURES AND REQUIREMENTS
WHICH HAVE SIGNIFICANT TRADE EFFECTS
Note bytheSecretariat
1. TheReport (1996) oftheCommittee onTrade andEnvironment (CTE) recommended that
theSecretariat "compile from theCentral Registry ofNotifications allnotifications oftrade-related
environmental measures andcollate theseinasingle database which canbeaccessed byWTO Members.
Thedatabase could contain information where available foreachnotified measure: itsnature/title;
objective(s); product coverage; relevant WTO provisions andMEA provisions; andadescription
ofhowitoperates. Thisdatabase should bekeptupdated." (Paragraph 192)
2. Asafollow-up totheabove recommendation, thisNote isdivided intothree sections:
(a) thestatus oftheCentral Registry ofNotifications (CRN) anditsroleinestablishing an
Environmental DataBase. Twoissues arenoted: (a)theorganization anddelivery ofthe
database inamanner thatbuilds onCRN andother WTO databases; (b)thecontent ofthe
databaseitself,includingconsiderationoftheclassification,cataloguingandgeneralnomenclature
ofenvironmental notifications;
(b) anoverview ofenvironment-related measures notified in1996. Thisoverview isillustrative
rather thancomprehensive, andupdates WT/CTE/W/28. Where possible, supplementary
information isprovided regarding thesector and/or product affected; and
(c) possible future analysis related toevaluate quantitatively thetrade effects ofenvironmental
measures onspecific product groups.
I. ENVIRONMENTAL DATA BASE (EDB)
A. Organization andDelivery ofDatabase
3. Inits1996 Report, theCommittee onTrade andEnvironment identified theCentral Registry
ofNotifications (CRN) astheprincipal reference inestablishing anEnvironmental DataBase(EDB).
Bywayofbackground, theCRN isorganized tofacilitate searches ofallWTO notifications forvarious
purposes, including ascertaining thedegree towhich aMember hasnotified ameasure under aspecific
obligation. Thedesign oftheCRN enables information tobeaccessed inaccordance withtheMarrakesh
Ministerial Decision onNotification Procedures, which notes that"[i]nformation inthecentral registry
regarding individual notifications shallbemade available onrequest toanyMember entitled toreceive
thenotification concerned." Although information contained intheCRN isavailable toMembers upon
request, theCRN doesnotascurrently designed facilitate direct access byMembers. However, the
1996 Report oftheWorking Group onNotification Obligations andProcedures recommended thatWT/CTE/W/46
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"future work [bytheNOP should] alsoencompass matters relating totheCentral Registry of
Notifications, electronic transmission ofnotifications andfurther work onthenotifications handbook."
(G/NOP/W/16/Rev.1). Asafollow-up tothatrecommendation, work continues within theSecretariat
toenable theCRN tobeaccessed directly (electronically) byMembers.
4. Inaddition totheCRN itself, otherinformation sources maybeofinterest toMembers inhow
besttocreate anEnvironmental DataBase(EDB). TheCommittee onMarket Access continues to
review thestatus ofitsIntegrated DataBase(IDB) withtheobjective ofconsolidating anddownsizing
theIDBinordertointeraliasimplifyandfocusdatacontent,improvecostefficiency,upgradeelectronic
delivery capabilities bycapitalizing ontechnological improvements, avoid duplication withother WTO
databases,andensurethattheIDBrespondstotheinformationneedsofMembers.(SeeG/MA/IDB/W/2,
"Summary Report ontheStudy ForDownsizing ontheIntegrated DataBase).
5. Inaddition totheIDB, attention isdrawn totheDecision onNotification Procedures for
Quantitative Restrictions (G/L/59), whereby allnotifications ofquantitative restrictions (QRs) whether
already notified toother WTO bodies ortaken under GATT Article XXorXXI, arenotified tothe
Market Access Division. Information iscompiled inadatabaseaccording toproduct andtariff lines
within theHarmonized System nomenclature, aswellasbythetypeofmeasure taken (using standardized
categories andsymbols), thejustification ofthemeasure, andastatement ofitstrade effects. In
accordance withthatDecision, theCommittee onMarket Access "shall, attwo-yearly interval after
receipt ofthecomplete notifications, review thenotifications received, onthebasis oftheSecretariat
summariessimilartothesummariespreparedfortheGATTTechnicalGrouponQuantitativeRestrictions
andOther Non-Tariff Measures." Members canrequest computer printouts from theSecretariat of
theinformation organized byproduct category, inrelation tospecific obligations and/or Articles (for
example, GATT Article XX(b) andXX(g)), aswellasasummary ofQRmeasures adopted bysome
Members. Another potential source ofuseful information maybefound infuture reverse notifications
(G/L/60).
6. Another pointofreference istheDocument Dissemination Facility (DDF). Since August 1996,
Members canaccess directly WTO documents, including notifications, through theDDF andviathe
WTO Home PageoftheInternet. (Allrestricted andderestricted documents willbebacklogged to
1995 andmade available ontheDDF byJuly1997). Security ofinformation isassured through the
useofpasswords forindividual Members. In1997, theDDF included unrestricted WTO documents
ontheWTO Home Pageforpublic access inaccordance withtheGeneral Council Decision ofJuly1996
(WT/L/160/Rev.1).
