RESTRICTED  
  
JOB/SERV/ 299 
 
10 July 2020 
(20-4771) Page: 1/10 
Council for Trade in Services  
Special Session  Original: English  
 
COMMUNICATION FROM AUSTRALIA, CANADA, MEXICO, NEW ZEALAND , AND 
SWITZERLAND  
EXPLORATORY DISCUSSI ONS ON MARKET ACCESS : ENVIRONMENTAL SERV ICES 
 
The following communication, dated 10 July  2020, is being circulated to Members of the Council for 
Trade in Services in Special Session, at the request of the delegations of Australia, Canada, Mexico, 
New Zealand  and Switzerland . 
_______________  
 
 
In JOB/SERV/293/Rev.1, circulated on 27 September 2019, Australia, Canada, Mexico, New Zealand 
and Switzerland proposed that Members exchange views on current areas of interest in relation to 
environmental services.  
During the CTS -SS meeting held on 30 September 2019, Members shared views and e xpressed 
specific interests regarding the further liberalization of environmental services. During the 
discussions, various Members stressed that environmental services is a sector of growing 
importance, where new technologies have opened a broad range of possibilities for expanding 
international trade. This is true now more than ever, as environmental services and new technologies 
associated can support all Members ’ efforts  to respond to the health, economic and social impacts 
of COVID -19, and contribute t o a more sustainable and inclusive recovery.  
It was also indicated that discussions on environmental services, and other sectors, offer an 
interesting vehicle to explore ways toward potentially advancing market access discussions as many 
Members have take n GATS plus commitments on environmental commitments in regional trade 
agreements since the conclusion of the Uruguay Round (Annex). During the discussion, various 
Members shared their domestic experiences and expressed their specific interests and questio ns 
regarding the further liberalization of environmental services. These discussions included the 
suggestion to finding ways to broaden engagement by capturing other key sectors relevant to 
meeting environmental issues, and not limiting discussions to CPC 94.  
The objective of this communication is to highlight additional services sectors where international 
trade liberalization and improved GATS commitments could significantly contribute to advancing 
global action on environmental issues. Through this comm unication, we wish to present an 
illustrative list of sectors and initiate an exchange with delegations. Section 5 suggests questions to 
facilitate discussions. The following is presented without prejudice to possible negotiations.   
1  RATIONALE FOR EXTEND ING THE DISCUSSION BEY OND CPC 94  
1.1.   The idea of broadening the scope of negotiation in order to include other environment -related 
sectors has long been recognised and entertained by WTO Members since as far back as 2000. While 
the basis of these discussions r emains CPC 94, it is evident that environmental issues are 
multidimensional and often require comprehensive solutions that entail the involvement of other 
sectors not captured by CPC 94. For example, there are many services sectors that complement 
CPC 9401-sewage services. The conception and construction of sewages systems, or the 
transportation of waste would not only require commitments under CPC 9401, but also in sectors JOB/SERV/ 299 
 
