RESTRICTED  
  
WT/CTE/M/67  
 
24 October 2019  
  
(19-6981) Page: 1/25 
Committee on Trade and Environment    
 
REPORT OF THE MEETIN G HELD ON 15  MAY 2019  
NOTE BY THE SECRETAR IAT1 
The Committee on Trade and Environment (CTE Regular) met on 15 May 2019, chaired by   
Mr Jean-Marie Paugam (France) . The Committee adopted the Airgram,  WTO/AIR/CTE/9, issued 
on 25 April 2019. The latest list of documents of the Committee was circulated on  
29 February  2016 in document WT/CTE/INF/5/Rev.12 . The Report of the last CTE  meeting, held 
on 30 November  2018 is contained in WT/CTE/M/66 .  
_______________  
Contents  
1   PARAGRAPH 32 OF THE DOHA MINISTERIAL  DECLARATION  ................................ ...... 3 
1.1   Paragraph 32(i)  ................................ ................................ ................................ ..........  3 
1.1.1    Fossil Fuel Subsidy Reform (FFSR)  ................................ ................................ .............  3 
1.1.2    Palm Oil  ................................ ................................ ................................ ..................  4 
1.1.3    Interconnection Between Trade, Sustainable and Inclusive Development  ........................  7 
1.1.4    Environmental Standards  ................................ ................................ ........................  10 
1.2   Other items of the CTE work programme (Items 1, 2,  3(a), 4, 5, 7, 9, and 10)  ................  11 
1.2.1    Item 1  ................................ ................................ ................................ ..................  11 
1.2.1.1    Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(CITES)  ................................ ................................ ................................ ..........................  11 
1.2.2    Item 2  ................................ ................................ ................................ ..................  12 
1.2.2.1    Nexus Be tween Trade and Climate Change in the Implementation of the  
Comprehensive Economic and Trade Agreement (CETA) Trade and Environment Chapter  .........  12 
1.2.3    Item 4  ................................ ................................ ................................ ..................  16 
1.2.3.1    The WTO Environmental Database (EDB)  ................................ ...............................  16 
2   PARAGRAPH 33  ................................ ................................ ................................ ........  17 
2.1   The WTO Te chnical Assistance and Capacity Building Activities  ................................ ....... 17 
3   OTHER BUSINESS  ................................ ................................ ................................ ..... 19 
3.1   Environmental Goods Agreement (EGA)  ................................ ................................ ...... 19 
3.2   Briefings by observer organizations  ................................ ................................ ............  20 
3.2.1    Presentation by the Organisation for Economic Cooperation and Development (OECD)  ... 20 
3.2.2    Presentation by the United Nations Environment Programme (UNEP)  ...........................  21 
                                                
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice to 
the positions of Members or to their rights and obligations under the WTO.  WT/CTE/M/ 67 
 
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  3.2.3    Presentation by the UN Economic Commission for Europe (UNECE)  ..............................  21 
3.3   Other matters  ................................ ................................ ................................ ..........  23 
ANNEX 1: ITEMS OF TH E CTE WORK PROGRAMME  ................................ .........................  24 
ANNEX 2: PARTS OF TH E DOHA MINISTERIAL D ECLARATION THAT RELA TE TO THE 
WORK OF THE CTE REGU LAR ................................ ................................ .........................  25 
 
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ACRONYMS  
APEC Asia-Pacific Economic Cooperation  
CETA Comprehensive Economic and Trade Agreement  
CITES  Convention on International Trade in Endangered Species of Wild Fauna 
and Flora  
CoP Conference of the Parties  
CPTPP  Comprehensive and Progressive Agreement for Trans -Pacific 
Partnership  
CSPO  Certified Sustainable Palm Oil  
CTE Committee on Trade and Environment  
DAG Domestic Advisory Group  
EDB WTO Environmental Database  
EFTA European Free Trade Association  
EGA Environmental Goods Agreement  
EPR Extended Producer Responsibility  
FAO Food and Agriculture Organization of the United Nations  
FFSR Fossil Fuel Subsidy Reform  
FTA Free Trade Agreement  
GDP Gross Domestic Product  
GEF Global Environment Facility  
GHG Greenhouse Gas  
HCV High Conservation Value  
IAEG Inter-Agency Expert Group  
ISCC International Sustainability and Carbon Certification  
ISO International Organization for Standardization  
IUU fishing  Illegal, unreported and unregulated fishing  
LMT Landscape Management Tool  
MEAs  Multilateral Environmental Agreements  
MSPO  Malaysian Sustainable Palm Oil  
NDF Scientifically -based non -detriment finding  
NGO Non-governmental organization  
OECD  Organisation for Economic Co -operation and Development  
RSPO  Roundtable on Sustainable Palm Oil  
RTA Regional Trade Agreement  
SDG Sustainable Development Goal  
SMEs  Small and Medium Sized Enterprises  
TPR Trade Policy Review  
TSD Trade and Sustainable Development  
UN/FLUX  UN Fisheries Language for Universal Exchange  
UNEP  United Nations Environment Programme  
 
_______________  
 
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  1  PARAGRAPH 32 OF THE DOHA MINISTERIAL DEC LARATION  
1.1  Paragraph 32(i)  
"The effect of environmental measures on market access, especially in relation to 
developing countries, in particular the least -developed among them, and those 
situations in which the elimination or reduction of trade restrictions and distortions 
would benefit trade, the  environment and development."  
1.1.1   Fossil Fuel Subsidy Reform (FFSR)  
1.1.  The representative of New Zealand  provided an update on Fossil Fuel Subsidy Reform (FFSR) .2 
As explained at recent meetings of the CTE , a group of 12 developing and developed Members from 
many regions launched a Joint Statement on FFSR at the eleventh WTO  Ministerial Conference.  In 
the statement , signatories confirmed their intention to seek the rationali zation and phase out of 
inefficient fossil fuel subsidies that encourage d wasteful consump tion, while recogni zing that reform 
needed to take into account the specific needs and conditions of developing countries and to 
minimize the possible adverse impacts on their development in a way that protect ed poor and 
affected communities. Signatories  also recognized the importance of the WTO as a forum to advance 
discussions to achieve ambitious and effective disciplines on such subsidies, including through 
enhanced transparency and reporting to enable the evaluation of the trade and resource effects of  
fossil fuel subsidies programmes.  
1.2.  At the last meeting of the CTE  in November 2018, New Zealand  had explained that signatories  
were planning to organi ze a seminar on the methodology to measure and collect national data on 
fossil fuels subsidies in the cont ext of Sustainable Development Goal ( SDG) target 12(c) . The 
methodology had been  approved by the Inter -Agency Expert Group (IAEG) on SDGs . The seminar, 
a "launch " event for the methodology , was held on 14  May 2019 at the WTO . At the event, the 
UN Environment Program ( UNEP ), as custodian for the relevant indicator , explained the methodology 
for the indicator, which would  lead to national data on the amount of fossil  fuel subsidies per unit of 
GDP (production and consumption) and as a proportion of t otal national expenditure on fossil fuels. 
The definition of subsidies in this methodology was the definition contained in the Agreement on 
Subsidies and Countervailing Measures. UNEP explained that capacity building would  be undertaken, 
including guidance  notes on specific types of subsidies and improving national accounting of tax 
expenditures. The Organisation for Economic Co -operation and Development (OECD ) presented the 
link between data and  FFSR, noting that data was the first step for any reform effo rt. New Zealand 
invite d all delegations  to continue to discuss and share their experiences in FFSR and views on how 
action could be taken at the WTO to implement leaders ' commitments under SDG 12(c) to reform 
fossil fuel subsidies.  
1.3.  The representative of Norway  supported New Zealand's statement and expressed apprecia tion 
for the  valuable work on the methodology for the indicator. Data was crucial to underpin reform on 
fossil fuel subsidies. As found by t he Global Subsidies  Initiative , at least 40 countries had undert aken 
reform  of fossil fuels subsid ies in the years 2015 -2017, demonstrating the willingness of many 
Members to address the issue.  
1.4.  The representative of Costa Ric a welcomed the approval of the methodology as it would allow 
a better understanding of the impacts of fossil fuels subsidies and possible venues for reform.  
1.5.  The representative of the Kingdom of Saudi Arabia  reiterated that this issue was dealt with 
under the G20, where a voluntary phasing out of inefficient fossil fuel subsidies that encourage d 
wasteful consumption was a country -specific choice, with two clear qualifiers: voluntary and in 
accordance with countries ' national circumstances, priorities and needs.  Saudi Arabia did not agree 
to link this issue to the WTO and to discuss it in the WTO.  
1.6.  The representative of Switzerland  reiterated  Switzerland 's support  to the  rationaliz ation and 
phasing out of fossil fuel subsidies that encourage d wasteful consumption. As seen in  previous 
occasions , FFSR could  have substantial benefits for the climate and the environment and contribute 
to the implementation of SDGs . Fossil fuel subsidies could also have trade  distorting effects, in 
                                                
2 See JOB/TE/57 . WT/CTE/M/ 67 
 
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  particular on low emission technologies.  In order to have a full picture of the situation, information 
and numbers were essential. The presentation of the method ology to measure and collect national 
data on fossil fuels subsidies in the context of SDG 12(c) that was presented during the event on 
14 May was a useful tool to increase transparency in this area.  Switzerland was looking forward to 
discussing  this issue further in the framework of the WTO and the CTE in particular.  
1.7.  The representative of Chinese Taipei  highlighted that collecting data was the most important 
stage in the FFSR initiative. Chinese Taipei supported ongoing efforts to bring FFSR int o the work of 
the WTO. The CTE and the WT O had an important role to play in defining the next step of this 
discussion and looked forward to the CTE discussing this issue in the future.  
1.8.  The representative of  the Bolivarian Republic of Venezuela  reiterated  that this topic was not 
under the scope of the WTO. Venezuela did not support the proposal from New Zealand as there 
were very diverse view s on this topic and consensus was far from reach . 
1.9.  The representative of Ecuador  noted that  this proposal intended  amon g other things to support 
inclusive and sustainable economic development. Ecuador hoped  therefore that it was possible to  
contribute to these objectives pragmatically choosing the best option to improve quality of life in a 
sustainable way  and in accordanc e with national priorities . Ecuador had  ratified the Paris Agreement 
in June 2017 in order to support Ecuador's fight against climate change . Ecuador was of the view 
that the WTO was not the appropriate forum to promote FFSR.  
1.10.   The representative of Hong Kong, China  welcome d New Zealand's update as it was helpful in  
facilitat ing Members ' understanding of the issue  and advancing  discussion s, including on whether 
the WTO was an appropriate forum for taking forward the issue . Hong Kong, China  welcome d the 
continuation of  Members ' dialogue, with a view to forging a consensus . 
1.11.   The representative of the Russia n Federation  welcomed efforts aimed at energy efficiency, 
green growth, green energy technologies, and energy security. Russia recognized the need to work 
together to address climate change and environmental protection. Discussion of FFSR needed to be 
conducted in accordance with national circumstances, priorities and needs and the  G20 forum was  
the main forum to discuss this topic.  
1.12.   The representative of  the Plurinational State of Bolivia  stated that CTE was not the appropriate 
forum to discuss fossil fuels subsid ies. There was no  consensus  on this issue,  and it needed to be 
dealt with in view of countries' national circumstances and priorities , and under a vo luntary basis . 
1.1.2   Palm Oil  
1.13.   The representative of Colombia  briefed delegations on current sustainability and biodiversity 
efforts in the  Colombian oil palm sector .3 Oil palm was a plant and, as any other crop, was neither 
good nor bad  as it could bring development and improve livelihoods in rural areas or result in 
negative effects for people and the environment. Impacts on the environment were mainly 
determined by where and how  it was grown. In that sense, Fedepalma, the Colombian association 
of oil palm growers , had developed guidelines and tools to improve productivity and sustainability 
of the palm oil sector in Colombia. The re had been a  66% increase in oil palm production a reas in 
Colombia in the last ten years . This had not happened at the expense of forested lands, since most 
oil palm crops had been established in areas previously used for agriculture and pastures in the 
northern and north -eastern lowland areas of the coun try. 
1.14.   The representative also briefed delegations on the domestic regulatory system adopted in 
2018 applicable to Colombia' s Agricultural Frontier . It excluded protected areas and forested land 
from agricultural development, identifying 40.1 million hectare s considered suitable for agriculture, 
livestock, and aquaculture without deforestation risk . At the time, only 7.6 million hectares was used 
for agriculture, with the remaining 32.5 million hectares divided between pastures used for livestock, 
idle lands,  and savannahs in the Orinoco basin. Of the land used for agriculture, palm oil production 
only covered 0.5 million (7% of the  total area used for agriculture and 1,3% of the country's potential 
agricultural frontier ). Based on physical (soil and climate),  environmental and socio -economic  
criteria , Colombia's  Rural Planning Unit had identified 5.2 million hectares as having "high suitability " 
                                                
