RESTRICTED  
  
WT/CTE/M/71  
 
16 June 2021  
  
(21-4943) Page: 1/40 
Committee on Trade and Environment    
 
REPORT OF THE MEETING HELD ON 30 MARCH 2021  
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Regular) met on 30 March 2021 , chaired by   
H.E. Mr Chad Blackman (Barbados ). The Committee adopted the Airgram,  WTO/AIR/CTE/ 14, 
dated 18 January 2021.  The Report of the last CTE  meeting, held on 16 and 20 November  2020, is 
contained in WT/CTE/M/70 . 
_______________  
 
1  PARAGRAPH 32 OF THE DOHA MINISTERIAL DECLARATION  ................................ ....... 4 
1.1  Environmental measures and market access (Paragraph 32 (i) of the Doha Mi nisterial 
Declaration)  ................................ ................................ ................................ ......................  4 
1.1.1   Fossil Fuel Subsidy Reform  ................................ ................................ ........................  4 
1.1.1.1   New Zealand's Update on Fossil Fuel Subsidy Reform (FFSR)  ................................ ....... 4 
1.1.1.2   Organisation for Economic Co -operation and Development (OECD)'s Briefing on  
Recent Work Related to FFS  ................................ ................................ ................................  5 
1.1.2   Circular economy an d plastics pollution  ................................ ................................ ....... 6 
1.1.2.1   Briefing by Morocco on the Informal Dialogue on Plastics Pollution and  
Environmentally Sustainable P lastics Trade (IDP)  ................................ ................................ ... 6 
1.1.2.2   Presentation by the Central African Republic on  National Efforts related to Plastics 
Pollution  ................................ ................................ ................................ .........................  10 
1.1.2.3   Presentation by UNEP on its report on "Trade in Used Vehicles"  ................................ . 11 
1.1.2.4   OECD's Update on Recent Work related to Circular Economy  ................................ ..... 12 
1.1.3   Other  ................................ ................................ ................................ ....................  13 
1.1.3.1   Presentation on Maldives' efforts to promote sustainable trade and green recovery  ...... 13 
1.1.3.2   Presentation on Clean Green Pakistan – A business perspective  ................................ . 15 
1.1.3.3   United Kingdom's activities related to making supply chains more sustainable  .............  17 
1.1.3.4   European  Union's update on trade relevant aspects of the European Green Deal  ..........  18 
2  OTHER ITEMS OF THE CTE WORK PROGRAMME  ................................ .........................  25 
2.1  Multilateral environmental agreements and WTO (Item 1 of the CTE Work Programme)  ..... 25 
2.1.1   The United Nations Framework Convention on Climate Change (UNFCCC)  ......................  25 
2.1.1.1   Presentation by the UNFCCC  ................................ ................................ .................  25 
2.1.1.2   United Kingdom's update on the 26th session of CoP26  ................................ ............  27 
 
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/71  
 
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  2.1.1.3   New Zealand's update on the negotiation under the "Agreement on Climate Change, 
Trade and Sustainability" (ACCTS) initiative  ................................ ................................ ........  28 
2.1.1.4   Canada's report on webinar on Border Carbon Adjustments (BCAs): Issues, Options  
and Impacts  ................................ ................................ ................................ ....................  28 
2.1.2   MEAs dealing with chemicals and wastes (the Basel, Rotterdam and Stockholm (BRS) 
Conventions)  ................................ ................................ ................................ ...................  29 
2.1.2.1   BRS' briefing on recent activities  ................................ ................................ ............  29 
2.2  Other  ................................ ................................ ................................ .......................  31 
2.2.1   Presentation on the Updated WTO Matrix on Trade -related Measures Pursuant to  
Selected MEAs  ................................ ................................ ................................ .................  31 
2.2.2   Presentation by UNEP on the InforMEA Initiative  ................................ .........................  31 
2.3  Transparency of environment -related trade measures (Item 4 of the CTE Work  
Programme)  ................................ ................................ ................................ ....................  32 
2.3.1   WTO Envir onmental Database  ................................ ................................ ..................  32 
3  OTHER BUSINESS  ................................ ................................ ................................ ...... 33 
3.1  Canada's briefing on the Trade and Environmental Sustainability Structured Discussions 
(TESSD)  ................................ ................................ ................................ .........................  33 
3.2  Barbados' report on the High -Level Panel Discussion on "Trade, the Environment and 
Sustainability: A Focus on Green Recovery in a COVID -19 Era"  ................................ ..............  34 
3.3  Guatemala's report on event co-hosted with Finland on "Sustainable business and  
circularity – why does sustainability make business sense" ................................ ....................  35 
3.4  Briefings by other observer organizations  ................................ ................................ ..... 36 
3.4.1   World Customs Organization ( WCO)  ................................ ................................ ..........  36 
3.4.2   United Nations Conference on Trade and Development (UNCTAD)  ................................ . 37 
3.5  Other matters  ................................ ................................ ................................ ...........  38 
 
  WT/CTE/M/71  
 
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  ACRONYMS  
  
 ACCTS  Agreement on Climate Change, Trade and Sustainability  
APEC Asia-Pacific Economic Cooperation  
BRS Conventions  Basel, Rotterdam and Stockholm Conventions  
CBAM  Carbon Border Adjustment Mechanism  
CBD Convention on Biological Diversity  
CoP Conference of the Parties  
CTE Committee on Trade and Environment  
DEAL Data for Environment Alliance  
EDB WTO Environmental Database  
EPA Environmental Protection Agency  
EU European  Union  
FACT Forest, Agriculture and Commodity Trade dialogue  
FAO Food and Agriculture Organization of the United Nations  
FFS Fossil Fuel Subsid ies 
FFSR Fossil Fuel Subsidy Reform  
GHGs  Greenhouse Gases 
HS Harmonized System  
IDP Informal Dialogue on Plastics P ollution and Environmentally Sustainable 
Plastics Trade  
IISD International Institute for Sustainable Development  
IPCC Intergovernmental Panel on Climate Change  
ISO International Organization for Standardization  
MC Ministe rial Conference  
MEAs  Multilateral Environmental Agreements  
MSMEs  Micro, Small and Medium -sized Enterprises  
MTS Multilateral Trading System  
NDCs  Nationally Determined Contributions  
OECD  Organisation for Economic Co -operation and Development  
SDG Sustainable Development Goal  
SIDS Small Island Developing States  
TPR Trade Policy Review  
TESSD  Structured Discussions on Trade and Environmental Sustainability  
UNEA  United Nations Environment Assembly  
UNEP  United Nations Environment Programme  
UNFCCC  United Nations Framework Convention on Climate Change   
WCEF  World Circular Economy Forum  
WCO World Customs Organization  
  
 
 
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  WT/CTE/M/71  
 
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1  PARAGRAPH 32 OF THE DOHA MINISTERIAL DECLARATION  
1.1  Environmental measures and market access (Paragraph 32 (i) of the Doha Ministerial 
Declaration)  
"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 eliminatio n or reduction of trade restrictions and distortions 
would benefit trade, the environment and development."  
1.1.1   Fossil Fuel Subsidy Reform  
1.1.1.1   New Zealand's Update on Fossil Fuel Subsidy Reform (FFSR)  
1.1.  The representative of New Zealand  provided an update on the top ic of fossil fuel subsidy reform 
(FFSR) and  announc ed the  renewed efforts to present a Joint Ministerial Statement on FFSR at the 
12th Ministerial Conference (MC12) in November 2021. This renewed Statement was building  on the 
Statement presented at the 11th Ministerial Conference  (MC11)  in Buenos Aires by a group of 
12 developing and developed Members from many regions.  In the MC11 Statement, signatories had 
confirmed their intention to seek the rationalisation and phase out of inefficient fossil fuel subsidies  
(FFS)  that encourage d wasteful consumption, while recognising that reform need ed to take into 
account the specific needs and conditions of developing countries and to minimize the possible 
adverse impacts on their vulnerable communities.  That Sta tement had recognised the importance 
of the WTO as a useful forum to advance discussions to achieve ambitious and effective disciplines 
given the breadth of its membership, and its legal and transparency frameworks, the latter of which 
enable d the evaluati on of the trade and resource effects of FFS programmes.   
1.2.  The recently established Trade and Environmental Sustainability Structured Dialogue (TESSD) 
discussions show ed that Members recognise d the significance of this issue, its linkages to trade, and 
the role of the WTO in achieving meaningful and equitable reform of such subsidies. New  Zealand 
was also encouraged by the increased momentum and leadership building in fora such as G20 and 
the Asia -Pacific Economic Cooperation (APEC)  in 2021 on FFSR, as well a s active discussions on the 
broader trade and environment agenda.   
1.3.  New Zealand , alongside the Friends of FFSR, continue d to highlight benefits and opportunities 
of FFSR in a range of fora. Efforts continue d to focus on the role of the international trade c ommunity 
in identifying and addressing trade -distorting, environmentally harmful, and socially regressive FFS 
programmes. FFS impact ed trade both directly and indirectly. By distorting prices, FFS affect ed trade 
both input and outputs, affect ed the competi tiveness of industries across product value chains, 
disadvantage d clean and alternative energy technologies, and drain ed scarce public funding. Reform 
of these subsidies could  also free up fiscal resources to support those who need ed the greatest 
support t hroughout an effective COVID -19 recovery.  
1.4.  At a time of uncertainty about the WTO 's role and relevance, action on FFS could help build 
public confidence in the multilateral trading system 's (MTS)  ability to deliver on its core objective of 
sustainable deve lopment and make a trade -related contribution to the very real and urgent challenge 
of climate change. The Joint Ministerial Statement at MC12 would make  explicit what was the key 
next step: sharing information and experiences at the WTO, in order to devel op a supportive 
international setting for addressing these subsidies and to assist domestic reform. New Zealand  
encourage d WTO Members to support the Friends of FFSR  in embedding this conversation in the 
WTO and to support the Joint Ministerial Statement on FFSR at MC12 . 
1.5.  The representative of Norway  support ed the strong effort s carried out by New Zealand and the 
friends of FFSR. Norway welcome d work on FFSR and a Mini sterial Declaration at MC12.  
1.6.  The representative of the European  Union  looked forward to engaging with like -minded 
countries to pursue a strong environmental agenda at the WTO. In the European  Union 's view, this 
needed  also to include trade -related aspects of FFS. The European  Union  would welcome exchanges 
on how the WTO could contribute to the goals set out in the Sustainable Development Goal  12.c WT/CTE/M/71  
 
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  (SDG 12.c)  to rationalise inefficient FFS that encourage d wasteful consumption, while taking fully 
into account  the specific needs and conditions of developing countries.  
1.7.  The representative of Switzerland  reiterated his delegation's  supports  to the intention of 
rationali zing and phas ing out FFS that  encourage d wasteful consumption . To achieve the goals,  set 
in the Paris Agreement or in the Sustainable Development Goals ( SDGs ), action was needed  now. 
Switzerland was  engaged on this very important issue with New Zealand and four other 
WTO Members in the negotiations on the Agreement on Climate Change, Trad e and Sustainability 
(ACCTS ) initiative which aim ed, among other things, to establish binding trade rules to eliminate  
FFS harmful to the environment.  FFS not only have a negative impact on societies, economies, and 
the environment, but also trade -distorting effects, especially on low emission technologies. The WTO 
was the appropriate place to discuss this issue.  Switzerland  therefore invite d all WTO Members to 
join this important initiative. Switzerland  support ed New Zealand's communica tion contained in 
document TE/SSD/W/1 and hope d to have concrete results for the next Ministerial Conference. 
Switzerland  believe d that the TESSD  could  go a long way in moving this initiative forward.  
1.8.  The representative of Ukraine  noted t he well -known  fact that subsidies to both the production 
and consumption of fossil fuels at different stages of the value chain could  have an impact on 
international trade. Therefore, there was a  need to discuss this issue in the CTE to avoid 
inconsistencies in the future.  In Ukraine, the coal industry still constitute d a significant part in the 
structure of electricity and heat generation. Therefore, the "green" transition needed to be  carefully 
prepared and manage d. The Ministry of Energy of Ukraine was elaborating an Integrated National 
Energy and Climate Plan until 2030 and already  had developed the Concept for reforming the coal 
industry until 2024. In addition, the Ministry for Communities and Territories Development of Ukraine 
was preparing a progra m for the transformation of Ukraine's  coal regions.  Therefore, Ukraine was 
ready to constructively engage in discussions on the topic of FFSR within the framework of WTO to 
reach positive results for MC12.  
1.9.  The representative of Japan  underlined  the importa nce of reforming inefficient FFS. Japan  
support ed the G20 initiative, which aim ed at streamlin ing inefficient FFS that contribute d to wasteful 
consumption in the medium term and to abolish them gradually. Japan  also support ed the G20 
voluntary peer reviews . Japan d id not have any inefficient FFS that stimulate d wasteful consumption. 
Japan believe d that the subsidies targeted for streamlining and gradual abolition should be limited 
to the subsidies that stimulate d wasteful consumption. Japan' s could not  support the broadening of 
the definition or the characteristics of the subsidies beyond the original purpose of the initiative.  
1.10.   The representative of Saudi Arabia  recall ed that the issue of FFS was  dealt with under G20 
forum whereby a voluntary phasing ou t of inefficient FFS that encourage d wasteful consumption, 
was done with two clear qualifiers: voluntary and in accordance with countries ' national 
circumstances, priorities and needs. It was not clear why such d iscussions on FFS did not include all 
inefficient subsidies  that encourage d wasteful consumption including agriculture and others . This 
would take the Committee t o areas not related to the CTE's  agenda. Thus, such topics should  be 
discussed under their correct and dedicated forum.  
1.11.   The representative  of Bolivarian Republic of Venezuela  pointed out that New Zealand's and 
other countries' initiative had  to do only with the G20 member countries and was alien to the work 
of the WTO. Venezuela reiterated their  position  that this was not an issue to be addressed here in 
the WTO . Venezuela also share d the view that  there were other types of subsidies that should be 
first addressed in this institution . 
1.1.1.2   Organisation for Economic Co -operation and Development (OECD) 's Briefing on 
Recent Wo rk Related to FFS  
1.12.   The representative of the Organisation for Economic Co -operation and Development (OECD)  
briefed the Committee on  its recently finalized work on FFS. At the last CTE meeting in November, 
the OECD had reported on its 2020 update of the OECD  Inventory of Support Measures for FFS. 
Since then, it had made publicly available the Inventory's Companion analysis, which was issued 
each time that the FFS Inventory was published. The FFS Inventory (and its Companion analysis) 
document ed over 1,300 gov ernment budgetary transfers and tax expenditures providing a benefit 
or preference for the production or consumption of fossil fuels relative  to alternatives in 50 OECD, 
G20 and European  Union  Eastern Partnership (EaP) countries . WT/CTE/M/71  
 
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  1.13.   One of the main messages o f the 2020 Inventory and its 2021 Companion was that rising 
OECD support to producing countries had reversed a five -year downward trend in overall support 
figures. Total fossil fuel support had risen by 5% year on year to USD 178 billion in 2019, reversing  
the previous downward trend. The increase in support had been driven by a 30% rise in direct and 
indirect support for the production of fossil fuels. In 2019, oil and gas sectors in several countries 
received additional benefits, mostly through direct bud getary support, to alleviate corporate debt 
and help finance fossil fuel infrastructure investments and tax provisions, providing preferential 
treatment for capital expenditures for fossil fuel production.  
1.14.   Producers support estimates (PSE) across Inventory countries increased by 9% compared to 
2017 levels, while general services support estimates (GSSE), which the Inventory methodology 
attributed in majority share to production, doubled. Together, these estimates amounted to some 
USD 53 billion in 2019, sufficient to drive the overall increase in support levels documented, despite 
the fact that the majority of support measures (70%), which went on consumption, did not go up.  
Combined OECD estimates showed an 18% decline in overall support from 2019 levels driven by the 
impact of plunging oil prices and user subsidies. Consumption support had decreased,  and this had 
driven the overall level of support down, especially in non -OECD countries.  The dominant sectors 
that received support this year were the  transport sector and the fossil fuel production sector. 
Support in the transport sector was predominantly awarded through tax expenditures in OECD 
countries, while other economies favoured direct budgetary transfers.  
1.15.   Based on the Companion report, the COV ID-19 crisis and the resulting oil price crash had 
presented both a threat and a potential opportunity, both in terms of fuel prices and consumption. 
The low fossil fuel prices had helped deepen reductions without government interventions to keep 
end-user prices artificially low, as had previously been the case, and those lower prices had 
minimized the impact of reform on consumers in net importing countries, thereby providing 
opportunities for further reform. In producer economies, declining government rev enues could also 
add impetus to reform as pressure on public finances mounted. At the same time, the OECD had 
seen immediate recovery support programmes go in both directions – on the one hand, phasing out 
some subsidies to save funds for recovery and, on the other hand, giving price support for electricity 
consumers and shoring up fossil fuel and related industries.  
1.16.   Finally, the Companion report documented the efforts by the OECD and its members to 
prepare for reporting on UN S DG indicator 12.c.1, making sure that the FFS Inventory was properly 
coordinated with national data sources to ensure coherence in the reporting process to the S DG hub. 
For that reason, an informal task team had been set up to discuss and ensure coherent measuring 
of FFS.  
1.1.2   Circular ec onomy and p lastics  pollution  
1.1.2.1   Briefing by Morocco on the Informal Dialogue on Plastics Pollution and 
Environmentally Sustainable Plastics Trade (IDP)  
1.17.   The representative of Morocco  briefed the Committee on the  meeting of the Informal Dialogue 
on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP) held on 29 March 2021. 
The IDP had been  launched on the margins of the November 2020 WTO Trade and Environment 
Week . Its goal was to provide a dedic ated platform where Members could  explore – through the 
exchange of ideas, information, and insights – how the WTO could contribute to domestic and global 
effort to tackle plastics pollution and transition to more circular and sustainable plastics trade.  
1.18.   The second IDP meeting  had focus ed on the topics of transparency and international 
cooperation.  Introdu ctory remarks had been provided by China, Fiji and WTO Director -General 
Dr Ngozi Okonjo -Iweala  who had reminded participants of the urgency of addressing the growing 
plastics pollution challenge. Dr Ngozi had noted how the problem was negatively affecting not only 
national  economies and the ability to reach collective sustainable development goals set in Agenda 
2030, but also its concrete detrimental effects to the daily lives of multiple  communities who 
depend ed on increasingly polluted land and water reso urces for their livelihood s.  
1.19.   Similarly, several participating ambassadors noted how identifying the role of trade, trade 
policy and the WTO in contributing to national and international efforts to tackle plastic pollution 
offered a concrete way to demonst rate that the WTO could still be a positive force in addressing WT/CTE/M/71  
 