7. InlightoftheCTE decision thattheEDB shallbeaccessed byMembers directly, possible
options mayinclude creating asearch interface within theDDF based onindex listsdescribing
documents,establishinganonlinebrowsefeatureanddownloadingfacilityforthenotificationinquestion.
However, while theDDF isintended todisseminate WTO documents asandwhen theyareproduced,
theEDB would require considerable classification efforts which isnotafeature oftheDDF itself.
Duplication ofinformation between theDDF andtheEnvironmental DataBasemayarise, whereby
thelatter would ineffect become asub-category oftheformer. Inorder toavoid duplication ofdata,
aswellastominimize costs, analternative approach could entail creating afull-fledged EDB wholly
distinct fromeither theCRN orDDF, which would comprise adescriptive catalogue ofentries relevant
tovarious environmental measures.
8. Giventhedifferentoptionsavailable,guidanceissoughtfromMembersinidentifyingtheoptimal
design oftheEnvironmental DataBase. Options include:
(a) notifications aretobecollated periodically (annually, every sixmonths oronanon-going basis)
bytheSecretariat andmade available upon request byMembers;WT/CTE/W/46
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(b) notifications aretobecollated periodically andmade available totheCTE through a
W/Document; and
(c) notifications aretobecollated onanon-going basis anddisseminated through anelectronic
delivery system tobedetermined. Thiscould build upon theDDF already accessible by
Members, oritcould comprise thecreation ofanindependent, fully-fledged database. Ifthe
electronic delivery system ischosen, apilotphase could beinitiated in1997, anditsoperation
could bereviewed periodically bytheCTE.
B. Content ofDatabase
9. Thecontent oftheEnvironmental DataBaseisanissueofconsiderable complexity. Itinvolves
themanner withwhich diverse environment-related notifications aretobeclassified andcatalogued
within theEDB. Such measures canbebroadly grouped intwocategories. Thefirstcomprises
notifications made inaccordance withWTO provisions which either referexplicitly totheenvironment,
orwhich aregenerally regarded asrelating toenvironmental objectives. These provisions include:
- Annex 2,paragraph 12oftheAgreement onAgriculture;
- Article 8.2(c) oftheAgreement onSubsidies andCountervailing Measures;
- Articles 2and5oftheAgreement onTechnical Barriers toTrade;
- Article XIV(b) oftheGeneral Agreement onTrade inServices;
- Article 27.2oftheTRIPS Agreement; and
- Measures taken pursuant toGATT Article XX.
Notificationsmadeundersuchprovisionsmaynotrequiredefinitionalclarification,andarecomparatively
simple tocatalogue.
10. Thesecondgroupcomprisesnotificationswhicharenotmadeinaccordancewithanenvironment-
related WTO provision, andwhich mayormaynotinclude asapurpose orobjective measures intended
forenvironmentalprotection.Thisinitselfreflectsthebroad-based,multi-sectoralandattimesimprecise
definition ofenvironmental policies themselves. Forexample, several notifications ofdomestic laws
andregulations refertoageneral policy objective sustainable development, while several sector-specific
notificationsincludeasasecondaryobjectivemeasuresrelatedtoenvironmentalprotection.Notifications
catalogued inthisNotehavebeenclassified onanadhocbasis, reflecting thefactthatmany measures
notified refertotheenvironment neither asthesolenorpredominate feature, ordonotreferexplicitly
totheenvironment butnonetheless maycontain environment-related policy objectives.1
11. In1996, approximately 2980notifications weremade in1996under the215WTO notification
provisions. Given thecross-sectoral nature ofenvironmental policies, thequestion ofhowtoclassify
andcatalogue accurately environment-related notifications hasconsiderable importance inensuring
thecreation ofacredible Environmental DataBase. Twoareas ofnotification -energy-related and
theprotectionofplantsandanimals-illustratethecomplexnatureofclassifyingandcataloguingmeasures
associated withtheenvironment.
