RESTRICTED  
  
WT/CTE/M/72  
 
3 August 2021  
  
(21-6067)  Page: 1/36 
Committee on Trade and Environment    
 
REPORT OF THE MEETING HELD ON 23 JUNE  2021  
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Regular) met on 23 June 2021, chaired by 
H.E. Mr Manuel  A.J. Teehankee (The Philippines). The Committee adopted the Airgram, 
WTO/AIR/CTE/15 , dated 4 June 2021. The Report of the last CTE meeting, held on 30 March 2021, 
is contained in WT/CTE/M/71 . 
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Content s 
1   ADOPTION OF THE AGENDA  ................................ ................................ .......................  4 
2   ENVIRONMENTAL MEASURES AND MARKET ACCESS, PARAGRAPH 32(I) OF THE 
DOHA MINISTERIAL DECLARATION – ITEM 6 OF THE CTE WORK PROGRAM ME ...............  4 
2.1   Sustainable development and food production  ................................ ................................  4 
2.2   Circular economy and plastics  ................................ ................................ ......................  6 
2.2.1    Briefing by Barbados and Ecuador on the Informal Dialogue on Plastics Pollution and 
Environmentally Sustainable Plastics Trade (IDP)  ................................ ................................ ... 6 
2.2.2    Briefing by Ca nada on developments on trade and circular economy  ............................  11 
2.2.3    Presentation by the WTO Secretariat on the WTO e -Learning course on Tr ade and  
Circular Economy  ................................ ................................ ................................ .............  12 
2.3   Sustainable fisheries  ................................ ................................ ................................ . 13 
2.4   Fossil Fuel Subsidy Reform (FFSR)  ................................ ................................ ..............  14 
2.5   EU Green Deal  ................................ ................................ ................................ .........  16 
3   RELEVANT PROVISIONS OF THE TRIPS AGREEMENT, PARAGRAPH 32(II) OF  
THE DOHA MINISTERIAL DECLARATION − ITEM 8 OF THE CTE WORK PRO GRAMME  ...... 21 
4   TECHNICAL ASSISTANCE AND CAPACITY BUILDING, PARAGRAPH 33  
OF THE DOHA MINISTERIAL DECLARATION  ................................ ................................ .. 23 
4.1   Update on seminars and webinars  ................................ ................................ ..............  23 
4.1.1    Report from Barbados on an event entitled "COVID -19 and Green Economic Recovery: 
What Role for Sustainable Tourism?"  ................................ ................................ ..................  23 
5   MULTILATERAL ENVIRONMENTAL AGREEMENTS (MEAS), ITEMS 1 AND 5  
OF THE CTE WORK PROGRAMME  ................................ ................................ ...................  24 
5.1   The United Nations Framework Convention on Climate Change (UNFCCC)  .......................  24 
5.1.1    Update from the United Kingdom on COP 26, including on the Forest, Agriculture and 
Commodity Trade (FACT) Dialogue  ................................ ................................ .....................  24 
 
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/7 2 
 
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  5.1.2    Update from New Zealand on the Agreement on Climate Change, Trade and  
Sustainability (ACCTS)  ................................ ................................ ................................ ...... 26 
6   MEMBERS' SUGGESTIONS AND PROPO SALS  ................................ .............................  26 
6.1   Update on Trade and Environmental Sustainability Structured Discussions (TESSD)  ..........  26 
7   RELATIONS WITH INTERGOVERNMENTAL AND NON -GOVERNMENTAL 
ORGANIZATIONS, ITEM 10 ................................ ................................ ............................  29 
7.1   Briefing by New Zealand on trade and environment initiatives by APEC  ...........................  29 
7.2   Briefings by other Observer Organizations  ................................ ................................ ... 30 
7.2.1    Briefing by the World Bank  ................................ ................................ .....................  30 
7.2.2    Briefing by the United Nations Industrial Development Organization (UNIDO)  ...............  32 
8   CTE CHAIR'S BRIEFING ON INFORMAL CONSULTATIONS  ................................ .........  33 
ANNEX 1: ITEMS OF THE CTE WORK PROGRAMME (1994)  ................................ .............  35 
ANNEX 2: DOHA MINISTERIAL DECLARATION PARAGRAPHS  ................................ ........  36 
 