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  21st century challenges of widespread public interest. As a topic that "knew no borders" and affected 
all communities, in developed and developing countries, it had the potential to galvanize positive 
action. Other delegations also agreed that the transparency and international cooperation exercises 
provided an indispensable first step to identifying key constructive entry points where action on 
trade would be most effective, avoiding duplicati on and amplifying action in other fora. Some 
delegations noted the importance of marrying enhanced transparency with technical cooperation 
and capacity building, in particular for developing country Members that often struggle d to correctly 
identify inflow s and outflows of plastics. Some ambassadors and stakeholders also took the 
opportunity to share their views and suggestions on the Concept Note on the topic IDP co -sponsors 
had shared with Members before the meeting  (INF/TE/IDP/W/1 ). Co-sponsors urged  other 
delegations  to do the same , stressing WTO Members could c ollectively build on those ideas and take 
the most from the exercises.  
1.20.   The meeting further offered an opportunity for delegations to be briefed by relevant 
institutions on their ongoing and projected work on the topic. In a "technical segment", 
United  Nations Conference on Trade and Development  (UNCTAD ) (Dr Diana Barrowclough ) and the 
Graduate Institute ( Dr Carolyn Deere Birkbeck), presented on their groundbreaking project to build 
a "plastics life  cycle trade database " (INF/TE/IDP/RD/1). In highlighting the challenges in collecting 
data on trade flows in plastics – in their d ifferent forms and stages of the value chain – the experts 
offered some constructive ideas and pointers on where further work to improve transparency could 
take place. Mr Aik Hoe Lim, Director  of the WTO  Trade and Environment Division , shared information 
from the WTO Environmental Database on environment -related measures affecting trade in plastics 
notified to the WTO  (INF/TE/IDP/RD/ 2). In particular, the varied nature of these measures (notified 
under almost all WTO  Agreement s), the stage in plastic produc ts' life -cycles in which the y applied 
and the share  of those which were notified in draft format, offer ed useful information on delegations'  
own regular work at the WTO and on potential avenues for enhanced, voluntary experience sharing 
and peer -learning.  
1.21.   Other relevant institutions invited also took the floor to provide relevant  information and their 
perspectives on IDP's work, including the World Economic Forum, the OECD, the Basel Convention 
and the International Institute for Sustainable Development  (IISD). An unofficial summary of these 
interventions had been  prepared by IDP coordinators (INF/TE/IDP/R/1 ). All such inputs would  prove 
invaluable as IDP work would be intensified in 2021 . As noted  by many delegations in the meeting , 
MC12 offer ed a unique opportunity to demonstrate the important work developed on the topic since 
at least 2019 in the CTE and through the IDP. To that effect, co -sponsors had shared with Members 
a draft "Roadmap and pos sible outcomes by MC12"  (INF/TE/IDP/W/ 2). It suggested that  the 
following  meeting, co -chaired and coordinated by Barbados and Ecuador  in June, would  focus on 
strengthening policy coherence, assessing capacity and technical assistance needs and identifying 
the scope for collective approaches. Co-sponsors also  planned on working towards a MC12 Ministerial 
declaration, based on a factual report to be developed throughout the year. Several delegations ha d 
already positively commented on the roadmap and co-spons ors strongly encourage d all Members to 
provide their views.  
1.22.   Morocco considered the meeting had been a great launchpad for intensified work in 2021 and 
towards MC12 , but much more work was ahead to ensure a successful outcome . Collectively 
WTO Members coul d, and should , do their part in helping address this growing challenge.  IDP had 
formally 14 co -sponsors at that point and many other delegations had indicated their positive views 
on the initiative and/or were currently carrying internal discussions about joining the group. The IDP 
was open to all interested WTO Members and co -sponsors urged all delegations to continue to 
actively engage in the work in 2021.  
1.23.   The representative of European  Union  noted that action on plastics had been  set as priority 
in the EU Circular Economy Action Plan. Th e plan contain ed a coherent set of actions to support the 
global transition towards a carbon -neutral, resource -efficient and circular economy, including 
moving forward towards a global agreement on plastics.  The European  Union  welcome d the work 
led by China and Fiji on plastics pollution and environmentally sustainable plastics trade  and 
recogni sed the need for transparency and synergies at the international level to promote a global 
circular economy on plastic s supported  by trade policies. Action on trade should take into account 
efforts through plastics ' whole value chain  and lifecycle and adopt a circular economy approach.  
More importantly, the WTO 's work on plastics should create positive synergies with the ongoing 
international processes to launch the global agreement on plastics. For the European  Union , the 
launch of the global agreement on plastics remain ed the  key focus , with  the second part of the fifth WT/CTE/M/71  
 
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  session of the United Nations Environment Assembly (UNEA  5) in February 2022  as the n ext 
milestone where the European  Union  would  seek to ensure that the negotiation process officially 
started. 
1.24.   In the margins of the  first part of UNEA 5, on 22 February 2021 , the European  Union  had 
launched  the "Global Alliance for Ci rcular Economy and Resource Efficiency " (GACERE)  jointly with  
the United Nations Environment Programme (UNEP)  and in coordination with the United Nations 
Industrial Development Organization (UNIDO).  The Alliance gather ed – at that point – 12 countries 
and three strategic partners to advocate at the political level and in multilateral for ums for a global 
just transition to a resource -efficient and circular economy.  It sought to  do so  by building on regional 
partnerships, such as  the African Circular Economy Alliance and the Latin-American and the 
Caribbean Circular Economy Coalition , and cooperation with strategic partners – the Ellen MacArthur 
Foundation (EMF), the Platform for Accelerating the Circular Economy (PACE), and the World Circular 
Economy Forum (WCEF).  The European  Union  welcome d WTO Members to join th e platform.  
1.25.   The representative of the United Kingdom  noted her delegation was very gratified to see the 
participation of so many Members and the active discussion of transparency and internat ional 
cooperation in the IDP meeting . The United Kingdom  looked  forward to discussions in the Informal 
Dialogue progressing as Members  worked together to combat plastic pollution and its detrimental 
effects on the environment, biodiversity, food and climat e.  
1.26.   The representative of Ecuador  congratulate d fellow co -sponsors o n this important initiative, 
whose debate was  positive and timely and through which WTO Members could discuss what concrete 
actions could be  taken by the MTS to face this challenge . Ecuado r consider ed it was urgent to address  
issues such as the conservation of the ocean and the sustainable management of its ecosystems  
and what could be done by delegations  to combat pollution by marine plastic debris. Ecuador 
addresse d the issue in other forums, such as  within the UNEA framework and was a founding 
member of the United Nations Group of Friends to Combat Marine Plastic Pollution.  
1.27.   Ecuador ha d joined as a co-sponsor and co -coordinator of the IDP and  hoped to contribute 
constructively and actively to these discussions. Ecuador congratulated Morocco for its coordination 
of the IDP meeting  on transparency, noting how it had generated great interest not only among  
WTO Members, but also involving experts from international organizations and academia.  The issues 
constructively addressed in the dialogue demonstrate d the importance of synergies and international 
cooperation to achieve a common goal. Th at dialogue w ould certainly feed into the next one taking 
place in June 2021 and which would be co -chaired and coordinated by Barbados and Ecuador , 
focusing o n strengthening policy coherence, assessing capacity and technical assistance needs, and 
identifying the scope of co llective approaches. Like Morocco, Ecuador  invite d Members to participate 
in the dialogue  given the relevance of the  issue to all delegations.  
1.28.   The representative of Canada  noted her delegations  strongly believe d that trade and 
environmental sustainability issues were a global imperative and addressing plastics pollution had 
to be a priority. In that regard, work undertaken at the WTO in this area should be complementary 
to the initiatives currently underway in ot her international fora, such as at UNEP and at the OECD . 
In that regard, delegations should  identify concrete areas where the WTO could  build synergies with 
efforts already underway.   
1.29.   One area where discussions at the WTO could have a value  added was to consider the way 
trade policy could support the responsible trade of recycled plastics. The lack of an internationally 
recogni sed standard to classify waste types and define contamination level s for recyclable waste was 
an important technical barrier to trad e that WTO Members could examine.  The lack of an 
internationally recogni sed standard ha d caused many countries to unilaterally define contamination 
levels, which ma de reliable enforcement at the port of exit almost impossible.  There was potential 
for the W TO to work with other organizations such as the I nternational Organization for 
Standardization (ISO) and the Basel Convention to identify specific gaps in existing standards 
needed to facilitate trade in plastic waste in support of a more sustainable and c ircular economy, 
and enforce existing transboundary controls. The IDP could share its work with other WTO Members 
and the ISO, recogni sing its standard development expertise.  
1.30.   Canada was committed to reducing plastics waste and pollution at home and intern ationally. 
Many WTO Member s had already adopted the Ocean Plastics Charter launched by Canada during its WT/CTE/M/71  
 
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  G7 Presidency in 2018.  As Canada 's vision was to achieve zero plastic waste by 2030, it was  
implementing a range of measures across the plastics value chain and tackling plastic pollution. 
Canada had  also committed to ban harmful single -use plastics. Canada  support ed the transitioning 
to a global circular economy, including a circular plastics economy.  In collaboration with the Finnish 
Innovation Fund (Sitra), Canada was  pleased to host the virtual World Circular Economy Forum  
(WCEF)  2021 from 13 to15 September 2021.  WCEF  2021 w ould bring together global leaders and 
experts, to focus on the key actions and systemic changes required  to drive ambitious action to 
accelerate the transition to a circular economy. Canada was also pleased to be working closely with 
the Netherlands to ensure  WCEF 2021 would build  on the outcomes of the WCEF+Climate event, 
which the Government of the Netherlands and Sitra would  host on 15  and16 April 2021.  
1.31.   The representative of Australia  thank ed Morocco and fellow co -coordinators for their work on 
this import ant initiative.  Australia remain ed very concerned about the increasing amount of plastic 
polluting oceans and natural environments, which was unfortunately only projected to grow.  His 
delegation saw  the work of the IDP as an important part of the WTO 's broader agenda to support a 
more environmentally sustainable global economy through the consideration  of the trade -related 
contribution to plastics pollution.  The dialogue was informative and valuable, and Australia  
encourage d all Members to participate in the initiative.  
1.32.   The representative of Norway  welcome d the work led by China and Fiji on plastics pollution 
and environmentally sustainable plastics trade. Work in the WTO was useful, as were  efforts that 
took place in UNEP and other forums . Norway  underline d the importance to have a global agreement 
on plastics and echo ed the remarks by the European  Union  in that regard.  
1.33.   The representative of Ukraine  thanked all co -sponsors for launching the IDP which was very 
timely and important. The plastic poll ution problem grew more serious every year, now becoming a 
global challenge for the international community. Ukraine therefore supported the idea of joining 
their efforts to achieve positive results in overcoming this plastic crisis. Ukraine had already st arted 
addressing the issue at the national and regional levels and considered the exchange of experience 
and best practices in tackling plastic pollution among WTO Members as timely and potentially very 
helpful. Ukraine was open for discussions on the topi c and hoped it would soon be able to address 
more effectively plastic pollution at the national level.  
1.34.   The representative of China  thanked WTO Director -General Dr Ngozi Okonjo -Iweala and all 
Members who shared their views and suggestions on the IDP, in pa rticular on the suggested roadmap 
and possible outcomes by MC12. Tackling plastics pollution was an issue where WTO could 
demonstrate its relevance to new challenges which were of major public concern. It was also an 
issue of shared importance for all dele gations, least  developed countries, developing and developed 
Members. The IDP was open to all WTO Members  and China would like to join Morocco and all other 
co-sponsors to express their high appreciation of  the engagement and support of interested 
delegations in all past discussions . China  looked forward to more Members co -sponsoring the IDP  
and jointly work ing towards achieving a tangible result in MC12.  
1.35.   The representative of the United  States  noted his de legation's interest in the issues of plastic 
waste and scrap, including the use of a trade facilitative approach to support resource  efficiency, 
including to manage plastic waste and scrap, so that materials could be recovered, recycled, and 
returned to co mmerce. The United  States  would welcome further clarification from the co -sponsors 
to better understand and identify the trade -specific aspects associated with the management of 
plastic waste and scrap, and how the IDP propose d to address those trade -related aspects. In 
essence, his delegation sought to understand what was the value -add to the trade process that co-
sponsors were  proposing to bring through the IDP .  
1.36.   The United  States  believed trade and environmental goals were mutually supportive, including 
in the case of plastics; trade could and should play an important role to support post -consumer 
materials recovery and recycling. His delegation continued to encourage WTO Members to look 
beyond plastic as solely a pollution issue. Post -consumer recycled s crap had economic value as a 
tradable commodity. WTO Members could and should find ways to ensure these materials did not 
needlessly end up in landfills, or otherwise encouraged the additional production of virgin plastics or 
other materials, when recyclab le commodities could and should remain in the production stream. 
The United  States  continue d to believe the WTO c ould support better environmental outcomes by 
taking a trade facilitative approach to address environmental challenges like materials recovery and 
recycling.   WT/CTE/M/71  
 
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  1.37.   The representative of Saudi Arabia  drew the attention of the Committee that more effective  
waste plastic management including trends and responses, along with the role of international co -
operation and trade would be more beneficial in addressing the environmental side effects of plastic 
waste pollution. Saudi Arabia encouraged further knowledg e and information sharing in this area.  
1.38.   The representative of Morocco  thanked all delegations for their remarks and support, noting 
that there were still different views to align. He shared the US assessment on the positive economic 
value wastes and scraps  could  have. He echoed Australia and Ecuador in urging delegations to 
participate in the upcoming IDP meetings to contribute with these and other perspectives on the 
issue. He similarly echoed the European  Union , Norway and Canada on the importance for IDP  to 
work in synergy and intelligently to ensure coordination with international efforts, while sharing the 
view expressed by Norway on a higher ambition towards a global agreement on plastics. He stressed 
that co -sponsors already had an initial goal which was to achieve a Ministerial Declaration by MC12, 
and concrete steps in that direction should be adopted. He emphasized the concerns expressed by 
Australia and Ecuador and the need to urgently preserve ecosystems. All such matters would be 
discussed in dep th in the next IDP meeting co -chaired by Ecuador and Barbados.  
1.1.2.2   Presentation by the Central African Republic on  National Efforts related to Plastics 
Pollution  
1.39.   The representative of the Central African Republic , H.E.  Ambassador Leopold Samba , briefed 
delegat ions on national efforts in the Central African Republic  related to plastics pollution.2 The 
country strived to use plastic waste to the most extent possible, recycling or repurposing waste 
products and was a signatory to  the Basel Convention. Under the d epartment in charge for the 
environment, the Central African Republic had established national policies, decrees and laws which 
created a comprehensive environmental regulatory framework, which included a ban in June 2020 
on non -biodegradable plastic bags and packaging, their storage and sale, to preserve air quality, 
land quality, water quality, and ensure  people's  quality of life . It also sought to promote the use of 
biodegradable plastics and other innovative and ecologically sustainable innovations.  
1.40.   To implement the new legislation, a special unit had been created to monitor and enforce 
environmental violations. Penalties varied from three to five months of detention and a fine of 
between 1 '500 to 76 '000 euros. The National Trade Negotiat ion Commission had established a sub -
committee on trade and environment as a further step to support implementation of the import ban. 
Training was underway on how to identify biodegradable packaging for border agents, particularly 
customs, environment and  trade officials, as well as for economic operators. Capacity building was 
also underway to identify those countries from which biodegradable plastics could be imported as 
well as to educate trade partners on the content of the law. A national standardizat ion and metrology 
agency was being created that would handle the technical standards aspects of the law. In the short 
term, the country had signed an agreement with the SGS Group to import biodegradable packaging 
as of 1st March 2021.  
1.41.   There had  been a recent  increase in plastic waste s in the composition of the country 's general 
solid wates production, which had approached  67'000 cubic meters in 2016. Solid w astes were 
gathered  in 41 transitory deposits before being sent to the only landfill in the capit al, which was 
located six kilometres from the city centre and had received the support from the World Bank and 
the European Development Fund . Discussions were ongoing with a view to introduce selective 
(valuable) waste collection in the transitory deposits  and at sources, two priorities to improve solid 
waste management in the country.  
1.42.   The representative further noted a number of deficiencies that affected how trade and 
environmental policies could be supportive in the country. He noted, inter alia: little  understanding 
of the interaction between trade and environment agreements by national stakeholders; low 
coordination between trade and environmental authorities; low implementation and knowledge of 
applicable laws; disconnection between  environmental poli cies from actual economic activity ; 
inefficiency of control mechanisms . The Central African Republic faced a number of challenges linked 
to the growth of its urban areas and the flight from the countryside, due to ongoing  crises and the 
lack of opportuniti es. This included notably  the proliferation of non-biodegradable solid waste in 
cities and suburbs.  
 