1Thissecond category oftrade-related environmental notifications raises practical problems interms ofsearching tools
intheCRN. Incollating environment-related notifications summarized inSection IIofthisNote, nosingle search word
sufficiently captures thebroad-range oftrade-related environmental measures notified bymembers. Accordingly, multiple
searchwor dsarenecessar y,includingenvironment(asearchwor dnotparticularlyeffectivegivennumer ousreferences throughout
notifications totheeconomic environment ofthemultilateral trading system), conservation, sustainable development,wildlife
conservation, waste management andwaste reduction, pollution controls, climate change, toxicchemicals, energy efficiency,
multilateral environmental agreements, ozone, Montreal Protocol, CITES, Basel Convention, packaging, environmental or
eco-labelling, andother keywords.WT/CTE/W/46
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(a) Energy Policy: several notifications made in1996provided information related toenhancing
energy-efficiency, promoting energy conservation and/or savings orsetting outproduct or
performance-based regulations forabroad range ofproducts, including electrical appliances,
heaters andboilers, energy-saving devices forfishing vessels, alternative energy sources such
assolarpower, orenergy related standards covering automobile engine efficiency performance
standards. Suchmeasures areprimarily made under theTBTAgreement andAgreement on
Subsidies andCountervailing Measures (SCM).2However, theydonotnecessarily linkenergy
efficiency measures with environmental objectives. Accordingly, suchlinksareoften tobe
inferred. Inaddition, aTRIMs notification listsalternative energy sources "likesolar, wind,
etc.,andequipment thereof" including energy-efficient lamps, although noreference ismade
toenvironmentalobjectives.3Thequestionofwhetherthistypeofnotificationshouldbeincluded
intheEDBrequires clarification. Additional information onenergy-related policies arefound
inseveral Trade Policy Review Reports, although links ifanywithenvironmental-related
objectives areoften notmade.4
(b) Protection ofPlants andAnimals: various notifications under different Agreements provide
information onmeasures toconserve floraandfauna, protect endangered species (including
measures taken pursuant totheConvention onInternational Trade inEndangered Species of
FloraandFauna(CITES)),promoteplantvariationorrefertopoliciesrelatedtothedevelopment
andapplication ofgenetic resources, suchasbiotechnologies. Suchmeasures arenotified under
theAgreement onImport Licensing Procedures andtheAgreement onSubsidies and
CountervailingMeasures.5Inaddition,asignificantnumberofnotificationsundertheAgreement
onSanitary andPhytosanitary Measures listastheirobjective "Plant Health".6Anadditional
consideration aremeasures notified under theTRIPS Agreement covering patent protection
forthe"Protection ofPlant varieties". Although theydonotcontain anexplicit reference to
conservation orenvironmental protection, interest intheCTEhasbeenexpressed inrelated
work oftheUNConvention onBiodiversity.7
2See forexample, G/TBT/Notif.96.56; G/TBT/Notif.96.124; G/TBT/Notif.96.130; G/TBT/Notif.96.284;
G/TBT/Notif.96.287 andG/SCM/N/3/CZE, N/3/EEC; G/SCM/N/3/NOR; G/SCM/N/3/USA; G/SCM//716/EEC and
G/SCM/N/3/CHE.
3G/TRIMS/N/1/IND/1/Add.1.
4Forexample, theTPRReport of1996 onSwitzerland notes that"InFebruary 1991, theFederal Council introduced
anaction programme toencourage therational useofenergy... andthepromotion ofrenewable forms ofenergy. The
programme isconsidered bytheInternational Energy Agency asSwitzerland 'smost important energy initiative... Among
other measures, target consumption levels have been determined forallelectrical appliances andpassenger cars... Apart
fromefficiency objectives, strong emphasis isplaced on,andsubsidies areprovided for,thedevelopment anduseofrenewable
energy sources (heat pumps, etc.)."
5Seeforexample G/LIC/N/1/AUS; G/LIC/N/3/HKG; G/LIC/N/3/CAN; G/LIC/N/3/USA; G/LIC/N/3/SGP;
G/LIC/N/3/ARG; G/LIC/N/3/JPN/1; andSCM/N/3/CZE; SCM/N/16/ROM.
6Supplementary information ondomestic lawsandregulations related toprotection offloraandfauna, ormeasures taken
pursuant toCITES, arecontained inseveral TPR Reports of1996.
7Seeforexample Paragraph 209ofWT/CTE/1: "Some issues areunder consideration bytheParties totheConvention
onBiological Diversity whoarealsolooking atthesynergies andrelationship between itsobjectives andtheTRIPs Agreement.
Information hasbeen shared bytheCTE regarding itswork inresponse torequests bytheSecretariat oftheConvention
onBiodiversity. Theexchange ofinformation between theCTEandtheConvention onBiodiversity might bepursued further,
asappropriate."WT/CTE/W/46
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12. Further guidance issought from Members regarding theefficient classification ofmeasures
tobeincluded intheEDB. Thefollowing options havebeenidentified:
(a) theWTO notification system ingeneral, asnoted inthe1996Report oftheNOP, isfunctioning
satisfactorily andisfullycapable ofcapturing alltrade-related environmental notifications.8
Work onclassification andcataloguing should belefttothejudgment oftheSecretariat;
(b) work isneeded toimprove theclassification ofenvironmental measures. Such work canbe
undertaken bytheSecretariat, bytheCTE, orbyanother body asappropriate; and
(c) consideration maybewarranted fortheinclusion ofcertain key-words (tobedetermined) which
would leadtotheautomatic classification ofanotification asenvironment-related tobeincluded
intheEDB.
II. OVERVIEWOFENVIRONMENT-RELATEDNOTIFICATIONSUNDERWTOPROVISIONS
IN1996
A. Introduction
13. Abroad range oftrade-related environmental notifications were made in1996. Themost
prevalent typeofmeasure notified involved various technical regulations, including product and
performance regulations, labelling andpackaging standards, deposit-refund andtake-back schemes,
andothermeasures. Thisreflects asystemic predominance within theWTO ofnotifications oftechnical
regulations.9Notifications alsoincluded quantitative restrictions andimport controls primarily
implemented through import licensing; environment-related subsidies (including support ofresearch
anddevelopment projects, sectoral subsidies, special taxallowance andother measures); domestic
lawsandregulations related toenvironmental protection andsustainable development; measures taken
pursuant toMultilateral Environmental Agreements (MEAs) andother international standards which
contain anenvironmental component; andother measures summarized below. Supplementary
information onselected environmental policies iscontained inthemajority ofTrade Policy Reviews
prepared in1996.