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  ACRONYMS  
  
 ACCTS  Agreement on Climate Change, Trade and Sustainability  
APEC Asia-Pacific Economic Cooperation  
Basel Convention  Basel Convention on the Control of Transboundary Movements of 
Hazardous Wastes and their Disposal  
BCA Border Carbon Adjustments  
BRS Conventions  Basel, Rotterdam and Stockholm Conventions  
CAS Southern Agricultural Council ( Consejo Agropecuario del Sur ) 
CBAM  Carbon Border Adjustment Mechanism  
CBD Convention on Biological Diversity  
CCAP  Climate Change Action Plan  
CITES  Convention on International Trade in Endangered Species of Wild 
Fauna and Flora  
COP Conference of the Parties  
CPC Central Product Classification  
CTE Committee on Trade and Environment  
EGS Environmental goods and services  
ESTs Environmentally sound technologies  
EU European  Union  
FACT Forest, Agriculture and Commodity Trade dialogue  
FFS Fossil Fuel Subsid ies 
FFSR Fossil Fuel Subsidy Reform  
GHGs  Greenhouse Gases 
GPAP  Global Plastic Action Partnership  
HS Harmonized System  
IDP Informal Dialogue on Plastics P ollution and Environmentally 
Sustainable Plastics Trade  
IISD International Institute for Sustainable Development  
ITC International Trade Centre  
IUU Illegal, unreported and unregulated  
LDCs Least developed countries  
MC Ministerial Conference  
MEAs  Multilateral Environmental Agreements  
MSMEs  Micro, Small and Medium -sized Enterprises  
NDC Nationally Determined Contribution  
OECD  Organisation for Economic Co -operation and Development  
SDG Sustainable Development Goal  
SIDS Small Island Developing Stat es 
TPR Trade Policy Review  
TESSD  Structured Discussions on Trade and Environmental Sustainability  
TRIPS  Trade -Related Aspects of Intellectual Property Rights  
UK United Kingdom  
UN United Nations  
UNEA  United Nations Environment Assembly  
UNEP  United Nations Environment Programme  
UNFCCC  United Nations Framework Convention on Climate Change  
UNIDO  United Nations Industrial Development Organization  
UNWTO  World Tourism Organization  
WEF World Economic Forum  
WCEF  World Circular Economy Forum  
WIPO World Intellectual Property Organization  
  
 
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  1  ADOPTION OF THE AGENDA  
The representative of Canada  highlighted the importance of  the CTE to provide transparency 
and understanding of issues at the nexus of trade and the environment. The active participation of 
Members was crucial to maximizing the effectiveness of Committee meetings. He noted his 
delegation's regret for the late circulation of the meet ing's agenda, giving delegations only four 
working days to prepare. This short turn -around time negatively impacted Canada's ability to 
prepare high -quality instructions which, in turn, had a negative effect on how his delegation 
interacted in this Committ ee. Going forward, Canada hope d that agendas for future CTE  meetings 
would be circulated no less than 10 working days before meetings. Canada was grateful for the 
agenda change to give the floor to member -led initiatives before Observer updates.  
The repres entative of the European Union  supported adopting the agenda as proposed. Her 
delegation expressed regret about the late circulation of the agenda. The Rules of Procedures stated 
that the "Meetings of the Committee shall be convened by a notice, issued not  later than 10 calendar 
days before the date set for the meeting ". The late circulation of the agenda left insufficient time to 
review it and to carry out internal consultations. It was important to respect the rules and to give 
all Members the necessary t ime to prepare.  
The Chair invited newly appointed DDG Jean -Marie Paugam and former Chair of the CTE for 
some remarks.  
DDG Jean -Marie Paugam  said that the issues discussed at the CTE were outstandingly 
important for the Organization ; not only civil society but also businesses looked at what the WTO 
might produce or discuss in terms of sustainability in international trade. He encouraged Members 
to intensify  these discussions with the view of tangible  progress on the road to MC12.  
2  ENVIRONMENTAL MEASURES AND M ARKET ACCESS, PARAGRAPH 32(I) OF THE DOHA 
MINISTERIAL DECLARATION – ITEM 6 OF THE CTE WORK PROGRAMME  
"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" . 
2.1  Sustainable development and food production  
The representative of Paraguay , on behalf of Argentina, Brazil, Chile, Paraguay, and Uruguay, 
introduced the submission "Principles and Values of the Region for Food Production in the Framework 
of Sustainable Development at the XLII Regular Meeting of the Southern Agricultural Council 
(CAS)"2, adopted jointly by the Ministers of Agriculture at the XLII Ordinary Meeting of the 
Agricultural Council of the South, held on 4 May 2021.  
This declaration reflected some of the challenges faced in international negotiations related to 
sustainable development , including  the shared values of Ministers of Agriculture in the region. The 
Ministers had called on the international community to agree on mechanisms and global values 
dealing with food security, sustainable development, common but differentia ted responsibility, local 
communities, gender and indigenous communities, international cooperation and trade.  Food 
production systems were particularly vulnerable to the adverse effects of climate change. Efforts for 
climate adaptation were vital to impro ve the resilience of food production systems and global food 
security. Producing more food, sustainably, in line with the Sustainable Development Goal s (SDGs ) 
and guaranteeing access to it was required.   
All countries needed to cooperate to preserve the en vironment, bearing in mind the historical 
responsibilities and the local needs for economic and social development. As the United Nations 
Framework Convention on Climate Change (UNFCCC) recognized, both historically and currently, 
most of the world's green house gas (GHGs) emissions had originated in developed countries. 
Countries with historical responsibility for environmental degradation should provide the appropriate 
economic and technological tools to allow developing countries to improve the sustainabi lity of their 
 