2 The detailed presentation is contained in document WT/CTE/GEN/25.  WT/CTE/M/71  
 
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  1.43.   With respect to the potential contribution from trade and trade policy, the Central African 
Republic govern ment proposed a number of steps, including: to o rganize training workshops on the 
WTO and its environmental aspects for all economic stakeholders; to reinforce the legal framework 
of the National Trade Negotiation Commission in order to better integrate the environmental 
dimension and reinforce domestic  institutional capacity to provide technical assistance;  to support 
the national implementation of early alert and warning mechanisms; and to put together and 
reinforce the necessary waste management bodies in the country. Finally , he stressed that 
environ mental  protection was one of the priorities of the current government  which was  undertaking 
a number of reforms in order to turn back the tide  of environmental degradation. Such efforts had 
been severely affected by the current COVID  crisis. Nonetheless, the Central African Republic wanted 
the environment to be a tool for the socio -economic development  of the country.  
1.44.   The representative of Switzerland  expressed appreciation for the experience share d by the 
Central African Republic a nd noted that this concrete case illustrate d perfectly the need for 
information of Members on the problem of plastic pollution. Switzerland  encourage d the Central 
African Republic to join the TESSD and the IDP which might  address the topics presented.  
1.45.   The Ambassador  of Vanuatu  on behalf of the Pacific Islands Forum  expressed her gratitude to  
the coordinators of the informal dialogue on plastic pollution and environmentally sustainable plastics 
trade, and especially to the lead coordinators, Fiji and China for the initiative, and Morocco for the 
report of the dialogue. Fiji's leadership role i n this initiative was indicative of the very close interest 
which the wider Pacific Region maintain ed on the subject. This region was one of the most seriously 
affected by plastic waste, with notably adverse effects on two of the region's  key industries, m ainly 
fisheries and tourism. To that end, the WTO environmental database show ed that there were 
increasing actions at the national level, regulating trading plastics on environmental grounds.  
1.46.   However, this might  not be enough to facilitate a coordinated a nd coherent transition to a 
more sustainable global economy. The Pacific Islands Forum , therefore, support ed continuing work 
in the WTO, including in the CTE, and identifying how cooperative trade policies could  contribute to 
international efforts to achie ve a more sustainable system. The IDP initial focus on sharing 
information exchang e and best practices and facilitating dialogue through a transparency and 
international cooperation exercise was a sensible starting point, given the gaps in classification a nd 
data. In this, as in other areas of environmental concern, the Pacific was on the front line. Resource 
constraints sometimes inhibit ed the  participation in relevant WTO deliberation s. Nevertheless , the 
the Pacific Islands Forum  would  be following and contributing  to this initiative as actively as possible . 
Technical Assistance could  play a part in helping to ensure that the pacific region  played a role 
commensurate with its interest and experience. For resource challenge s, a central role of the CTE 
would  be important as the work  proceed ed. 
1.1.2.3   Presentation by the United Nations Environment Programme ( UNEP ) on its report 
on "Trade in Used Vehicles"  
1.47.   The representative of UNEP  present ed its report on "Trade in Used Vehicles". He said that the 
global light duty vehicle fleet would double by 2050. Most of the growth would happen in non -OECD 
countries and would have a significant impact on air quality, greenhouse gas emissions and road 
safety, among other issues. Used vehicles impor ted from OECD countries would represent a large 
and increasing share of vehicles in non -OECD countries. For example, in Kenya 97% of the vehicles 
that were being added to the vehicle fleet were imported used vehicles, while in Nigeria the share 
was between  85% and 90%. A UNEP report released in 2020 sought to map the trade in used 
vehicles.3 Japan, the European  Union  and the United  States  were the main exporters of used 
vehicles. Japan exported used vehicles mainly to Southern and East Africa, the United  States 
exported them mainly to Mexico and Central America and the European  Union  to West, Central and 
North Africa. Based on an in  depth analysis of 146 countries, the report had found that some two -
thirds of countries had "weak" or "very weak " policies to regulate the import of used vehicles, most 
of them in Africa. Only ten  countries in Africa had put in place some level of regulation to ensure 
that they would not import dirty used vehicles. African countries without appropriate regulations had 
seen the av erage age of imported used vehicle steadily increase. In Uganda, for example, the 
average age of imported used vehicles was 17 years in 2017, up from 7 years in 2000. Data on 
exports of used vehicles from the European  Union  to Africa through Dutch ports sh owed that 70% 
 
3 UNEP, G lobal Trade in Used Vehicles, 26 October 2020; available at: 
https://www.unep.org/resources/report/global -trade -used-vehicles -report . WT/CTE/M/71  
 
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  of vehicles did not have a valid road worthiness certificate. Most of these vehicles, whose average 
age was 18 years, did not meet EURO4 European vehicle emissions standards.  
1.48.   Countries that had implemented measures to regulate the import of u sed vehicles – notably 
age and emissions standards – had access to high -quality used vehicles, including hybrid and electric 
cars, at affordable prices.  Sri Lanka , where every second used vehicle imported into Sri Lanka was 
a hybrid electric vehicle, was a  case in point. Another example was  Morocco, which only permitted 
the import of vehicles less than five years old and those meeting the EURO4 European vehicle 
emission s standard  or higher ; as a result, Morocco imported only relatively advanced and clean us ed 
vehicles from Europe.  In Ghana, most used vehicle imports met the EURO4 standards, in part 
because of an incentive that lowered duties paid on those vehicles. Adopting minimum quality 
standards for used vehicles in Africa would result in significant ben efits in terms of reduced pollution 
and increased road safety. UNEP and several partners had set up a global programme focused on 
Africa. The goals of the programme were to ensure that used vehicles exported from developed 
countries would: have a valid roa d worthiness certificate; meet the EURO4 European vehicle 
emissions standard or higher; and would not exceed 12 years of age. These measures could help 
reduce common pollutants resulting from light vehicle road traffic by up to 90%, among several 
other ben efits. Some countries had already made progress. For example, the Economic Community 
of West African States (ECOWAS) had adopted the EURO4 standards for used vehicle imports and 
would shortly introduce age limits for used vehicles.  The East African Community planned to do the 
same. UNEP planned to do a similar study on trade in used heavy duty vehicles.  
1.49.   The representative of the European  Union  said that UNEP 's report contribute d to a better 
understanding of global trends and issues related to trade in used vehicles. The report would be a 
useful tool to inform the European  Union 's ongoing policy discussions, including in the context of the 
Zero Pollution Action Plan  which as under preparation , and the revision of the End -of-Life Vehic les 
Directive.  The European  Union  would continue to engage with UNEP and other partners to coordinate 
joint efforts to tackle the environmental issues related to trade in used vehicles.  
1.50.   The representative of Switzerland  said that UNEP's report provided a c lear picture of the 
problems related to trade in used vehicles for climate, pollution and road safety. She noted that the 
launch of a new forum in Geneva, the Forum on Trade, Environmental Sustainability and the SDGs  
(TESS) , was a joint effort of the Gradu ate Institute , the Geneva Trade Platform and UNEP, was 
timely and relevant.  TESS provided a forum  for discussion and reflection with all interested parties, 
along with support to develop coherent trade policies.  
1.1.2.4   OECD's Update on Recent Work related to Circular Economy  
1.51.   The representative of the OECD  briefed the Committee on its recent  report on International 
Trade and Circular Economy Policy Alignment. The circular economy aimed to close, extend and 
narrow material loops in various ways. This happened fr equently within national boundaries, but 
there were important interlinkages with international trade, through global supply chains, end -of-
life value chains and through services trade.  This report aimed to secure the policy coherence 
necessary between inte rnational trade and circular economy by mapping out the potential 
misalignments and identifying opportunities to align and strengthen both policy areas.  When looking 
into trade policies, the starting point was that trade policies were often not familiar to  environmental 
policy makers and, vice versa, circular economy policies were not familiar to trade officials, so the 
aim of the report was to fill in this gap.  
1.52.   The report first looked into multilateral trade rules (some basic rules relating to 
non-discrim ination, general exceptions, technical barriers to trade, transparency, consultation and 
capacity building elements) and, in particular, the TBT  Agreement , which aimed to facilitate trade 
and harmonize technical regulations as widely as possible and encour aged Members to adopt 
international standards through policy making to the extent possible.  Next, the report looked into 
regional trade agreements. So far, specific provisions on circular economy were found in five draft 
agreements. Circular economy -relate d provisions were found more broadly, such as on natural 
resources and waste management, in references to the Basel Convention and specific provisions on 
food waste, such as those found in the United  States , Mexico and Canada Agreement (USMCA).  WT/CTE/M/71  
 
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  1.53.   Turning to what kind of policies were currently in place for resource efficiency and circular 
economy, he mentioned an OECD survey from 20174, which identified what kind of policies were 
already in place and what kind of policies were under consideration. Such polic ies fell into six broad 
categories: (1)  Extended Producer Responsibility (EPR) and product stewardship schemes ; (2) taxes 
and subsidies; (3) eco design ; (4) green public procurement; (5) eco -labelling; and (6) circular 
economy -related standards . There were several policy instruments that were not covered, such as 
on R&D, education campaigns and material exchange platforms. While these were essential for the 
circular economy, they appeared less relevant for trade and were therefore not covered in this 
report.  
1.54.   With regards to securing a mutually supportive agenda for trade and circular economy, the 
report identified national approaches, i.e. what could be done within domestic policy space; issues 
that required some sort of international cooperation; and knowled ge gaps. Starting with national 
approaches, circular economy policies needed to  be defined and implemented in a non -discriminatory 
fashion and notified. EPR schemes need to be examined or re -examined, in particular, how they 
account ed for end -of-life value  chains, since some schemes appeared to incentivize waste trade by 
allowing exporters to claim that waste exports were 100% recycled without accounting for 
intermediate processing losses. There were also elements around circular economy standards that 
needed to be aligned with international standards to the extent possible and these should be notified 
whenever appropriate. While not related to circular economy policies per se , there were other 
elements around definitions and classification to allowing trade  that would support the circular 
economy and distinguishing them from unwanted fractions.  
1.55.   With respect to international approaches, the most relevant was circular economy standards 
and, secondly, harmonization and mutual recognition of conformity assessme nt procedures or being 
engaged in international standard -setting, since circular economy -related standards were emerging 
in various jurisdictions. There were also elements around definitions, classification and data 
collection to keep in mind.  Regarding kn owledge gaps, there were three issues that needed further 
work: the first was how to align global supply chains with the circular economy; a second issue was 
on securing circular and resilient value chains, for instance, through trade facilitation, digital  
technology and innovation; and, finally, how services trade could support circular economy business 
modules.  
1.56.   The representative of the European  Union  thanked the OECD Secretariat for the very valuable 
work on trade and circular economy.  
1.1.3   Other  
1.1.3.1   Presentation on Maldives' efforts to promote sustainable trade and green 
recovery  
1.57.   The Ambassador of Maldives  presented on Maldives' efforts to promote sustainable trade and 
green recovery. The protection of the environment was important for the Maldives as  the country's 
main sources of income – fisheries and tourism – depended on the sustainable use of environmental 
resources. The protection of natural ecosystems was a sine qua non for the continued progress and 
development of the Maldives. The Maldives Str ategic Action Plan 2019 -2023, incorporated goals to 
address environmental protection and preservation. The Action Plan also outlined modalities for 
sustainable economic activities within the framework of the blue economy.  
1.58.   He noted that plastics pollution had significant cross -border implications. Therefore, it was 
important to explore options and solutions to tackle plastic pollution, reduce plastic production and 
use, and transition to a circular economy, to preserve the country's ecosystem, pro tect biodiversity 
and increase productivity. Maldives had taken steps to phase out single -use plastics with the 
Amendment to its Import -Export Act in December 2020. With this Amendment, from June 2021, the 
import of goods declared as single -use plastic wou ld be prohibited. The Maldives was expected to 
fully phase  out single -use plastics by 2023. This plan would be rolled out in stages, together with an 
extended producer responsibility program, strategic awareness, and educational campaigns to steer 
 
4 OECD survey, "Policy Instruments  for Sustainable Materials Management, Resource Efficiency, and the 
Circular Economy", 2017.  WT/CTE/M/71  
 
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  the coun try towards a greener economy. The aim was to ensure minimum disruption by making 
plastic alternatives available and affordable.  
1.59.   The Ambassador stated that the Maldives had already implemented plastic -free initiatives in 
schools. Since April 2018, all sch ools in the Maldives were single -use plastic -free. Several resorts 
promoted sustainable, eco -friendly, and responsible tourism by investing in renewable energy, 
protecting biodiversity, and eliminating single -use plastic bottles. To enhance multilateral 
engagement, the Maldives was also a member of the Commonwealth Clean Ocean Alliance, the 
Action Group to tackle marine plastic pollution. Furthermore, Maldives had partnered with Parley for 
the Oceans. Through this partnership, Maldives would support the imp lementation of the Parley AIR 
Strategy to avoid plastics where possible, by education, intercepting plastic waste and redesigning 
alternative and new solutions to plastics.  
1.60.   He said that these initiatives aligned with the Maldives' efforts to transition fr om a linear to a 
circular economy, which focused on waste reduction, reuse, and recycling. This transition posed 
challenges, in particular, changing the production and trade structure of the economy. However, 
new industries were gradually being introduced that aimed to replace the linear model. Waste 
management and recycling was one key area of focus. To this end, Maldives had established a plastic 
recycling laboratory "The Plastics Lab ".  
1.61.   Geography had made Maldives and other Small Island Developing States  (SIDS) especially 
vulnerable to the consequences of climate change and sea  level rise. Being land -scarce and low -
lying, Maldives was exposed to the risks of extreme weather events all of which had devastating 
impacts on lives and livelihoods. To avert the se risks, significant adaptation measures were 
necessary. He stated that considerable public investment was aimed at coastal protection and there 
were measures to protect infrastructure and strengthen natural defences. In addition, mitigation 
measures were  also equally important to enhance climate resilience through emissions reduction 
and renewable energy alternatives. The Maldives aimed to achieve net  zero emissions by 2030. 
International trade and multilateral cooperation in mobili zing assistance was key  to the effective 
implementation of adaptation and mitigation measures.  
1.62.   The Ambassador said that the Maldives had adopted policies to promote the trade of energy -
efficient products and of environment -friendly products. Maldives had eliminated duties on sev eral 
products, including, electric vehicles integrated with renewable energy, energy -efficient lights, solar -
powered products, and solar power systems. Furthermore, duties levied for non -biodegradable 
products such as plastic bags and polythene films had b een increased. In addition, Maldives was 
encouraging the production of sustainably sourced produce.  
1.63.   He said that Maldives considered fisheries an important export industry. Tuna fisheries was 
the dominant form of fishery practiced in the Maldives. Histori cally, Maldives used environmentally 
friendly methods of catching fish as the pole, line and hand line fishing methods practiced in the 
country left zero by -catch, unlike purse -seine net, long line or drift net fishing. Maldives fishing 
methods were theref ore intrinsically environmentally friendly and helped preserve tuna stocks and 
make tuna fisheries more sustainable. He added that there was no widely agreed definition of 
environmentally friendly products for the purposes of trade. There were also no spec ific multilateral 
policies on trade in environmentally friendly products. This meant that, Maldives was unable to 
effectively compete within the rules -based system with others who did not practice sustainable 
fisheries in the pursuit of higher returns. Thi s was counter -productive for countries such as the 
Maldives. However, there was an opportunity to reverse these trends and encourage the trade of 
environment -friendly products and improve competitiveness, by revisiting the Generalized System 
of Preferences  (GSP) to support duty -free and quota -free trade for sustainably sourced tuna, and in 
line with WTO practice, eliminate all non -trade barriers to the promotion of sustainable fisheries. 
Furthermore, Maldives considered it important to bring the discussion of trade of sustainably sourced 
products into the work of WTO by incorporating it into the existing negotiations to eliminate tariffs 
on environmentally friendly products.  
1.64.   The representative of the European  Union  welcomed the efforts by Maldives to promot e 
environmentally friendly products and the transition from a linear to a circular economy. She also 
appreciated Maldives' efforts to reduce plastic pollution.  WT/CTE/M/71  
 
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  1.65.   The representative of Canada  commended the Maldives ' efforts to promote a green and blue 
econom y and said that her delegation was supportive of discussions on this important area at the 
WTO.  
1.66.   The Ambassador of Maldives  thanked the European  Union  and Canada for their support and 
noted that the Maldives was working hard to affect the transition from a  linear to a circular economy. 
Maldives needed increased multilateral cooperation within the rules-based  system to achieve 
meaningful results. In particular, he noted that fisheries was an important industry and sustainable 
fishing could have economic and environmental benefits for all SIDS.  
1.1.3.2   Presentation on Clean Green Pakistan – A business perspective  
1.67.   The representative of Pakistan  present ed one of the early cases of successful transition to a 
sustainable business in Pakistan, in a presentation entitled " Clean Green Pakistan – A business 
perspective".  As Pakistan was at high risk of the impacts of climate change, the Pakistani 
Government had launched  the initiative "Clean and Green Pakistan". Pakistan was committed to the 
Paris Agreement's objective and the Prime Minister had urged countries to work together to achieve 
this goal. The Prime Minister had also undertaken a large and ambitious project known as the "Billion 
Trees Tsunami ", which was well on the way to achieving its targets.  
1.68.   He acknowledged that sustainability and growth were not mutually exclusive, however, there 
were numerous challenges that came with the opportunities that a green economy offered. Even 
prior to the pandemic, Pakistan's economy was facing several challenges, among others, 
enviro nment challenges such as drought, floods and locusts. These of course had far -reaching 
consequences for an agriculture -based economy, as well as market access issues in terms of 
competitiveness and diversification.  
1.69.   The pandemic had added another handicap as the country tried to surmount these hurdles. 
These issues were typical to most poor countries.  Therefore, transitioning to a sustainable economy 
in this context was a challenge that could only be overcome with targeted support from partners 
and entities  in the sustainability field. In his view, in addressing the issue of climate change, nothing 
less than a Global Green Deal would cut it. Country -specific or region -specific policies alone could 
not address a global issue.  
1.70.   To this end, he echoed the call m ade by the International Trade Centre  Executive Director 
during the Aid For Trade stocktaking event to roll out funds to help countries to transition to green 
and sustainable economies. Targeted support, or a mechanism supporting countries with resource 
and technological constraints to transition to a sustainable economy, would allow these countries to 
build back better and to have more resilient economies.  Pakistan's presentation highlighted that it 
made perfectly good business sense for firms in developin g countries to go green, provided they ha d 
the right set of incentives.  
1.71.   A business representative of Pakistan5 noted that Pakistan was the seventh largest exporter 
of footwear manufacturing in the world, and it was in this area that his company operated. S ervice 
Industries Limited was an 80 -year old company. It operated three types of businesses: firstly, a 
shoe f actory, which primarily produced shoes for the domestic market; secondly, the manufacture 
of tyres and tubes; and thirdly, Service Global Footwear Limited, which was the largest footwear 
exporter in Pakistan and an industry leader. This was the business ca tegory and the factory type 
that had implemented sustainable energy.  As an introduction to Service Global Footwear Limited, 
he noted that it was a vertical integrated factory, which produced all types of components in -house. 
More than 95% of production was  for the export market. The factory was fully socially and 
environmentally compliant with all international bodies. Europe was its biggest market, followed by 
the United  States  (17% ). Moving on to sustainability and why the company went green, or what 
factors influenced Service Global Footwear Limited to set up its first solar -powered park, there were 
four reasons he wished to highlight.  
1.72.   The first was the "Billion Trees Tsunami " programme, which was a plan to plant a billion trees 
in the following three yea rs. The slogan gained great success and momentum and it brought massive 
awareness and media across the country. This message also reached his company and it was the 
 