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  such as professional services (engineering and architectural services for the design  of facilities and 
remediation systems) and construction services (building of infrastructure).   
1.2.  Moreover, CPC 94 does not accurately reflect the main environmental services required to face 
today 's challenges, such as climate change  and high levels carbo n emissions. Environmental 
services, as defined under CPC 94, also do not reflect changes to an industry currently developing 
beyond traditional end -use environmental services such as pollution control and remediation, or 
towards highly integrated remediat ion techniques, including pollution prevention and control, cleaner 
technology, resources and risk management .1   
1.3.  In a report published in 2017, the OECD established a distinction between "core" environmental 
services (i.e. those defined under CPC 94 and in the W/120) and the broader environmentally -related 
services that comprise ancillary activities not listed in CPC 94, which are nonetheless essential inputs 
to environmental projects .2 Those an cillary sectors comprise activities that are not specifically 
classified under environmental services but  have a significant environmental component. Liberalizing 
such sectors could have significant benefits, as companies involved in environmental projects , such 
as professional services firms, often offer integrated solutions that involve different services along 
the value chain .3 Broadening the scope in order to include more sectors would acknowledge the fact 
that addressing global environmental issues, in cluding climate change, requires access not only to 
services that are purely environmental (CPC 94), but also to services that could have an 
environmental "end-use".   
1.4.  A comprehensive approach is becoming imperative when considering trade liberalization in  the 
context of advancing environmental objectives . This will be particularly important in the context of 
the post Covid -19 economic r ecovery, where such sectors not traditionally linked to environmental 
industry will continue to play a significant role. M oreover, appropriate measures, including further 
liberalisation of relevant services sectors , could lead to a recovered growth  that will accelerate the 
transition to a new sustainable and more inclusive development .   
2  WHICH SECTORS COULD BE CONSIDERED AS E NVIRONMENT -RELATED S ERVICES 
SECTORS ? 
2.1.   The previous section has shown that there are benefits in exploring a broadened scope outside 
the "core" environmental services sectors (CPC 94) , as many services end up feeding into 
environmental projects, generally a s part of integrated business solutions. The question is which 
sectors should be included in a broadened scope. While many sectors could also be considered as 
being pertinent to the industry, some sectors, such as architecture, design, engineering, consult ing, 
and construction, among others, have been identified in past WTO communications and constitute 
inputs to many environmental projects .4 This section further examines those sectors that Members 
could consider including in such an initiative.  
2.1  Profession al services  
2.1.1   Engineering services  
2.2.  Engineering services contribute to the identification and development of solutions to mitigate 
and adapt to climate change. Mitigating solutions seek to reduce greenhouse gas release (e.g. carbon 
capture and storage), whil e adapting solutions look to reduce the impact of more extreme climate 
conditions (e.g. new designs with a focus on infrastructure safety) .5 Environmental or green 
engineering designs commercialize and use processes and products in a way that reduces pollu tion, 
promotes sustainability, and minimizes risk to human health and the environment without sacrificing 
economic viability and efficiency .6  
 
1 WTO: S/CSC/W/25  - Classification Issues in the Environmental Sector . 
2 OECD: COM/TAD/ENV/JWPTE(2015)61/FINAL - Joint Working Party on Trade and Environment . 
3 ibid. 
4 WTO: S/C/W/320 – Background note on environmental services . 
5 ACEC – Sustainable development for Canadian consulting engineers -  
https://www.acec.ca/files/sustainability/SustainabilityReportEng2016.pdf .  
6 United States Environmental Protection Agency - https://www.epa.gov/green -engineering/about -
green -enginee ring. JOB/SERV/ 299 
 