8Among theconclusions ofthe1996 Report oftheNOP arethefollowing ofrelevance totheCTEunder Agenda Item4:
duplication ofnotification requirements andpractices isnotwidespread. Themost prevalent areaofduplication occurred
between theAgreement onAgricultureandtheAgreement onSubsidiesandCount ervailingMeasur es.TheNOP recommended
thattheCommittee onAgriculture andtheCommittee onSubsidies andCountervailing Measures consider amodification
ofnotification formats assetoutinG/NOP/W/15. Inaddition, theNOP noted a"possible confusion" between theAgreement
onTechnical Barriers toTrade andtheAgreement onSanitary andPhytosanitary Measures, although itwasfeltthatthis
didnotreflect anyduplication ofnotification obligations.
9Anexamination of1500 Annex 1AAgreements received inthefirstfourteen months oftheWTO found thatover
40percent ofallnotifications were oftechnical regulations under theTBTandSPSAgreements. Thenextlargest number
ofnotifications wasinsubsidies (10percent), textiles (9percent), anti-dumping (8percent), safeguards andrules oforigin
(6percent each). Over 80percent ofthenotifications received were either adhoc(required onlywhen aspecific action
wastaken) orone-time only(usually inrelation toentry intoforce oftheagreements). Although theNOP Working Group
noted thatitwasdifficult tocalculate theexact rates ofcompliance, itnevertheless observed that"compliance rates varied
greatly andfewexceeded 50percent." G/NOP/W/16/Rev.1.WT/CTE/W/46
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14. Thelargest number ofenvironmental notifications in1996 wasmade (asinprevious years)
under theTBTAgreement.
Year Number ofenvironment
notificationsTotal number of
notificationsPercentage of
environment
notifications
1996 53 460 11.52%
1995 (WTO TBT) 41 365 11.2%
1995 (GATT Tokyo
Round)-- 27 --
1994 35 508 6.9%
1993 42 487 8.6%
1992 36 394 9.1%
1991 35 358 9,7%
15. Inaddition toTBT notifications, in1996 environment-related measures were notified
under other WTO Agreements, including theAgreements onSubsidies andCountervailing Measures,
Import Licensing Procedures, Agriculture, Sanitary andPhytosanitary Measures, Trade-Related
Investment Measures, andTrade-Related Aspects ofIntellectual Property Rights. (However, theextent
towhich environment-related measures arecontained invarious WTO Agreements isdirectly related
tothemethod bywhich suchmeasures areclassified andcatalogued.) Itisworth noting thatthelargest
proportion ofenvironment-related notifications contained inanyWTO Agreement istheAgreement
onImport Licensing Procedures, inwhich approximately 30percent ofall1996 notifications related
totheenvironment.
16. Thefollowing overview ofenvironment-related notifications isorganized according tomany
ofthecategories identified inWT/CTE/W/5, Annex andupdated inWT/CTE/W/28. Itwillberecalled
fromWT/CTE/W/28 thatnogapsinnotification wereidentified inanycategories listed. Forsimplicity
sakeandtoavoid duplication, some categories suchaseconomic instruments anddomestic taxes have
beencombined under asingle category. Inaddition, given thesignificant number ofnotifications under
theAgreement onSubsidies andCountervailing Measures which relate totheenvironment, aseparate
Subsidies category hasbeencreated.
B. Handling Requirements
17. FourTBTnotifications addressed different handling requirements related totheenvironment.
Theseincludedonetake-backschemeforusedglassandbottles(G/TBT/Notif.96.129);twonotifications
regarding thetransport, handling andstorage ofharmful chemicals andpesticides (inwhich thepolicy
purposewaseitherenvironmentalprotectionorthereductionofin-doorpollution)(G/TBT/Notif.96.197,
G/TBT/Notif.96.37); andoneconcerned thecollection andremoval ofplastic sheeting usedfor
agriculture andhorticulture, including aprovision banning thedumping ofanyplastic sheeting
(G/TBT/Notif.96.4).WT/CTE/W/46
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C. Other packaging requirements including bans, technical regulations thatmayrequire compliance
withcertain characteristics inorder forpackaging tobeputonthemarket orallowed intothe
country, andtakebackrequirements
18. Different types ofpackaging measures related toenvironmental objectives werenotified under
theTBTandotheragreements. Notifications included producer responsibility andtake-back obligations
forpackaging asameans toreduce waste (G/TBT/Notif.96.215); take-back obligations including
producer orimporter responsibility forthereuse andrecovery ofused automobile parts
(G/TBT/Notif.96.448); requirements regarding minimum recycled content forpackaging
(G/TBT/Notif.96.241); standards toensure thecontainment ofdifferent types ofharmful and/or
dangerous chemicals, including heavy metals, cadmium andchromium arsenic saltusedinwood
preservation (G/TBT/Notif.96.302, G/TBT/Notif.96.303, G/TBT/Notif.96.460); andthenotification
ofamoregeneral packaging andpackaging waste policy, including thirdpartyresponsibility, take-back
obligationsforproducersorimportersofpackaging,informationregardingcertification,andinformation
onspecified recycling andreclamation ratesseteachyear(G/TBT/Notif.96.225).
19. Onenotification under theSCM Agreement listed support ofagricultural processing, including
assistance inthe"application ofmodern packaging procedures aswellasenergy savings and
environmentally-sound technologies" G/SCM/N/3/HUN/Suppl.1). Inaddition, theTPRReport on
theEuropean Union provided information onarecent European Parliament andCouncil Directive
(94/62/EC) onpackaging andpackaging waste, including information thatbytheendof1997, "only
packaging complying with[EC] requirements will,inprinciple, beallowed intoEUmarkets." The
TPR Report onColombia notes increasing concern among producers andexporters ofvarious
environmental measures, including packaging standards forcoffee andfruit, aswellaspossible
eco-labelling requirements forcertain textile items.