5 Mr Hassan Ehsan and Mr Omar Saeed from Service Industries Limited (Pakistan).  WT/CTE/M/71  
 
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  first time they started to think about the green energy concept.  The second reason  was the global 
drive, such as the Paris Agreement in 2015, when many  countries made global commitments to 
convert their fossil energy into non -fossil resources. Germany was one of them  and as  Germany was 
Service Global Footwear Limited's largest trading partner, t he company decided to contribute to its 
trading partner's cause.  
1.73.   The third reason was power shortages. Historically, Pakistan had faced serious power 
shortages. Therefore, Service Global Footwear Limited and many other industries were thinking 
about how t hey could be more self -reliant and generate their own power, which was also cheaper 
and more sustainable.  A fourth reason was customer perspectives. In 2016, the company started to 
discuss the green energy concept with its major customers. It received an o verwhelming response 
from most customers.  
1.74.   He then explained the reasons why Service Global Footwear Limited decided to open its first 
Solar Power Park facility. Out of Pakistan's total power generation, 63% of electricity was produced 
with fossil resources . His company thought about all these issues over two years, from 2015 -2017, 
and in 2017 it opened its first Solar Power Park of 1 megawatt (MW). It was a unique event in 
Pakistan, as it was the first company to implement a Solar Power Park of this size in  Pakistan and 
probably the first shoe factory in that region to adopt this technology on this scale. Hence, the 
inauguration was attended by Pakistan's leading business community, government officials, many 
European Ambassadors in Pakistan, including the G erman Ambassador .  
1.75.   The concept was so well received that a few other industries, such as leather and textile 
factories, signed an MoU with the same consultant within a week of its inauguration. Three and half 
years later, looking at the numbers, the compan y had no regrets. In terms of carbon emissions, in 
the last three and a half years, nearly 2,400 tons of carbon had been saved by this 1 MW Solar 
Power Park. This translated into planting over 61,000 trees or not driving a vehicle over a distance 
of 9.6 mi llion km. All customers were happy with the green concept and some European customers 
circulated in their local media that they produced their shoes in Pakistan and that all their shoes 
were made with clean and green energy. The shareholders of the company  were also happy since in 
Pakistan the cost per unit from solar energy was one -third the cost from the national grid. So, it was 
a win -win situation for everyone. After seeing the success of this Solar Power Park, in February 
2019, a second 440 KW -capacity  unit was opened. Recently, a third 562 KW -capacity unit had 
opened. Altogether, in this one shoe factory, there was a capacity of over 2 megawatts (MW) of 
power generation all with solar.  
1.76.   He mentioned some of the challenges in implementing these three pr ojects. As it was the first 
to adopt this technology, the company faced a lot of issues when setting up the first plant, as there 
was no previous example available in Pakistan where they could verify the numbers and the 
production forecast by consultants. They had to travel to different countries in Europe to see a plant 
that was already working and consulted with foreign technicians. Once a plant was installed, another 
challenge was how to send the extra energy back to the national grid. There was no syste m available 
for "net-metering ", so they worked hard with local authorities to set up the protocols and finally, 
after 6 -8 months, they received their first licence for "net-metering ". As the system was already 
defined, for the second and third units, the s ame licence was obtained within a couple of weeks.  
1.77.   He noted what challenges other industries faced in Pakistan. Most industries in Pakistan 
ranged from small to medium scale, so they found it difficult to fund these projects, especially the 
initial cost of  the project, even though there was a subsidized interest rate of 3 -4% for such projects 
in Pakistan. Another reason was customer appreciation. For the majority of companies selling in 
Pakistan, there was no appreciation of this (green) concept by their cu stomers. Local authorities in 
Pakistan needed to raise awareness and make the system easier for Small and Medium Sized 
Enterprises ( SMEs ) to learn what advantages they could benefit from in their own businesses by 
going for the sustainability concept.  
1.78.   Next, he noted the group's vision for these services. Nearly 70% of Service Global Footwear 
Limited's electricity requirement now came from the Solar Power Park and they hoped to implement 
the same system in the rest of their production facilities as well as i n the corporate offices. The 
internal target for the next 3 -4 years was to implement the same type of solar park for its footwear 
factory that produce d for the domestic market, as well as for its tyre business.   WT/CTE/M/71  
 
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  1.79.   Finally, the last item in the presentation w as the key message, which could be divided into 
two parts. First, the message to local industry in Pakistan, as well as outside Pakistan, was clear – 
it was a win -win situation. When you went for the green concept, your customers were happy and 
cost wise, at least in Pakistan, it was more cost -effective than the national grid. It created a better 
image of the company and, of course, it gave satisfaction knowing that you were doing something 
for the next generation. The last message that they wished to give to the WTO and other 
international trade bodies  was that a ll the benefits that had been discussed were about green, clean 
and energy and its sustainability, but it remained a fact that most of these realities were soft realities 
and businesses were driven by hard realities and material advantages. It was necessary to  develop 
more platforms and recognitions in terms of material benefits for the companies that adopted this 
technology. There should be closer coordination between customers and suppliers and wel l 
recogni sed preferences given to those companies that went green. If we showed companies the 
paths of sustainability and comparative preference over those people who still used fossil energy, a 
lot more people would go for this concept.  
1.1.3.3   United Kingdom's activities  related to making supply chains more sustainable  
1.80.   The representative of the United Kingdom  provided  information on activities  related to making 
supply chains more sustainable. As the global economy work ed to recover from the Covid -19 
pandemic, it was vital that the collective approach to international trade enable d building back 
better. As the TESSD  November communiqu é highlighted, part of this require d strengthening the 
resilience and sustainability of gl obal supply chains to address the risks presented by environmental 
degradation and biodiversity loss .  
1.81.   Key to this discussion of supply chain sustainability was how to tackle deforestation and land 
degradation , which was the second largest source of greenhouse gas emissions annually, a major 
driver of biodiversity loss and associated with heightened risk of zoonotic disease. Almost 80% of 
deforestation was driven by agricultural expansion, much of it to produce forest and  agricultural 
commodities that we use d on a daily basis.  International trade regimes and markets were too often 
still set in favour of unsustainable practices in these supply chains. However, when managed legally 
and sustainably, international trade in for est and agricultural commodities was an invaluable source 
of revenue to both local communities and entire nations and could  support wider national and global 
environmental goals, including through protecting forests and other important ecosystems. The 
transition to more sustainable forms of agriculture could add a further US$2.3trn in productive 
growth to the global economy.  
1.82.   Multilaterally , this transition  could be supported , working collaboratively through international 
trade levers to incentivi ze sustaina ble production of forest and agricultural commodities, to open up 
sustainable commodity markets and ensure that producers financially benefit from adopting 
sustainable practices.  This issue was critical i n order to  meet Sustainable Development Goals 
regard ing Sustainable Economic Growth, Responsible Consumption and Production, Climate Action 
and Life on Land.  
1.83.   February saw the launch of the Forest, Agriculture and Commodity Trade (FACT) dialogue,  an 
initiative of the CoP26  Presidency and the Tropical Forest Alliance to bring together agricultural 
producer and consumer countries to identify actions to reduce deforestation in supply chains, 
encourage investment in sustainable production and build new markets for sustainably grown 
products. A number of WTO Membe rs had provided their support to tackle the issue of forest 
degradation and loss, while promoting sustainable trade and supply chains. The dialogue had aimed 
to agree on principles for collaborative action, and a shared roadmap of actions that protect ed forests 
and other vital ecosystems while promoting development and trade. The United Kingdom  
encourage d all Members to support one of the fundamental goals of this dialogue – to ensure global 
trade supports the transition to sustainable agricultural produ ction and sourcing throughout these 
supply chains.  
1.84.   The United Kingdom  thank ed the IISD for partnering with the United Kingdom  to host a 
webinar on 24 March exploring ways to reduce deforestation and enhance forest conservation 
through international trade p olicy. The webinar examined the role of voluntary sustainability 
standards in protecting forests and potential synergies between trade policy and Voluntary 
Sustainability Standards (VSSs) , for tackling deforestation and enhancing forest conservation at a 
large scale in forest commodity sectors, including having a provision within trade agreements that 
provide d for preferential treatment of commodities that met sustainability requirements.  Over 300 WT/CTE/M/71  
 
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  people took part in the webinar either live or streaming the  recorded webinar. IISD would  prepare 
a written commentary, which would  expand on the material covered in the webinar and on points 
raised in the question s and answer s session.  The United  Kingdom intended to  inform Members when 
the commentary would be  available.   
1.85.   Finally, Members were invited to the United Kingdom's  event on Sustainable Supply Chains, 
on 31st March . The United Kingdom would  share learnings and reflections of the U nited Kingdom 's 
Global Resource Initiative, established by the United Kingdom as an independent taskforce of leaders 
from business and environmental organisations to consider actions the United Kingdom could take 
to green its international supply chains and leave a lighter footprint on the global environment.  The 
United Kingdom woul d highlight the Global Resource Initiative 's purpose, process and intended 
impact , and provide an overview of the taskforce 's recommendations. The United Kingdom intended 
to promote green trade as part of the solution to climate change and biodiversity loss, with the WTO 
being central to this work. The United Kingdom invited  Members to engage in the CoP26  FACT 
dialogue  to agree on actions to reduce the impact of agriculture on  ecosystems such as tropical 
forests and  looked forward to continuing the discussion on this important issue in the CTE.   
1.86.   The representative of the European  Union  noted that the p reservation of forests and natural 
environment was a key pillar of the Europe an Green Deal. The European  Union  therefore appreciate d 
the work that the United Kingdom was doing  to reduce deforestation and enhance forest 
conservation in the context of United Nations Framework Convention on Climate Change  (UNFCCC ) 
CoP26 . Moving forwar d, the European  Union  would welcome more actions and measures on 
sustainability.  
1.87.   The representative of Canada  commend ed the United Kingdom's  efforts to promote the 
development of sustainable supply chains and were supportive of discussions on this important area 
at the WTO.  
1.88.   The representative of Norway  welcome d the United Kingdom 's initiative on sustainable supply 
chains and in particular the FACT d ialogue that was taking place in preparation for the Conference 
of the Parties of the UN FCCC . Norway look ed forward to participat ing in that dialogue.  
1.1.3.4   European  Union 's update on trade relevant aspects of the European Green Deal  
1.89.   The representative of the European  Union  updated delegations on trade relevant aspects of 
the European Green Deal. She started by presenting the EU new trade policy communication adopted 
on 18 February 2021. The communication, entitled  "Open, Sustainable and Assertive Trade Pol icy", 
aimed to build a consensus around the strategic direction and objectives of EU trade policy for the 
next decade. The communication re -affirm ed the European  Union 's commitment to open, fair and 
rules-based trade, places sustainability at the heart of trade policy, and was assertive inasmuch as 
trade policy could  contribute to promote the European  Union 's values and interests.  
1.90.   The European  Union  noted that, on the multilateral front, the reform of the WTO was the first 
priority, including through having  a fully functioning dispute settlement system. The European  Union  
specified a number of concrete actions outlined in the communication that were relevant for 
environment. In the multilateral sphere, the European  Union  would  engage with like -minded 
countri es to pursue a strong environmental agenda at the WTO, including through a trade and 
climate initiative.  
1.91.   In the bilateral sphere, the European  Union  would  propose that the respect of the Paris 
Agreement be considered an essential element in future trade a nd investment agreements and that 
trade and investment agreements with G20 countries be based on a common ambition to achieve 
climate neutrality as soon as possible and in line with the recommendations of the Intergovernmental 
Panel on Climate Change  (IPCC). She also noted that the European  Union  would  make full use of its 
trade deals to accelerate cooperation on biodiversity, pollution, circular economy, and sustainable 
food systems. The European  Union  would  also enhance the implementation and enforcem ent of its 
Chapters on Sustainable Development which include d commitments on climate, environment and 
labour. These efforts would  be reinforced with a newly appointed Chief Trade Enforcement Officer.  
1.92.   Finally, with respect to autonomous action by the Europ ean Union , she added that there were 
several measures in development under the so -called EU Green Deal. In particular, the WT/CTE/M/71  
 
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  European  Union would  propose a carbon border adjustment mechanism (CBAM) and would  put 
forward legislation addressing deforestation a nd forest degradation, as well as on sustainable 
corporate governance. The autonomous action by the European  Union  would  be designed in a 
manner so as to ensure it was fully in compliance with WTO requirements and needs to be based on 
a spirit of internati onal cooperation and mindful of development needs.  
1.93.   The representative of the European  Union  also elaborated on key elements of its proposed 
CBAM. The European  Union  underscored its determination that its declared greenhouse gas 
reduction targets, required to keep the temperature goals of the Paris Agreement within reach, were 
implemented in practice. However, given that the climate challenge was inherently global, the 
European  Union  needed its international partners to share a comparable level of ambition. The 
European  Union  indicated that, as long as climate action was not equally taken at a global level, 
there was a risk of "carbon leakage", which would end up undermining global climate action efforts 
and the effectiveness of the E uropean  Union 's emissions  mitigation policies. The 
European  Commission ha d announced in the European Green Deal that, should differences in levels 
of climate action and ambition worldwide persist as the European  Union  upgrade d its own 
commitments, it would  need to propose a carbon  border adjustment mechanism (CBAM), for 
selected sectors, to tackle the risk of carbon leakage. The CBAM would seek  to support the other 
measures that were part of the Green Deal and ensuring their efficiency. The European  Union  
specified that the CBAM wo uld take into account efforts by its international partners to adopt policies 
and measures to reduce greenhouse gas emissions from industrial production, including through 
carbon pricing mechanisms. Importers would  be treated in an even -handed manner and w ould not 
be subject to an adjustment that was higher than what was applied domestically. The 
European  Union also highlighted its intention to work with partners to promote effective methods of 
decarboni zation, from technological innovation to market -based approaches, and to make sure 
adjustment measures work ed in an open and fair manner and were in full compliance with 
WTO rules.  
1.94.   The representative of the European  Union  added that a key element of the design of the CBAM 
was ensuring that the price of goods imported in the European  Union  reflect ed more accurately the 
carbon emissions that took place during their production. He specified that the proposed measure 
would  be in compliance with the European  Union 's international commitments, including 
WTO commitments and that it would be applied to carbon intensive sectors. The European  Union  
noted that it ha d carried out a public consultation in which more than 600 contributions, coming 
from 38 different countries, were received.  While most of the contribution came from the 
European  Union itself, there were still more than 100 contribution s that came from the rest of the 
world. The European  Union  was currently in the process of conducting an impact assessment and 
more consultation s were scheduled to take place next month with a view to the adoption of a 
proposal by the European Commission in June 2021. The proposal ha d to be adopted by the 
European Parliament and Council, with a view to its implementation in 2023.  
1.95.   The European  Union then turned to address the issue of deforestation, highlighting that the 
preservation of forests and natural environment was a key pillar of the European Green Deal. 
Deforestation was a major driver of global warming and biodiversity loss and threaten ed the 
wellbeing of all citizens on the Earth and in particular the livelihoods of 1.5 billion people that rel ied 
on forests for their subsistence. The European  Union  noted that, in May 2020, it published a 
Biodiversity Strategy for 2030, with the aim to put EU biodiversity on the path to recovery by 2030. 
One of its core commitments was to propose, in 2021, a new Forest Strategy. It was also noted that 
the European Commission was currently carrying out a fitness check of the EU Timber Regulation 
(EUTR) and th e Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan, as well as an 
Impact Assessment to support a new legislative proposal on deforestation. The European  Union  
highlighted that the goal of this proposal would  be to ensure that not only was the natural 
environment preserved within the European  Union , but also that the European  Union 's contribution 
to deforestation and forest degradation worldwide was minimi zed. To achieve these objectives, the 
European  Union  was looking into different ways to ensure that the supply chains related to products 
and commodities imported into the EU were deforestation -free.  
1.96.   The European  Union  explained some of the deforestation criteria that were being considered, 
which would  be based on science, rely on internatio nally recogni sed definitions and non -
discriminatory. With respect to the scope of the commodities and derived products that would  be in 
the scope of this initiative, the European  Union  indicated that it would  select commodities and 
derived products that were associated with global deforestation by being in supply chains driving WT/CTE/M/71  
 
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  this phenomenon. The European  Union  observed that it was tentatively including certain 
commodities including soya, beef, cocoa, rubber, cereals and coffee. As part of the impact 
assessment, a range of possible options were being considered, including developing due diligence 
requirements for a place on the EU market, as well as adding to the due diligence requirement a 
benchmarking exercise to identify the risk from different countrie s, among others. In parallel to the 
impact assessment, the European  Union  was also doing a fitness check of the existing policy of the 
EU regulation dealing with the forest law enforcement. This was a policy that ha d been operating to 
fight illegal logging and illegal timber trade.  
1.97.   The European  Union  added that, while this was ongoing work and no decisions ha d yet been 
made, it wanted to reassure Members that the proposal would  be fully WTO -compliant and non -
discrimi natory. The European Commission was aiming to make an announcement of the legislative 
proposal at some point in the summer of 2021, after which the proposal would  go through the normal 
legislative procedure at the European Parliament and Council, during wh ich all stakeholders would  
have further opportunities to engage in the process.  
1.98.   The European  Union  also addressed its Farm to Fork strategy adopted by the 
European  Commission in May 2020, which would  enable the transition to sustainable food systems 
in the  EU and was central to the European Commission's agenda to achieve the SDGs. The strategy 
set concrete targets to transform the EU 's food system, including a reduction by 50% of the use and 
risk of pesticides; a reduction by at least 50% of nutrient losses ; a reduction by 50% in sales of 
antimicrobials used for farmed animals and aquaculture; and reaching 25% of agricultural land under 
organic farming by 2030. It also propose d ambitious measures to ensure that healthy options were 
the easiest for EU citizen s, including improved labelling better to meet consumers' information needs 
on healthy, sustainable foods. The European  Union  also noted that it ha d already organised a number 
of information sessions (the last one dedicated to pesticides in January 2021) w here trade -related 
aspects of the Strategy were discussed in more detail. The Strategy was also presented in the WTO 
SPS Committee in June 2020 (G/SPS/GEN/1797).  
1.99.   The European  Union  indicated that food sustainable systems would  not be successfully 
achieved by the European  Union  or any other Member acting alone. There was a need to redesign 
food systems which today account ed for nearly one -third of global GHG emissions, consume d large 
amounts of natural resources, result ed in biodiversity loss and negative he alth impacts (due to both 
under - and over -nutrition) and did not allow fair economic returns and livelihoods for all actors, in 
particular for primary producers. The European  Union  noted that preparations were ongoing for the 
2021 agenda – with CoP 15 to t he UN Convention on Biological Diversity and the UN Food Systems 
Summit and highlighted that it was committed to seek ambitious policy outcomes of the Summit 
and strong commitments from stakeholders to take concrete actions on health and sustainability. 
The European  Union  added that international trade rules needed to  fully support this agenda and 
the international transition to sustainable, resilient food systems that safeguard ed food security, 
ensure d access to healthy diets sourced from a healthy planet and protect ed the livelihoods of 
economic operators.  
1.100.   Moreover, the European  Union  stated that it would  continue to lead international efforts, and 
in conjunction with its partners, address environmental challenges and promote the implementation 
of ambitiou s environment, climate and energy policies across the world. Through bilateral efforts, 
the European  Union  would  accompany partners to transition towards more sustainable development 
pathways. In this regard, EU financial support to transition would  contin ue to be scaled up as climate, 
environment and sustainable energy were fundamental parts of the European  Union 's future 
programming in external cooperation. The European Commission proposed to dedicate at least 25% 
of EU international cooperation to climat e-related projects between 2021 and 2027 (more than 
22 billion Euros). The European  Union  conclude d by highlighting that its External Investment Plan 
would  be instrumental to support the transition to climate -neutral green economies in partner 
countries.  
1.101.   The representative of Norway  thanked the European  Union  for updating delegations on its 
new trade policy communication and for sharing details and timelines  related to the European Green 
Deal. Norway expressed its full support for the European  Union 's efforts towards sustainable trade 
and a green trade policy. She also thanked the information shared with respect to CBAM, 
acknowledging that more details on the se plans were useful. Norway noted that it share d with the 
EU a strong common interest in promoting European competitiveness and a level playing field with 
high standards to protect workers, consumers, and the environment, as well as the view that WT/CTE/M/71  
 