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  2.3.  Civil engineers active in environmental -related activities are particularly involved in "green " 
activities, such as water supply and sewerage, management of surface water and groundwater 
quality, remediation of contaminated sites and solid waste management. For example, civil 
engineers are often asked to plan or design wastewater facilities and soil and remediation s ystems 
for the disposal of wastewaters and sludge according to accepted engineering practice .7 
2.4.  Examples of engineering services subsectors which could be considered as pertaining to 
environmental services include:  
• CPC 86721 – advisory and consultative engineering services, which could include a study on 
the environmental impact of a project;  
• CPC 86724 – engineering design services for the construction of civil engineering works, 
which could include services for the "construction of sanitati on works such as sewage 
systems, industrial and solid waste treatment plants";  
• CPC 86729 – other engineering services, which could include contamination studies and 
quality management ; 
• CPC 86732 – integrated engineering and project management services for water supply and 
sanitation works turnkey projects;  
• CPC 86733 – integrated engineering services for the construction of manufacturing turnkey 
projects, which could include "pollution and effluent control";  
2.1.2   Architectural services  
2.5.  Architectural services co nstitute essential inputs to environmental projects from their pre -
drawing phase until their final on -site assessment .8 Architectural firms can contribute to improving 
the environment and generating energy efficiencies, through the design of eco -friendly d evelopment 
projects that generate less pollution than design for traditional homes and industrial buildings. For 
instance, architects may purposely select eco -friendly materials (e.g. sheep’s wool as insulation), 
and high energy -efficiency equipment (e.g. solar panels, automation with regard to thermostats, 
closing windows, adjusting blinds, or structure to assist airflow and reduce energy waste). 
Environmental architectural services, such as those promoted by Green Building Councils, can even 
improve air q uality, conserve natural resources, and support health conditions .9 Furthermore, 
sustainable architectural expertise in designing buildings for areas with permafrost, subject to floods 
or earthquake, and in remote, steep areas, or islands is supportive to adequate adaptation to climate 
change. As there is a growing demand for eco -design, eco -climate and bio -climate design, e.g. green 
roof, architectural services are becoming even more environmentally relevant.  
2.6.  Restrictions to architectural services have a negative impact on the supply of core 
environmental services, especially when provided through mode 3 .10 This correlation may also apply 
to architectural -enabled green jobs supplied through mode 1, such as advisory and consulting 
services. In certain cities , "building -related activities account for the highest proportion (36%) of 
green jobs, followed by energy -related green jobs (11%), […], which contributes to local demand 
for green energy, architecture & construction services ".11 As they are intertwined wit h environmental 
projects, architectural services are increasingly contributing to both climate adaptability and to green 
jobs. 
2.7.  Examples of architectural services subsectors related to environmental services:  
• CPC 86711 – advisory and pre -design architectur al services, which could include preliminary 
studies on climatic and environmental analysis;  
 
7 McGill University - https://www.mcgill.ca/civil/undergrad/areas/environmental . 
8 OECD: COM/TAD/ENV/JWPTE(2015)61/FINAL - Joint Working Party on Trade and Environment .  
9 World Green Building Council - https://www.worldgbc.org/ . 
10 OECD: COM/TAD/ENV/JWPTE(2015)61/FINAL - Joint Working Party on Trade and Environment . 
11 Review of the Implementation of the OECD Environme ntal Strategy for the First Decade of the 21st 
Century, https://www.oecd.org/env/50032165.pdf . JOB/SERV/ 299 
 
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  • CPC 86712 – architectural design services, which could include the selection of which 
material to be used and which mechanical and electrical systems to be install ed.   
2.2  Construction services  
2.8.  The construction sector is highly relevant to environmental services, as it generally covers the 
physical creation of projects devised and designed by engineers and architects. The sector’s 
connection with the environment is tw ofold: "green " building practices such as using renewable 
materials or incorporating solar panels can help to reduce waste and promote energy and resource 
efficiency, while building key infrastructure such as sewers, water pipes, or waste facilities that c ould 
contribute to improved sanitation infrastructure more broadly. Thus, linkages among these sectors 
throughout the design and building processes provide cause to consider construction services as a 
key player alongside its engineering and architectural peers when it comes to environmental 
services.  
2.9.  The need for improved resource efficiency will increase parallel to growing human demands to 
ensure that future needs  are met . Circular economy principles can facilitate minimising impacts of 
the building indu stry through recirculation of building materials . 
2.10.   Construction services continue to be primarily delivered via modes 3 and 4, however 
technological advancements continue to increase the relevance of delivery via mode 1; for instance, 
conducting site assessments virtually prior to breaking ground is now an  option. Often for logistical 
reasons, or due to regulatory requirements, the establishment of a commercial presence remains a 
common practice on larger -scale construction projects. Meanwhile, the movement of what tends to 
be highly specialized and skilled  personnel across borders is often required for tasks that can only 
be done in -person.  
2.11.   Save for the large multinational firms offering a suite of services including construction and 
engineering, many construction firms tend to be small and medium -sized en terprises (SMEs). These 
SMEs could provide niche, specialized services related to both the construction of "green " buildings, 
and the development of sanitation or waste infrastructure projects.  
2.12.   Examples of construction services subsectors that could be co nsidered as being related to 
environmental services:  
• CPC 5133 – construction of waterworks;  
• CPC 5135 – construction of water and sewer mains;  
• CPC 5152 – water well drilling;  
• CPC 51620 – water plumbing and drain laying work which includes septic tank inst allation;  
• CPC 51650 – thermal insulation;  
• CPC 5123/5136 – while construction of waste treatment facilities is not explicitly mentioned 
in the CPC, it could fall under construction work for warehouses and other industrial buildings 
or construction work for mining and manufacturing.  
2.3  Distribution services  
2.13.   Distribution services play a critical role in protecting against environmental degradation. 
Sustainable distribution means ensuring that the entire distribution process of transporting goods 
from Point A to  Point B has the least possible impact on our surrounding ecological and social 
environments. Sectors that require physical transportation, storage and warehousing, packaging, 
labelling , and reverse logistics – the process of reclaiming or recycling end -of-life products – will 
inevitably have a major role in integrated business solutions, especially as consumers and 
governments demand more action on sustainable materials and practices.  
2.14.   Distribution firms are already highly integrated, global in reach, and are keen to find new 
ways to reduce their reliance on energy in their operations in light of their high, and often JOB/SERV/ 299 
 