3 See document JOB/TE/56  submitted by Colombia on 3 May 2019 and document RD/CTE/151 . WT/CTE/M/ 67 
 
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  and an additional 10.8 million hectares with "medium suitability " for oil palm cultivation  without 
causing deforestation and affecting protected areas. However, neither the Colombian Government 
nor Fedepalma were promoting to extend palm oil cultivation to these upper limits.  
1.15.   The representative also explained the recently concluded  Biodiverse Oi l Palm Landscapes 
Project, the first project in the world financed by the Global Environment Facility (GEF) in the palm 
oil sector aimed at contributing to biodiversity conservation and sustainable management of oil palm 
systems through better planning and  agro-ecological practices. A collaboration between several 
institutions , including the Inter-American Development Bank , the Humboldt Institute and the World 
Wildlife Fund, the ten -year pilot project had generated environmental information, guidelines and 
preliminary implementation experiences that would contribute to: i) incorporating environmental 
considerations for better planning and development of oil palm projects; ii) reducing production 
costs and improving yields, through environmental improvements;  and iii) generating a positive 
footprint on the environment and biodiversity in oil palm regions.  The project's results and lessons 
learned could be replicated in other oil palm regions in Colombia and other palm oil producing 
countries.  
1.16.   The project had t wo intervention areas in the northern and eastern parts of Colombia and 
involved six palm oil companies and their supply base, covering over four million hectares of land 
and 60 thousand hectares of palm oil cultivation. The project aimed at incorporating environmental 
considerations in decision -making processes for developing oil palm projects at three key stages : i) 
the feasibility analysis of new oil palm projects to ensure better decisions to purchase land and locate 
oil palm projects (planning); ii) d etailed farm  and plantation design  to ensure  harmony with 
biodiversity and surrounding ecosystems  and resources  (design); and during the management and 
operation of oil palm crops to prevent and mitigate environmental impacts (management).  
1.17.   With respect to p lanning, the project had identified five main variables to be considered: 
1) legal exclusions of land areas for development; 2) soil and climate criteria used to develop the oil 
palm suitability map; 3)  environmental risks, such as water scarcity or floodi ng potential; 
4) environmental and social legal limitations for agricultural development; 5) other high 
conservation areas identified by relevant governmental and non -governmental organizations (NGOs) 
that might become protected areas in the future.  
1.18.   On des ign, the project aimed at ensuring that oil palm landscapes also included natural 
elements that were favourable to biodiversity, besides oil palms. As the second most biodiverse 
country in the world, biodiversity protection in Colombia had to combine not o nly conservation areas, 
which covered 15% of its territory at the time, but also the biodiverse areas within the agricultural 
frontier , which represented 35% of the country's land territory. Productive systems in rural areas 
would thus also play a very imp ortant role in conserving biodiversity. A regional assessment had 
been made to identify high conservation value (HCV) species and landscape level ecosystems that 
were large, interconnected and intact enough to enable most biodiversity. It also introduced 
landscape management tools (LMT) for productive systems depending on the HCV species present 
and their specific needs such as canopy connections for monkeys or water habitat requirements. 
Such tools included the use of living fences to separate oil palm far ms, protection or restoration of 
riparian buffer zones , biological corridors, enrichment of forest patches and native species nurseries.  
1.19.   Finally, on management, the project worked with more than a hundred smallhold ers in its 
pilot implementing phase. Innov ative methodologies were developed to sensitize producers in 
identifying HCVs and using LMTs  and, as a result,  each farmer received  a specific map of their farms 
identifying the LMTs they were willing to implement.  
1.20.   The representative of Sri Lanka  said that Colombia's  presentation provided very good 
examples on how to strike a balance between environmental and trade concerns. The representative 
posed the following questions : i) how to balance the distribution of oil palm trees as such crops were 
very wat er intensive and could affect other nearby crops; ii)  how best to market palm oil, reach 
intended foreign markets and integrate into global value chains, including whether the use of 
labelling schemes could help differentiate product s that did not contribu te to deforestation; and 
iii) how to address the recent European  Union  (EU) measures restricting the use of palm oil which 
were aimed at addressing deforestation . WT/CTE/M/ 67 
 
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  1.21.   The representative of Switzerland  noted  Colombia's  engagement to sustainable palm oil 
product ion. The issue had garnered a lot of interest in Switzerland and elsewhere  with regards to 
health, environmental and social concerns. After the free trade agreement signed between  countries 
from the  European Free Trade Association (EFTA)  and Indonesia in D ecember  2018, the palm oil 
issue would most probably feature regularly in the Swiss Parliament with lively debates. The 
agreement conditioned the importation of palm oil from Indonesia under a preferential tariff rate 
quota to the respect of social and env ironmental objectives. His delegation thus welcomed the 
commitment of Colombia to direct its production of palm oil towards the respect of such objectives. 
He mentioned two examples in volving  Switzerland's economic development cooperation. First, since 
2018, through the Sustainable Trade Initiative, Switzerland supported the efforts of public 
authorities (Ministry of Agriculture) and private actors (Fedepalma in particular) in Colombia to make 
palm oil production more sustainable. According to the represent ative, it was too early to measure 
the results, but Switzerland firmly believed in the project. The representative asked whether and 
how the project that was presented could contribute to and expand Switzerland's own initiative. 
Secondly, Switzerland was a lso involved in a pilot project in the Colombian banana zone 
(Magdalena), which also had palm oil plantations, representing almost half of the planted area. The 
pilot project aimed to test whether a holistic (landscape) approach to sustainability was effec tive, in 
particular given that almost all farms were certified individually with a sustainability label.  
1.22.   The representative of the European Union  welcomed Colombia's commitment to strengthen 
the sustainability of their palm oil production. Palm oil was a c omplex issue that required a balanced 
approach. The palm oil sector was an important  source of growth and employment in producing 
countries. At the same time, there were legitimate concerns on the possible negative implications of 
palm oil production such as deforestation and biodiversity loss, as well as greenhouse gas (GHG) 
emissions and water scarcity. It also represented a matter of growing consumer concern. The 
European Union  and producing countries had a common interest in addressing the possible nega tive 
environmental and social impacts of the production of palm oil by insuring that it took place in a 
sustainable manner. The European Union  stood ready to work together with producing countries in 
that regard. Referring to the EU directive that had been  raised, the representative clarified that its 
objective was to set sustainability criteria for biofuels and biomass that were global, objective and 
non-discriminatory. They did not single out any specific biofuel or feedstock.  
1.23.   The representative of Malaysia  noted that as one of the major producers and exporters of 
palm oil, Malaysia recogni zed that the commitment towards sustainable development was the most 
challenging issue confronting the palm oil industry. The industry had a long and proven track record 
of self -regulation and conformance with all contemporary regulations and legal requirements, as 
spearheaded by the large plantation companies and supported by very fruitful  research and 
development e fforts in both the public and private sectors. The  Malaysian palm oil industry had 
always focused on best practices in relation to yield improvement, cost reduction and environmental 
quality with an inherently strong element of sustainability. Recently, the emergence of international 
certification systems  for sustainably -produced palm oil, particularly to maintain and develop access 
to the EU markets, had catalysed the move by the industry to take up sustainability as a guiding 
concept and philosophy in a proactive, holistic and ethical manner. Contrary to  the allegations that 
oil palm cultivation was one of the major causes of deforestation, decline in biodiversity, loss of 
ecological function and infringement of the rights of indigenous people, the overall development of 
the Malaysian palm oil industry wa s well regulated and practices remained committed to social 
equity, environmental protection and economic progress.  
1.24.   Malaysia continued to maintain 55.3% of its land area under forest cover, which exceeded 
Malaysia' s commitment to retain at least 50% at the  Rio Earth Summit in 1992.  There were three 
standards in Malaysia which were most relevant to the production of sustainable palm oil for food 
and biofuel applications: i) the government -initiated Malaysian Sustainable Palm Oil (MSPO); ii) the 
private -sector driven Roundtable on Sustainable Palm Oil (RSPO); and iii) the International 
Sustainability and Carbon Certification (ISCC). The first two were certifications for sustainable palm 
oil production, while ISCC sought to meet legal requirements in the bio -energy markets as well as 
to demonstrate the sustainability and traceability of feedstock in the food, feed and chemical 
industries. With one hundred years of experience in developing the palm oil industry, the Malaysian 
Government had made painstaking effor ts to ensure its industry was the best in the world, 
recogni zed for its quality, productivity and innovation. When market forces demanded Certified 
Sustainable Palm Oil (CSPO), Malaysia had become the first country to produce and export CSPO in 
2008, curre ntly accounting for nearly 42% of global production of certified palm oil.  WT/CTE/M/ 67 
 