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  internat ional trade and trade policy should reinforce the importance of global efforts towards 
achieving sustainable development. Norway concluded by expressing its intention to work closely 
with the European  Union  on the policies presented.  
1.102.   The representative of Colombia  thanked the European  Union  for the presentation and the 
details provided on the European Green Deal. Colombia noted that it share d the objectives of 
sustainability and the fight against climate change and was committed to meeting the goals of the 
Paris Agreement. She added that, in Colombia's view, the European  Union 's strategies ha d important 
commercial implications with a special impact on those countries that ha d one of their main trading 
partners in the European  Union . Colombia welcomed the tra nsparency exercises that the 
European  Union ha d been carrying out, including by presenting in this and other WTO committees 
the various elements of its European Green Deal related to trade. However, Colombia pointed out 
that the European  Union  needed  also to ensure the consistency of the programmes with its 
multilateral commitments, including by ensuring that unnecessary obstacles to trade were not 
created. She added that Colombia ha d been monitoring the elements of the European Green Deal in 
different mult ilateral and bilateral spaces and ha d raised specific questions in various instances at 
the WTO. Colombia invited the European  Union  to take into consideration the comments and 
observations provided by trading partners in the various stages of consultation  to ensure that the 
various policies were consistent with WTO rules. Colombia concluded by highlighting that policies 
needed to  be based on science and take into account the realities and production methods of each 
of the countries. In the case of deforest ation, not all the commodities at issue were directly related 
to the loss of forests. In many cases, including in Colombia, production of these commodities took 
place within the country's available agricultural frontier.  
1.103.   The representative of Thailand  stressed that Thailand and the European  Union  share d a 
common cause in tackling the great challenges facing humanity including climate change, pollution 
and biodiversity loss. Thailand therefore welcomed the European  Union 's efforts embodied in its 
European Gr een Deal and hoped that its implementation would  be guided by the spirit of 
international cooperation and steer as far away as possible from unilateralism and coercion. In 
connection with the proposed CBAM, Thailand strongly urged the European  Union  to ens ure 
adherence to all relevant international rules and principles, such as the principles of equity, common 
but differentiated responsibility and respective capabilities (CBDR -RC) and the principle enshrined 
in Article  3.5 of the UNFCCC that "Parties should  cooperate to promote a supportive and open 
international economic system that would lead to sustainable economic growth and development in 
all Parties, particularly developing country Parties."  
1.104.   In order to assist Members in making the necessary preparatio ns for the CBAM, Thailand 
requested the European  Union  to provide clarification on the following issues:(i) the expected design 
and sectoral scope of the mechanism; (ii) whether, and if so to what extent, the European  Union  
took into consideration the poli cies and measures, as well as the respective capabilities and national 
circumstances of its trading partners in the design and implementation of the mechanism; 
(iii) whether, and if so how, the European  Union  intend ed to ensure preparedness among Members 
having an interest in exporting to the European  Union ; and (iv) how the European  Union  intend ed 
to ensure that the mechanism was fully compliant with WTO rules.  
1.105.   The representative of the United  States  thanked the European  Union  for its presentation on 
the trade -related initiatives of the European Green Deal and encouraged the European  Union  to 
further consult with Members, in the spirit of transparency and minimizing any disruption to trade. 
The United  States  indicated that it w ould welcome additional, detailed information and fulsome 
engagement by the European  Union  on these trade -related initiatives, as well as a better 
understanding of how several initiatives planned under the European Green Deal would  intersect 
with Trans -Atlantic trade so as to avoid any potential unintended disruptions.  
1.106.   The representative of China  began by noting that the Paris Agreement establishes the 
principle of CBDR -RC, which serve d as the foundation of global climate governance. He noted that 
some ha d expressed concern that the CBAM was a unilateral trade punishment measure requiring 
differen t countries to have the same level of ambitions regarding emission reduction. This violate d 
Nationally Determined Contributions (NDC s)in the Paris Agreement and principle of CBDR -RC. China 
invited the European  Union  to explain how CBAM would comply with th is principle. China added that 
CBAM's goals include d not only climate change, but also protecting competitiveness of industries 
and increasing government revenues. China requested the European  Union  to explain a series of 
issues in this regard, including ( i) how would  the European  Union  balance these goals; (ii) what WT/CTE/M/71  
 
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  industries would  be covered by CBAM; (iii) which type of tools would  be utilized (import tax, border 
adjustment tax or carbon emission allowances); and (iv) what would  be the basis for calculat ing the 
carbon emissions in imports. China further stated that, in its view, the CBAM might be inconsistent 
with Articles I, II, and III of the GATT  1994. China inquired whether the European  Union  would 
ensure the consistency of CBAM with general rules of WTO or whether the European  Union  would 
resort to General Exceptions. China urged the European  Union  to exercise caution when proceeding 
with the legislation process, maintain full transparency, and consult stakeholders in advance in order 
to ensure the co nsistency with WTO rules.   
1.107.   The representative of Canada  thanked the European  Union  for its update on the trade -
related aspects of the European Green Deal and highlighted the longstanding history of cooperation 
on the environment and climate change with the  European  Union  and Canada's commitment to 
ambitious action and global leadership on climate change. Canada indicated that it was following 
with interest the developments in the European Green Deal and that it would  continue to be an 
active participant in international discussions on the trade -related aspects of global climate and 
environment issues. Moreover, Canada expressed its commitment to ensuring that the transition to 
a low carbon economy was achieved in a wa y that was fair and predictable for its businesses. In this 
regard, Canada noted that it look ed for the European Green Deal to be implemented in a manner 
that was consistent with the European  Union 's international trade obligations and with the 
Comprehensi ve Economic and Trade Agreement (CETA) . Canada encouraged the European  Union  to 
continue to be transparent in its work and engage third countries on trade -related aspects of the 
Green Deal, and to use appropriate WTO committee meetings as opportunities to keep the broader 
WTO membership apprised of developments. Moreover, Canada indicated that it was also exploring 
the potential of border carbon adjustments, including working with its international partners on this 
issue.  
1.108.   The representative of Korea  express ed its appreciation for the European  Union 's leading role 
on environmental and sustainability matters, including the European  Union 's commitment to climate 
neutrality by mid -century. Noting that as part of the European Green Deal the European Commission 
was working on a CBAM, Korea indicated that trade measures adopted for legitimate policy objectives 
should be fit -for-purpose and should not constitute a disguised restriction on international trade. 
Environmental measures should not be misused as means of u njustifiable or arbitrary discrimination. 
Korea also recalled its statement made at the meeting of the Council for Trade in Goods in November 
2020 and echo ed similar concerns to those raised by other Members. CBAM should be exclusively 
designed to advance climate objectives in accordance with WTO rules and principles such as National 
Treatment and Most -Favoured Nation Treatment or present clear reasons to justify its exceptional 
nature. Korea indicated that it would  continue to monitor the development of th e proposed CBAM 
and encouraged the European  Union  to fully consider the compatibility of the mechanism with 
WTO rules.  
1.109.   The representative of Ecuador  began by recogni sing the importance of the objectives 
pursued by the EU Green Deal and commending efforts t hat sought  to meet climate goals. At the 
same time, Ecuador added that any environmental proposal to meet the European climate agenda 
needed to  be compatible with the MTS and needed  not constitute a means of arbitrary or unjustifiable 
discrimination or a d isguised restriction on international trade. By way of example, Ecuador observed 
that the selection of products that apparently contribute d the most to deforestation include d 
products from countries that were not part of the European  Union  and that would b e then subject to 
policies that did not consider the social, geographic and economic context of the exporting countries. 
Moreover, Ecuador highlighted that it was the second country in the world to have completed the 
requirements required by the UNFCCC  to access results -based payments for reducing emissions from 
deforestation and forest degradation, and that the listed crops were grown within the available 
agricultural frontier. Ecuador also reiterated the importance of respecting the principle of CBDR -RC 
under the Paris Agreement, which was based on nationally determined contributions whose level of 
ambition could not  be imposed on other countries. Likewise, Ecuador stressed the importance of 
respecting trade commitments adopted even under preferential trad e agreements and avoiding 
discriminatory and unnecessary obstacles to trade, since several of the measures proposed by the 
European  Union  could be incompatible with WTO rules.  
1.110.   The representative of the Russian Federation  welcomed the rise of the global awareness on 
the issue of climate change and supported Members' readiness to tackle climate effects jointly. First, 
Russia  clearly support ed those who want ed to see CTE as an important tool that help ed to avoid 
protectionis t trade measures and adhere to effective multilateral disciplines to ensure WT/CTE/M/71  
 
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  responsiveness of the MTS to environmental objectives. This was prescribed by the Marrakesh 
Ministerial Decision on Trade and Environment (1994) by which the CTE was set up, as wel l as by 
the Decision on Trade in Services and the Environment (1994). It would also be useful if it could 
complement the work of other specialized WTO bodies, such as the Council for Trade in Goods, the 
Committee on Market Access, the Committee  on Technica l Barriers to Trade , etc.  
1.111.   Second, any activities carried out within the framework of environment and climate change 
needed to be pursued in accordance with the fundamental WTO principles and needed not result in 
any kind of discrimination or disguised res trictions on trade. None of the "green" measures should 
impede trade and be used as a means of "green protectionism", as implied by paragraph 32 of the 
Doha Ministerial Declaration. Hence, to ensure its compliance with WTO obligations, any 
"environmental" measure planned to be adopted by a Member should also be thoroughly explained 
and examined at meetings of a corresponding specialized WTO body . This had not been clearly the 
approach w hen the focus in climate change efforts was put on unilateral trade meas ures, including 
carbon border adjustment mechanism rather than the mechanisms stipulated in specific climate 
agreements, including the UNFCCC, the Paris Agreement, the IPCC and others. Currently, the 
mechanism of implementation of Article  6 of the Paris Ag reement aimed at cooperation among the 
Parties to this Agreement had been under development and would be established within the 
framework of CoP26  this year. The Russian Federation  believe d that the instruments provided in the 
specific climate fora had not  been exhausted yet. In this regard, the introduction of trade -related 
climate measures was quite premature and unjustifiable.  
1.112.   Third, the dossier on the Green Deal included about 100 pages of just enumeration of 
EU trade -related measures adopted under the  Green deal roof. Correlation between some of these 
measures and environmental policies was difficult to establish. For example, this was valid for the 
announced trade policy principle of diversification of sources of energy supply. Why in order to make 
the world clean one needed to  diversify sources of supply? The Russian Federation  had many  more 
questions in respect of the nature of many measures from the Green deal list and expected the CTE 
to deal with them somehow.  Some of the experts believe that the European Green Deal brought a 
serious threat of creating world wide trade -distorting effects, which might be harmful for developing 
WTO Members, especially least  developed countries.  
1.113.   Several elements of the European Green Deal provoke d major concerns about their 
compliance with the EU obligations under the WTO  Agreement s. The vast subsidization of the 
development of renewable energy sources combined with proposed mandatory requirements for the 
fossil fuels substitution in electricity ge neration might be assessed as an import substitution practice 
prohibited under the WTO  Agreement  on Subsidies and Countervailing Measures. The introduction 
of stricter requirements on goods and production processes (e.g.  biofuels) should be based on 
intern ationally applied standards or otherwise scientifically proven considerations in order to be in 
conformity with the TBT  Agreement . The proposals for the diversified materials sourcing jeopardize d 
the European  Union 's future compliance with the WTO most -favoured-nation principle.  
1.114.   The EU Carbon Border Adjustment Mechanism had the strongest potential to directly distort 
international trade and consequently needed to be designed in full compliance with WTO provisions 
in order to eliminate trade hampering effect s, if implemented. The scope of potential threats to 
international trade highlight ed the importance of the multilateral discussion of the trade -related 
aspects of the European Green Deal at the meetings of the CTE and other relevant bodies.  
1.115.   As a final note , the Russian Federation stressed its belief that all WTO Members were united 
by the objective of creating a more climate -friendly world. Any Member needed to be free to choose 
its own methods on the path towards the achievement of global climate objective s as long as these 
methods presented a proportionate contribution and did not nullify or impair benefits of other WTO 
Members. Hence, the Russian Federation urge d Members to stick to the goal of the WTO  of ensuring 
sustainable global development by means o f trade. That was why all Members needed  jointly to 
elaborate fair and equitable environmental policies and avoid imposing unnecessary restrictions on 
international trade, as no true development could  be achieved if trade was being undermined by 
"green pro tectionism ". 
1.116.   The representative of Ukraine  thanked the delegation of the European  Union  for the 
comprehensive presentations and the update on the CBAM. Ukraine emphasized its commitment to 
its European integration goals. While Ukraine was developing state policy in the areas of energy and 
energy efficiency, it focuse d on provisions of the European  Union -Ukraine Association Agreement, WT/CTE/M/71  
 
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  the Energy Community Treaty, the Paris Agreement, and the new European Green Deal. She added 
that the goal of the European Gr een Deal was in line with Ukraine's aspirations and that the tax rate 
on CO2 emissions from stationary sources in Ukraine ha d been increased by more than 24 times 
since 1st January 2019. Ukraine also pointed to the proposed draft Law "On Amendments to the Tax 
Code of Ukraine", which would  lead to an increase in the carbon tax.  
1.117.   Ukraine also noted that it adopted a Strategy of Low Carbon Development, which was 
developed in accordance with paragraph 19 of Article  4 of the Paris Agreement. Ukraine became the 
ninth party to the Paris Agreement to have fulfilled this requirement. Moreover, an emissions trading 
system, currently under development, would  be fully operational from 2025. On 1 January 2021, 
the system of monitoring, reporting and verification of greenh ouse gas emissions started operating 
in Ukraine. It was expected that the first reliable verified data on greenhouse gas emissions would  
be available in 2022. She also noted that the Ministry of Energy of Ukraine initiated the creation of 
the Decarbonization Fund, whose financial resources would  be used exclusively for projects that 
reduce d CO2 emissions and ha d energy -efficient, environme ntal, and social effects. Ukraine stated 
that it was important to understand and address the possible challenges to implementing Border 
Carbon Adjustments (BCAs) as the tool to support climate and environmental objectives. In 
particular, Ukraine referred t o the need to address the consistency of a BCA with the provisions of 
the Paris Agreement and WTO rules. It was important that CBAM complement ed, not 
counterbalance d, NDCs. To achieve this, it was necessary to develop understanding on this issue 
and addres s the possible problems of CBAM (such as product scope, measurement, reporting and 
verification of embodied carbon). Ukraine stressed that WTO Committees should be seen as a 
platform for international discussions and as an opportunity to develop consensus and common rules 
on all aspects of climate policy that might  affect trade.  
1.118.   The representative of Australia  expressed Australia's strong commitment to addressing 
climate change and belief that international trade could  contribute to this objective. Indeed, in 
Australia's view, policies that facilitate d increased trade in environmental goods and services, and 
related investment, could  make a strong contribution in support of international climate policy. 
Australia welcomed the consultative approach that the E uropean  Union  had taken so far in respect 
of CBAM and encouraged the European  Union  to share to the maximum extent possible, in the WTO 
and in other relevant international bodies, details of its policy deliberations and the likely form a 
CBAM might take, c onsistent with the central WTO principle of transparency. Australia also noted 
the European  Union 's commitment to ensure the consistency of its eventual measure with 
WTO obligations, underscoring that further details addressing the issue of WTO consistency  of the 
CBAM would be helpful.  
1.119.   The representative of Saudi Arabia  thanked the European  Union  for the update on trade 
relevant aspects of the European Green Deal, including on the CBAM. Saudi Arabia expressed support 
for the statement delivered by the Russi an Federation. She also noted that this issue ha d been 
addressed in the Committee of Market Access for Goods and that Members would  continue to discuss 
in depth their views and concerns under that Committee. At the same time, Saudi Arabia noted that 
the Ci rcular Carbon Economy (CCE) framework that was introduced by Saudi Arabia and endorsed 
by the G20 leaders in 2020 was an inclusive, integrated, holistic framework. The CCE cover ed not 
only material waste, but also addresse d emissions by converting all emis sions challenges into 
opportunities. This was done by utilizing all technologies and innovations to address challenges 
raised by both material waste and emissions flow.  
1.120.   Saudi Arabia also noted that any trade aspect of climate that would  impact trade negat ively 
would convert the spirit of cooperation among nations under the UNFCCC to confrontation. This was 
why the UNFCCC in its principle outlined in Article  3 paragraph 5 warned against such approaches. 
It states: "[m]easures taken to combat climate change,  including unilateral ones, should not 
constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on 
international trade." Saudi Arabia added that the CCE provide d a bottom -up framework rather than 
a policy framework that wo uld be seen as a top -down approach. Hence, the CCE cater ed for national 
circumstances, priorities and needs at the same time it provide d a platform for complementary 
cooperation among nations that ha d different context to address both waste and emissions.  
1.121.   The representative of India expressed its concerns about the compatibility of certain 
measures, in particular the CBAM, with basic WTO rules. India invited the European  Union  to share 
specific details about the CBAM as a thorough legal analysis would  be required to examine whether 
such a mechanism was in conformity with relevant WTO rules. India added that any such mechanism WT/CTE/M/71  
 