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  unpredictable costs. Sustainable distribution can have numerous environmental and business 
benefits including distribution efficiency and ser vices differentiation, but also reduced costs in the 
long-term, enhanced compliance processes to regulations and supply chain partners’ mandates, and 
increased customer retention.  
2.15.   The distribution services sector is changing rapidly as technology, mainly t hrough electronic 
commerce, integrates into more and more business models. While most distribution service firms 
operate in mode 3, with both businesses and consumers demanding greater efficiency and 
competition in the sector and new green practices being adopted across supply chains, specialised 
personnel (mode 4) may be required to supply their expertise. Only a small number of WTO Members 
have existing commitments in distribution services, which contrasts the economic importance of the 
sector. Therefore,  the possibility of ambition can be high to ensure that, moving forward, the sector 
will grow sustainably and all firms along distribution supply chains can offer their green services 
competitively.  
2.16.   Examples of distribution services subsectors that could b e considered as being related to 
environmental services:  
• CPC 622275 – wholesale trade of construction materials, which could include eco -friendly 
construction materials;  
• CPC 62278 – wholesale trade services of waste and scrap and materials for recycling;  
• CPC 622283 - wholesale trade of civil engineering machinery and equipment;  
2.4  Consulting services  
2.17.   Environmental consulting, also termed "green consulting ", is often linked to engineering 
services and plays a central role in co -ordinating and overseeing the  completion of environmental 
projects, from air pollution, the management of hazardous and other waste, natural -resource 
protection, and cleaner energy infrastructure. Central to the work of consulting firms in this field is 
providing environmental assessm ents and audits to private companies and public authorities. While 
this branch offers niche markets for small - and medium -size enterprises, such as renewable energy 
or sewage treatment, consulting services can also be provided by bigger companies as part o f 
integrated project teams.  
2.18.   Most of the firms active in "green consulting " not only take part in the initial phase of a project, 
but often remain engaged for most of the environmental project cycle, from the evaluations and 
impact assessments, to approval and permitting, design, construction, operation, maintenance, 
decommissioning, and remediation. Clients will therefore place extra value on the provision of 
integrated solutions by one company (or consortium of companies) offering to act as project 
manager , and co -ordinating the whole range of actors (e.g. contractors) that are involved at the 
various stages .12  
2.19.   As with many other services, the international provision of environmental consulting often 
takes the form of mode 3 trade in services though numerou s projects may at times necessitate the 
temporary movement of specialized personnel (mode 4) or the supply of services through purely 
electronic channels (mode 1).  
2.20.   Examples of consulting services subsectors that could be considered as being related to 
environmental services:  
• CPC 865 – Management consulting services;  
• CPC 866 – Services related to management consulting;  
• CPC 8675 – Related scientific and technical consulting services.  
 