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  1.25.   For the Malaysian palm oil industry, an unchallengeable reputation for sustainability was the 
key to economic stability, technical advancement, competitiveness and access to interna tional 
markets. In this regard, the mandatory implementation of the MSPO by the end of 2019 should be 
the driver of the industry towards producing sustainable palm oil as well as supporting the branding 
of Malaysian palm oil. It was a matter of national pr ide that Malaysia was well on the way towards 
fulfilling the sustainability requirements covering people, planet and profit.  
1.26.   The representative of Ecuador  briefly explained  the sustainability efforts in the palm oil sector 
being developed in the country. P alm oil was socially a priority sector for Ecuador, with around 
280.000 hectares mostly cultivated by small producers with less than 50 hectares (87% of the 
7.000 palm oil producers in the country). The sector generated directly and indirectly around 
170.000 jobs, in particular in marginal and vulnerable zones. Cultivation and commercialization 
systems had been strengthened in Ecuador through policies and standards that promoted 
sustainable production systems. A system of national protected areas constituti onally required the 
conservation of biodiversity and ecological functions. Under the framework of a sectoral policy, the 
private and public sectors implemented since 2014 a plan for the competitive improvement of the 
palm oil value chain, defining the nece ssary strategies and actions to ensure an efficient, sustainable 
and socially inclusive production transition. To ensure conservation, the Ministry of Environment of 
Ecuador requested an environmental licence permit from all producers. It had also created a unified 
environmental information system. In that sense, Ecuador believed that with a strong agricultural 
practices programme and sustainable production standards, the cultivation and production of palm 
oil was possible, ensuring better living conditions  in harmony with the environment.  
1.27.   In response to questions, the representative of Colombia  acknowledged that oil palm crops 
required more water per hectare than other crops. There were  important difference s between carbon 
and water footprints : while carbon  emissions were a global concern, water footprint was essentially 
a geographically restricted issue. It was thus important to locate new projects in an area with enough 
water resources. On product differentiation, half of Colombia's palm oil production was  exported, 
mostly to Europe. A majority of exporters had adopt ed sustainable practices established by the RSPO 
or by ISCC. Some who exported to other markets had also used the Rain Forest Alliance label. 
Fedepalma promoted the use of such sustainability cr iteria that were globally recognized to facilitate 
access to markets with social and environmental requirements.  
1.28.   Fedepalma had been closely involved in the discussions of the EU directive  and shared the 
sustainability concerns raised by the European Union.  Regulations should be focused on 
sustainability commitments and results, while also being tailored to the specific production and 
environmental issues in different countries. Finally, Colombia welcomed any projects, such as the 
one supported by Switzerlan d, which could provide  inputs,  guideline s and best practices. The GEF 
project had been a small -scale pilot that could be replicated and expanded with further donor 
support. Given  that one of the biggest challenges in certification for medium and smallholde rs was 
its high cost, a  landscape  approach covering more than only one  commodity  could help improve 
economies of scale and ensure regional environmental coherence.  
1.1.3   Interconnection Between Trade, Sustainable and Inclusive Development  
1.29.   The representative of New Zealand  noted New Zealand's  firm view that trade policy needed 
to support sustainable and inclusive development.4 Trade disciplines could  play an important role in 
addressing environmental and social problems around the world, and  accelerating progress on SDGs . 
As explained at the last CTE  meeting , New  Zealand was currently revisiting its trade policy through 
the Trade for All process. On 6  August  2018, New  Zealand Prime  Minister Jacinda Ardern launched 
the public consultation on a  Trade for All Agenda. The goal was a trade policy that work ed alongside 
other government policies to support sustainable and inclusive economic development. Sustainable 
development took into account the impact on the environment. Inclusive development enable d all 
New Zealanders to benefit from trade and internationa l engagement, including women, Māori  people , 
small and medium sized enterprises  (SMEs) , and those living in the regions.  
1.30.   A public consultation on Trade for All completed in October 2018 enabled New Zealanders to 
tell the Government what they wanted from tr ade. Feedback received showed that they understood 
that trade was fundamental to the economy  and that trade policy needed to actively support 
                                                
4 See document RD/CT E/147 . WT/CTE/M/ 67 
 
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  sustainable and inclusive economic development, while maximi zing opportunities and minimising 
risks associated wit h the climate and the environment, labour rights, and gender equity.  
1.31.   The expertise of a group of leaders  was commissioned , drawn from across a range of fields 
including unions, industry, civil society, academia and politics, to make recommendations on 
progressive, sustainable and inclusive trade policy. The independent Trade for All Advisory Board 
was tasked with considering the public feedback and conducting its own additional enquiries into 
areas  of interest to present a report with "analysis and practica l, implementable recommendations " 
to the Government in the second half of 2019. 
1.32.   The Advisory Board 's draft Table of Contents outline d the likely content of the Board 's report  
and addressed a  broad range of issues, including : why New  Zealand trade d; challenges to the 
current trading system and options for future -proofing trade policy; methods of government 
engagement on trade policy; better quantifying and understanding the benefits of trade; and making 
trade benefits accessib le to business, amongst other things.  In parallel with the work of the Trade 
for All Advisory Board, the Ministry of Foreign Affairs and Trade was undertaking its own policy 
development on the intersection of trade and sustainable and inclusive development . 
1.33.   New Zealand's  trade policy thinking was in the context of wider domestic policy processes. In 
particular, New Zealand was on a path to a low -emissions economy. On 8  May 2019, New Zealand 
introduced a Zero Carbon Bill into Parliament to drive New Zealand' s domestic economic 
transformation to a low  emissions economy. The Bill set 2050 targets that would  drive domestic 
economic transition  and reduce all GHG emissions , except biogenic methane, to net zero by 2050. 
Gross emissions of biogenic methane would  be reduced to 10% below 2017 levels by 2030, and 
reduced to a range of 24 -47% below 2017 levels by 2050. The Bill would  also establish an 
Independent Climate Change Commission that would  provide advice, guidance and regular five -
yearly "emissions budgets " in order to achieve the 2050 targets. The Bill would  now go through 
New Zealand' s Select Committee process, including consideration of public submissions. It was 
intended that the Bill would  be enacted late r in 2019 . 
1.34.   The Government ha d committed to making this process a "just transition " – one that was fair, 
equitable and inclusive. A just transition was about making sure that the Government carefully 
planned with indigenous and other communities, regions and sectors to manage the impacts and 
maximi ze the opportunities of the changes brought about by the transition to a low -emissions 
economy.  In addition,  effort s had been made to  increase fairness and balance in New Zeal and's tax 
and expenditure. On 30  May 2019, the Minister of Finance would  present the world 's first Well -being  
Budget, which work ed on the assumption that while economic growth was important, it did not  tell 
the whole story. This was  a much broad er approach that look ed at New  Zealanders ' quality of life 
and well -being , including attitudes to minorities, alongside important economic indicators.  
1.35.   Economists within the Ministry of Foreign Affairs and Trade were also undertaking initial 
scoping work on  a framework for analysing trade 's impact on the three key dimensions of the 
Government 's economic strategy: productivity, sustainability and inclusion. This was an important 
long-term deliverable to help improve understanding of the impact of trade agreem ents and trade, 
and to build towards the future evaluation of regional trade agreements, initially the Comprehensive 
and Progressive Agreement for Trans -Pacific Partnership  (CPTPP ). The first phase of the work was 
building understanding of linkages between trade and productivity, sustainability and inclusiveness. 
As this work stream develop ed, New Zealand would  be looking at how to collaborate with other 
WTO Members interested in the area.  
1.36.   A key principle shaping New Zealand's thinking about the link between trade and sustainable 
development was that there were various ways in which trade could  help tackle environmental 
challenges. It could  improve access to environmental goods and services  and strengthen incentives  
to make production and consumption more environmentally sound. Moreover, trade liberali zation 
did not, in and of itself, encourage a "race to the bottom " environmentally.  New Zealand ha d long 
supported trade in environmental goods and services  and was  actively engaged in the Environmental 
Goods Agreement ( EGA) negotiations and eager to explore whether non -tariff measures might  be 
reducing trade in environmental goods and services.  
1.37.   Another key focus area was reform of environmentally harmful and trade -distorting subsidies. 
These subsidies distort ed markets and impacted  sustainable development. SDGs  include d targets WT/CTE/M/ 67 
 
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  relating to agricultural export subsidies (2.b), fossil fuel subsidies (12.c) and certain forms of 
fisheries subsidies that contribute d to overca pacity and overfishing and illegal, unreported and 
unregulated (IUU) fishing (14.6) . New Zealand was  committed to delivering on those goals. 
New Zealand' s long -standing approach, and negotiating priority for 2019, was to deliver 
WTO disciplines on fisherie s subsidies in line with the SDG goal. Significant work was required to 
achieve this , and time was running out. New Zealand was  also continuing work on promoting the 
importance of the WTO as a forum to advance discussion to achieve effective disciplines on inefficient 
fossil fuel subsidies that encourage d wasteful consumption.  
1.38.   In bilateral and regional trade agreements, New Zealan d's long -standing approach ha d been 
to advance environmental objectives by seeking : commitments to strengthen environmental 
protection; disciplines on specific environmental issues; liberali zation of trade in environmental 
goods and services; commitments t o cooperate on areas  of shared interest; and establishment of 
consultation, implementation and enforcement mechanisms. As noted in the WTO -UNEP  publication 
"Making trade work for the environment, prosperity and resilience ", the CPTPP  had the highest 
number  of types of environmental provisions of any regional trade agreement (RTA) analysed.5 It 
was certainly New Zealand's  most extensive Environment Chapter in a Free Trade Agreement ( FTA). 
These were sitting  alongside labour provisions, which were also  import ant for inclusive development.  
1.39.   New Zealand also s aw opportunities for international collaboration on these issues. As a key 
example, New  Zealand, Canada and Chile signed a Joint Declaration on Fostering Progressive and 
Inclusive Trade alongside the CPTPP signing in March 2018. Canada, Chile and New Zealand  went 
on to engage in a host of activities in support of inclusive trade policy : a Leaders ' meeting in the 
margins of the UN General Assembly ; New Zealand' s hosting of the World Indigenous Business 
Forum ; and Canada' s hosting of the Ottawa Ministerial Meet ing on WTO reform. This culminated in 
the establishment of the Inclusive Trade Action Group (ITAG) at the APEC  Leaders ' Week in 2018  – 
formali zing a shared commitment to achieving sustainable and inclusive economic development. 
This group was also looking to engage on inclusive trade at the WTO – for example at the recent 
Canada -led seminar on labour provisions in FTAs on 18  March  2019. Further workshops  were 
planned for 2019 . Finally, New Zealand would  welcome a deeper discussion  with other Members  on 
how inclusive and sustainable development could  also be interconnected , as this was central in 
approaching a just transition to a low -emissions economy.  
1.40.   The representative of Canada  agreed that trade liberalization was a significant stimulus for 
economic growth  and prosperity around the world . As part of its trade diversification strategy, 
Canada was pursuing an inclusive approach to trade and to ensure that all segments of society could 
take advantage of the opportunities that came from trade and  investment. Canada's approach to 
trade was informed by ongoing dialogues with  a broad range of Canadians, includ ing groups often 
under -represented such as women, SMEs  and indigenous people . The aim was to ensure that more 
Canadians  benefitted from increas ed trade and investment by including in Canada's trade 
agreements provisions on issues such as labour right s, the environment, SMEs, gender equality and 
indigenous peopl e. Canada was firmly committed to the principle that trade liberalization and 
environme ntal protection needed to be mutually supportive. Ensuring that environmental protection 
was upheld in the context of liberalized trade was a key element of Canada's inclusive approach to 
trade. Fostering robust environmental governance as trade relationsh ips expanded was important 
to ensuring long -term sustainable economic growth  and well -being. Canada also looked forward to 
engaging with other WTO Members on ways to collaborate to advance this important objective.  
1.41.   The representative of the European Union  supported efforts to create a modern and inclusive 
trade agenda. Since 2015, t he European Union had had its own trade and investment strategy 
entitled "Trade for all" towards a more responsible trade and investment policy ; it was now in its 
fourth year of implementation. The EU  strategy shared many of the objectives outlined by 
New Zealand. It included the following key principle s. First, the principle of  effectiveness  was about  
making sure that trade delivered on the promises of new economic opportunities . That meant 
addressing issues that affected today's economy such as services and digital trade , as well as 
providing the means and information necessary to ensure European SMEs , consumers and workers  
could take full advantage of more open  markets . 
1.42.   Second, the principle of  values  aimed to use trade agreements and preference program mes 
as levers to promote objectives like sustainable development and fair trade . This meant the incl usion 
                                                