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  needed to  take into consideration the principle of CBDR -RC, in light of different national 
circumstances and noted that there were possible WTO non -compliance issues that would  require 
further deliberation.  
1.122.   The Ambassador of the Central African Republic  welcomed the European Green Deal and 
noted that its implementation call ed for a holistic approach. Noting that the Central African Republic 
was part of  the Congo basin, he noted a paradox when it came  to implementation of this package 
of measures. The def orestation that took place in the 2010 s of at least two million hectares of forest 
land led to a decrease in biodiversity with economic and financial repercussions. He observed that 
the present consequences in the use of lumber show ed the paradox between d evelopment and 
biodiversity. If development was picked, then there was a need to see accompanying measures. 
What could those measures be? He added that, while some people condemn ed deforestation, they 
were also the ones carrying it, which was a real parado x. The Central African Republic also pointed 
that the lumber companies were not local but c ame from outside the region. Thus, there was a need 
to find drastic measures to ensure accountability and have common rules that everyone respect ed. 
2  OTHER ITEMS OF T HE CTE WORK PROGRAMME  
2.1  Multilateral environmental agreements and WTO (Item 1 of the CTE Work 
Programme)  
"The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to mu ltilateral 
environmental agreements (MEAs)."  
2.1.1   The United Nations Framework Convention on Climate Change (UNFCCC)  
2.1.1.1   Presentation by the UNFCCC  
2.1.  The representative of the UNFCCC  briefed delegations  on preparation s for CoP26  and most 
pressing issues  to be address ed. He recalled  that due to the sanitary restrictions CoP26  had been 
postponed and no formal negotiations had taken place since the last Conference in 2019. In 
response, two main initiatives in 2020 had been undertaken to advance work: the June Momentum 
and the November Dialogues. Some progress had been made in 20 20, and there was momentum 
behind climate action, but parties had to act swiftly to fulfil the Paris Agreement commitments.  
2.2.  He noted that while amid a global pandemic, the climate emergency continued to worsen. 
Parties to the UNFCCC process had a substantial amount of outstanding work to complete at CoP26 . 
The Paris Agreement was not yet implemented, less than half of NDCs had been updated on time, 
and nations had to step up to react to the climate ambition needed to drive the deep and rapid 
change required to avoid and adapt to the worst impacts of climate change. CoP26  in 2021 was  
especially important and , above all else, parties had to agree on the rules to implement the Paris 
Agreement, table robust NDCs and continue to build climate ambition.  
2.3.  The recent NDC Synthesis Report produced by the UNFCCC Secretariat, reflecting the combined 
impact of national climate action plans, s howed that levels of climate ambition were very far from 
putting nations on a pathway that would meet the goals of the Paris Agreement to limit global 
temperatures to 1.5 °C by the end of the century. At that rate, nations would achieve only less than 
a 1 % reduction in emissions by 2030 compared to 2010 levels. The IPCC called for that reduction 
to be 45 % lower. The UNFCCC was encouraged by announcements of long -term decarbonization 
and carbon neutrality plans such as those by Korea, Japan, China, the United Kingdom  and the 
European  Union . They were also encouraged by the United  States  rejoining the Paris Agreement. 
However, the NDC Report was still a red alert for the planet. Major emitters had to step up with 
much more ambitious emissions reductions targ ets well before the Conference in Glasgow.  
2.4.  CoP26  would  have a very heavy agenda as it would  have to address both 2020 and 2021 
mandates as well as outstanding work from the Chile/Madrid conference in 2019. That included : 
completing the Paris Agreement  rulebook; conducting several reviews including the review of the 
Financial Mechanism, the Adaptation Fund, the Adaptation Committee, the Standing Committee on 
Finance , the Climate Technology Centre and Network  and the second periodic review of th e long -WT/CTE/M/71  
 
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  term goal;  and c oncluding the enhanced transparency framework and  the operationalization of  
Article 6 (market  and non -market based approaches ). 
2.5.  Article  6 negotiations would require parties to agree on how international carbon markets would 
work. It represented, more generally, the world 's "toolbox " for addressing climate change. 
Operationalizing Article  6 would help get those markets operating in a way that made  sure all nations 
and businesses used them and that the rules were the same for everyone. It would also bring 
opportunities related to both mitigation and adaptation, as well as helping address sustainable 
development holistically . Failure to operationalize Article  6 risk ed fragmenting the carbon market 
action to address climate change —especial ly by the private sector. It represented  a great challenge, 
but a resolution was within reach.  
2.6.  Parties also had to make progress towards the global goal on adaptation, continuing to 
formulate and implement National Adaptation Plans  (NAPs) , and ensuring th at vulnerable countries 
were supported in addressing loss and damage due to climate change. Trust had to continue to be 
built among parties , which meant hono uring past commitments. Developed countries should have, 
by 2020, jointly mobilized USD 100 billion annually of public and private sources and through 
multilateral and bilateral channels as agreed to in Cancun. That commitment had not yet been met 
which had res ulted in a significant lack of trust amongst Parties.  
2.7.  CoP26  therefore was important to get back on track. Governments would take decisions that 
would determine the future of all people and the planet. In Glasgow Parties had to: fulfil promises 
previously made – especially on NDCs and finance; wrap up outstanding negotiation items; raise 
ambitions in mitigation, adaptation and finance; and bring State and non -State voices together to 
continue building climate ambition.  If the Paris Agreement was a covenant of hope with the people 
of the world, it had to  be representative of them as well , and bring together regional and local 
governments, cities and communities, businesses, investors and others . The Action for Climate 
Empowerment was targeted towards encourag ing all members of society to engage in climate action.  
2.8.  Success at CoP26  had to be achieved, which meant a balanced package of decisions and actions 
that reflected the expectations, concerns and needs of all stakeholders in multiple areas – all set 
against  a backdrop of ambition. It was also an unprecedented opportunity and a rare moment in 
time that could not be lost, as nations built forward from the COVID -19 pandemic to structure 
resilient, sustainable, green post -recovery economies. Finally, the represe ntative und erline d the 
excellent collaboration with the UK incoming Presidency on all aspects related to CoP26  and all efforts 
that were made to make CoP26  a success for the whole world.  
2.9.  The representative of the Pacific's Islands Forum  stressed the vital imperative from the Pacific 
perspective of addressing Climate Change in the WTO. Pacific economies and trade were severely 
impacted by Climate Change: climate -related natural disasters regularly and very significantly 
disrupted their development and trade;  they suffered from a gradual loss of natural resources, and 
loss of livelihoods and development potential, due to sea level rises; and ocean acidification affected 
their fish stocks. Those impacts on pacific islands trade and development had to be better 
understood.  
2.10.   Pacific islands own emissions were low or even negligible by international standards, although 
they were making efforts, as far as limited resources allowed, to mitigate and adapt. However, years 
of hard -won development progress, including thro ugh trade, risked being reversed by climate 
change. International cooperation was required not only to address climate change itself, but also 
to address the particular challenges faced by the Pacific and similar Small Island Developing States 
and Small an d Vulnerable Economies in adapting their economies and trade to a climate affected 
world.  
2.11.   Pacific islands hoped that Green Aid for Trade would play a significant role in their mitigation 
and adaptation strategies, which would require investment and technical assistance to build climate -
resilient trade and trade infrastructure, and greener and m ore diversified economies. The Pacific 
islands would actively follow relevant work in the CTE and elsewhere in the WTO leading up to MC12 
which would take place very shortly after CoP26 . The outcomes should be coherent, mutually 
supportive, and as action o riented as possible.  WT/CTE/M/71  
 
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  2.1.1.2   United Kingdom 's update on the 26th session of CoP26   
2.12.   The representative of the United Kingdom  provided  an update to delegations on the  planning 
and logistics for CoP26 , and the calendar of events leading up to the Conference in Novemb er. As 
part of its Presidency, the United Kingdom  was committed to addressing the connected challenges 
of climate change and development .  
2.13.   The United Kingdom  would host a Climate and Development Ministerial Meeting on 31 March 
which would convene key count ries on the challenges and priorities for implementing the Paris 
Agreement and Agenda 2030 for Sustainable Development in the most climate vulnerable countries. 
It would bring together an inclusive group of Foreign and Development Ministers to problem -solve 
on a series of key issues: access to finance, response to impacts, quantity, quality and composition 
of climate finance and fiscal space. On the same date, the International Energy Agency -CoP26  Net 
Zero Summit would bring together international energy an d climate leaders from around the globe 
to accelerate the momentum behind clean energy and examine how countries could  work together 
more effectively to reduce their greenhouse gas emissions to net zero in line with shared 
international goals. WTO Director -General Okonjo -Iweala would  take part in the opening session.   
2.14.   Next, the United Kingdom  would work to  build and maintain momentum up to CoP26 . 
United  States  President Biden 's planned Climate Summit on 22 April would  be an important part of 
the calendar for generating leader level commitment to the agenda, along with the UK 's G7 summit 
in June. The United Kingdom  would work  particularly closely with Italy as their Partner for CoP26  
and co-host a pre-CoP from 30 Septem ber to 2 October in Milan. The pre -CoP meeting would  provide 
a selected group of countries with an informal setting to discuss and exchange views on some key 
political aspects of the negotiations and offer political guidance for their continuation . It would be 
attended by 35 to 40 countries, representatives of the UNFCCC Secretariat, the chairs of the 
Subsidiary Bodies of the Convention and a number of stakeholders who pla yed a key role in the fight 
against climate change or in the transition to sustainable  development. The G20 Leader 's Summit, 
hosted by Italy, on 30 and 31 October and immediately before CoP would be a nother key milestone.  
2.15.   The United Kingdom  was considering what different COVID scenarios might mean for CoP26  
and planning accordingly, putting  the health of the participants and the local community first. The 
intent  remain ed to hold an in -person event for CoP26 , respecting the wishes of all parties, many of 
whom felt strongly that CoPs should be conducted in person and that action on climate cha nge could 
not be delayed.  As CoP26  drew closer , logistics briefing sessions were planned in London for 
London/Brussels based Missions representing all Parties , as well as one  organized in conjunction 
with the UNFCCC Secretariat shortly before CoP26 .  
2.16.   Recalling their  previous interventions, the  representative noted that the  shifts required to 
meet CoP objectives would  have implications for trade policy and the multilateral trad ing system. 
That include d direct links, such as through the  Forests, Agriculture and Commodity Trade  (FACT)  
dialogue  on sustainable land use and trade in forest risk commodities , as well as the wider impacts 
of changes such as the energy transition and the  shift to zero emission vehicles. All such changes 
would  impact how Members  trade d and the United Kingdom  looked  forward to continued dialogue in 
the WTO.  
2.17.   The representative of Switzerland  noted that under  the Paris agreement, Switzerland had 
confirmed its target of 50%  emissions reduction  by 2030 , while  adjust ing its target for 2050 to net 
zero. Considering Switzerland's per capita emissions, that was  in line with IPCC recommendations.  
During the last CTE meeting, Switzerland had  already reported it had  concluded a bilateral 
agreement with Peru in October 2020 to allow the implementation of foreign offsets in full integrity. 
A similar agreement with Ghana had been  signed in November 2020. These bilateral ag reements 
implement ed Article  6 of the Paris Agreement. Other agreements were under negotiation  and 
through them  Switzerland sought to  set high standards for the thorny UN negotiations in th e area. 
When progressive countries create d precedence , it strengthe ned the quality of such mechanisms .  
2.18.   The representative of Canada  commend ed the United Kingdom's  efforts to promote the 
development of sustainable supply chains and were supportive of discussions on this important area 
at the WTO.  WT/CTE/M/71  
 
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  2.1.1.3   New Zealand's update on t he negotiation under the " Agreement on Climate 
Change, Trade and Sustainability " (ACCTS) initiative  
2.19.   The representative of New Zealand  provide d an update on the negotiation under the 
"Agreement on Climate Change, Trade and Sustainability " (ACCTS) initiative . As noted in previous 
meetings of this Committee, New  Zealand, Costa Rica, Fiji, Iceland, Norway, and Switzerland were 
currently negotiating the Agreement on Climate Change, Trade and Sustainability (ACCTS) which 
encompasse d four key pi llars which were at the nexus of trade and environment and sustainable 
development policy. The ACCTS pillars were:  the liberalisation of environmental goods ; new and 
binding commitments for environmental services ; disciplines to eliminate harmful FFS; and best 
practice guidelines to inform the development and implementation of voluntary eco -labelling 
programmes and mechanisms. The fourth round concluded last week (26 March 2021) with the 
delegations holding multiple sessions across the four working groups. The working groups continue d 
to make steady progress across the four pillars.  
2.20.   In the environmental services group, discussions ha d focused on addressing the issue of dual 
use in the environmental services list and the importance of ensuring legal certaint y and 
predictability. The group would  also consider definitions for key terms, such as environmental 
services, and consider text proposals ahead of the next round. This work support ed the underlying 
objective of this pillar, which was to identify and agree  on a list of environmental services and 
environmentally related services. In the environmental goods group, participants ha d drawn on the 
extensive environmental goods discussions and resources from other fora, including the APECupto 
and Environmental Goo ds Agreement  co-chair lists.  The six participants ha d developed a 
comprehensive environmental goods "long list ", nominating over 550 environmental goods, of which 
70 goods ha d been shortlisted to date. Participants continue d to review nominations, amend, a nd 
update the long list. This work was occurring alongside discussions on textual proposals. This work 
support ed the underlying objective of this pillar, which was to  develop a schedule of environmental 
goods, that ha d an identifiable and sound environmental end use or benefit, and to eliminate tariffs 
on these environmental goods.  
2.21.   In the eco -labelling group, participants were similarly drawing on existing sources whe re 
appropriate and continuing discussions on potential textual elements for the principles -based 
guidelines as well as effective and practical institutional mechanisms that would  support the 
promotion and implementation of the guidelines. Work continue d on considering the appropriate 
scope and key definitions for this pillar of the ACCTS. Discussions ha d also focused on potential text -
based options for the content and structure of the principles -based guidelines and the institutional 
mechanisms that would  support the implementation of the guidelines.  
2.22.   The FFS working group continue d to navigate complex and interconnected elements related 
to developing legally enforceable and WTO -consistent disciplines on FFS. In Round 4, the group 
focused on the scope of the  chapter and definitions of fundamental terms, exploring the advantages 
and disadvantages of different approaches.  Acknowledging the elements were interconnected, the 
group also discussed how the primary commitments section might be structured, and conside red 
whether the typologies of subsidies listed under the SDGs  could be applied and how various 
approaches from existing subsidies frameworks might inform their work.  The group would  consider 
textual elements ahead of the next round.  
2.23.   New Zealand  welcome d interest from WTO members on the Agreement and would continue 
to keep interested Members informed on developments. The resulting Treaty -level and WTO -
consistent instrument would  be open to other Members to join, provided they were able to meet its 
obligatio ns. More broadly, New Zealand  remain ed committed to keeping this Committee informed of 
progress of the negotiations. The goal was that the ACCTS would  help inform broader trade and 
environmental discussions at the WTO by demonstrating how trade actions could drive 
environmental outcomes.  
2.1.1.4   Canada's report on webinar on Border Carbon Adjustments (BCAs): Issues, 
Options and Impacts  
2.24.   The representative of Canada  report ed on a webinar his delegation hosted on 4 March entitled 
"BCAs: Issues, Options and Impacts ". The main objective of the webinar was to increase the 
knowledge and understanding of what BCAs were, and how they might  interact with trade rules.  WT/CTE/M/71  
 
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  There was overwhelm ing interest in the webinar – over 750 registrants – underscoring the growing 
interest to engage in further discussions on BCAs, including from a trade policy perspective. A 
recording of the webinar was available on the Mission of Canada YouTube channel.  Canada' s 
Ambassador de Boer delivered opening and closing remarks, and the webinar was moderated by 
Dr Carolyn Deere  Birkbeck from the Graduate Institute Geneva. It also included 4  panellists : 
Andrei  Marcu (European Roundtable on Climate Change and Sustaina ble Transition); Aaron Cosbey 
(International Institute for Sustainable Development);  Catherine Cobden (Canadian Steel Producers 
Association); and Ludivine Tamiotti (WTO ). 
2.25.   The presentations addressed a range of issues pertaining to BCAs, including the linka ges to 
climate targets and the Paris Agreement, design options, industry views and the relationship with 
WTO rules. A key takeaway from the webinar was that dialogue, transparency and coordination were 
important, as efforts on BCAs progress ed, especially f rom a trade policy perspective.  Effective 
coordination also mean t a dialogue with stakeholders as this issue move d forward.  Canada 
fundamentally believes that Members needed to  work urgently to demonstrate how the multilateral 
trading system could  meaningf ully and credibly contribute to achieving global environmental 
sustainability objectives.  Canada would  also be working with like -minded economies to consider how 
BCAs could fit into a broader strategy to meet climate targets, while ensuring a fair environm ent for 
businesses.  
2.26.   The representative of the United  States  appreciated the diversity of technical expertise and 
the detailed consideration of the technical, legal, and other issues that need ed to be addressed and 
analysed during the design and implementation of a BCA. The United  States  looked forward to 
continuin g to engage with other Members on trade and climate change issues, including BCAs as 
appropriate, and to explore where trade could  support efforts to tackle the climate crisis, including 
achieving net zero global emissions by 2050.  
2.1.2   MEAs dealing with chemi cals and wastes (the Basel, Rotterdam and Stockholm 
(BRS) Conventions)  
2.1.2.1   BRS Conventions  briefing on recent activities  
2.27.   The Basel, Rotterdam and Stockholm (BRS) Conventions (UNEP)  briefed delegations on latest 
developments , noting that 2021 had started with a  big leap forward for chemicals and wastes 
management.  On 1 January 2021, the new entries introduced in the annexes to the Basel Convention 
following the "Plastic Waste Amendments " had become effective for 186 Parties. The Plastic Waste 
Amendments had been  adopted at CoP 14  to the Basel Convention held in May 2019, with the 
objective of enhancing the control of the transboundary movements of plastics waste and clarifying 
the scope of the Convention, as it applie d to such waste.  
2.28.   CoP-14 had established the Plastic Waste Partnership (PWP) in May 2019, with the objective 
of improving and promoting the Environmentally Sound Management (ESM) of plastic waste at the 
global, regional and national levels and prevent and minimize their generation. At  its first face -to-
face meeting, held in the Seychelles  from 2-5 March 2020, the Partnership (PWP -1) working group  
had agreed to a work plan and four project groups had been  established on: i) prevention and 
minimization; ii) plastic waste collection, recy cling and other recovery including financing and related 
markets; iii) transboundary movements (TBM)  of plastic waste; iv) outreach, education and 
awareness raising.  
2.29.   At that point , 23 pilot projects ha d been selected under the PWP pilot project programme,  
and had started to support Parties in implementing the 3 pillars of the Basel Convention – TBM, ESM 
and prevention of plastics waste – as well as important cross -cutting awareness raising activities. 
The pilot projects ha d been possible due to the generou s funding by France, Norway/Norad, Sweden, 
Switzerland, the European  Union . As of 26 March 2021, the PWP had 110 members and 216 
representatives  and gather ed partners from approximately 50 governments, 13 international 
intergovernmental organisations, 15 c ivil society organisations, 20 private sector entities  and 11 
Basel and Stockholm Convention Regional Centres.  PWP's working group second meeting was 
scheduled for 14 to 16 June 2021.  
2.30.   With the ratification by Nicaragua in e arly in January  2021, there were  now 100 parties to the 
Basel Convention who had  ratified the Ban Amendment. The Ban Amendment , which had  entered WT/CTE/M/71  
 