2 See document WT/CTE/GEN/24 . WT/CTE/M/7 2 
 
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  production systems. A transition  towards sustainability in productive systems needed to  be gradual 
and determined by the countries themselves according to their economic and social development 
needs. Local realities in different regions and their specific productive, social and environmental 
characteristics had to be respected.  Latin America and the Caribbean were major provider s of global 
ecosystem services, with more than half of the world's primary forests and biodiversity.  
The international community needed to  have an in -depth discussion to urgently put in place 
efficient systems to quanti fy and capitalize global positive externalities resulting from the 
ecosystemic services created in agricultural or agroforestry systems. International cooperation was 
key for sharing experiences, transferring knowledge and technology, and creating positive  synergies 
for climate action and environmental sustainability.  
Agriculture had to  be part of the solution. It was vital to have a fair, transparent and predictable 
international trading system. Production and trade -distorting subsidies, para -tariff barrie rs, had a 
negative impact on consumers and producers. Proponents called on WTO Members to limit and 
reduce by at least half, by 2030, the total current global agriculture trade - and production -distorting 
domestic support entitlements. This was part of the multilateral system's response to environmental 
and sustainable development challenges.  The contributions by individual WTO Members for these 
reductions needed to  be proportional to their current entitlements and the potential repercussions 
on global marke ts considering the development needs of the different Members.  Open trade played 
a fundamental role in ensuring and strengthening global food security and compliance with the SDGs. 
Proponents insisted on the need to move forward decisively with the WTO agr icultural reform 
process.  
The representative of Brazil  said that CAS's latest  declaration  introduced by Paraguay 
illustrated Brazil's efforts to ensure that the policies and practices of other Members did not 
undermine the right and ability to foster agrib usiness with social and environmental responsibility.  
Brazil was attentive to domestic support policies and tariff and non -tariff trade -distorting practices 
that undermined export capacity or threatened the us e of agricultural techniques and technologies.  
His delegation also paid attention to narratives seeking to link sustainability to an exclusive form of 
production, ignoring the challenges of tropical agriculture and the plurality of existing solutions to 
agribusiness problems around the world.  Brazil's commitment to sustainable development was 
reflected in the Low-Carbon Agriculture P lan (ABC+ ) and in its commitment to food security , which 
sought to contribute to the production of safe and healthy food in sufficient volume and at affordable 
prices  in order  to feed current and future generations in Brazil and across  the world.  
The representative of Uruguay  noted that the declaration re flected principles and values widely 
recognized at the international level, including the SDGs, the principle of common but differentiated 
responsibilities, just transition and respect for local diversities, payments for ecosystem services, 
gender and indi genous communities, international cooperation and international trade.  The 
declaration was extremely important, especially in the context of the pandemic. It also reflected 
regional principles and values whose operationalization would be important for the future and the 
sustainability of the environment.  There was no single development model with an inclusive vision 
of the sustainability of production systems with solutions that were adapted to local realities and 
needs and based on solid scientific princip les. In this context, it was vital to have a fair er, more 
transparent and predictable international trading system. This would play a very important role in 
supporting global food security and meeting the SDGs.  
The representative of Chile noted that sustai nability was a key element in the agricultur al 
sector , which was particularly  important for Chile. Further work advancing food security and food 
safety was needed. The declaration supported that message and agreed that the WTO had a role to 
play in th is area. Her delegation called on Members to join that effort.  Clear and predictable trade 
rules that support ed the efforts to achieve sustainable development were needed.  
The representative of the Russian Federation  noted that t he declaration raised important issues 
related to international trade, the preservation of the environment, sustainable development, 
agriculture, and food security. It was necessary to promote international cooperation aimed at 
solving the problems of climate change and promoti ng sustainable development of the agricultural 
sector while considering the interests of all WTO Members.  It was important to look at the issue of 
reducing trade -distorting domestic support in agriculture, which could not only address the problem 
of market  distortions but also avoid subsidization that could negatively affect both trade and the 
environment. It was also important to look closely at subsidies aimed at enhancing the sustainability WT/CTE/M/7 2 
 