5 See pages 46 – 47 of the publication.  WT/CTE/M/ 67 
 
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  of provisions on the environment and core labour standards. The European Union was also engaged 
in dialogues to ensure that its trading partners implemented provisions on core labour standards 
and the right of workers. It meant broadening efforts to ensure responsible management of supply 
chains. The European Union was also engaged in trade negotiations with  New Zealand and both 
sides were committed to concluding a forward -looking FTA which would include an ambitious Trade 
and Sustainable Development (TSD)  chapter . Finally, the principle of t ransparency  included the 
opening of trade negotiations to more public scrutiny by publishing key negotiating texts to ensure 
citizens were kept fully informed. The European Union also regularly engaged with stakeho lders 
throughout FTA  negotiations.  
1.43.   The representative of Chile stated that Chile was also using trade policy as a tool for inclusive 
and sustainable development. Examples included: the joint declaration on FFSR  and the inclusion of 
chapters on labo ur, envi ronment and gender issues in Chile's RTAs. Chile wished that an increasing 
number of Members adopt such policies and was pleased to hear such presentation in the WTO.  
1.1.4   Environmental Standards  
1.44.   The representative of the International Organization for Standardization (ISO)  provide d an 
update on ISO work related to some environmental standards .6 ISO Technical Committee ( TC) 207 
on environmental management  had so far published 41 standards  and was currently developing 
25 standards. ISO/TC 207 was one of t he largest committees with 84 participating members and 
39 observers. ISO had started to map its standards to  link them to  SDGs and every new proposal 
for a standard needed to indicate  a link to an SDG.  
1.45.   First, ISO 14034 :2016 was an international standard o n environmental technology verification  
(ETV)  that contain ed verification principles, accepted testing practices and reporting requirements 
to help create a level playing field for technological innovators and encourage greater market 
acceptance of innovat ive technologies . There was i nternational consensus that ISO 14034 was an 
effective way of establishing the global credibility of innovative environmentally sound solutions. It 
was designed to deliver multiple benefits that enhance d confidence in the selection of technologies 
demonstrating an environmental added value , including : levelling the playing field for technological 
innovators ; harmonizing the ETV process across international boundaries ; and p roviding credible, 
independent a ssessment of innovative environmental technologies . As it was not always easy to 
implement ISO standards , there was now  an active project to provide guidance to implement 
ISO 14034 . Key objectives of ISO 14034  included: to increase the trust of investors i n innovative 
environmental technologies; give more credibility to developers of innovative technologies; enable 
technology users to benefit from innovation and select technologies meeting their needs; reduce the 
risk for investors and purchasers investing in new technologies; and facilitate the diffusion of 
eco-innovation on regional, national  and international markets . There were requirements for verifiers 
in five key procedures : application, pre -verification, verification, reporting and post -verification.  
1.46.   Second, ISO 14030 had four parts (g reen bonds , green  loans, taxonomy and v erification ) and 
would  clarify for the market whether a debt instrument provide d sufficient environmental benefits 
to merit calling it "green ". There were several m otivation s and drivers  for this standard, including 
the fact that g reen debt instruments could  support the transition to a low -carbon economy , the 
de facto standard was a s et of principles rather than requirements (Green Bond Principles) , and the  
lack of standards defining "green " was often cited as an impediment to market uptake . 
1.47.   Other projects under TC 207 included work on: draft international standard 14007  on 
guidelines for determining environmental costs and benefits; committee draft 14065 on 
requirements for GHG validation and verification bodies for use in accreditation; approved work item 
14097 on framework and principles for assessing and reporting investments and fi nancing activities 
related to climate change; technical specification 14092 on requirement and guidance of adaptation 
planning for organizations including local governments and communities ; and committee draft  14091 
on adaptation to climate change , vulnera bility, impacts and risk assessment . 
1.48.   The representative of the European Union  noted that the development of international 
standards pursued within ISO to advance SDGs and the implementation of the Paris Agreement was 
                                                
6 See document RD/CTE/149 . WT/CTE/M/ 67 
 
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  important , not least  in the context of promoting sustainable trade. The European Union looked 
forward to further updates.  
1.49.   The representative of Switzerland  stated that the production and consumption methods were 
becoming increasingly  important for the reduction of environmental effects and for sustainable 
development. In order to reduce negative effects of diverse environmental standards on trade, 
international standards , their promotion and application were indispensable. Switzerland  would 
therefore welcome  any further  update.  
1.50.   The representative of New Zealand  saw a lot of value in this sort of update to the CTE  given 
the importance of international standards for international trade and working towards SDGs more 
generally. New Zealand  would also welcome  future updates.  
1.2  Other items of the CTE work programme (Items 1, 2, 3(a), 4, 5, 7, 9, and 10)7 
1.2.1   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 (MEAs)."  
1.2.1.1   Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(CITES)  
1.51.   The representative of CITES  briefed delegations on the preparation of the forthcoming 
18th Conference of Parties  (CoP 18)8 scheduled from 16 to 28 August in Geneva . The meeting, 
originally scheduled to take place in Sri Lanka earlier in the year , had been postponed due to the 
terrorist attacks in the country. CoP18 would cover 107 agenda items ( documents submitted by 
permanent committees, Parties or the Secretariat), 14 new resolutions (CoP's recommendations on 
how to implement CITES), 33 amendments to existing resolutions and 338 draft decisions (setting 
the work programme for the period between  CoPs). Two new resolutions proposed could be of 
particular interest to trade delegates: how to determine that a species ha d been legally acquired 
and who ha d the burden of proof;  and clarification of the roles and responsibilities of 
CITES  management auth orities . CoP18 would further review 57 proposals to amend Appendices I 
and II: 21  proposals to transfer species/populations from one Appendix to another; one proposal to 
delete a species from Appendix I or II ; 28 proposals to include new species/population s; and seven  
proposals to amend annotations (clarifying footnotes to more specifically define species covered). 
New species proposed for inclusion  included  marine species (sharks and sea cucumbers), mammals 
(giraffes and elephants), reptiles traded as pets  and a few tree species.  
1.52.   The following  issues could be of particular interest for WTO delegates. First, a  proposal had 
been put forward to: i) review the effectiveness of the Convention in protecting listed species; and 
ii) analyse the legal relationship b etween CITES and GATT provisions. Second, on regulation of trade 
matters, there were discussions on: the designation and roles of the CITES Management Authorities; 
Legal Acquisition findings and due diligence; electronic systems and IT (digital signatures,  use of 
blockchain); implications of the transfer of a species to Appendix I; and simplified procedures to 
facilitate or expedite trade in certain circumstances. On digital signatures and blockchain, she noted 
that the Convention had been negotiated at a m oment in which trade in specimens was much less 
intense and there was an expectation that every shipment would be inspected for compliance. That 
was no longer the case and Parties would discuss how to integrate CITES certification with 
authorities' complia nce systems with the help of IT and electronic technologies. Finally, on simplified 
procedures to facilitate trade, the Convention allow ed for trade in produced species that were not 
taken from the wild, such as orchids ("artificial propagation"). Parties would discuss ways to facilitate 
such trade where there was little or no risk to the conservation of the species.  
                                                
7 See Annex 1, the original CTE work programme which includes these items.  
8 See document RD/CTE/146 . WT/CTE/M/ 67 
 
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  1.53.   The representative of Canada  recognized the important role of CITES in supporting 
sustainable legal trade in wildlife. Ensuring legal acquisit ion and appropriate regulation of trade in 
important and valuable wildlife such as forest products was essential to achieving sustainable trade.  
1.54.   The representative of the European Union  noted that  CITES was a key global instrument to 
make sure that interna tional trade in wildlife commodities was sustainable. CITES was functioning 
well and its 17th CoP had been an illustration of how multilateral agreements could achieve significant 
progress in the trade and environment context. He thanked the CITES Secretar iat for bringing to the 
CTE's attention the plan to work on the relation between CITES and WTO disciplines. His delegation 
would continue to work with the CITES Secretariat and other Parties to make sure that CITES 
delivered tangible progress for conservation of wildlife and their sustainable trade.  
1.2.2   Item 2  
"The relationship between environmental policies relevant to trade and environmental 
measures with significant trade effects and the provisions of the multilateral trading 
system. " 
1.2.2.1   Nexus Between Trade and Climate Change in the Implementation of the 
Comprehensive Economic and Trade Agreement (CETA ) Trade and Environment Chapter  
1.55.   The r epresentatives from Canada  and the European Union  present ed on how the nexus 
between trade and climate change was taken up in the implementation of the CETA Trade and 
Environment Chapter .9 They recognize d the increasingly important intersection between enhanced 
trade and environmental protection objectives. For this reason, CETA directly incorporate d 
commitments to help ensure that trade and environment objectives were mutually supportive and 
reinforcing, and that the increased prosperity resulting from liberalized trade did not occur at the 
expense of environmental protection.  
1.56.   The objectives of the Trade and Environment Chapter were to support sustainable 
development, strengthen environmental governance, b uild on the international environmental 
agreements to which both Canada and the European Union were  a party, and complement the goals 
of CETA. These objectives were supported by provisions that include d both commitments and 
mechanisms for dialogue and coop eration on trade and environment issues , which include d climate 
change.  The Parties agree d to pursue high levels of environmental protection, to effectively enforce 
domestic environmental laws and to not relax or derogate from such laws in order to encoura ge 
trade or investment. This Chapter contain ed commitments that require d the continued effective 
enforcement of domestic environmental laws and the promotion of public awareness and 
transparency regarding those laws.  
1.57.   The TSD Chapter  of CETA was an umbrella  chapter that covered both trade and environment 
and trade and labour. In the Chapter, future  prosperity depend ed in large part on the ability to 
develop economies in a sustainable manner. Economic development, social development and 
environmental protecti on were interdependent and reinforcing components of sustainable 
development.  The TSD Chapter, in concert with the Trade and Labour and Trade and Environment 
Chapters of CETA, reflect ed shared Canadian and EU  values in recognizing that economic, social, 
and environmental objectives were mutually supportive and reinforcing. By establishing shared 
commitments, this Chapter help ed to ensure that economic growth under the agreement did not 
occur at the expense of o ther important social and environmental objectives. This Chapter also 
clarifie d that the scope of the obligations in the labour and environment Chapters were to be 
understood in their trade context.  
1.58.   The key provisions of this Chapter focused on three eleme nts. One was on cooperation  and 
promotion of trade supporting sustainable development . The Chapter recognize d the value of 
international cooperation to achieve the goal of sustainable development and  commi tted the Parties 
to dialogue and consult on trade -related sustainable development issues of shared interest. It also 
establishe d commitments for the Parties to promote trade in a manner that contribute d to the 
objectives of sustainable development, for example by encouraging businesses to adopt voluntary 
practices of corporate social responsibility that promote d economic, social and environmental 
                                                