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  into force in December 2019 , prohibi ted all transboundary movements of hazardous wastes destined 
for final disposal, from developed countries (OECD, European  Union , Liechtenstein) to developing 
countries.  It mean t that those 100 Parties that ha d agreed to be bound by the Amendment were not 
recipients of hazardous wastes, which was particularly important for those Parties lacking the 
appropriate capacities to manage them. The Ban Amendment ha d received strong support from 
many stakeholders, including civil society and inter governmental  organisations.  
2.31.   The representative further briefed delegations on discussions held  in January 2021  at the last 
meeting of the  Stockholm Convention 's POPs Review Committee (POPRC) which included among 
other chemicals, a proposal to list the ubiquitous plastic additive UV -328. UV -328 was a pervasive 
high-volume additive in plastic products typically found in pe rsonal care products, transparent 
plastics, and coatings.  It had been found in the environment and biota, including in remote areas 
such as the Arctic and the Pacific Ocean, far from its production and use. UV -328 ha d been found to 
be transported with, and  could  subsequently be released from plastic debris, which was taken up for 
example by seabirds with subsequent accumulation in their tissue.  
2.32.   The POPRC concluded that the chemical satisfied  the four screening criteria and would, 
therefore, be further revi ewed to decide whether the chemical was likely to lead to significant 
adverse effects due to its long -range environmental transport, opening up options for Parties to 
decide at future Stockholm Convention meetings to take measures with the view to reduce o r 
eliminate it. It represented an important milestone as the Stockholm Convention was therefore 
poised to become the second legally -binding international treaty to push for the sound management 
of plastics throughout their life cycle, especially at the des ign stage, where alternatives to hazardous 
chemicals would  need to be identified.  The representative also recalled that May 2021 would mark 
the 20th Anniversary of the adoption of the Stockholm Convention  and invite d delegations to join 
BRS at different ce lebratory events that would  be organiz ed starting  on 21st May.  
2.33.   The representative recalled that  the 2021 Meetings of the CoPs to the BRS Conventions were 
scheduled to be held in Geneva from 19 to 30 July 2021. In light of the COVID -19 pandemic, the 
Bureau x of the conferences of the Parties ha d agreed to hold  the 2021 CoPs meetings to the three 
conventions in two segments : an online segment from 26 to 30 July 2021 ; and a face -to-face 
segment tentatively scheduled for June 2022, in Geneva, under theme "Global Agreements for a 
Healthy Planet: Sound management of chemicals and waste ." 
2.34.   Despite the challenges faced in 2020 , the Secretariat and the Parties to the BRS Conventions 
had accomplished small but constant steps as well as milestones , including through webinars, 
awareness raising and technical assistance activities . However, more work had to be done, notably 
at the forthcoming CoPs meetings in July 2021 and in 2022. Such work and achievements would not 
have been poss ible without the support from numerous government representatives, experts, NGOs, 
private sector and many other stakeholders that work ed together towards the common goal of 
addressing, through MEAs and thanks to multilateralism in general, a sustainable de velopment for 
a more healthy and cleaner planet for all.  
2.35.   The representative of Switzerland  noted that the global environmental challenge of plastic 
pollution had received increasing attention not only in technical discussions but also in a political 
conte xt such as that of the Basel Convention or the UNEA. Switzerland believed that the different 
entities dealing with this issue all had comparative advantages based on their respective mandates 
and operating procedures. Therefore, when delegations would work  on the same issue, they had to 
strive to avoid duplication, and work towards establishing added value for informed decision -making.  
2.36.   The representative of the European  Union  welcomed the entry into force of  the new rules on 
plastic waste under  the BRS and invite d all WTO Members to implement them.  
2.37.   The representative of Colombia  stressed his delegation's  active participation and determined 
commitment and support for the implementation of the BRS Conventions , including  the recent 
amendments on plastic waste. There  was important work to be done in implementation aspects that 
had a direct relationship with international trade , in particular in relation to the management of 
plastic waste , including those wastes subject to the prior informed consent (PIC)  procedure that 
require d special consideration, those that were presumed dangerous and those that were presumed 
non-dangerous. Colombia  also support ed the amendment work on the treatment and description of WT/CTE/M/71  
 
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  electrical and electro nic equipment waste s. Such initiatives could  bring important benefits and 
improve the control of transboundary movement s.  
2.2  Other  
2.2.1   Presentation on the Updated WTO  Matrix on Trade -related Measures Pursuant to 
Selected MEA s 
2.38.   The WTO Secretariat  introduced the u pdated Matrix on Trade -related Measures Pursuant to 
Selected Multilateral Environmental Agreements (MEA Matrix).6 The MEA Matrix was compiled by the 
Secretariat in consultation with MEA Secretariats and provided background information on trade -
related mea sures pursuant to 15 MEAs. It included general information on the covered MEAs (e.g.  
objective, entry into force, number of parties and number of WTO members that are parties to the 
MEA) as well as specific information on provisions relevant to WTO Members, including amendments, 
decisions and other documents adopted by the MEA, supportive measures (e.g. technology transfer, 
financial and technical assistance), non -compliance and dispute settlement mechanisms.  The Matrix 
included an annex indicating w hich WTO Members were parties to each covered MEA.  
2.39.   The WTO Secretariat periodically updated the Matrix in light of developments. As its coverage 
continued to be updated and streamlined to focus on multilateral agreements, some agreements 
with a regional f ocus were no longer covered, namely the Convention on the Conservation of 
Antarctic Marine Living Resources (CCAMLR) and the International Convention for the Conservation 
of Atlantic Tunas (ICCAT). Finally, in the context of the Secretariat's cooperation w ith UNEP, work 
had been developed to explore synergies between the MEA Matrix and the InforMEA tool. The 
Secretariat had contributed to UNEP's project to reflect in the InforMEA the information contained in 
the MEA matrix. UNEP  had been invited to the meet ing and would present the project.   
2.40.   The representative of the European  Union  noted  the MEA Matrix was a  unique and very useful 
tool and  a comprehensive source of information to understand the nexus between trade and 
environment . The European  Union  encourag ed the Secretariat to continue  updating the tool . 
2.2.2   Presentation by UNEP on the InforMEA Initiative  
2.41.   The representative of UNEP  introduced the InforMEA7 initiative, a collaboration between 
several MEAs, co -chaired by UNEP 's Law Division and the Convention on International Trade in 
Endangered Species of Wild Fauna and Flora  (CITES ). It involved  25 Secretariats within five 
United Nations  organization s and the International Union for Conservation of Nature  (IUCN). The 
main objective  of InforMEA was to provide  a central ized searchable database linking all MEA 
databases and websites  and ensuring their interoperability. It included MEA  treaty  texts, as well 
associated information such as CoP decisions, national reports, contacts, national legislations,  and 
jurisprudence. Information was  organized into environmental topics and the website  also served as 
a glossary for free text search for legal  environmental information around MEAs. Wherever possible, 
data was extracted a utomatically and kept completely in line with the information contained in each 
MEA website.  
2.42.   UNEP had been considering how to capture the universe of international environmenta l law 
and how it inte racted with other areas of public international law, especially trade. A recent InforMEA 
Steering Committee  meeting had approved a recommendation to explore a solution to integrate 
trade information in the platform.  Two options had bee n devised : linking the InforMEA to MEA 
information available in the WTO  MEA Matrix ; or identifying where environment was reflected in 
trade agreements. UNEP had decided to start with the MEA Matrix as a  first pilot  solution.   
2.43.   The objective was to digitize the MEA matrix , which was a very comprehensive and  useful 
resource , by transforming it into a digital version that would be linked to the broader set of legal 
information in the InforMEA. This would allow for information to be more easily accessible in the  
platform, in particular for a non -trade audience, as well as to link it to other information and tags 
provided by InforMEA, improving navigability and user friendliness. Most of  the information c ame 
from MEAs themselves and the project would also seek way s to streamline its update process since 
 
6 WT/CTE/W/160/Rev.9, TN/TE/S/5/Rev.7.  
7 The tool can be accessed at: www.informea.org . WT/CTE/M/71  
 
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  covered MEAs were also part of the InforMEA  initiative. In theory, once all information was 
integrated, updates to the MEA Matrix would be possible in real time as MEA Secretariats updated 
their own information in the InforMEA database.  
2.44.    InforMEA used A koma Ntoso, the UN standard machine -readable format. It had several 
advantages  including : allowing  for more simultaneous translation of documents rather than multiple 
PDFs; providing  the histor ical evolution  of documents; and , for the purposes of trade and investment 
portal, it allowed  the system  to tag  informati on at the provision level. With the standard , rather than 
tagging the entire document as trade -related, it would be possible  to tag specific provision s, allowing 
it to be linked to other information in  InforMEA. The implementation was still a  prototype, but once 
implemented it would allow the user to highlight a specific provision or tag  and find its broader  
context in the database . The representative provided delegations with a brief presentation of a mock -
up of what the integrated trade information in Inf orMEA would look like. UNEP was enthusiastic 
about the project and the cooperation with the WTO Secretariat and looked forward to further 
collaboration on the MEA Matrix.  
2.3  Transparency of environment -related trade measures (Item 4 of the CTE Work 
Programme)  
"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."  
2.3.1   WTO Environmental Database  
2.45.   The WTO Sec retariat  provided an update8 on the WTO Environmental Database (EDB).9 The 
EDB 2019 report had been circulated in document WT/CTE/EDB/19. Data collection for 2020 was 
under way using a new EDB data entry platform. The EDB web  portal covered information o n over 
13,200 environment -related measures notified under WTO  Agreement s and more than 8 ,600 
environment -related entries drawn from the Trade Policy Reviews (TPRs) of WTO Members. Each 
year more than 600 new environment -related notifications, 1 ,000 new measures and 750 TPR 
entries were added to the database. An additional section had been added t o the EDB 2019 report 
to provide topic -specific analysis. In 2019, 103 WTO members from all regions and at levels of 
development had submitted environment -related notifications. The European  Union  had the most 
environment -related notifications. Rwanda and Uganda were also among the top 10 notifiers in 2019. 
Overall, the number and share of environment -related notifications and measures had increased 
over time with 672 notifications and 1 ,764 environment -related measures in 2019. The WTO 
TBT Agreement  had th e most environment -related notifications while the Agreement on Subsidies 
and Countervailing Measures (ASCM) accounted for the most environment -related measures in the 
database.  Support measures had grown in recent years and constituted about 60% of all ED B 
measures with grants and direct payments the single biggest category among the type of measures. 
On the type of sectors in 2019, manufacturing and agriculture each accounted for a quarter (25%) 
of the notified measures. Other sectors included chemicals ( 13%), energy (12%) and fisheries with 
9% of the EDB measures. On types of environment -related objectives, chemical, toxic and hazardous 
substances management was still the top objective (17%) in 2019 and sustainable fisheries 
management was also in the top  five (9%). Fisheries was the topic -specific focus in Section 3 of the 
EDB 2019 report. The ASCM was the WTO  Agreement  with the most notified environment -related 
measures under the fisheries sector, with grants and direct payments the single largest type o f 
measure. He also presented data on TPR entries affecting the fisheries sector and examples of 
notified sustainable fisheries management measures included in the EDB.  
2.46.   The representative of Switzerland  thanked the Secretariat for the presentation on the E DB. 
She referred to questions on plastic pollution raised earlier and at the informal dialogue. The 
questions were: (i) what kind of data would complement data presented by the WTO Secretariat to 
cover releases, distribution, movements, production and cons umption of plastics? (ii) How could the 
notification on the different plastics be improved? The WTO Secretariat had pointed out that the 
notifications available to the WTO were partial data.  
 
8 See document RD/CTE/183.  
9 https://edb.wto.org/ . WT/CTE/M/71  
 
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  2.47.   In response to the query from Switzerland, the representative of the WTO Secretariat  said 
that Annex es I and III of the EDB 2019 report provided the list of keywords and harmonized 
categories used to tag the EDB data. EDB data collection and entry involved tagging environment -
related measures by type of sector, measures , objectives and keywords which allowed for topic -
specific analysis. For fisheries, the topic of the EDB 2019 report, the data was tagged and could be 
analysed by sector (fisheries), keyword (fish), and environment -related objective (sustainable 
fisheries management). Plastics had been added as a EDB keyword in 2020. Data on plastics could 
also be searched using the "free text" search option in the database. Other relevant harmoni zed 
categories in the EDB could include "waste management and recycling". He a dded that other topics 
such as climate change or biodiversity could also be analysed for reports using data from the EDB.  
3  OTHER BUSINESS  
3.1  Canada's briefing on the Trade and Environmental Sustainability Structured 
Discussions  (TESSD)  
3.1.  The representative of Canada , on behalf of Canada  and Costa Rica  (coordinators of the Trade 
and Environmental Sustainability Structured Discussions  or TESSD ), recalled that in the margins of 
the CTE meeting in November 2020, a group of some 20 co -sponsors had issued a communication 
on Trade and Environmental Sustainability  launching TESSD .10 Since then, the number of co -
sponsors had risen to 26, representing over 50 WTO Members . TESSD co-sponsors recogni sed that 
action on environmental sustainability was urgent . TESSD provided a forum for interested WTO 
Members to explore ways to ensure that trade policy would contribute to environmental 
sustainability. Following a first discuss ion on agenda setting in January 2021, c o-sponsors had 
presented proposals  and ideas on work that TESSD could undertake  in 2021 . All proposals had been 
posted on a web portal available to all WTO members .11 
3.2.  TESSD held its first regular meeting on 5 March 2 021. The purpose of this meeting, which was 
co-chaired by Ambassador de Boer (Canada) and Ambassador Abraham Peralta (Costa Rica) was to 
discuss ideas to help inform the development of a work plan for the year  2021. In addition to 
interventions from co -sponsors, several other WTO Members had taken the floor to provide views 
and thoughts and to express interest in further exploring issues at the nexus of trade and 
environmental sustainability. Recogni sing the importance and relevance of ensuring coherence an d 
consistency with efforts in other for ums and the need to work horizontally, the March meeting had 
benefited from the participation of a small group of stakeholders  representing industry , academia , 
non-governmental organizations, and other international o rganizations. Stakeholders had had the 
opportunity to provide views and thoughts on the importance of meaningfully advancing efforts on 
trade and environmental sustainability at the WTO and on the priorities that could be considered for 
TESSD. Ensuring an inclusiv ity and transparency was of utmost importance to TESSD coordinators, 
who were committed to work with co -sponsors and stakeholders to find a balance between , on the 
one hand,  ensuring that stakeholder could help inform TESSD deliberations and  on the  other, 
ensuring that WTO Members could effectively and efficiently  advance their work . 
3.3.  The TESSD coordinators planned to circulate to co -sponsors a draft work plan for the year. 
They would work towards articulating a vision for TESSD work for the post-MC 12 period, most likely 
in the form of a ministerial statement issued at MC 12. Such a statement should be consistent and 
supportive of other statements on trade and environmental sustainability issued at MC 12.  WTO 
Members supporting the TESSD stat ement would not be obligate d to support other trade and 
environmental sustainability statements. The future direction of TESSD work would be decided by 
TESSD co-sponsors . The next regular meeting was scheduled for end -May. 
3.4.  The representative of Saudi Arabi a said that her delegation had participated in the first TESSD 
meeting. Her delegation was aware of the importance of sustainable development in its economic, 
social and environmental dimensions. Sustainable development was a fundamental goal of the WTO 
enshrined in the Marrakesh Agreement. The CTE was the WTO's standing forum for dialogue between 
Members on the impact of trade policies on the environment. Since its creation, the Committee had 
followed a comprehensive and inclusive work program  that encoura ged information and experience 
sharing on the effects of environmental measures on market access, the relevant provisions of the 
Agreement on Trade -Related Aspects of Intellectual Property Rights and labelling requirements for 
 
10 See document WT/CTE/W/249/Rev.1 . 
11 The TESDD web portal is available at: https://www.wto.org/english/tratop_e/tessd_e/tessd_e.htm . WT/CTE/M/71  
 
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  environmental purposes. It wa s very important to stick to the CTE's mandate for exploratory 
discussions. N egotiations on environmental goods and services, which sought to enhance mutual 
supportiveness between trade and environmental policies, should take place in the CTE Special 
Session. The WTO was a Member -driven organization. WTO Members' common goal was to 
strengthen and safeguard the multilateral trading system. She asked whether WTO Members would 
replicate discussions on the same topics in the CTE, TESSD and other WTO bodies. Mor eover, she 
asked what was going to happen to the negotiations in the CTE – Special Session given her 
delegation's understanding that TESSD discussions would move to a negotiating phase. Finally, she 
asked what the value added was of negotiating broad envir onmental topics such as climate change 
or fossil fuel subsidies which had been discussed in a holistic manner in other organizations. 
Discussions on the relation between trade and the environment had to be inclusive of all 
technological innovations and the development dimension to broaden the coverage of benefits. In 
addition , such discussions should be open, transparent and inclusive to all WTO Members and without 
prejudice to their rights and obligation s. 
3.5.  The representative of Venezuela  said that his delegation was concerned about the proliferation 
of initiatives outside of the WTO's formal structure to address issues that should be considered within 
the WTO's formal structure. The CTE, which had a clear mandate and a work programme, was the 
formal forum for dialogue among Members on the impact of trade policies on the environment. Any 
exploratory debate should be approached within the framework of the CTE – Special Session and 
should give priority to topics  where Members' views converged . Discussions had to be open, 
transparent and inclusive , without prejudice to Members' rights and obligations. Moreover, 
discussion s had to take into account Members' policy space and each Members' development 
dimension. His delegation recogni sed the legiti mate right of Members to meet and advance on issues 
where the ir views converged. At the same time, it was important not to create spaces for parallel 
negotiations that conflict ed with the mandate of the CTE and that, far from helping to advance on 
this imp ortant issue, create d greater divergences.  
3.6.  The representative of the Republic of Korea  said that TESSD was an important and valuable 
forum for trade and environment issues at the WTO. At the first regular meeting, her delegation, 
along with Australia and Singapore, had submitted a proposal to contribute to active discussions and 
collaboration among  Members . It was essential for like -minded countries to cooperate in response 
to trade and  environmental sustainability  challenges and to deliver at MC 1 2. Her delegation was 
committed to contributing to this goal.  
3.7.  The representative of Japan  noted the importance of the WTO 's role in realizing global carbon 
neutrality by facilitating the widesp read adoption of the products and technologies that contribute d 
to this goal . His delegation proposed the elimination of tariffs on goods that directly contribute d to 
the reduction of greenhouse gas emissions  and further work on rule-making towards the 
harmonization of domestic regulations with international standards. Discussions in forums such as 
the TESSD  should be deepened . 
3.2  Barbados' report on the High -Level Panel Discussion on "Trade, the Environment and 
Sustainability: A Focus on Green Recovery in a COVID -19 Era " 
3.8.  The representative of Barbados  report ed on a high-level panel discussion on " Trade, the 
Environment and Sustainability: A Focus on Green Recovery in a COVID -19 Era"  co-hosted on 
29 March 2021 by the  Permanent Mission of Barbados to the United Nations and other International 
Organisations at Geneva and the Permanent Mission of the Maldives to the United Nations and other 
International Organisations at Geneva . The high-level panel , moderated by H. E. M r Chad Blackman  
(Barbados),  was divided into two segments. During the opening segment participants benefit ed from 
the perspectives of an esteemed list of high -level leaders in the areas of trade, the environment and 
sustainability, namely Dr Ngozi Okonjo -Iweala, Director -General of the World Trade Organisation 
(WTO); Ms  Amina Mohammed, Deputy Secretary -General of the United Nations and Chair of the 
United Nations Sustainable Development Group; and Ms  Pamela Coke -Hamilton, Executive Director 
of the Internati onal Trade Centre. Participants were then afforded the opportunity to benefit from 
the keynote address,  which was delivered by the Honourable Abdulla Shahid, Minister of Foreign 
Affairs of the Maldives.  During the second segment of the programme, participa nts had an 
opportunity to engage with a distinguished panel of speakers comprising of Ms  Abimbola Olufore, 
Special Advisor to the Minister of Industry Trade and Investment of Nigeria; Mr Maximo Torero 
Cullen, Chief Economist, Food and Agriculture Organisat ion (FAO); and Ms Yuefen Li, United Nations 
Independent Expert on Foreign Debt.   WT/CTE/M/71  
 