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  of the agricultural sector and reducing its negative impact on t he environment. His delegation stood 
ready for further engagement on these issues with interested delegations.  
The representative of the United Kingdom  (UK) said that supporting the sustainability of 
agricultural production and commodity supply chains was a priority for the United Kingdom  and 
its consumers. The United Kingdom  was engaged in several programmes both domestically and 
internationally to aid a global transition towards using sustainable commodities . The global 
community needed to  ensure a just a nd fair transition. Efforts to promote sustainable supply chains 
needed to take full account of the interests of small and vulnerable producers, including women and 
indigenous farmers. The Forest, Agriculture and Commodities Trade Dialogue, part of the United 
Kingdom 's COP26 presidency work, was an example of how producing and consuming countries 
could work together.  His delegation looked forward to working with the authors of the paper to 
further explore how the WTO could help nations towards sustainable s upply chains . 
The representative of Argentina  joined previous speakers and highlighted the importance of 
promoting sustainable development, food production and food security. Progress towards a fairer 
and more predictable international trading system was r equired.  
The representative of the United States  said that the role of international trade could not be 
overlooked as the global community worked to address climate change and transition to net -zero-
emission economies by 2050. Agriculture, fisheries, aquac ulture and sustainable forestry were 
critical to achieving net -zero ambitions. His delegation supported consideration of the nexus between 
trade and agricultural sustainability. It was important to ensure that policies taken to address food 
security and pr omote sustainability were mutually supportive. Thus, the United States welcomed 
exploring the nexus between these issues and that of international trade and welcomed the 
proponents ' efforts in this regard.  
2.2  Circular economy and plastics  
2.2.1   Briefing by Barbados  and Ecuador on the Informal Dialogue on Plastics Pollution 
and Environmentally Sustainable Plastics Trade (IDP)  
The Ambassador s of Barbados  and Ecuador  reported on the third meeting of the Informal 
Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP), held on 21 June 
2021 and co -chaired by Barbados and Ecuador. The goal of the IDP, launched during the CTE's Trade 
and Environ ment Week in November 2020 , was to provide a dedicated platform where Members 
could explore – through the exchange of ideas, information, and insights – how the WTO could 
contribute to domestic, regional, and global efforts to tackle plastics pollution and  transition to a 
more circular and sustainable plastics trade.  
The IDP's third meeting focused on the topics of policy coherence, capacity and technical 
assistance needs, and collective approaches. The meeting marked an important milestone for the 
IDP as i t provided an opportunity to hear delegations, international institutions, and other invited 
stakeholders on their efforts regarding the three remaining topics suggested in the IDP initial 
communication. Currently, together with similar discussions in the CTE, there had been  substantive 
interventions from more than 50 Members and 20 relevant stakeholders on the different aspects of 
the plastics ' life cycle and global value chain. The wealth of information exchanged had provided a 
view of where trade interse cted with the plastics pollution challenge, where there could be 
opportunities to promote environmentally sustainable plastics trade, as well as insights on what 
further work could be done to identify the value that the WTO could add to  ongoing and future 
domestic, regional, and international efforts on the topic.  
As several Ambassadors and delegations had noted at the meeting, 2021 was a pivotal year 
as it related to climate, biodiversity, and sustainable development action. Several opportunities for 
meani ngful reform and action would take place this year, including the UNFCCC  COP26, COP15 of 
the Convention on Biological Diversity (CBD); and the upcoming Fifteenth Session of the 
United  Nations Conference on Trade and Development (UNCTAD 15), and the UN Environment 
Assembly (UNEA) in 2022. It also included the twelfth WTO Ministerial Conference (MC12), and many 
delegations had noted the importance of the work under the IDP to lead to a meaningful outcome 
by the end of the year. As the WTO Trade and Enviro nment Division Director , Mr Aik Hoe Lim , had 
noted in his remarks, discussions among delegations and stakeholders on trade -related aspects of WT/CTE/M/7 2 
 