9 See document RD/CTE/148 . WT/CTE/M/ 67 
 
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  objectives, and by promoting practices such as the use of eco -labelling and environmental 
performance goals and standards. The Chapter also commit ted Parties to re view, monitor and assess 
the impact of the implementation of CETA on sustainable development in both economies.  
1.59.   The second element was on institutional  arrangements . The Chapter establishe d a Committee 
on TSD, comprised of high-level representatives of the Parties, responsible for matters covered by 
the Chapters on T SD, Trade and Labour, and Trade and Environment. The role of the committee was 
to oversee the implementation of the three Chapters, including review of the impacts of CETA  on 
sustainable development, and to facilitate cooperative activities. Committee meetings include d a 
public engagement component unless otherwise jointly specified by the Parties.  
1.60.   The third pillar related to the Civil Society Forum . The Chapter commit ted Parties to facilitate 
meetings of a joint Civil Society Forum, which would  conduct a dialogue on issues related to TSD in 
the context of CETA. The Civil Society Forum would  include a balanced representation of relevant 
interests, including independent repre sentative s of employers, unions, labour and business 
organizations, environmental organizations, and other civil society representatives as appropriate.  
1.61.   With CETA signed in October 2016 and provisionally applied since September 2017, Canada 
and the Europea n Union had  separately continued to negotiate and conclude FTAs. Canada's  first 
experience including environment provisions in a n FTA  was with  the North American Free Trade 
Agreement  (NAFTA)  in 1994. In 2014, the Canada -Korea FTA contained the first stand -alone  
environment chapter. Since then, Canada continued this approach with the European Union  under 
CETA, which, for the first time, included provisions related to fisheries and forestry.  Canada' s 
approach ha d evolved to seek environment chapters tha t were subject to the agreement 's dispute 
settlement mechanism, as first seen in the CPTPP , which came into force in December 2018. The 
model for trade and environment chapters continued to expand to cover  global environmental 
challenges or to ramp up comm itments on existing issues. This included the following areas: 
combating illegal wildlife trade, promoting sustainable forestry and fisheries management, 
conserving biodiversity , commitments on  environmental goods and services , corporate social 
responsibil ity and marine litter. Canada's  intent was to strengthen how climate change was reflected 
and increase its visibility.  CETA's TSD Chapter incorporate d some provisions that were typical  in 
Canada' s trade end environment model, such as corporate social respo nsibility.  
1.62.   From the European Union's perspective , since 2011 and in its FTA with Korea, the 
European  Union had regularly conclud ed comprehensive trade agreements with TSD chapters.  This 
was also done in the context of the EU Trade for All policy . In this context,  it was seen that  trade 
could  make a significant contribution based on constructive cooperation focused on specific trade -
related challenges. The aim was to maximize the lev erage of increased trade and investment on 
issues like decent work, environmental protection, or the fight against climate change in order to 
achieve effective and sustainable policy change.  
1.63.   The approach in these TSD chapters was based on three pillars: bi nding commitments by 
Parties to a range of MEAs  and conventions of the  International Labour Organization  (ILO); 
structures to involve civil society organizations  in the implementation of those commitments ; and a 
dedicated dispute settlement mechanism . A debate had taken  place in the European Union on the 
TSD chapters which had resulted in a paper by the European Commission that provided 15  points of 
action to improve these chapters , including , for example , reinforced commitments on trade and 
climate to supp ort the effective implementation of the Paris Agreement and cooperation to this end ; 
and the reinforcement  of cooperation mechanisms and civil society involvement in implementation , 
which  meant  the extension of the scope for civil society to the whole FTA and not only to the TSD 
chapter. There was also a growing relevance of other  FTA chapters , including on e nergy and raw 
materials, regulatory cooperation, general exceptions and public procurement . 
1.64.   Turning to CETA's implementation , during the  first year  of application, Canada and the 
European Union  had dedicated much of their implementation efforts to establishing the various 
institutional mechanisms required by the Agreement.  CETA ha d an extensive governance structure 
that was overseen by the ministeria l-level CETA Joint Committee.  In addition, there were 
19 specialized committees and bilateral dialogues, including the TSD Committee, which oversaw  the 
chapters on sustainable development, labour and environment. It could  hold dedicated sessions on 
labour and on the environment  and both  Canada and the E uropean  Union had representatives on 
the committee. In the September 2018 inaugural meeting of the TSD Committee , Canada and the 
European Union discussed potential cooperation on climate change, biodiversity, plastics and clean WT/CTE/M/ 67 
 
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  technology, and reaffirmed their mutual commitment to implement the Paris Agreement . The 
meeting also included discussions on labour and sustainable development issues.  
1.65.   In addition, in the October 2016 Joint Interpretative Instrument, Canada and the 
European  Union  had committed to initiating an early review of CETA 's provisions on trade and labour 
and trade and the environment, with a view to their effective enforceabilit y. During the inaugural 
meeting of the TSD Committee, Canada and the European Union  had agreed to an intensification of 
discussions on the TSD  Chapter review  through  three dedicated sessions.  
1.66.   Another important institution was the Civil Society Forum which had been  held for the first 
time immediately before the first TSD Committee meeting to foster transparency and civil society 
inclusion.  Civil society organisations from Canada and several EU  member States met together, 
joined by government officials from C anada and the E uropean  Union . In an effort to promote 
participation from both sides of the Atlantic, the Civil Society Forum had been  livestreamed online 
and virtual participants were able to  submit questions or comments by email. Points raised by civil 
society varied, but there were some common themes. Civil society could make use of more resources 
to undertake CETA -related work and  reiterated the importance that all voices be heard when 
discussing CETA.  Following this, representatives  of civil society, including CETA Domestic Advisory 
Groups, presented a debrief of the Civil Society Forum to the TSD Committee.  
1.67.   Another important pillar of CETA was the Domestic Advisory Group  (DAG)  for each par ty which 
was a key consultative mechanism where each party received  advice from its own stakeholders (it 
was not a joint committee  like the Civil Society Forum ). Both DAGs would  act as the link between 
the government and civil society. The European Union  and Canada had taken different approaches 
to structure their groups according to their own domestic context. The European Union  established 
its DAG in 2018 and three meetings  had been held so  far. The group was advising the 
European  Union  on the TSD chapter  and the trade and environment  and trade and labour chapters . 
It had 18 members from three sub -groups: businesses, labour and other organi zations. It was 
supported by the European Economic and Social Committee, a  new EU institution which was the 
voice of o rganised civil society in Europe.  
1.68.   For Canada, two separate DAGs  had been established : one to focus on the trade and labour 
chapter and one to focus on the trade and environment Chapter. For the Canadian Environment 
DAG, Canada took a phased approach and held an init ial consultative meeting with stakeholders to 
get their views on how best to structure the new group. Canada  was currently  at the end of a public 
and transparent recruitment process to identify members of the group. The Canadian Environment 
DAG was expected to be formalized by June  2019.  The institutions and their implementation  
highlighted the importance of public participation and transparency  and overall  CETA governance. 
Significant information was available online,  including  meeting agendas and reports of 
CETA Committees.  
1.69.   Another  major aspect of implementation was cooperation , as CETA provide d a framework for 
further trade -related environmental cooperation between Canada and the European Union . The role 
of the Paris Agreement had been stepped up in bilateral cooperation under CETA with a view to 
promoting mutually supportive t rade and climate change policies. The European Union  and Canada 
share d a common ambition and commitment to find innovative solutions to mitigate and adapt to 
the effects of climate change, including by working together on the effective implementation of the 
Paris Agreement. At the first Ministerial CETA Joint Committee meeti ng in September 2018, Canada 
and the European Union adopted three recommendations, including one on Trade, Climate Action 
and the Paris Agreement , which  reaffirmed Parties'  commitment to effectively implement the 
Paris Agreement and set the stage for furth er cooperation and joint actions in the context of CETA. 
The TSD Committee was undertaking work to implement the recommendation. As a fist step , Canada 
and the European Union co -hosted a conference  in Brussels in January 2019 to showcase the positive 
links between CETA and climate action and to inform on their future steps in CETA implementation . 
This was the first major public activity under CETA 's Trade and Environment Chapter. Canada' s 
Ambassador for Climate Change and the EU 's Director General for Clima te Action participated as 
speakers. Approximately 140  participants attended from Canada and the European Union . This event 
would  be followed by further joint actions under CETA.  The goal of the event was to expand the 
awareness of European Union -Canada trade and climate action in the context of CETA and to explore 
how to best leverage CETA 's institutional and legal framework to encourage further joint actions to 
support implementation of the Paris Agreement. The conference included advanced discu ssions on 
how CETA and climate action could  be mutually supportive.  WT/CTE/M/ 67 
 