D. Labelling andEco-Labelling Schemes, Including theCriteria tobeSatisfied inOrder tobe
Granted aLabel
20. Over 85TBT notifications in1996 contain information related insome waytolabelling.
Approximately 15notifications under theAgreement onSanitary andPhytosanitary Measures also
contained information onlabelling requirements. Examples ofTBT notifications related tothe
environment include information onlabelling regulations formaximum allowable emissions ofcarbon
monoxideandhydrocarbonsformotorcycles(G/TBT/Notif.96.178);labellingrequirementsfordangerous
chemicals ingeneral orforwood products containing arsenic (G/TBT/Notif.96.197,
G/TBT/Notif.96.209);provisionsrelatedtotestprocedures,labellingandcertificationofelectricmotors
forenergy efficiency objectives; (G/TBT/Notif.96.424); labelling requirements forenergy-efficiency
standards covering airconditioners (G/TBT/Notif.96.289); andamore general notification ofnational
guidelines andlistofcriteria foraneco-labelling programme (G/TBT/Notif.96.190).
21. The1996 TPRReport fortheEuropean Union provided information regarding theaward of
eco-labels forthefollowing products: washing machines anddishwashers, kitchen rolls, toilet paper
andsoilimprovement substances. Additional information wasprovided regarding thecriteria for
eco-labelling,includingtheconsumptionofrenewableandnon-renewableresources,emissionsofcarbon
dioxide, sulphur dioxide, thedischarge oforganic materials intowater, useoforgano-chlorides, and
amounts ofwaste generated.
E. ProcessandProductionMethods,IncludingThoseEmanatingfromProductLife-CycleAnalysis
22. Onenotification specified ozone depleting chemicals subject totechnical regulations, aswell
asvariousconsumerproductsrelatedtosuchchemicals,"whetherincorporated"inthespecifiedproducts
ornot(G/LIC/N/3/NZL/1).Itisworthnotingthatdependingonclassification,manyenvironment-relatedWT/CTE/W/46
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subsidies areprimarily aimed atimproving theenvironmental performance ofvarious process and
production methods.
F. Environment-Related Subsidies
Notifications ofdifferent types ofsubsidies andrelated domestic support schemes areorganized
where possible according tothesector. Information inthiscategory maybeuseful notonlywithregards
toCTE Agenda Item4,butalsoAgenda Item6.
(a) Agriculture :approximately 13notifications under boththeSCM andAgriculture Agreements
contain information onsupport schemes intended toprotect agricultural landandwater from
pollution andmisuse (G/SCM/N/3/SUN) and/or topromote the"environmentally sound
utilization oflands" (G/SCM/N/3/Hun.Suppl.1). Several notifications under theAgreement
onAgriculture listed support fortheconservation ofagricultural lands (e.g.G/AG/N/Aus/5,
G/AG/N/CYP.1, G/AG/N/CZE/7, G/AG/N/ZAF/5, G/AG/N/TUN/3, G/SCM/N/16/EEC),
orsomewhat morespecific assistance available tofarmers ofwheat, feed,grains, riceandupland
cotton programs provided they were incompliance with conservation requirements
(G/AG/N/USA5). Others included support toprevent soilerosion, soilacidification, andthe
purification oflivestock excretions forpreventing water pollution (G/AG/N/KOT/7), andto
encourage theuseofnon-chemicals infarming (G/AG/N/THA/15). AnSCM notification listed
agricultural support policies forsheep andmilkproduction inwhich oneobjective included
"integrating environmental issues withagricultural policy" (G/SCM/N/16/ISL). Another linked
support ofprivatization, restructuring andresearch inagriculture tosupport of"genetic
potential," preservation ofthecountry-side andprotection ofwater (G/SCM/N/3/CZE). An
SPSnotification onplantprotection regulations toprotect theagricultural andforestry sectors
included asitsobjective "protection oftheenvironment" (G/SPS/N/CAN/1). Several TRIPS
notifications included general references totheProtection ofPlant Varieties, aswellas
information ontheProtection ofPlant Breeder 'sRights inparticular (e.g.IP/N/SWE/P/2).
(b) Manufacturing Industries :SCM notifications included subsidies toassist manufacturing
industries inintroducing orupgrading pollution control equipment, including information of
thelevelofassistance insupport ofinstallation andother capital costs (G/SCM/N/16/CYP,
G/SCM/N/16/ISR);tosupportenvironmentalprotectioningeneralfor"allcompaniesregardless
ofindustry" (G/SCM/N/3/CZE); andtheinclusion inadomestic programme related to
"Restructuring oftheManufacturing Sector andTechnological Developments inIndustry"
promotion of"environmentally-friendly production" (G/SCM/N/3/SUN). Another notification
providedinformationonprocessandproductionmethods,includingageneralnotificationrelated
toproduct and"manufacturing standards" which contributed toanyformofpollution, including
waste generation (G/TBT/Notif.96.263).