12 OECD: COM/TAD/ENV/JWPTE(2015)61/FINAL - Joint Working Party on Trade and Environment . JOB/SERV/ 299 
 
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  2.5  Other sectors  
2.21.   The sectors described below constitute some of the many environmental -related sectors; 
however, many other sectors could warrant consideration. For example, sectors such as transport 
services (transportation of waste), storage services (waste storage), R&D (environmental sciences), 
technical testing and an alysis services (testing and analysis of the chemical and biological 
properties), maintenance and repair services (services incidental to manufacturing) could figure into 
a longer, more exhaustive list of relevant sectors.  
3  AREA OF INTEREST  
3.1.  For the sectors mentioned in section two, we believe that a reduction of barriers to trade and 
better commitments would help enhance the performance and improve the affordability of services 
related to environmental protection. As shown in Table 1, several Members do not have specific 
commitments in relevant subsectors. Our interest would focus on improving the overall level of 
commitments in these sectors, and removing limitations in all modes of supply in order to reflect 
Members' domestic regimes . 
Table 1: Number of GAT S schedules with specific commitments, per sector  
W/120  Sector  Number of schedules 
with commitments  
1.A.d  Architectural services  72 
1.A.e Engineering services  79 
1.A.f Integrated engineering services  51 
1.B.c Data processing services  75 
1.B.e Other  53 
1.F.c Management consulting service  72 
1.F.d Services related to man. Consulting  47 
1.F.m  Related scientific and technical consulting services  48 
3.A General construction work for buildings  70 
3.B General construction work for civil engineering  71 
3.D Building completion and finishing work  57 
3.E Other  51 
4.B Wholesale trade services  54 
Note: EU -25 counted as 1.  
3.2.  For these sectors, like for the core environmental services (CPC 9401-9409)  mentioned in 
JOB/SERV/293/Rev.1, several Members have moved to reduce barriers to trade since the creation 
of the GATS, and have undertaken a large number of GATS plus commitments in their regional trade 
agreements, as illustrated in Annex for sector 6. W hile the multilateral context is different, this 
nevertheless points, in our view, to the general potential and feasibility of improvements to GATS 
schedules.  
4  CONCLUSION  
4.1.  Given the complexities of the linkages among sectors, as well as the potential for reg ion-specific 
contexts, it is difficult to quantify at this time the full range of sectors that could be captured by a 
future initiative. For this reason, we wish to initiate a discussion regarding potential sectors other 
than the core environmental service s that are relevant to addressing environmental objectives.  JOB/SERV/ 299 
 
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  5  QUESTIONS FOR DISCUS SION  
• Do Members consider that other sectors or subsectors (beyond sector 6 of the W/120) are 
relevant for environmental services?  
• Are there any other sectors or sub -sectors beyond the list included in the communication that 
Members believe should be considered  as being related to environmental services?   
• Do Members have specific areas of interest in the list included in the communication that could 
benefit from improving GATS commitments? If so, would the main interest be to remove listed 
limitations in order  to reflect Members’ domestic regimes and/or provide greater predictability 
and clarity of existing market access conditions ? 
 
 
_______________  
 
 
 
  JOB/SERV/ 299 
 
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  ANNEX   
SPECIFIC COMMITMENTS  IN REGIONAL TRADE A GREEMENTS (RTAS), CO MPARED WITH GATS 
SCHEDULES AND OFFERS - IN ENVIRONM ENTAL SERVICES, BY M EMBER  
Key: 
A. Sewage services  
B. Refuse disposal services  
C. Sanitation and similar services  
D. Other  
 
X:  means that a specific commitment has been undertaken under GATS;  
X (italic) : means that a new or improved commitment has been offered during the course of WTO 
  services negotiations.  
I:  means that a commitment improving upon the GATS commitment or GATS offer was  
  undertaken in a RTA.  
N:  means that a commitment was undertaken i n a RTA where no commitment or offer had 
been made under GATS.   
Bold:   Members that have undertaken commitments in RTAs that go beyond GATS 
commitments and  offers.   
 