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  3.9.  The high -level event was aimed at expanding the policy dialogue on trade and its nexus with 
the environment and sustainability as well as green recovery in the aftermath of th e COVID -19 
pandemic, and placed a specific focus on the issues of food security, promoting global and regional 
supply and value chains. In her remarks to the event, the WTO Director -General informed attendees 
that the crises presented an opportunity to build back greener and better, not only in terms of 
rebooting international trade but also to find  pathways to sustainable trade that could  assist both 
the environment and the economy.   
3.10.   Some of these pathways could  be linked to work that ha d already been initiated in the CTE , 
initiatives launched by Members and other on going  work.  She gave four examples of such pathways. 
First, trade policies could  help unlock the green investment and in novation needed to diversify and 
decarbonize economies to create the jobs of the future . Second,  the jobs and diversification agenda 
was linked to many of the issues that were already being discussed in the WTO such as e -commerce, 
investment facilitation, women in trade, micro -small and medium enterprises . Third,  trade policy 
needed to  go hand in hand with a rebuilding process that ensure d that SIDS an d other developing 
nations ha d the capacity to ensure food security access to essential goods and also to b olster their 
own productive capacity . And fourth,  keeping global markets open was essential for a strong and 
sustained during recovery and for a blue recovery . 
3.11.   The issue of debt, particularly as it relate d to SIDS was highlighted during the meeting.  The 
meeting was informed that 17 SIDS were at high risk of debt distress, which was compounding many 
the existing challenges including extreme vulnerability to climate impact and reinforced the need for 
SIDS to be provided with the tools they need ed to strengthe n their resilience, including greater 
access to financial support and debt relief. There was also a call for more to be done for SIDS in his 
area. It was also highlighted that as the world recover ed from the pandemic there was also a need 
to rethink trade itself and seize the current opportunity to achieve sustainable trade compatible with 
a net zero emissions pathway and sustainable blue economies.  
3.12.   The role of Aid For Trade in assisting in green rec overy was highlighted, particularly in 
ensuring that trade policy work hand  in hand with environmental sustainability , for example , in 
providing support  Micro -, Small and Medium -sized Enterprises (MSMEs) in developing countries, in 
terms of technical assis tance and innovative financing mechanisms to support greener development 
pathways and job creation. By directing Aid for Trade to these high impact areas, it was possible to 
accelerate recovery, safeguard against future shocks and ultimately create a susta inable future.  The 
meeting also presented useful examples of ongoing projects and experience sharing in terms of 
sustainable methods. One example of this was in terms of the blue economy and more specifically 
the fisheries industry. The Maldives Minister i nformed the meeting that, as a SIDS or a Big Ocean 
State, they ha d been using sustainable and environment -friendly fishing methods to catch tuna for 
centuries. It was  ensure d that waste products from the tuna processing process was utilized for 
example as agricultural fertilizers and raw material export, thereby providing the economy with a 
fall-back to generate primary income.  The need to reconsider the criteria for the graduation of SIDS 
was also highlighted as well as the need for a multidimensional inde x, which would among other 
things include economic and environmental variables.  
3.13.   In essence, the high -level event outlined the challenges faced by the international community 
with the onset of the crisis and more specifically, the challenges faced by SIDS, which ha d been 
severely impacted by the twin crises: induced by the pandemic and climate change. During the 
meeting , it was said  that recovery from the twin challenges facing the global community would  
require a shift from the traditional towards new and i nnovative avenues. It was recognised that this 
therefore created an opportunity to focus on green recovery and given the role that trade needed to  
play in economic recovery , the WTO could  play an important role in green recovery.   
3.3  Guatemala's report on eve nt co-hosted with Finland on "Sustainable business and 
circularity  – why does sustainability make business sense " 
3.14.   The representative of Guatemala  briefed the CTE on the joint event co-hosted by  the 
Permanent Missions of Guatemala and Finland on " Sustainable business and circularity - why does 
sustainability make business sense ", which was organized in collaboration with the International 
Chamber Of Commerce (ICC).  Nations ha d only 10 years left t o fulfil the SDGs . To achieve th ese 
ambitious goal s, it was clear that every player ha d to play its role. Private sector was a particularly 
important player and often even a pathfinder in promoting sustainability in their production and 
distribution proces ses. This was the reason  why the event focused precisely on the contributions and WT/CTE/M/71  
 
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  efforts that companies in Guatemala and Finland were making  to become more sustainable, their 
role in advancing the transition to a circular economy and how trade factor ed in their work.  
3.15.   During the event, representatives from the sugar sector, cement and exporters association 
from Guatemala, and from renewable fuel and textiles sectors from Finland shared concrete 
examples of how through research, innovation and creativity, th eir production and distribution 
processes ha d evolved in order to become more sustainable and circular. A key element was also 
the dedication of the companies to find new solutions that ma de their business more sustainable.  
One of the key messages from the  event was that transitioning to a more sustainable economy, was 
not only beneficial to the environment and the wellbeing  of humanity but it also brought  benefits to 
the companies that took part in this transition. Focusing on goals such as reducing carbon  emissions, 
reducing waste and reducing water consumption reduce d costs, create d added value and promote d 
innovation that ma de business sense. As a consequence of the pursuance of these objectives, 
companies became more efficient, more competitive and better prepared to face future challenges 
in a way that contribute d to the resilience of the societies. The companies also share d experiences 
regarding trade -related challenges such as  non-tariff barriers, classifications, standards, trade of 
secondary materials and waste as well as challenges caused by the COVID pandemic.  During the 
event, the ICC also shared some initiatives that the private sector was working on at a global level 
to promote sustainability and circularity.  The event was yet another example of how the participation 
of the private sector could  contribute to the deliberations and debates taking place in the CTE and 
other committees in WTO.  
3.16.   On a final note, Guatemala  mention ed that even  though Guatemala and Finland were so 
distant and different countries, it was impressive to see how companies from these t wo countries 
were tackling in their own way the challenges posed by climate change and environmental 
degradation. It was evident that no matter where they were located, many co mpanies underst ood 
their important role and were committed to make their contribution for a better world. These kinds 
of discussions  brought  added value to the work here and help ed understand better the trading 
practices as well as the trade barriers faced  by companies, which trade negotiators could help solve.  
3.4  Briefings by other observer organizations  
3.4.1   World Customs Organization ( WCO)   
3.17.   The representative of the World Customs Organization ( WCO)  explained that the  WCO ha d 
launched a new theme for 2021 , under the slogan "Customs bolstering Recovery, Renewal and 
Resilience for a sustainable supply chain ", leading the global Customs community to the 
sustainability of supply chains by enhancing collaboration with stakeholders,  using innovative 
technology and focusing on resilience and preparedness.  As a look back on the WCO theme for 2020, 
the recent publication "Customs fostering sustainability for People, Prosperity and the Planet "12 
present ed the related WCO tools and initia tives to reflect on Customs ' role in ensuring an equitable 
transition towards a more inclusive, sustainable and greener supply chain.   
3.18.   Since the last year, the Secretariat ha d been actively engaging in various activities to promote 
and raise awareness on h ow Customs could  facilitate trade in transition towards a circular economy 
and Reverse Chain Logistics.  In terms of trade facilitation, the WCO instruments and tools already 
offered to trade opportunities for voluntary compliance and harmonized, simplified  and rapid release  
procedures for compliant companies, subject to the provision of a minimum of information. However , 
the Circular Economy ha d specificities that need ed to be addressed and studied thoroughly, including 
the identification issues and the bal ance between the facilitation and compliance perspectives .  
3.19.   In this respect, synergies with other international organizations were obviously vitally 
important to join efforts to tackle the complexity of the circular economy paradigm and transversally 
addre ss its inherent challenges. In this framework, the panel discussion that the WCO organized 
during the 229th/230th Session of the WCO Permanent Technical Committee had built up background 
for a study proposal on "Customs in transition towards a circular eco nomy ". The WCO Secretariat 
was currently working on a business case to evaluate the possibilities to proceed on this, including 
evaluating the opportunities to coordinate with interested organizations, especially the WTO.  
 
12 http://www. wcoomd.org/en/media/newsroom/2021/february/looking -back-on-the-wco-theme -for-
2020.aspx . WT/CTE/M/71  
 
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  3.20.   In this direction, the WCO  provide d updates on the WCO 's Asia -Pacific Plastic Waste Border 
Management Project which was in progress under the auspices of the WCO Environmental 
Programme (EP). The Project aim ed to strengthen the capacity of customs administrations to 
mitigate and appropriat ely respond to environmental threats in the Asia/Pacific region, with a special 
focus on the implementation of the Basel Convention.  In the next phase, the Project would  organize 
a regional Conference to present a possible strategic framework to enhance customs control capacity 
on the transboundary movement of plastic waste.   
3.21.   Moreover, in 2020 the WCO Environment Programme (EP) bec ame a member of the Basel 
Convention Environmental Network for Optimizing Regulatory Compliance on Illegal Traffic 
(ENFORCE). In  this framework and provided funding was secured, various initiatives would  be 
implemented in cooperation with other ENFORCE partners, including technical and 
enforcement  capacity building and training, as well as the planning and execution of and small -scale 
enforcement operations.  
3.22.   The WCO EP  was also leading the efforts of the Basel Convention Plastic Waste Partnership 
(PWP) sub -group preparing a plastic waste enforcement guide. The efforts by the WCO and its 
partners to address environmental risks would  continue to intensify, with more enforcement 
initiatives planned for the future, including the WCO's flagship enforcement operation (Operation 
DEMETER) reaching its VII edition in 2021.  WCO believe d that awareness raising was of outmost 
importance to enab le cross -border and multi -stakeholder cooperation, streamline regulatory 
requirements, foster the efficiency of the transboundary movements of environmental goods and 
facilitate legal trade.  Additionally, as pointed out in the occasion of the recent meetin g of the Trade 
and Environmental Sustainability Structured Discussion, evidence -based policy making might be 
another key aspect to progress in this domain. Having data and analysis on costs and benefits of 
the transition towards circular economy, including  regulatory costs, would be an asset for 
decision -making in all the relevant arenas.  
3.4.2   United Nations Conference on Trade and Development (UNCTAD)  
3.23.   The representative of the United Nations Conference on Trade and Development (UNCTAD)  
drew attention to UNCTAD' s activities relating to climate change, oceans economy, circular economy 
and BioTrade. The recently published 2021 edition of the Trade and Environment Review examined 
the physical impacts of climate  change and their effects on developing country economie s and trade; 
the vulnerabilities of developing countries to climate change; costs and finance for climate change 
adaptation; and, finally, ways that developing countries could enhance their trade -climate readiness, 
i.e. enhance the resilience of their trad e to climate change through adaptation actions and economic 
diversification.  
3.24.   So far, most initiatives for attaining Sustainable Development Goal 14 (Life Below Water) had 
focused on the sustainability of ocean eco systems  and ocean management. Limited work had been 
done to identify oceans -based trade sectors, trade volumes and value. Recently, UNCTAD had 
published a first ever oceans economy classification. The classification featured three categories: 
goods, services and energy. Each category was divided into chapters and 52  sub-sectors, making 
use of the Harmonized Commodity Description and Coding System (HS), the WTO Services Sectoral 
Classification List (W/120), and the UN Central Product Classification (CPC). The class ification could 
be used at the national, regional and international level for designing trade strategies and policies 
specific to ocean economy.  
3.25.   UNCTAD's ongoing work on plastic pollution and related trade flows had yielded several 
insights that could inform policymaking. Somewhat counterintuitively, scrap plastics could 
occasionally stream from developing to developed countries. Improving sustainable materials 
management required strengthening global and regional recycling and upcycling infrastructure.  In 
this regard, attention should be given to key countries acting as global and regional hubs for trade 
in plastic scrap. Also, it was important to work on frameworks that were flexible enough to include 
secondary materials, other than plastics, that were  important for a cross -border circular economy.  
3.26.   As part of the Sustainable Manufacturing and Environmental Pollution (SMEP) programme, 
supported by the Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom, 
UNCTAD was working with the G raduate Institute of International Studies on a study of alternatives 
to single -use plastics, focusing on Sub -Saharan Africa and South Asia. The study would propose WT/CTE/M/71  
 
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  options for plastic substitution and serve as a basis for research calls for further work o n plastic 
pollution mitigation, expected for late 2021 under the SMEP Programme. It would also provide 
technical assistance opportunities for countries in Sub -Saharan Africa and South Asia.  
3.27.   In 2020, UNCTAD completed updating its BioTrade Principles and Cri teria: a set of guidelines 
for the sustainable sourcing, transformation and commercialization of goods and services derived 
from biodiversity. Anchored on the three pillars of sustainability – economy, society and the 
environment – these principles guided governments, businesses and civil society in some 
80 countries on the path towards sustainability. The updated version was aligned with key 
development processes, including the 2030 Agenda for Sustainable Development and multilateral 
environmental agreemen ts. New elements included climate resilience, marine biodiversity, and 
sustainable tourism. The experiences, best practices and lessons learned by partners and 
practitioners since the first edition in 2007 had also been considered.  
3.28.   UNCTAD was due to publis h an analytical study on climate change, green recovery and trade. 
The study dwelt on trends towards carbon neutrality, green recovery packages, the rise of 
low-contact economy, resource security in supply chains and the role of trade in creating new 
marke ts and improving access to climate positive goods, services and technologies. These issues 
were being considered against the evolving economic and political background, particularly with 
respect to the questions of climate finance, subsidies and border car bon adjustments.  
3.5  Other matters  
3.29.   The Chairperson  of the CTE informed Members that the next meeting of the CTE was 
scheduled for 23-24 June  2021. As this was his last meeting as Chair  of the CTE , he noted that the 
Committee had gone through a special year and  despite challenges never faced before, he was 
pleased to have witnessed such an unprecedented engagement from delegations on a number of 
pressing trade and environment issues. He was of the view that the Committee should have a feeling 
of achievement as t remendous progress had been made in just a few months. Following on the 
significant work that had started before his tenure as chair, he believed the CTE was today back to 
its role of origin. It was now fully recogni zed worldwide as the one and only releva nt forum to discuss 
issues at the juncture of international trade and environment. He was confident that constructive 
discussions would continue and intensify even more and hoped that this would provide the necessary 
impetus to the preparations for MC12 an d for the achievement of meaningful results.  Finally, the 
Chairperson welcomed the incoming Chairperson, H.E. Manuel A.J. Teehankee (Philippines)  and 
wished him  all the very best of luck for what would  most certainly be a key year on trade and 
environment issues.   
3.30.   The incoming Chairperson  thank ed delegations for their support and trust and looked forward 
to output -oriented  and constructive discussions in the committee this year , building on the progress 
made by my predecessor . He also congratulated  Ambassador Chad Blackman on successfully 
completing a very active year as Chair of the CTE. A lot ha d been achieved under his chairmanship. 
The active participation of Members in this committee was very encouraging. Also, major progress 
had been achieved on several trade and environment topics and he hoped that together the good 
work could continue . He looked forward to active and fruitful discussions with all delegations in the 
year ahead. With the Secretariat, he would  reach out to delegatio ns ahead of the next meeting of 
the CTE.  
_______________  WT/CTE/M/71  
 
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  ANNEX 1:  ITEMS OF THE CTE WORK PROGRAMME  (CTE WP)  
 
Item 1:  The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those p ursuant to multilateral 
environmental agreements.  
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.  
Item 3(a):  The rela tionship between the provisions of the multilateral trading system and 
charges and taxes for environmental purposes.  
Item 3(b):  The relationship between the provisions of the multilateral trading system and 
requirements for environmental purposes relating to products, including standards 
and technical regulations, packaging, labelling and recycling.  
Item 4:  The provisions of the multilateral trading system with respect to the transparency of 
trade measures used for environmental purposes and environmental m easures 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 environment al 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 prohibite d 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 resp ect of appropriate arrangements for relations 
with intergovernmental and non -governmental organizations referred to in Article  V 
of the WTO.  
 
_______________  
 
 WT/CTE/M/71  
 
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  ANNEX 2: PARTS OF THE DOHA MINISTERIAL DECLARATION (DMD) THAT RELATE TO 
THE 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 reduction of trade restrictions and distortions would benefit trade, 
the environment and development;  
 
(ii) the r elevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights; and  
 
(iii) labelling requirements for environmental purposes.  
 
Work on these issues should include the identification of any need to clarify relevant WTO rules. T he 
Committee shall report to the Fifth Session of the Ministerial Conference, and make 
recommendations, where appropriate, with respect to future action, including the desirability of 
negotiations. The outcome of this work as well as the negotiations carri ed out under paragraph  31 
(i) and  (ii) shall be compatible with the open and non -discriminatory nature of the multilateral 
trading system, shall not add to or diminish the rights and obligations of members under existing 
WTO agreements, in particular the A greement on the Application of Sanitary and Phytosanitary 
Measures, nor alter the balance of these rights and obligations, and will take into account the needs 
of developing and least  developed countries.  
 
33. We recogni se the importance of technical assis tance 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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