(c) IronandSteel:onenotification under theSubsidies Agreement linked support ofincreased
efficiency inironandsteel production ingeneral, including support schemes toinclude
environmental protection (G/SCM/N/16/ROM). Another contained information onallowable
refunds ofupto95percent oftotalinvestment costs forasteelfirmmodernization, inwhich
"improvement oftheenvironment" waslisted asasecondary objective (G/SCM/N/3/BRA).
(d) Coal:several notified measures listed support forthecoalindustry tohelpincorporate pollution
control systems asasecondary objective (G/SCM/N/3/KOR/Rev.1, G/SCM/N/3/EEC). One
notification provided abreakdown ofthetotalannual domestic subsidies available tothemining
sector, inwhich "protection oftheenvironment" represented approximately 10percent ofthe
overall subsidy (G/SCM/N/3/HUN/Suppl.1). Another listed support ofresearch andWT/CTE/W/46
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development topromote thecommercialization ofclean coaltechnologies andtoimprove the
environmental performance ofexisting andnewcoalfacilities (G/SCM/N/3/USA). TheTPR
Report ontheCzech Republic provides additional information ontherestructuring ofitscoal
mining sector toinclude expanded useofcleaner technologies forcoal-fired power stations
(WT/TPR/S/12).
(e) Forestry andWood Products :several notifications included information supporting the
integrationofenvironmentalmeasuresintheforestrysector,includinganenvironmentalforestry
grant(G/SCM/N/3/CZE),measuresinsupportof"qualityforests"whichincludedthepromotion
offorest-relatedenvironmentalvalues(G/SCM/N/3/NOR);measurestoenhancetheconservation
andsustainable useofforests (G/SCM/N/16/URY, G/SCM/N/3/PGL); andmore general
measures toencourage the"efficient andsustainable use...ofagriculture andnatural resources,
including lands, water, fishandforest products" (G/AG/N/Aus/5).
(f) Fisheries :notifications related tothefisheries sector included aregional structural adjustment
programme forfisheries andtheaquaculture sector inwhich asecondary objective wasthe
conservation offisheries (G/SCM/N/16/EEC); theinclusion inaFisheries Fundoftheobjective
of"protection andimprovement oftheenvironment" (G/SCM/N/3/Hun/Suppl.1); notification
under theAgreement onAgriculture tosupport forthe"conservation andresponsible utilisation
ofwildfisheries" (H/AG/N/Aus/5). Onenotification made tothelatter agreement alsolists
assistance topromote the"conservation andresponsible utilisation ofwild fisheries"
(G/AG/N/Aus/5).
(g) Cleaner Technology andEfficiency Gains :twonotifications included information onassistance
insupport oftheresearch, development anddiffusion ofcleaner technologies including energy
efficient technologies, waste reduction technologies, theuseofrenewable energy asameans
ofreducingnegativeenvironmentalimpactslinkedtotraditionalenergyuse(G/SCM/N/16/EEC,
G/SCM/N/3/NOR andL/7611/Add.14).
G. Economic Instruments andRegulations, Including Domestic Taxes
23. Measurestakenwithrespecttoeco-labelling,deposit-refundschemesandsomekindsofpackaging
schemes aregenerally classified assub-components ofenvironment-related economic instruments, and
arecovered elsewhere inthisNote. Information onenvironment-related taxconcessions topromote
environmentally-friendly products isprovided invarious SCMnotification (G/SCM/N/3/Hun/Suppl.1).
More detailed information ontaxallowances forenvironmental purposes included information regarding
unrestricteddepreciationforinvestmentsrelatedtoenvironmentalpollutioncontrol(G/SCM/N/16/EEC).
24. The1996 TPRReport ontheCzech Republic provides information regarding thedomestic
energy pricing policy intended toencourage thegreater useofless-harmful energy sources aswell
asanoverall reduction inenergy use. TheTPRReport onKorea notes that"[l]oans andtaxes are
available forenterprises investing inanti-pollution equipment, including long-term low-interest loans
forsmall andmedium-sized enterprises. Korea iscurrently considering theintroduction ofacarbon
tax",while theReport onCanada notes thataccording "toauthorities, Canada hasnoplans tointroduce
carbontax."Moregeneralinformationrelatedtodomesticandotherenvironmentallawsandregulations
areincluded inthe1996TPRreports ofFiji,Venezuela, Singapore, theUnited States, Colombia, the
Republic ofKorea, Brazil andothers.
H. Measures Under GATT Article XX
25. Notificationsofquantitativerestrictions(QR)takeninaccordancewithdifferentWTOprovisions
arebeing classified withreference tothespecific WTO andGATT Article under which themeasureWT/CTE/W/46
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istaken. Information iscurrently available through theSecretariat onnumerous measures taken in
accordancewithGATTArticleXX(b)and(g),includingthelistingofseveralWTOMembers.However,
notifications classified byGATT Article XXdonotnecessarily identify thepurpose orobjective under
which theQRistaken asrelated totheenvironment. However, some QRmeasures doprovide amore
clearreference toenvironment-related objectives. Forexample, oneMember notified thetradecontrols
onspecific products oftenlinked toenvironmental policy goals (e.g.organic chemicals, pharmaceutical
products, surface-active preparation andwaste materials) because ofGATT Article XX(b) provisions
(G/LIC/N/3/CYP/1).