 
 Commitment /Offer  by sub -sector  
Member  A. B. C. D. 
Albania  X X X X 
Afghanistan  X X X X 
Antigua & Barbuda    N   N 
Armenia  I I I I 
Australia  I I I I 
Bahrain, Kingdom of  I I I I 
Barbados  N N   I 
Belize  N N   N 
Brunei Darussalam  N N N N 
Bulgaria  I I I I 
Cabo Verde  X X X X 
Cambodia  X X X X 
Canada  X X X X 
Central African Republic        X 
Chile  N N N N 
China  I I I I 
Colombia  N N N I 
Costa Rica  N N N N 
Croatia  I I I I 
Dominican Republic  N N N N 
Dominica  N N N N 
Ecuador  X X X X 
El Salvador  N N N I 
European Union  I I I I 
Fiji   X X X 
Georgia  X X X I 
Grenada    N   N JOB/SERV/ 299 
 
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 Commitment /Offer  by sub -sector  
Guatemala  N N N I 
Guinea  X   X   
Guyana        N 
Honduras  N N N N 
Hong Kong, China  I I I I 
Iceland  X X X I 
India    I I   
Indonesia        N 
Israel  X X X X 
Jamaica        N 
Japan  I I I I 
Jordan    N X X 
Kazakhstan  I I I I 
Korea, Republic of  I I N I 
Kuwait, the State of  X I I N 
Kyrgyz Republic  X X X X 
Lao People's Democratic Republic  I I I I 
Lesotho  X X X X 
Liberia  X X X X 
Liechtenstein  I I I I 
Macao, China        N 
Malaysia  N N N N 
Mexico  I N I N 
Moldova, Republic of  X X X X 
Mongolia    N   N 
Montenegro  X X X X 
Morocco  I I I I 
Myanmar  N N N N 
Nepal  X X X   
New Zealand  X X X X 
Nicaragua  N N N N 
Nigeria  X X X   
North Macedonia  X X X X 
Norway  I I I I 
Oman  X X X X 
Pakistan  N I I N 
Panama  X I N I 
Peru  N N N I 
Philippines  I N N N 
Qatar  I I I I 
Romania  N N N X 
Russian Federation  X I X X 
Rwanda      X   
Saint Kitts & Nevis    N   N JOB/SERV/ 299 
 
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 Commitment /Offer  by sub -sector  
Saint Lucia  N N   N 
Saint Vincent & Grenadines  N N   N 
Samoa  X X X X 
Saudi Arabia, Kingdom of  X X X X 
Seychelles  X X   X 
Sierra Leone  X X X X 
Singapore  N N I I 
South Africa  X X X X 
Suriname  N N   N 
Switzerland  I I I I 
Chinese Taipei  I I I I 
Tajikistan  X X X X 
Thailand  I X X I 
The Gambia  X   X   
Tonga  X X X X 
Trinidad & Tobago  N N   N 
Tunisia  X X X X 
Turkey  X X X N 
Ukraine  X X X X 
United Arab Emirates  X X X X 
United States of America  X X X X 
Vanuatu  X X X   
Viet Nam  X X N I 
Yemen  X X X X 
Totals:      
Number of Members with  GATS  specific commitments  52 50 51 51 
Number of Members with GATS specific commitments or 
offer in GATS negotiations  60 59 61 61 
Number of Members with specific commitments in GATS, 
GATS offer, or RTAs  82 87 79 88 
Number of Members that have undertaken a commitment 
in RTAs that improve upon a GATS commitment or offer (I).  21 23 22 29 
Number of Members that have undertaken a commitment 
in RTAs, where no commitment or offer had been made 
under the GATS (N).  22 28 18 27 
Note:  On the basis of 139 of the 161 RTAs notified under GATS. Only sector -specific commitments/limitations 
 are taken into account. EU -25 as 1. 6.A = sewage services; 6.B. = r efuse disposal services; 6.C = 
 sanitation and similar services; 6.D. Other.  
 
 
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