RESTRICTED
WORLD TRADE WT/CTE/W/36
23July1996
ORGANIZATION(96-2890)
Committee onTrade andEnvironment
TRADE LIBERALIZATION, THE ENVIRONMENT AND
SUSTAINABLE DEVELOPMENT
Submission byAustralia
I. INTRODUCTION
1. TheMarrakesh Decision onTrade andEnvironment provides fortheCommittee onTrade
andEnvironment toidentify therelationship between trade measures andenvironmental measures,
inorder topromote sustainable development, andinthelightofthisanalysis tomake appropriate
recommendations onwhether anymodifications oftheprovisions ofthemultilateral trading system
arerequired. Acentral theme intheCTE'smandate istherelationship between trade
liberalization, theenvironment andthepromotion ofsustainable development anditunderlays
many aspects ofitswork programme.
(i) Several Items onthework programme concern therelationship between the
multilateral trade rules andenvironmental policies. Akeyconsideration inthis
areaisaconcern toensure thatthese rules donotplace inappropriate constraints
ontheuseofmeasures which maybenecessary toachieve sound environmental
management inparallel withtheeconomic growth promoted bytrade
liberalization.
(ii) Anumber ofItems concern theeffect ofenvironmental measures onmarket
access. There isconcern thatenvironmental measures might erode some ofthe
market access opportunities expected from trade liberalization, including the
reforms achieved intheUruguay Round. TheMarrakesh Decision draws special
attention totheneedtoexamine thisissue inrelation totheconcerns ofdeveloping
countries, inparticular theleast-developed among them.
(iii) Another important issue intheCTE'smandate istheexamination ofthe
environmental benefits ofremoving trade restrictions anddistortions. There may
beopportunities for"win-win" reforms thatcreate fairer andmore opentrading
conditions andatthesame timedismantle policies thathaveprovided incentives
forenvironmentally-damaging behaviour.
2. Theimportance oftherelationship between trade liberalization andtheenvironment tothe
CTE'swork isclear from thepreamble totheMarrakesh Agreement establishing theWorld Trade
Organization. Thisstates thedesire ofWTO Members toconduct theirrelations inthefieldof
trade andeconomic endeavour inawaywhich allows fortheoptimal useoftheworld 'sresources
inaccordance withtheobjective ofsustainable development. Thepreamble highlights theneedto
ensure thattheinternational community 'sefforts toraiseliving standards, topromote full
employment andagrowing volume ofrealincome andeffective demand, andtoexpand theWT/CTE/W/36
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production ofandtrade ingoods andservices, areconsistent withefforts toprotect andpreserve
theenvironment.
3. Thissubmission proposes some major themes forguiding theCTE'swork asitexamines
theimportant issues setoutinthepreamble totheAgreement establishing theWTO inrelation to
thevarious Items onitswork programme. Inparticular, thesubmission suggests some key
elements which should figure prominently intheCTE'sReport tothefirstbiennial meeting ofthe
Ministerial Conference inSingapore inDecember 1996. These relate tothefollowing themes:
(i) therejection ofperceptions thatthere isaconflict between thepursuit oftrade
liberalization andtheprotection oftheenvironment;
(ii) theroleofcomplementary andeffective environmental policies inaddressing any
environmental concerns raised bytrade liberalization;
(iii) theconsistency andcomplementarity between astrong multilateral trading system
thatadvances trade liberalization andeffective action atthenational levelandin
appropriate international foratopromote environmental objectives; and
(iv) theneedforacontinuing work programme examining theenvironmental benefits
ofremoving trade restrictions anddistortions.
4. TheCTE should recommend thatitsfuture work programme encompass ananalysis ofthe
relationship between trade liberalization andtheenvironment for:
(i) abroad setoftrade restrictions anddistortions, including hightariffs, tariff
escalation, subsidies, non-tariff measures andhighinternal taxes; and
(ii) arange oftrade sectors, including agricultural products, natural resource-based
products, processed commodities, textiles andclothing andother industrial
products.
5. Thesubmission outlines anumber ofthekeyissues thatshould beaddressed inthiswork
programme inrelation to:
(i) theconcerns oflow-income commodity-dependent countries; and
(ii) agricultural trade reform.