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  the plastic pollution challenge had more than quadrupled since last November when the Informal 
Dialogue was launch ed. This indicated the value of the initiative.  
During the IDP's third  meeting , delegations were briefed on key efforts relating to the three 
topics of focus. First, in collaboration with Fiji, Dr Sascha Fuller and Dr Trisia Farrelly had presented 
a recent  study entitled "Plastic pollution prevention in Pacific Island Countries: Gap analysis of 
current legislation, policies and plans ".3 Due to the transboundary flows of plastics and their limited 
capacity and economic clout, island nations would require si gnificant support of the international 
community to close the gap in the necessary policy framework. The researchers had also noted the 
importance of global efforts to support regional action.  
Next, the European Union had presented its experience with the transition to a Circular 
Plastics Sector. It included a host of holistic policies and specific measures, including the 2019 
plastics strategy, the single -use plastics and waste directives, the 2020 Circular Economy Action 
Plan, as well as other measures in  discussion such as definitions on plastics biodegradability. These 
measures operated in different stages and aspects of the plastic pollution challenge and sought to 
achieve varying but complementary objectives such as informing consumers about plastics c ontent 
in products, absolute and relative plastic recycling targets, and avoiding the export of waste that 
cause d negative environmental and health impacts , while enhancing the EU market for secondary 
raw materials. The European Union  had noted  that it was  strongly committed to a global agreement 
on plastics, as plastics had to be addressed globally.  
On collective approaches, Ms Ingeborg Mork -Knutsen, Senior Adviser at the Ministry of 
Climate and Environment of Norway had presented a recent study examining the role of regional 
instruments in strengthening cooperation in marine plastic pollution. It included the analysis of 
regional seas conventions and action plans, large marine ecosystem activities, regional economic 
organizations  and regional fisheries bodies, and a case study on the Mediterranean. The study found 
that there was a substantial role at the regional level in combat ting marine plastic litter although 
there was great variation in the level of implementation measures across different regions. 
Ms Mork-Knutsen had also invited participants to examine the Nordic report containing possible 
elements for a new global agreement to prevent plastic pollution.  
Next, Mr Clem Ugorji and Ms Colette van der Ven had presented their study under the Wo rld 
Economic Forum's  (WEF)  Global Plastic Action Partnership (GPAP ) entitled "Trade and Plastics 
pollution work in Ghana ". The study was the result of an on -the-ground GPAP project looking at the 
challenges and opportunities of using trade and trade policy  as enablers for a more circular and 
sustainable plastic economy in Ghana. The researchers had presented a series of trade -related 
recommendations that support ed Ghana's efforts , including enhancing control and implementation 
of the Basel Convention Plasti c Waste Amendment , identifying and facilitating safe trade in relevant 
upstream and downstream inputs , attracting key investment and services through proactive services 
negotiations , and developing export markets. They had also included specific bilateral and regional 
trade instruments that could be explored.  
Finally, Ms Kristin Olofsson had presented the International Organization for Standardization's 
(ISO) work on plastics -related standards in support of greater policy coherence and efficiency. She 
had noted the various working groups focusing on different standardizat ion aspects of plastics 
circularity, including biodegradability, bio -based plastic alternatives, microplastic leak age into the 
environment , and mechanical and chemical recycling. She had noted that the topic was high on the 
agenda of many countries and stakeholders and that multi -stakeholder efforts, such as the Circular 
Plastics Alliance , were driving the necessary standardization on the topic.  
Cabo Verde and the Central Africa n Republic  were welcomed as co-sponsors of the Dialogue.  
During  the open discussion at the IDP's third meeting, delegations had underscored the importance 
of addressing plastics at the national, regional , and international level. They had mentioned that 
many Members were adopting measures regarding the production, log istics, and handling of plastics, 
which had an impact on the plastics trade. Given different national experiences, delegations had 
stressed the importance of sharing good practices and finding ways to improve coherence between 
these measures.  
 