I. TradeMeasuresTakenfortheImplementationofMultilateralEnvironmentalAgreements(MEAs)
(a) Montreal Protocol
26. TBTnotifications related toMEAs in1996 wereconfined tomeasures taken pursuant tothe
Montreal Protocol. These comprised technical regulations tocontrol orwithdraw fromsalespecific
ozone-depleting substances (ODS) identified intheProtocol anditsamendments, andincluded controls
onCFCs and halons (G/TBT/Notif.96.452), HCFCs and HBFCs (G/TBT/Notif.96.74,
G/TBT/Notif.96.226,G/TBT/Notif.96.242)andmethylbromide(G/TBT/Notif.96.243).Onenotification
identified products subject tocontrol because ofODS, andincluded airconditioners, dehumidifiers
andfireextinguishers (G/TBT/Notif.96.452). Onenotification listed measures tocontrol processes
andproduction methods associated withODS, whereby HCFCs areforbidden inthemanufacture of
rigidpolyurethane forbuilding insulation (G/TBT/Notif.96.226).
27. Nine notifications were made in1996 under theImport Licensing Agreement contained
information onmeasures taken pursuant totheMontreal Protocol. These included:
(i) notification ofthegeneral objective ofprotecting theozone layer(G/LIC/N/1/Aus/1);
(ii) notification ofODSproducts subject tocontrols. These include CFCs, HCFCs, methyl
bromide, halons, methyl chloroform, carbon tetrachloride (G/LIC/N/1/Mus/1,
G/LIC/N/3/Aus/1,G/LIC/N/3/HKG/1/Rev.1,G/LIC/N/3/PHL/1,G/LIC/N/3/NZL/1,
G/LIC/N/3/PHL/1);
(iii) controls ofproducts associated withODS (G/LIC/N/1/Mus/1, G/LIC/N/3/NZL/1).
These included aerosol products (other thanmedical aerosols); fireextinguishers;
dry-cleaning machines; certain plastic foams; automobile andtruck air-conditioners;
refrigerators; freezers, dehumidifiers, water coolers, icemachines, airconditioning
andheatpump units, other domestic andcommercial refrigeration, insulation boards
andpre-polymers; and
(iv) measure directly related totheMontreal Protocol itself (G/LIC/N/3/Aus/1,
G/LIC/N/3/HKG/1, G/LIC/N/3/JPN/1).
(b) Measures related totheBasel Convention andOther Controls ofWaste
28. Siximport licensing notifications contained reference toimport controls forvarious categories
ofwaste, including wastes notsubject totheBasel Convention (e.g. radioactive wastes10)
(G/LIC/N/3/Aus/1, G/LIC/N/3/HKG/2, G/LIC/N/1/USA/1, G/LIC/N/3/Aus/1, G/LIC/N/3/JPN/1,
G/LIC/N/3/Rom/1). Three notifications made explicit reference totheConvention itself. Ofthose,
10Itshould benoted thatradioactive wastes arenotcovered under theBasel Convention, andaregenerally differentiated
from national andinternational categories ofhazardous wastes.WT/CTE/W/46
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onenotification noted thedifficulty ofproviding additional information regarding aclassification of
hazardous wastes, noting thatthe"definition of"hazardous waste" anddiscriminating between "waste"
and"product" remain areas ofdifficulty, andanexpert Technical Working Group isalsoproposed
tobeformed toassist theGovernment withthese issues." (G/LIC/N/3/Aus/1).
29. Notificationsrelatedtowaste-managementissuesweremadeundertheSCMAgreement,including
notification ofassistance toimprove themanagement ofcertain types ofwastes (e.g. waste water)
(G/SCM/N/3/EEC); andsubsidies forwaste reduction andrecycling, including theprovision ofa
one-time investment grant forwaste-related projects (G/SCM/N/3/Nor). Several TPRReports in1996
included information directly related totheBasel Convention ortodomestic regulations covering waste
management andrelated policies (e.g.TPRReports ofColombia andCanada).
(c) Convention onInternational Trade inEndangered Species ofFlora andFauna (CITES) and
Other Measures Related totheProtection ofPlants, Biodiversity andGenetic Resources
30. Asnoted above, thisrepresents aparticularly complex areaofclassification. Itshould also
benoted thatmeasures included inthiscategory areinnowaynecessarily presumed tobelinked in
anyformal orlegalmanner toCITES oranyother MEA. Measures under thiscategory could include
alargenumber ofnotifications under theAgreement onSanitary andPhytosanitary Measures inwhich
"Plant Health" islisted astheprimary objective. However, itshould benoted thatnonotifications
contained anexplicit reference totheConvention onBiodiversity itself. Types ofmeasures which
havebeennotified include:
(i) measures toprotect wildlife andendangered species ofplants andanimals
(G/LIC/N/1/Aus/1 andG/LIC/N/3/Aus/1, G/LIC/N/3/HKG/1/Rev.1,
G/LIC/N/3/USA/1);
(ii) measures taken pursuant toCITES (G/LIC/N/3/Can/1, G/LIC/N/3/Arg/1,
G/LIC/N/3/HKG/1, G/LIC/N/3/JPN/1). Onenotification notes thatthepermit system
isadopted to"perform thedutyofatreaty" andlistsasacategory "Animals (excluding
sperm whales, bird'sbakes whale, mink whale, seiwhale bryde 'swhale andfinwhale)
andplants included inAnnex ofCITES" (G/LIC/N/3/JPN/1); and
(iii) measures topromote plant varieties, genetic resources andgenetically-modified
resources. This category includes subsidies toimprove plant varieties
(G/SCM/N/16/Rom, );SPSmeasures tocontrol seeds, seedlinings orgrowth crops
whichpotentiallythreatenhuman,animalhealthandtheenvironment(G/SPS/N/CZE/2),
notifications related togenetic engineering (including itsapplication inbiotechnology
foragricultural andother uses) (G/SPS/N/CAN/14, G/SPS/N/MEX/97).