II. THE ROLE OFCOMPLEMENTARY ENVIRONMENTAL POLICIES
6. Theinternational community hasrecognized thattrade liberalization hasthepotential to
deliver significant environmental benefits through promoting amore efficient allocation anduseof
resources, buthasalsoemphasized theimportance ofcomplementary environmental policies.
BoththeUnited Nations Conference onEnvironment andDevelopment (UNCED) andthe
Commission onSustainable Development (CSD) havepointed outthattrade liberalization should
notbeseenasinconflict withthegoalofimproved environmental protection. Agenda 21clearly
highlighted thefactthatthepromotion ofsustainable development requires bothfurther initiatives
tostrengthen andcontinue theliberalization ofthetrading system, andaction toputinplace
complementary environmental policies toensure environmental quality.WT/CTE/W/36
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7. Inmost cases, thecritical issue indetermining theenvironmental impacts oftrade
liberalization would appear tobetheenvironmental policies inplace. When appropriate
environmental policies arepresent, trade liberalization canmake adirect contribution toimproving
acountry 'senvironmental management. Import liberalization canfacilitate theraising of
environmental standards through improving access toinputs andproducts which are
environmentally more friendly andassist withtheintroduction ofenvironmentally-sound
technologies. Inaddition, trade liberalization canremove environmentally-damaging trade
measures andpromote more openeconomies andrising incomes, which seegrowing demands for
environmental protection andtheavailability ofmore resources torespond tothese demands.
8. However, thepotential contribution oftrade liberalization toacountry 'smore efficient
andecologically-sustainable useofresources willonlybefullyrealized ifeffective environmental
policies areinplace. Akeyissue isthefailure ofmarkets toadequately value environmental
costs andbenefits, andpolicy action toaddress market failures maybeneeded toensure
sustainable management ofnatural resources andenhance environmental quality. Improvements in
social welfare involve giving priority tothepromotion ofenvironmental quality aswellas
economic growth.
9. Appropriate andeffective environmental policies maydiffer between countries. UNCED
recognized thatenvironmental standards applied bysome countries maybeinappropriate andof
unwarranted economic andsocial costtoother countries, inparticular developing countries.
10. Incertain circumstances, when appropriate policies forsound environmental management
arenotinplace, trade liberalization mayexacerbate existing environmental problems. An
important issue foracountry 'spolicy makers isthedesign, sequencing andimplementation of
complementary environmental policies toaddress anyenvironmental concerns raised bytrade
liberalization initsspecific situation.
11. Agenda 21pointed totheimportance ofdealing withtherootcauses ofenvironment and
development problems inamanner thatavoids theadoption ofenvironmental measures resulting
inunjustified restrictions ontrade. There maybemore direct instruments thantrade measures
available foraddressing anyparticular environmental problem, andthese other instruments are
likely tobemore efficient andeffective because theyinfluence theuseofenvironmental resources
more directly. Trying toachieve environmental objectives through trade measures caneven, in
specific circumstances, encourage inefficient andhighcostindustries thatplace different but
possibly evengreater andmore wasteful demands ontheuseofenvironmental resources.
12. InitsReport, theCTE should firmly reject perceptions thatthere isaconflict between the
objectives andvalues ofthemultilateral trading system andtheobjectives ofenvironmental
protection. TheCTE should emphasize thecomplementarity between astrong multilateral trading
system thatadvances trade liberalization andeffective action atthenational levelandin
appropriate international foratoadvance environmental goals. Thiscomplementary action isone
ofthecentral ways inwhich trade andenvironment policies canbemade mutually supportive in
advancing sustainable development.WT/CTE/W/36
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III. THE ENVIRONMENTAL BENEFITS OFREMOVING TRADE RESTRICTIONS AND
DISTORTIONS
13. Trade liberalization involves thereduction orremoval ofproduction andexport subsidies,
tariffs andnon-tariff barriers across traded goods andservices. These barriers totrade distort
prices andresult inthemisallocation ofresources infavour ofprotected industries. Trade
liberalization promotes aneconomically more efficient allocation anduseofresources, including
international relocations ofproduction andconsumption.