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  1.70.   Key takeaways from the event included the fact that c limate and environment went beyond 
the technical provisions of the environment and sustainable development Chapters. The event 
identifi ed five areas where CETA had a major potential to support the implementation of the 
Paris Agreement: trade in green technologies  as CETA open ed up opportunities for trade in clean 
technologies, which could  lead to green investments, innovations and partner ships; institutional 
settings , as CETA's institutional mechanisms  could  support climate cooperation and accelerate action 
to promote investment in and uptake of clean  technologies ; sustainable and green investment  as 
CETA facilitate d investments, including  climate -friendly ones , and promote d trade and investment 
initiatives favo uring sustainable development, such as eco -labelling and fair trade ; regulatory 
cooperation  with the Regulatory Cooperation Forum , which was a platform to discuss regulatory 
policy issues of mutual interest and assist regulators to identify potential partners for cooperation 
activities ; and t rade promotion , which would  help to boost  CETA's opportunities for clean -tech, in 
particular SMEs, and to increase trade and i nvestment opportunities.  Overall, the conference had 
identified that  CETA was a platform that businesses, governments and civil society needed to  put to 
good use.  
1.71.   To conclude, the next few months would be pivotal as Canada and the European Union  were 
considering their next major cooperation project to build on the momentum created by the 
CETA trade and climate conference.  DAGs would continue to advise on implementation . In the 
coming months, there would be meetings of the TSD  Committee and the Civil Society  Forum. As this 
was work in progress, t he European Union  and Canada aim ed to come back to the CTE with updates 
at the multilateral level on the experiences gained in CETA  implementation on trade and climate  
change  as a contribution from RTAs  to the effective implementation of the Paris Agreement . 
1.72.   The representative of Switzerla nd noted that Switzerland attache d great importance to the 
interlinkages between trade and climate change and the fact that trade liberalization needed to  go 
hand in hand with the commitments under the Paris Agreement.  Switzerland already include d a 
chapte r on Sustainable Development in its FTAs that cover ed the issue of climate change . 
Nevertheless, Switzerland and its EFTA -Partners aim ed to include even more specific provisions on 
climate change in its future FTAs. The representative asked for information  on the participants to 
the Civil Society Forum and how active they were.  
1.73.   The representative of Norway  indicated that this information sharing exercise in the CTE was 
very valuable given the complexity of CETA. Action for trade and environment and climate was 
particularly important. Norway looked forward to updates in future meetings.  
1.74.   The representative of New Zealan d noted  the various overlaps with New Zealand's  
presentation on its Trade for All Agenda,  both in terms of the objectives of environmental provisions 
in RTAs as well as the importance of civil society engagement . New Zealand  found the information 
on the fo cus in implementation on trade and climate change useful . As noted earlier,  New Zealand 
was interested in this policy issue and in discussions and engagement in this area. New Zealand  
looked forward to updates on implementation activities and m ore generall y to see more 
presentations on environmental provisions in RTAs  in future CTE  meeting s. 
1.75.   The representative of Chinese Taipei  stated that interactions between trade and environment 
were complementary in stimulating growth. Trade could generate more resource s in order to 
promote the protection of the environment and  combat climate change. As outlined in the  
presentation, it was useful to seek out new innovative models to address environmental issues in a 
more sustainable manner . 
1.76.   The representative of the Kingdom of Saudi Arabia  reiterated the view that this topic needed 
to be discussed in the United Nations Framework Convention on Climate Change  (UNFCCC ), which 
was the only forum to discuss climate change issues.  
1.77.   The representativ e of Canada  said in response to Switzerland's question that the Civil Society 
Forum had held only one meeting so far . Since Canada's DAG was not formally in place, there were 
only honorary members from academia , think tanks  and environmental interest group s. 
1.78.   The representative of the European Union  noted the Civil Society Forum was a new type of 
institution created by CETA and it took time to put in place. On the EU side, there was a strong 
interest, including from business, trade unions, academia, think ta nks and NGOs.  WT/CTE/M/ 67 
 
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  1.2.3   Item  4 
"The provisions of the multilateral trading system with respect to the transparency of trade 
measures used for environmental purposes and environmental measures and requirements 
which have significant trade effects. " 
1.2.3.1   The WTO Environmen tal Database (EDB)  
1.79.   The WTO Secretariat  briefed delegates on the main features of  the recently developed 
web-based platform of the EDB.10 The mandate for the Secretariat to develop the EDB dated more 
than 20 years11 and the database had since been developed i n different formats, from word to excel 
and now web -based, taking into consideration comments and suggestions from Members throughout 
the years. The Secretariat noted that with the web -based platform, data could be made available 
publicly as soon as the re view of new notifications were completed. Environmental data covering the 
Trade Policy Reviews (TPRs) published in 2018 had already been completed and were available for 
consultation in the EDB. EDB's yearly update exercise involved the analysis of around 3'400 
notifications and all TPRs published in a given year. On average, more than 500 new notifications, 
1'100 measures and 750 TPR entries were included annually in the database. The database already 
contained more than 10'000 e nvironment -related measures  notified under WTO Agreements and 
more than 7'800 environment -related entries mentioned in TPRs.  
1.80.   The Secretariat briefed delegations on some noticeable general trends regarding 
environment -related trade measures. The number and share of trade measure s adopted for 
environmental reasons continued to increase, moving from 8% of all notifications made to the WTO 
in 1997 (one in every 12 notifications) to around 16% in recent years (one in every six notifications). 
Three harmonized categories had be en developed to facilitate data analysis: types of measures, 
types of sectors and types of environment -related objectives. With regards to types of measures 
adopted, there had been a noticeable rise in the notification of support measures for environmental  
objectives in recent years , while t echnical requirements and specifications remained important . The 
three main sectors concerned by environmental measures contained in the EDB were: agriculture 
(32.7%); manufacturing (23.9%); and chemicals (15.1%). Finall y, in terms of environmental 
objectives pursued, a recent trend had been identified in energy related objectives, with energy 
conservation and efficiency present in 14.2% of all measures and alternative and renewable energy 
in 11.7%. Chemical, toxic and ha zardous substances management remained the main objective 
pursued by these trade measures though, accounting for  15.2% of measures in the EDB.  
1.81.   The Secretariat further briefed delegations on possible topic -specific analysis enabled by the 
EDB. As an example , the number of environment -related measures concerning chemicals had 
increased since 2009, from 120 in 2009 to 190 in 2017, with a total number of around 
1'500 measures in the period. These had been notified by wide variety of WTO Members, with the 
Europe an Union  and the United States as the Members with the most notified environmental 
measures concerning chemicals. Developing countries Members, however, had notified the 
majority  (56%) of these measures. Apart from the objective of c hemical, toxic and haza rdous 
substances management , which naturally was present in the majority of measures affecting 
chemicals, other important environment -related objectives pursued included:  MEA implementation 
and compliance  (25.3%) ; ozone layer protection (18.1%) ; water mana gement and conservation 
(12%) ; and waste management and recycling (11.9%) . The Secretariat clarified that one measure 
could  have more than one environment -related objective, which meant that the total percentages 
for the breakdown by type of objective coul d surpass 100%. The same thing was true for types of 
measure and sector. Finally, the top five most notified environment -related measures affecting 
chemicals were technical regulations or specifications (800 in total), followed by import licences 
(449), co nformity assessment procedures (244), ban and prohibitions (240) and export licences 
(138). Finally, the Secretariat provided a demonstration of how to use the different features available 
at the EDB's new web -based platform.  
1.82.   The representative of Morocco  commended the Secretariat for the EDB . Morocco encouraged 
the Secretariat to continue its efforts to improve the user -friendliness of the web -based platform to 
also meet the needs of less experienced delegates . The infographics with simplified and structur ed 
data visualisation could be further improved by comments or factual guidelines to facilitate 
                                                
10 Available at https://edb.wto.org  or www.wto.org/edb . 
11 See WT/CTE/W/40 . WT/CTE/M/ 67 
 
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  comprehension of essential information. The EDB's search engine should be enhanced to make it 
more similar to the one existing in commonly used internet browser s. 
1.83.   The representative of Ecuador  commended the effort made by the Secretariat in developing 
the EDB , which was a useful tool to all delegations. She queried whether the webpage could be 
considered a central register of environment -related notifications.  
1.84.   The representative of the European Union  welcomed the useful work involved in developing 
the EDB, in particular moving the database to a user-friendly web -based platform. It was a unique, 
comprehensive and useful source of information for policy makers and researchers. He recognized 
that updating the EDB was extremely resource -intensive but encouraged the Secretariat to continue 
this unique project. The representative asked whether future EDB presentations could focus on 
certain topics, such as the imple mentation of MEAs, and extract relevant analytical data to raise 
awareness of Members to existing measures. The exercise would emphasize the utility of the 
database.  
1.85.   The representative of Canada  commended the Secretariat for the EDB , which was the 
culminat ion of a lot of hard work and effort for a long period of time. The EDB helped ensure 
transparency on trade and environmental data captured in WTO notifications. It further helped 
underline the value and importance of notifications at the WTO. Canada encou raged the WTO to 
continue pursuing the development and refinement of the database in order to make it more user -
friendly and to allow Members to more easily manipulate the data.  
1.86.   The representative of Switzerland  thanked the Secretariat for the valuable work on updating 
the EDB. The new interface increased the user -friendliness of the database, allowing other 
stakeholders to have better access to WTO data. His delegation strongly  supported the continuation 
of the project.  
1.87.   The representative of China  expressed her delegation's appreciation for the great effort 
involved in the EDB. She queried whether there was any refinement made to the search words used 
to identify environment -related notifications given that words  such as 'environment' or 'climate' 
could be found in non -environmental contexts as, for example, in the description of the 'business 
climate' of a country. She also asked whether the database was publicly available or restricted only 
to WTO Members.  
1.88.   The WTO Secretariat  welcomed all questions and comments to further improve the database. 
In reply to Morocco, there was a conscious effort to avoid generating infographics that could lend 
themselves to simplistic readings and agreed that guidelines on how to re ad the information could 
be very useful. A general guide on how to use the EDB was under develop ment. On the search 
engine functionalities, the Secretariat was looking into possibilities of improving it. In connection 
with Ecuador's question, it was noted that the objective of the EDB, as stated by the CTE in 1996, 
was to explicitly provide more transparency with regards to environment -related notifications. The 
Secretariat had to avoid overreliance on automated filtering through search words that could pro vide 
false positives, such as those mentioned by the representative of China. An analysis was made to 
confirm whether the information captured was truly environment -related. On the suggestion by the 
European Union , the Secretariat noted that in recent year s an effort had been made to bring the 
data up -to-date and that further analytical work was expected in the future. Finally,  the Secretariat  
noted that the EDB was publicly available as it only contained non -restricted information.  
2  PARAGRAPH 33  
"We recogni ze the importance of technical assistance and capacity building in the field 
of trade and environment to developing countries, in particular the least -developed 
among them. We also encourage that expertise and experience be shared with Members 
wishing to p erform environmental reviews at the national level. " 
2.1  The WTO Technical Assistance and Capacity Building Activities  
2.1.  The WTO Secretariat  provide d a briefing on technical assistance and capacity building activities 
related to trade and environment undertaken in 2018.  Technical assistance was one of the key areas 
of the work of the WTO Secretariat, particularly in the area of trade and the environmen t. The idea WT/CTE/M/ 67 
 