31. Additional information isincluded inseveral TPRReports of1996, including theReport on
Switzerland which provides information on"controls andprohibitions inaccordance withCITES and
additional national restrictions toprotect indigenous species," andmeasures taken fortheprotection
ofwildlife intheTPRReport ontheUnited States.
32. Anindirect consideration related tothiscategory mayalsobetheapproximately 24notifications
under theTRIPS Agreement related topatent protection forthe"Protection ofPlant Varieties."11
11"Checklist ofNotifications ofMain Dedicated Laws Relating toPatents, Protection ofPlant Varieties, Layout-Designs
(Topographies) ofIntegrated Circuits, protection ofUndisclosed Information andControl ofAnti-Competitive Practices in
Contractual Licenses", Council forTRIPS, 27February 1997.WT/CTE/W/46
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J. Regulations orStandards Based Substantially onInternational Standards
33. TBTnotifications which contained areference toenvironment-related provisions ininternational
standards included theInternational Convention fortheSafety ofLifeatSea(G/TBT/Notif.96.69),
theInternational Convention forthePrevention ofPollution from Ships (G/TBT/Notif.96.56), and
emission levels based ontheInternational Motor Federation (G/TBT/Notif.96.51). Animport control
under theAgreement onImport Licensing Procedures included reference toobligations under the
Antarctic Treaty (G/LIC/N/1/Aus/1). The1996 TPRReport forBrazil provides information onthe
BrazilianCommitteeonCertification,notingthatitplansto"establishasystemofconformityassessments
forenvironmental matters following ISOGuidelines."
III. QUANTITATIVE EFFECTS OFENVIRONMENTAL MEASURES
34. Asafollow-up totheCTE recommendation regarding theEnvironmental DataBase, ithas
beensuggested thatsuchadatabasebedesigned tofacilitate analysis ofthetradeeffects ofenvironmental
measures notified byMembers. Inparticular, itshould enable quantitative analysis ofthetradeeffects
ofenvironmental measures onparticular products, withemphasis onproducts ofexport interest to
developing andleast-developed countries. Inundertaking suchananalysis, auseful reference may
bethe1989GATTlistof"ProductsofExportInteresttoDevelopingCountries"(GATT/NTM(TG)/W/5).
35. Several methodological problems ariseinundertaking aquantitative analysis based onWTO
notifications. Ascurrently organized, notification ofenvironment-related measures donotensure a
comprehensive profile ofdifferent measures applied, nordotheyconsistently identify products affected
bysuchmeasures. Discussions intheCTE haveprimarily focused onthetypeofmeasure applied
(e.g.packaging orlabelling requirements) andnotontheirapplication toproduct categories. When
products havebeenidentified inenvironmental notifications, theyhavenotalways beenaligned tothe
Harmonised System (HS)nomenclature.
36. Anadditionalconsiderationisthattradeeffectsstemmingfromdifferentenvironmentalmeasures
maybeindirect, andmeasures notified maynotreflect thescope orbreadth ofenvironmental policy.
Forexample, long-standing standards, regulations andothermeasures arenotnormally subject toannual
orperiodic notifications, andguidance issought astohowfarbacktheEnvironmental DataBaseshould
extend incovering environmental notifications. Environment-related notifications commensurate with
international standards ordomestic measures which donotcreate significant trade effects intheview
ofthenotifying country arenotnormally notified. Some measures, suchasdomestic environmental
taxes, maynotbesubject toWTO notification obligations outside ofGATT Article Xprovisions.
Inaddition, thesametypeofmeasure, suchasadomestic environmental tax,maybeapplied differently
within thesamecountry orbetween countries (e.g.asanexcise taxonproducts deemed tobeemission-
intensive, orasaninput orproduction taxoncertain energy-intensive industries), resulting indifferent
trade effects.WT/CTE/W/46
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37. Inorder tohelpcategorize environmental measures byproduct area, thetablebelow provide
additional information fromTBTnotifications made in1996interms offrequency ofnotified measures
which relate tospecified products:
Type ofMeasure orDescription
ofProductNumber ofTBT Notifications
andpercentage ofenvironmental
notificationsHarmonized System Number
Motor Engines andMotor
Vehicles8(15.1%) 87
Waste (hazardous, waste water,
radioactive, other)7(13.2%) 72,79,81,80
Heaters, Boilers, Vessels and
Pipes8(15.1%) 84
Electrical Appliances 4(7.5%) 85
Chemicals 3(5.6%) 29(organic chemicals)
38. Indetermining thetrade andmarket access effects ofdifferent environmental measures on
specific products, guidance isneeded fromMembers onwhether theEnvironmental DataBaseshould
make useofinformation sources external toWTO notifications themselves inorder toundertake such
aquantitative analysis (e.g.UNCTAD, theInternational Trade Centre, OECD, theWorld Bank, and
research institutes) aswellaswhether theEDBitselfshould bedesigned toundertake suchtradeimpact
analysis.