14. Trade liberalization contributes toanincrease ineconomic efficiency, although thismay
notequate toimprovements inenvironmental efficiency andsustainability. Resource usewillbe
sub-optimal iftheprices ofgoods andservices donotreflect thefullsocial costoftheir
production anduse. However, anincrease ineconomic efficiency should benefit theenvironment
generally inthatlessresources willbeusedtoproduce agiven amount ofgoods andservices.
There mayalsobedirect andpossibly substantial environmental benefits iftrade liberalization is
complemented byappropriate domestic policies, including pricing strategies fornatural resources
aimed atreflecting intheirprices thecosts oftheenvironmental impacts associated withtheir
production anduse.
15. Furthermore, astrong multilateral trading system maycontribute toasupportive
international economic framework fortheadoption ofappropriate domestic environmental
policies, including policies topromote thebetter valuation ofenvironmental resources. An
important constraint which these policies mayoften faceispoverty astheverypoormaylackthe
resources, infrastructure andtechnical andfinancial support toavoid degrading theirenvironment.
16. Therelationship between poverty andenvironmental degradation iswellrecognized and
many oftheworld 'spoorliveinecologically fragile areas. TheRioDeclaration onEnvironment
andDevelopment emphasized thatthetaskoferadicating poverty isanindispensable requirement
forsustainable development. Policies topromote proper valuation ofenvironmental assets and
sustainable useofresources mayhavelittleeffect ifpoorcommunities continue tofaceinadequate
incomes andother pressures leading them toover-exploit natural resources.
17. Insuchsituations, providing poorproducers withopportunities forimproving their
incomes mayoften beanessential ingredient increating conditions topromote more sustainable
useofresources, encourage better protection oftheenvironment andimplement policies aimed at
improving theincorporation ofenvironmental costs andbenefits indecision making. For
example, theUnited Nations Convention toCombat Desertification hasdrawn attention tothe
close association between socio-economic conditions, widespread poverty anddesertification, and
theimportance ofaction bytheinternational community toestablish anenabling international
economic environment asameans ofsupporting theefforts ofcountries tocombat desertification.
18. Themultilateral trading system canmake animportant contribution tofacilitating the
actions ofdomestic policy makers inaddressing desertification andother environmental challenges
through creating opportunities toearnincome thatwillassist thepoortobeactive participants in
thedevelopment process. However, theproblems ofenvironmental damage duetopoverty and
thefailure ofmarkets tovalue environmental costs andbenefits haveoften beenmade worse by
inappropriate government interventions. These haveencouraged inefficient resource allocation
andledtoenvironmentally-harmful behaviour. These policies include arange oftrade and
trade-related policies which havedistorted markets inways which havenotonlyunfairly affected
theeconomic opportunities ofproducers inother countries butpromoted poorenvironmentalWT/CTE/W/36
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outcomes anddepletion ofresources. Examples include import bansorrestrictions, input
subsidies onenergy, water, pesticides andfertilizers, anddomestic price support schemes.
19. Botheconomic andenvironmental benefits canbeachieved byremoving price distorting
policies thatencourage over-use ofresources andpromote inappropriate activities attheexpense
ofenvironmental values. Reform ofthese distorting policies canleadtomore openandfairer
trading conditions while removing incentives forenvironmentally-damaging behaviour. Atthe
same timecomplementary policies canhelptoensure thatthese reforms contribute toimproved
environmental outcomes andpromote social equity.
20. TheCTE should examine theenvironmental consequences ofabroad setoftrade
restrictions anddistortions, andacross arange oftrade sectors, including:
(i) hightariffs forarange ofproducts, including processed commodities, textiles and
clothing, other industrial products andagricultural commodities subject to
tariffication intheUruguay Round;
(ii) tariff escalation, especially intheforestry, mining, fisheries andagriculture areas;
animportant issue inthiscontext isincreased tariff escalation insome areas
following theUruguay Round;
(iii) subsidies, especially foragricultural products, energy sources andnatural
resource-based products generally;
(iv) non-tariff measures thatmight restrict market access; and
(v) highinternal taxes ontropical commodities.
21. Thissubmission outlines some oftheissues which theCTE should examine aspartofthis
work programme inrelation to:
(i) theconcerns oflow-income commodity-dependent countries; and
(ii) agricultural trade reform.