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  behind this briefing was to inform the CTE and receive delegations' comments on how to improve 
and better meet Members' needs. Essentially, WTO technical assistance activities on trade and 
environment consisted of several strands: (i) specializ ed WTO Geneva -based courses on trade and 
environment , during which a wide array of experts and specialized agencies were brought together 
to train capital -based officials ; (ii) m ore general trade and environment modules in WTO trade policy 
courses , conduct ed in Geneva or in the regions; (iii) d edicated national workshops on trade and 
environment upon demand by individual WTO Members , as part of  the WTO TA Plan ; (iv) regional 
workshops organized by the WTO Secretariat  usually  in collaboration with other inte rnational 
organizations and the host country . The  focus of such courses was typically on enhancing 
understanding of the economic and legal aspects of the WTO framework and agreements as they 
relate d to trade and environment, including in relation  to sector s and to MEAs . 
2.2.  In addition, the Secretariat was  also increasingly providing support to MEA secretariats and 
other international/regional organizations, when they require d resource persons to explain the 
WTO framework and latest developments, including the work of the CTE. The Secretariat was also 
very active in outreach events, which typically reach ed a larger and more diverse audience than 
those covered by WTO training. These outreach events were popular and  could  help clarify 
misconceptions and improve ge neral understanding on how trade and the multilateral trading system 
could  make a positive contribution to the environment.  
2.3.  Given that the se activities require d considerable resources, the Secretariat had also been 
exploring how to make better use of media  and on line training and ha d developed new e -training 
courses. In short, there was a full menu of activities that delegations  could draw from, and the 
Secretariat  would remain  available to explore ways to  shape activit ies to best meet Members'  needs.  
The Secretariat  looked forward to Members' views to  strengthen ing this area of work.  
2.4.  Turning to the description of 2018 activities, the WTO Secretariat  organized  the 
Fourth  Advanced Course on Trade and Environment held in Geneva for government offi cials from 
25 WTO Members. This level 3 advanced course targeted officials who already possess ed a sound 
knowledge of, or were directly involved with, issues at the interface of trade and environment at the 
national and /or international levels. The course aimed to enhance participants' understanding of the 
key aspects of the relationship between trade and the environment as well as to update them on 
latest developments. It covered topics such as the work of the CTE, fisheries subsidies, transport, 
environme ntal goods, climate change and biodiversity. Participants were able to gain practical 
experience owing to the variety of pedagogical tools used  and they also benefit ted from a wide range 
of experts from other international organizations.  
2.5.  Trade and environm ent training s were  also delivered as part of the WTO 's Geneva -based and 
regional trade policy courses in all three official WTO languages, as well as through the WTO 
e-Learning platform,12 with two new trade and environment online courses developed in 2018:  an 
updated in -depth trade and environment course; and a specific course on WTO and CITES , which  
built upon the recent collaboration between the Secretariats of both institutions.  As part of the WTO 
Chairs programme, the Secretariat delivered a three -day c ourse in Buenos Aires, Argentina, in the 
context of the Postgraduate Program on Law and Economics of Climate Change at the Latin American 
School of Social Sciences.  
2.6.  In 2018, the Secretariat also contributed to three regional workshops organized by UN and 
regional institutions: the Food and Agriculture Organization of the U N (FAO) ; the UNFCCC -ILO; and  
the Inter -American Institute for Cooperation on Agriculture. In these events, the Secretariat 
provided background information on the economic and legal relationship between the trade and 
environmental regimes, as well as relevant discussions held at the CTE.  In addition,  the Secretariat 
organised a number of outreach events including: a High -Level Dialogue during the 2018 Public 
Forum on "Making Trade Wor k for the Environment, Prosperity and Resilience" hosted in cooperation 
with UN EP t; and an event to mark World Environment Day  in 2018. Finally , the Secretariat 
participated in various other events organized by other stakeholders where it highlight ed the positive 
contribution that trade,  and the multilateral trading system could  make to the environment.  
                                                
12 WTO e-Learning  platform : https://wtolearning.csod.com/client/wtolearning/default.aspx . 
 WT/CTE/M/ 67 
 
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  2.7.  The representative of Vanuatu  mentioned the WTO symposium on natural disaster s and trade  
held in May 2019 and funded by Australia. He asked whether there w as any coordination possibility 
between the Trade and Environment Division and the Development Division.  
2.8.  The representative of the WTO Secretariat  confirmed that the Trade and Environment Division 
was working closely with the Development Division and agree d that further coordination could be 
explored.  
3  OTHER BUSINESS  
3.1  Environmental Goods Agreement  (EGA)  
3.1.  The representative of Australia  reaffirm ed the environmental and commercial benefits that an 
EGA could provide, if negotiations were to resume.  As noted in pr evious meetings of the CTE, an 
EGA could promote global commitment to trade and the environment. The importance of the trade 
and environment objectives that the EGA would help to advance continue d to grow. Concluding the 
EGA would provide significant comme rcial outcomes, promote trade and increase access to 
environmentally beneficial technologies. Finalizing the EGA would eliminate tariffs on a broad range 
of goods delivering tangible and significant benefits to WTO Members by reducing the costs of goods 
important for, inter alia : the minimisation of waste and promotion of recycling; sustainable 
generation and use of energy; and conservation of natural resources and the environment. 
Concluding the EGA would also be important in demonstrating the multilateral trading system 's 
ability to contribute to addressing environmental challenges. EGA members continue d to consider 
how to make  progress with the negotiations.  
3.2.  The representative of Canada  noted that Canada remained committed to resume the 
EGA negotiations once conditions were appropriate. Canada encouraged renewed  engagement  from 
EGA participants as a successful EGA that covered a broad range of environmental goods would  help 
achieve Members' commitments to SDGs.  
3.3.  The representative of New Zealand  reiterated  New Zealand's  commitment to reaching an 
ambitious and timely EGA and express ed a desire to work closely with others to explore options for 
renewed engagement, when the tim e was  right. 
3.4.  The representative of Norway  noted its readiness to act as s oon as possible on the EGA 
negotiations.  
3.5.  The representative of Japan  mentioned the importance of resum ing EGA negotiation s based on 
careful consideration. Japan continued to communicate with the industry , which had shown a lot of 
interest in these negotiations. Japan remained committed to this process and hoped for an early  
conclusion of the EGA negotiations.  
3.6.  The representative of the European Union  was of the view that the EGA would be a great 
contributio n to environmental protection, including climate change mitigation. The European Union 
remained strongly committed to concluding an ambitious and forward -looking EGA and looked 
forward to relaunching the negotiations once circumstances would allow to do so  and participants 
were ready to reengage.  
3.7.  The representative of the Kingdom of Saudi Arabia  did not agree to address such an issue in 
the CTE since it considered this work outside the scope  of the Committee . 
3.8.  The representative of Hong Kong, China  reiterated its strong support for this initiative. An EGA 
would not only liberalize trade but also bring environmental benefits. It would be a significant step 
towards reducing pollution, preserving natural resources and stimulating the development of 
technologies that would help everyone in meeting environmental challenges. Hong Kong, China 
looked forward to an early resumption of the negotiations and was committed to working closely 
with other Members for a successful outcome.  
3.9.  The representative of Singap ore noted that Singapore remained fully committed to the EGA 
and stood ready to work with other WTO Members to achieve a fruitful and meaningful outcome in 
due course.  WT/CTE/M/ 67 
 
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  3.10.   The representative of Switzerland  noted that Switzerland remained fully committed to the  
EGA negotiations and stood ready to continue the negotiations.  
3.2  Briefings by observer organizations  
3.2.1   Presentation by the  Organisation for Economic Cooperation and Development 
(OECD ) 
3.11.   The representative of the OECD  provided a report on recent activities .13 First, the OECD had 
developed  in 2017 -2018 a set of ten policy indicators  under the supervision of the OECD Joint 
Working Party on Trade and Environment . In February 2019, the OECD released a working paper 
entitled "T rends in policy indicators on trade and en vironment" . The set of indicators on trade and 
environment would be uploaded on the statistics website of the OECD  in June 2019 . 
3.12.   Their primary goal was to have a quantitative time series , with metrics by country  and by 
year of  a select ed list of issues . The indicators d id not cover all the complex interlinkages of trade 
and environment  as not all issues could  be approached quantitatively . Rather , these indicators would 
enable policymakers to track countries ' progress towards more compatib le trade and environmental 
policies ; they would allow for the identification of the areas of potential conflict between trade and 
environmental polic ies to help determine policy priorities ; and these policy indicators would  also 
improve the precision  of OE CD work through more quantitative analysis.  
3.13.   The ten indicators were the following: (1) amount of c arbon emissions embodied in exports 
and imports  of goods; (2) amount of c arbon emissions embodied in trade under the equal carbon 
intensity  assumption , which reported on the hypothetical amount of carbon emissions embodied in 
imports if all imported goods would have been produced entirely in the importing country; (3) the 
decomposition of carbon emission s embodied in trade into scale, composition and technique effects ; 
(4) the amount of r aw materials embodied in trade ; (5) the v olume of trade in environmentally 
friendly goods ; (6) t ariffs on environmentally -friendly goods ; (7) s upport for fossil fuels ; (8) s upport 
for renewable energy ; (9) v olume of trade in was te and scrap ; and (10) n utrient balance of exported 
grains , which was a proxy for the environmental impact of exports from the agricultural sector.  
3.14.   The following interesting results could be derived  from the analysis of the trends of th e 
indicator s. For instance, c oncerning carbon emissions embodied  in trade, imports from non -OECD 
countries were more carbon intensive than imports from OECD countries  and the carbon intensity of 
imports from non -OECD c ountries ha d substantially declined over time . The driver of this trend was 
technology and the fact that non-OECD countries ha d become cleaner at producing the same goods . 
Another example related to trade in environmentally friendly goods, global exports  of such  goods 
more than doubled between 2003 and 2015 with an average annual growth of 7.5%  with the  
renewable energy sector  experiencing the highest growth  with an average of 8.9% per year, mostly 
driven by  trade in solar photovoltaic modules or systems . China had become  a major environmental 
goods exporting countr y since 2010. 
3.15.   Other  work streams  at the OECD  on trade and environment included  work on trade and 
resource efficiency and  circular economy , a concept paper  on international  trade and the transition  
to a circular economy had been issued  in October 2018, outlining the main issues at  the nex us 
between trade and circular  economy . In the next work programme 2019 -2020, the goal was to get 
more into the specific issue s and two p rojects were under way: as part of the RE -CIRCLE project , 
modelling work of the impact s of a circular economy transition and how it affected trading patterns ; 
and work on policy alignment  and how circular economy polic ies and trade policy could be aligned.  
3.16.   Also, as par t of the RE -CIRCLE project, the OECD had released the report on Global M aterial 
Resource s Outlook to 20 60 in February 2019. The report estimated the level of material use in 2060 
with policies in place until 2011. With this baseline, the report found that  global material use would  
nearly double from 89 Gt in 2017  to 167 Gt in 2060 , having various environmental consequences , 
for instance on climate change (in terms of fossil fuels ), on land use (especially biomass ) and on 
local pollution (especially for metals ). Among the findings , it was  mentioned that primary materials  
were more polluting than secondary materials  by an order of magnitude ; and over  half of the GHG 
                                                