3 https://reports.eia -international.org/wp -content/uploads/sites/6/2020/09/Plastic -Prevention -Gap-
Analysis -2020.pdf . WT/CTE/M/7 2 
 
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On the issue of cooperation and policy coherence, delegations had indicated that there was a 
large gap in international cooperation and trade -related aspects. Several delegations had reiterated 
the importance of the Basel Convention as the only international convention  explicitly addressing 
trade in plastics and plastic waste. They had noted that many countries would need technical 
assistance and support to implement the 2019 amendment. Delegations had underscored that 
technical assistance, capacity building, technology  sharing, and innovation had to be a key part of 
future discussions, especially for Least Developed Countries (LDCs) and Small Island Developing 
States (SID S). 
Several delegations had stressed the specific needs of developing countries and LDCs and had 
stated that the IDP could help identify solutions to address the issue of plastics in these countries.  
Several delegations had pointed  to the need for collective and coordinated approaches to address 
plastics and avoid duplication of efforts. Delegations had underscored the important role of the WTO 
in exchanging good practices and promoting the coordination of national and regional efforts.  
Several delegations had pointed out the efforts to reach a global agreement on plastics, an 
issue to be addressed in the  framework of the UNEA sessions in February 2022. They had highlighted 
the quality and relevance of the information shared within the IDP's framework, and how trade and 
trade policy needed to  reinforce and complement the potential outcomes of the two proce sses. Some 
delegations had noted that the IDP was part of broader discussions on environmental sustainability 
at the WTO. They had underscored the importance of ensuring synergies and coherence amongst 
these discussions, including with the Trade and Enviro nmental Sustainability  Structured Discussions  
(TESSD ). 
 Relevant institutions had also been invited to the meeting. They had provided valuable 
information and perspectives on the IDP's work, including UNCTA D, the Basel Convention, the 
United  Nations Environment Programme (UNEP), the Latin American Integration Association, the 
Center for International Environmental Law (CIEL), the International Institute for Sustainable 
Development (IIS D), the Forum on Trade, Environment and the SDGs (TESS) and the Ellen 
MacArthur Foundation. In particular, Ms Leticia Carvalho, Head of UNEP's Marine Water and Fresh 
Water Division, had briefed delegations on UNEA 's discuss ions on  marine litter and plastic pollution 
and had highlighted the importance of the IDP's discussions and actions in the WTO as a support to 
the outcomes of UN EA 2022.  
 The IDP website contain ed all the contributions of the multiple actors who had participated 
in this discussion. The work carried out by the WTO in this area could contribute to positive synergies 
of ongoing international processes, such as those in the Basel Convention on the Control of 
Transboundary Movements of Hazardous Wastes and their Disposal  (Basel Convention ) and UNEA. 
In addition, various delegations had indicated that there were enough elements to focus on a possible 
ministerial  declaration at the next MC12. Some delegations had already put forward specific ideas 
about outputs, including elements for a post -MC12 work program me. These elements included 
specific action points under the six topics discussed in the IDP. H e urged all in terested delegations 
to join the IDP to move towards discussions focused on the outcome at MC12.  
 It was clear that the work undertaken by WTO Members could be a positive factor that 
contributed to the solution for global issues in which trade played a fun damental role. It was also 
clear that there were key business opportunities and areas where WTO Members could make a 
significant contribution. Australia would be chairing the next IDP meeting , which would focus on 
achieving an outcome looking towards MC12 . 
The representative of the United Kingdom  (UK) said that the United Kingdom  had attended 
and welcomed the discussion. Plastics pollution was a transboundary issue that required collective 
approaches. The United Kingdom  would be pleased to share some of its  efforts to enhance national 
and international policy coherence in this area, including its work with the Waste and Resources 
Action Programme on the UK Plastics Pact , which acted  as a blueprint for new plastics pacts globally, 
at national and regional lev els. There was room for multilateral trade cooperation in this area.  
Her delegation looked forward to progress on discussions regarding the liberalization of 
environmental goods and encourage d the inclusion of circular economy principles (reduce, reuse, 
repair, recycle) as discussions develop ed regarding objectives, definitions of "green goods ", and 
specific goods and services lists. Other collective approaches could include international standards WT/CTE/M/7 2 
 