IV. THE ENVIRONMENTAL BENEFITS OFACTION TOADDRESS THE CONCERNS
OFLOW-INCOME COMMODITY-DEPENDENT COUNTRIES
22. Participation inworld trade remains strikingly uneven. Thepoorest countries,
representing 20percentoftheworld 'spopulation, account forlessthanonepercentofworld
trade, while thewealthiest countries representing asimilar percentage oftheworld 'spopulation
account for84percentofworld trade.1Furthermore, thisdisparity haswidened since the1960s.2
23. Many ofthecountries withonlyalimited participation inworld trade retain ahigh
dependence onanarrow range ofprimary commodities forexport earnings. These countries
experienced significantly unfavourable movements intheterms oftrade from themid-1980s
affecting allmajor commodity groups. Realcommodity prices fellbymore than50percent
1UNDP, Human Development Report 1994, (New York: Oxford University Press, 1994), p.63(estimate for1991).
2UNDP, Human Development Report 1992, (New York: Oxford University Press, 1992), pp.35-36.WT/CTE/W/36
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between 1980 and1993, withaparticularly marked decline fortropical beverages.3Despite a
price recovery in1994-1995, realprices were stillgenerally wellbelow thelevels reached inthe
1970s andearly 1980s. Inaddition, theprice volatility ofthese commodities hasoften meant
large fluctuations inexport earnings withadverse effects ondevelopment.
24. Itwould appear thatakeyissue isthedegree ofdiversification within thecommodity
sector andnotonlydiversification outofthesector.4Ahighdependence onexports ofasmall
number ofcommodities hasresulted inmany countries having ahighvulnerability to
sector-specific adverse changes oncommodity markets. Ithasbeensuggested thatmany countries
"aretrapped inavicious circle", withtheexisting production structures abletogenerate little
diversification, andinadequate export earnings andexternal resource flows constraining the
availability ofimports needed tofacilitate structural change.5
25. Inmany low-income commodity-dependent countries, andother countries withamarginal
participation inworld trade, major environmental problems areclosely linked topoverty,
including inadequate sanitation, lackofaccess toclean water, indoor airpollution from biomass
burning andmany types oflanddegradation.6Inthese conditions, efforts toimprove
environmental management mayoften face"income constraints". Thedanger isthatpolicies
aimed atimproving thevaluation ofenvironmental resources maybeunsuccessful iftheyreduce
theincome ofalready poorproducers whohavefewalternative sources ofemployment. Falling
incomes mayperpetuate, orevenworsen, environmentally-damaging activities.7
26. Inexamining thequestion ofhowtoensure thatthepotential ofthemultilateral trading
system tocontribute tothepromotion ofsustainable development isrealized, oneissue which
needs attention isthechallenge ofsupporting those countries stillheavily reliant onexports ofa
limited range ofprimary commodities andwhose participation ininternational trade remains
marginal. Thiscommodity-dependence maymake itverydifficult forthese countries toensure
sustainable management oftheirresources, asanydecline inexport earnings would severely affect
theirdevelopment efforts.
27. Thebenefits ofinvestment inresource conservation mayonlyberealized afterseveral
years, andinsome cases theswitch tomore sustainable production practices mayinvolve a
temporary lossofincome. These challenges maybeparticularly significant forcountries still
reliant onexports ofafewcommodities.
28. Expansion anddiversification ofexport opportunities, including diversification intohigher
value-added products, could assist these countries intheirefforts tobothreduce poverty and
protect theenvironment. Actions toreduce tariff escalation intheirexport markets, andto
address hightariffs andnon-tariff barriers onproducts ofexport interest tothem, could provide a
more supportive international framework forefforts topromote amore diversified economic
3World Bank, Global Economic Prospects andtheDeveloping Countries 1994, (Washington, D.C.: TheWorld Bank, 1994),
pp.12-13.
4UNCTAD, "Improving Market Opportunities forCommodities, intheMedium Term, withEmphasis onAchieving
Diversification", Document TD/B/CN.1/24 (Geneva, 11August 1994).
5UNCTAD, Trade andDevelopment Report, 1993, (New York: United Nations, 1993), p.100.
6World Bank, World Development Report 1992: Development andtheEnvironment, (New York: Oxford University Press, 1992).