13 See document RD/CTE/145 . WT/CTE/M/ 67 
 
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  emissions could be attributed to materials management activities . As a conclusion, there wa s a need 
for more tailored policy to transform the use of materials  in the economy . 
3.17.   Another area of OECD work on trade and  environment related to  regional trade agreements 
and the environment . The work focused during the last two years on  the greening of r egional trade 
agreement s and on  how to incorporate environmental objectives in chapters and articles that were 
not specific to the environment s uch as investment and subsidies provisions. The OECD should be 
able to report on this work at the next CTE meeti ng. In 2019 -2020, the focus of the work on greening 
RTAs would be  on regulatory cooperation in terms of non -tariff measures and technical barriers to 
trade . 
3.2.2   Presentation by the United Nations Environment Programme (UNEP)  
3.18.   The representative of UNEP  provided  some information on  the 4th Session of the 
UN Environment Assembly (UNEA) , held in  March 2019  in Nairobi  with a focus on the theme of  
innovative solutions for environmental challenges and sustainable consumption and production .14 
UNEA was the w orld's highest -level decision -making body on the environment. It had attracted more 
than 5 ,000 participants  from policymakers , private sector , civil society a nd media . As an  outcome , 
about 30 documents were  adopted, including a ministerial declaration and 23 resolutions . Three 
resolutions were particularly  relevant to trade and trade policy : one on sustainable consumption  and 
production  as trade con nected consumption and production at the global level ; one related to 
management of waste where trade in environmentally sound technologies had an  important role to 
play; and one concerning biodiversity  and illegal trade in wildlife and wildlife products.  
3.19.   The representative also briefed the CTE on  UNEP's  project on trade in environmentally sound 
technologies  (ESTs) , which was funded by  the European Union. It intended to  help countries better 
understand the implications, capacity needs and enabl e conditions for trade  in ESTs. The project 
included  the following  elements : a global study which was launched alongside the last UNEA; two 
regional studies ; stakeholder workshop s; and outreach events. The main findings were as follows: 
ESTs could serve as a driver for development, resilience and the achievement of SDGs; world trade 
in EST -related goods ha d been on an upward trend since 2006  and d eveloping countries ' exports of 
EST goods had  doubled since 2006 ; the value of trade in EST -related services ha d more than 
quintupled over the last decade with revenues largely concentrated in North America and Europe ; 
progress ha d been made in liberalizing EST trade under the APEC framewo rk, the negotiations on 
EGA, Trade in Services Agreement, and a number of FTAs; participation of developing countries and 
especially  least developed countries  in EST -related trade negotiations and initiatives remain ed 
limited ; and t ariff and non -tariff bar riers as well as challenges in data collection, supporting policies, 
and capacity remain ed constraining factors . 
3.20.   Finally, attention was drawn to some recent UNEP publications: Global assessment report on 
biodiversity and ecosystem services; Towards a Pollution Free Planet; and the Global Resources 
Outlook. The representative also mentioned an  up-coming  event to be co-hosted with the 
European  Union and the Pacific Islands Forum during  the WTO Global Review of Aid for trade held 
at the WTO in July  2019, on how trade policy, including aid for trade, could better support climate 
resilience to  environmental and natural hazards.  
3.2.3   Presentation by the UN Economic Commission for Europe (UNECE)  
3.21.   The representative of the  UN Centre for Trade Facilitation and Electro nic Business  
(UN/CEFACT) of the UNECE  explained that UN/CEFACT  was an intergovernmental body hosted by 
UNECE, mandated  to enhance coordination and cooperation, as well as to develop policy  
recommendations and standards, on trade facilitation and electronic  business worldwide.15 It was a 
public and private partnership with  participants from both governments and businesses, as well as  
international and non ‐governmental organizations. Although part of  UNECE, the mandate was global 
and include d active participation from all  regions of the globe, at all stages of development.  All 
standards were electronic, free and open in order to ensure they did not introduce new  technical 
barriers to trade, that they enhance d interoperability  and that they enable d integration with 
electronic single windows . 
                                                
14 See document RD/CTE/150/Rev.1 . 
15 See document RD/CTE/152 . WT/CTE/M/ 67 
 
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  3.22.   Concerning product tracing for sustainability, the goal was to ensure that products origins 
could assist in building sustainable market shares. Two traceability projects were mentioned: fish 
catches using fish stocks ; and  textile and leather in the garment industry. The world 's consumers 
were no longer satisfied with  the cheapest or the most fashionable , they now want ed to know  how 
clean the value chain was. This trend of consumer activism towards improved transparency in value 
chains was driving the purchasing power of the "conscious " consumer. And this in turn was a key 
driver for sustainable and inclusive products. A whole new industry ha d been created a round this 
and it h eld significant potential for many actors , including developing country SMEs.  
3.23.   The complex nature of value chains add ed to the challenge of improving traceability and 
transparency in the textile sector. Small and often scattered productio n facilities located all over the 
world, numerous value chain actors  and short product lifecycles in many industries , among other 
factors,  posed  many challenges.  Both governments and companies c ould play a crucial role. 
Governments could  support the reinfo rcement of responsible production and consumption practices 
though a variety of measures. Against these general considerations, however, development -related 
concerns should not be left behind, and due support should be provided to suppliers who lack ed the 
means to better communicate information on their sustainability performance.  
3.24.   UN/CEFACT ha d developed multiple recommendations and interoperable standa rds for 
traceability, including a traceability framework and harmonized UN/CEFACT standards  such as UN 
Fisheries Language for Universal exchange (UN/FLUX) , eCert ification , eQuality Certificates and the 
Rapid Alert System  for Feed and Food for the agriculture and agri ‐food sector. Focusing on UN/FLUX, 
the representative explained that one of the main aims of  tracing fish catches was to combat IUU 
fishing, as well as preventing subsidies from going to IUU fishing.  In order to further these efforts, 
UN/CEFACT created an open global standard to  improve fisheries information management : 
UN/FLUX,  which  allowed fishery management organizations to automate the collection and  
dissemination of the fishery catch data needed for sustainable fisher ies management, and to detect 
and combat IUU  fishing.  UN/FLUX was being used in all EU member States involved  in the fishing  
industry  and was being adopted by other countries across the globe, such as Brazil and  Thailand . In 
2016, the Food and Agriculture Organization of the United Nations ( FAO) adopted UN/FLUX as the 
transmission  mechanism for its global record  on vessels . 
3.25.   The next face -to-face meetings would  be held alongside the High -Level Trade Forum in 
September  and during the UN/CEFACT forum in October.  UN/FLUX helped prevent IUU subsidies by 
providing uniform data that could help compare data provided by different governments.  To fight 
IUU fishing  and to prevent the subsidizing of IUU and overfishing, fishing authorities need ed reliable 
data about fishi ng equipment, fishing activities, catches, fish sales and fisheries inspections.  
3.26.   UN/CEFACT, with key partners, ha d also  launched an initiative on Traceability and 
Transparency of Sustainable Value Chains in the Garment and Footwear Sector.  In order to incr ease 
the industry’s ability to manage its value chain more sustainably, efforts aimed at increasing  
traceability  and transparency  of value chains . This required information to be presented in a 
standardized and harmonized way in order to ensure  common unde rstanding , accessibility , clarity  
and comparison . Perhaps more important ly, the goal was to create a foundation for a landscape 
change , channeling investment and innovation into those areas that would improve the textile 
sesctor . As of 2017, one third of t he 100 largest global fashion brands ha d traced and made publicly 
available their list of tier -one suppliers, up 12% from 2016. But disclosing information about the 
tier-one suppliers was not enough. Traceability was required through the whole value chain, as most 
sustainability risks occur red in its upstream part, and particularly at the raw material production 
stage.  
3.27.   To this effect, UN/CEFACT was conducting a  project  on "Transparency and Traceability for 
Sustainable  Textile and Leather Value  Chains " in order to bring together the main actors involved to 
develop this framework. The main objectives were to develop: a m ulti-stakeholder policy dialogue 
platform ; traceability standards and implementation guidelines ; an online transparency and 
traceability tool for customized, open self -assessment and data sharing solutions for value chain 
stakeholders ; piloting  of the project outputs with selected companies and countries ; training ; and a 
continuous improvement programme, i ncluding on blockchain applications . WT/CTE/M/ 67 
 
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  3.3  Other matters  
3.28.   The representative of Canada  invited d elegates to participate in an event organized , together 
with France, back to back with the CTE, entitled "Carbon pricing and International Trade: How to 
Design Win-Win Strategies" . 
3.29.   The Chairman  of the CTE informed Members that the next meeting of the CTE was scheduled 
to take place on 26 November 2019. In response to the interest expressed by several delegations, 
this meeting would focus its discussion on the iss ue of the circular economy and its interaction with 
international trade in the context of Item 1 of the CTE Work Program on Multilateral Environmental 
Agreements and especially those whose work was relevant to these issues. The agenda was of course 
also op ened to other items under the CTE Work Programme. In addition, the Chairman informed 
delegations that, as a follow -up to his bilateral informal consultations, he would reach out to 
delegations to improve the user -friendliness of the annotated agenda, espec ially for delegates 
coming from capital and sometimes less familiar with the work of the CTE. The idea was to improve 
this document, in respect of the CTE's Work Programme.  
_______________  WT/CTE/M/ 67 
 
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  ANNEX 1: ITEMS OF TH E CTE WORK PROGRAMME  
 
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 2:  The relationship between environmental policies relevant to trade and envir onmental 
measures with significant trade effects and the provisions of the multilateral trading 
system.  
Item 3(a):  The relationship between the provisions of the multilateral trading system and 
charges and taxes for environmental purposes.  
Item 3(b):  The r elationship 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.  
Item 4:  The provisions of the multila teral trading system with respect to the transparency of 
trade measures used for environmental purposes and environmental measures and 
requirements which have significant trade effects.  
Item 5:  The relationship between the dispute settlement mechanisms in the multilateral 
trading system and those found in multilateral environmental agreements.  
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.  
Item 7:  The issue of exports of domestically prohibited goods.  
Item 8:  The relevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights.  
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 arrangements for relations 
with intergovernmental and non -governmental organizations referred to in Article  V 
of the WTO.  
 
_______________  
 
 WT/CTE/M/ 67 
 
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  ANNEX 2: PARTS OF THE DOHA MINISTERIAL DECLARAT ION THAT RELATE TO T HE WORK 
OF THE  CTE REGULAR  
 
32.  We instruct the Committee on Trade and Environment, in pursuing work on all items on its 
agenda within its current terms of  reference, to give particular attention to:  
 
(i) the effect of environmental measures on market access, especially in relation to 
developing countries, in particular the least  developed among them, and those situations in 
which the elimination or reductio n of trade restrictions and distortions would benefit trade, 
the environment and development;  
 
(ii) the relevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights; and  
 
(iii) labelling requirements for environmental purpo ses. 
 
Work on these issues should include the identification of any need to clarify relevant WTO rules. The 
Committee shall report to the Fifth Session of the Ministerial Conference, and make 
recommendations, where appropriate, with respect to future actio n, including the desirability of 
negotiations. The outcome of this work as well as the negotiations carried out under paragraph  31 
(i) and  (ii) shall be compatible with the open and non -discriminatory nature of the multilateral 
trading system, shall not ad d to or diminish the rights and obligations of members under existing 
WTO agreements, in particular the Agreement on the Application of Sanitary and Phytosanitary 
Measures, nor alter the balance of these rights and obligations, and will take into account t he needs 
of developing and least  developed countries.  
 
33.  We recognize the importance of technical assistance and capacity building in the field of trade 
and environment to developing countries, in particular the least  developed among them. We also 
encourage that expertise and experience be shared with members wishing to perform environmental 
reviews at the national level. A report shall be prepared on these activities for the Fifth Session.  
 
51.  The Committee on Trade and Development and the Committee on Trade and Environment shall, 
within their respective mandates, each act as a forum to identify and debate developmental and 
environmental aspects of the negotiations, in order to help achieve the objective of having 
sustainable development appropriately reflected.  
 
 
 
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