7L.Karp withC.Dumas, B.Koo andS.Sacheti, "Internalization ofEnvironmental Damages inAgriculture", paper prepared for
UNCTAD, Document UNCTAD/COM/53 (Geneva, 25April 1995).WT/CTE/W/36
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structure incommodity-dependent countries andtoimprove incentives forinvestment inresource
conservation. Inparticular, predictable andbound market access opportunities maybean
important factor increating anenabling environment forlonger terminvestment innew
production activities.
29. Atthesame time, theevidence ofcountries 'experience inrelation todiversification
suggests thatinitiatives toopenmarkets andbindaccess opportunities needtobecomplemented by
policies toimprove supply capacity, generate investment funds, assist withstructural change,
increase competitiveness andstrengthen theability ofindustries incommodity-dependent andother
developing countries totakeadvantage ofmarket opportunities.8Furthermore, complementary
policies toprotect theenvironment anddirectly target theneeds ofpoorcommunities maybe
necessary ifthedevelopment ofmore diversified economic structures istobeaccompanied by
improvements insocial welfare.
30. InitsReport theCTE should prominently highlight theneedtoaddress theproblems of
low-income commodity-dependent countries andother countries which remain marginal
participants inworld trade. Itshould point tothefactthatthemost urgent environmental
problems theyfaceareoften different from those ofmany other countries andthecontribution
which themultilateral trading system might playinhelping them respond tothese problems.
31. TheCTE should emphasize thatacentral partofitsfuture work programme should bethe
examination oftheenvironmental benefits ofactions toassist low-income commodity-dependent
countries improve theirexport opportunities, including through addressing tariff escalation, high
tariffs andnon-tariff barriers forprocessed commodities, textiles andclothing andother industrial
products. TheCTE'swork programme should alsopoint totheroleofcomplementary actions at
boththenational levelandinarange ofinternational forainaddressing theproblems of
commodity-dependency, including inrelation totechnical assistance andcooperation andother
actions which maycome within thecompetence oftheWTO. Thetrade andenvironment debate
provides animportant opportunity tobring renewed attention tothese issues.
V. THE ENVIRONMENTAL BENEFITS OFFURTHER AGRICULTURAL TRADE
REFORM
32. Another areawhich should figure prominently intheCTE'scontinuing work programme
isthatofagricultural subsidies andhightariffs formany agricultural products. Agriculture hasa
more immediate interaction withtheenvironment thanmost other areas oftrade. Notonlydoes
agricultural production haveadirect impact ontheenvironment, butitisalsoveryvulnerable to
changes inenvironmental conditions. Over-use ofresources andunsustainable practices canlead
tosevere landdegradation andimpose aheavy price interms ofreduced agricultural productivity
inthefuture. Some agricultural production activities mayalsohaveenvironmental andsocial
benefits which arenotadequately valued bymarket prices. Inmany countries, thepromotion of
more ecologically-sustainable agricultural production isakeyrequirement forbothalleviating
poverty andprotecting theenvironment.
33. Themultilateral trading system hasthepotential tomake asignificant contribution tothe
promotion ofmore sustainable agricultural production. Itmayprovide efficient agricultural
producers withamore certain andpredictable trading framework thatcanassist them toadopt
production practices directed atlong-term sustainability andconservation oftheresource base.
8UNCTAD, "Recent Developments intheDiversification ofDeveloping Countries 'Commodity Exports",
Document UNCTAD/COM/62 (Geneva, 26July1995).WT/CTE/W/36
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Agricultural trade canalsogenerate income earning opportunities fortherural poorandfacilitate
efforts tobreak thelinkbetween poverty andenvironmental degradation.
34. However, arange oftrade distorting policies havelimited thispotential. Itiswell
recognized thattheprovision ofagricultural assistance through output-related policies inmany
OECD countries haveimposed highenvironmental costs inthose countries. Studies indicate that
these policies haveencouraged intensified landuse,ledtoincreased applications offertilizers and
chemical pesticides, contributed totheadoption ofintensive animal production practices linked
withincreased pollution andovergrazing, promoted monoculture agriculture andlessened
agricultural diversity, andincreased pressures forexpansion ofproduction intomarginal and
ecologically sensitive areas attheexpense ofbiodiversity.9Instead ofpromoting better
environmental management, these agricultural policies havetoooften shielded farmers from both
market signals andtheneedtoconfront theenvironmental impacts ofagricultural practices.
35. Thereliance ondomestic agricultural policies thatsought tomaintain high, stable prices
forproducers irrespective ofmarket demand alsoledtotheuseofrestrictive trade policies. There
wasaresort toimport barriers toprevent thedomestic programmes being undermined byproducts
from more efficient agricultural producers. Export subsidies were usedtogetridofthesurplus
production andtocompete unfairly withother exporters andwithdomestic production inother
countries.
36. Theagricultural andassociated trade policies pursued inmany OECD countries have
contributed toaninternational trading system which hashampered theefforts ofmore efficient
agricultural producers tosustainably manage theirnatural resources, whether inother OECD
countries orindeveloping countries. Thecontribution which international trade could playin
supporting countries intheirefforts topromote more sustainable agriculture hasbeenlimited bya
combination ofthese agricultural trade distorting policies andother factors, suchaspolicies
discriminating against theagriculture sector, inadequate infrastructure, lackofaccess tocredit,
inputs ormarkets, andthefailure ofmarkets tovalue properly environmental andother social
costs andbenefits.
37. Trends inworld trade infoodcommodities overrecent decades issuggestive ofthelost
opportunities. Over theperiod from 1970 to1992 theshare ofworld exports offoodcommodities
heldbydeveloping countries fellfrom some 34percentto28percent. Atthesame timethe
share heldbydeveloped market economies rosefrom 58percentto70percent.10Theshare of
world exports offoodcommodities heldbythose OECD countries withthelowest levels of
agricultural support, Australia andNewZealand, fellfrom 4.6percentin1970 to3.5percentin
1992.
38. Thegreat increase inagricultural protection inmany OECD countries, which waslargely
directed tofoodcommodities, wasnottheonlyfactor inexplaining these trends butwasclearly an
important element. Indeed, totaltransfers associated withagricultural policies inOECD countries
areestimated tohaveincreased, innominal terms, from about US$24billion in1970 tooverUS$
9Review oftheliterature inWTO Secretariat, "Environmental Benefits ofRemoving Trade Restrictions andDistortions",
WT/CTE/W/1 (16February 1995).
10UNCTAD, "Some Perspectives onAgricultural Protectionism, Diversification andEconomic Growth", Document
UNCTAD/COM/68 (Geneva, 9October 1995), p.11;UNCTAD, Commodity Yearbook 1995, (New York andGeneva:
United Nations).WT/CTE/W/36
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200billion annually inthemid-1980s andoverUS$330billion annually intheearly 1990s.11By
comparison, thenominal value ofdeveloping countries 'earnings from exports offood
commodities averaged some US$17billion intheearly 1970s, some US$72billion inthe
mid-1980s, andUS$97billion intheearly 1990s.12
39. Thisgreat increase inagricultural protection withitsadverse consequences for
development andtheenvironment occurred intheperiod between theUnited Nations Conference
ontheHuman Environment heldinStockholm in1972 andUNCED in1992.
40. Inconsidering these statistics, itisimportant toremember thatagriculture accounts for
only4percentoftheworkforce inhighincome countries, butfor29percentinmiddle-income
economies and61percentofthelabour force inlow-income economies.13Although urban
poverty isagrowing phenomenon, therural pooraccount for80percentormore ofthetotal
number ofpoorpeople indeveloping countries, some onebillion people. Alarge proportion of
these arewomen.14Promoting more sustainable agricultural development remains amajor policy
issue inmany countries because ofitsimplications forachieving bothreductions inpoverty and
improvements inenvironmental management.
41. TheUruguay Round hastaken thefirststeps towards amore sustainable andfair
framework fortheconduct ofagricultural trade, butthere isconsiderable scope forfurther reform
tobuild onthereductions intrade-distorting support andmarket access barriers achieved inthe
Round. AkeypartoftheCTE'scontinuing work programme must beanexamination ofthe
relationship between agricultural trade liberalization andtheenvironment andtheneedtomake the
multilateral trading system more supportive ofcountries 'efforts topromote sustainable
agriculture.
42. Another important issue istheneedforreform oftrade-distorting policies tobe
complemented byactions toensure thatthisreform results inmore sustainable agriculture. This
includes investment inagricultural research andextension services andtheadoption ofappropriate
domestic policies tosecure sustainable resource management andtospread thebenefits and
opportunities topoorer communities.
43. Issues tobeaddressed include thepromotion ofabetter valuation ofenvironmental assets
through recognition oftheenvironmental costs andbenefits thatmaybeassociated with
agricultural production. Other issues aretheneeds ofvulnerable, resource-poor households and
recognition ofthespecifics oflocalconditions, including theroleofappropriate technology and
thecontribution thattraditional andindigenous crops, farming systems andknowledge maymake
inconserving anddeveloping theresource base.
44. Efforts areneeded toensure thatallcountries havetheresources andneeded assistance to
adapt tochanges intheagricultural trading framework, including through enhancing capacities to
11UNCTAD, "The Uruguay Round andInternational Commodity Trade andPrices", Statistical Annex, Document
TD/B/CN.1.30/Add.1 (Geneva, 31August 1995), Table 5.
12Op.cit., Table 4.;UNCTAD, Commodity Yearbook 1995, pp.22-25.
13World Bank, World Development Report 1995: Workers inanIntegrating World, (New York: Oxford University Press, 1995),
p.2.
14I.Jazairy, M.Alamgir andT.Panuccio, TheState ofWorld Rural Poverty, (London: ITPublications fortheInternational Fund
forAgricultural Development, 1992).WT/CTE/W/36
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takeadvantage oftrading opportunities andimproving agricultural productivity andinfrastructure
inways thatsupport thepromotion ofsustainable agriculture.
VI. CONCLUDING COMMENTS
45. UNCED andtheWorld Summit onSocial Development indicated thatimprovements in
human well-being, including thatoffuture generations, depend onpriority being given to
promoting environmental quality andadvancing social equity aswellastoachieving economic
growth. They alsorecognized thattrade liberalization isnotinconflict withthese objectives, and
thatastrong multilateral trading system could make apositive contribution tothepromotion of
sustainable development.
46. TheCTE'swork should build onthese perspectives. Thissubmission hasproposed some
major themes which should figure prominently intheReport oftheCTE totheMinisterial
Conference andinitsfuture work programme.
47. TheCTE should firmly reject perceptions thatthere isaconflict between theobjective of
trade liberalization andtheprotection oftheenvironment. Itshould emphasize thatoneofthe
central ways inwhich trade andenvironment policies canbemade mutually supportive isthrough
trade liberalization being accompanied byappropriate environmental policies, which maydiffer
between countries. Itwillbeseenasawelcome message iftheWTO firmly acknowledges the
consistency andcomplementarity between astrong multilateral trading system thatcontributes to
sustainable development andeffective action atthenational levelandinappropriate international
foratopromote environmental objectives.
48. TheCTE should alsoaskMinisters toendorse acontinuing work programme examining
thepotential for"win-win" reforms thatwould notonlycontribute toafairer andmore open
trading system butwould facilitate environmental improvements. Thiswork programme would
seektoidentify policies thathaveprovided incentives forbehaviour thathasbeen
environmentally-damaging aswellastrade distorting. Inaddition, theCTE should draw attention
totheneedforitscontinuing work programme toundertake abroader analysis ofways of
ensuring thatthemultilateral trading system provides asupportive framework fortheefforts of
countries toimprove environmental management andprovide income generating opportunities for
thepoor.
49. TheCTE should recommend thatitsfuture work programme encompass ananalysis ofthe
relationship between trade liberalization andtheenvironment for:
(i) abroad setoftrade restrictions anddistortions, including hightariffs, tariff
escalation, subsidies, non-tariff measures andhighinternal taxes; and
(ii) arange oftrade sectors, including agricultural products, natural resource-based
products, processed commodities, textiles andclothing andother industrial
products.
50. Thissubmission hasoutlined anumber ofthekeyissues thatshould beaddressed inthis
work programme inrelation to:
(i) theconcerns oflow-income commodity-dependent countries; and
(ii) agricultural trade reform.WT/CTE/W/36
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51. Thedebate about trade liberalization andtheenvironment isanimportant opportunity to
explore thecontribution which anopen, equitable andnon-discriminatory multilateral trading
system canmake tosustainable development andtoidentify policy actions thatcanmore fully
realize thispotential.