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  or mutual agreements on the elimination of unnecessary sing le-use plastics, which the IDP could 
champion. T he multilateral trading system could reassess rules or HS classification codes that did 
not currently allow for effective  distinction between virgin and recycled plastics.  
Given the broad scope of trade in plastics, it would be crucial to moving away from general 
discussions of "sustainable plastics trade " and instead set out clearer and specific objectives.  
Industry and int ernational organi zations were best placed to help define the scope of the problem 
and identify some of the key trade barriers and solutions for tackling this issue. Her delegation 
encouraged engagement with industry stakeholders through the various WTO for a, including the 
IDP. The work of the IDP and TESSD were complementary on these issues and the UK urged 
Members to join both initiatives to enable broad discussion on achievable goals ahead of MC12.  
The representative of Canada  said these discussions were important for identifying where the 
WTO could have the greatest impact. Presentations had highlighted various trade barriers that 
needed to be addressed. Members should explore how to bring these issues into the relevant WTO 
Committee. Canada saw the poten tial for synergy between the IDP and TESSD  and Members that 
participated in both initiatives needed to  consider how the groups could support each other. Plastic 
pollution required efforts at the domestic, regional , and international level and policy cohere nce w as 
critical to ensure all initiatives push in the same direction.  
Policy statements, studies, reports, or guidance material on the benefits of addressing plastic 
pollution in the context of international trade would support discussions between partner s and 
stakeholders. They would do so by helping establish a baseline understanding of the issues, and the 
legitimacy of potential policy responses, while recognizing that different countries may use different 
legislative or regulatory means to achieve the same outcome.  Institutions like the WTO could focus 
efforts to improve policy coherence by providing clear guidance to stakeholders on how to meet 
similar obligations in different jurisdictions.  
Over the long term, the WTO could also seek to harmonize tech nical differences, in particular, 
product performance standards (e.g.  for compostability, reusability) and key definitions (e.g.  what 
was "single -use"), but in a way that would neither slow nor impede policy responses currently under 
development in differe nt countries.  His delegation encouraged IDP Members to raise awareness of 
the trade policy implication of tackling plastic pollution in other fora. For instance, IDP  Members 
could consider how the WTO could be more involved in discussions with the Basel Co nvention. This 
was an important step in break ing silos between trade and environment discussions among experts.  
The representative of the United States  recognized the extensive ongoing work and 
discussions in many fora to address plastic pollution. To avoid duplicating efforts, the United States 
encouraged the IDP to focus primarily on the WTO 's key competency and the trade -related aspects 
of this topic.  The Unite d States also welcome d further clarity from IDP organizers regarding the 
specific, concrete outcomes they were seeking to achieve with this initiative concerning trade.  
Trade could and needed to  play an important role to support post -consumer mat erials 
recovery and recycling. The United States encouraged Members to fully consult with WTO Members 
and industry before implementing restrictive actions, such as bans or recycled content requirements 
for plastic products, to ensure the market could meet those demands. Trade in plastic was essential 
for the broader adoption of more circular economy approaches to resource efficiency. Facilitating 
trade in plastic scrap reduced the demand for virgin material, was an economic opportunity for 
recyclers , and re turned plastic materials to productive use. Restrictions on imports limited these 
opportunities and could  result in materials being directed to landfills rather than sent to facilities 
capable of processing materials to a suitable feedstock for manufacturi ng. 
He reiterated his delegation's interest in trade facilitative approaches for all post -consumer 
materials and other related goods, such as reverse supply chain products and intermediaries. These 
products had inherent economic and commercial value and su pported greater resource efficiency 
and circularity. Trade policies that facilitated rather than impeded their movement were needed to 
close the loop and keep these materials in the economy, out of landfills, and out of the oceans.  
His delegation had noted  a trend in which requirements for certain plastic products were being 
adopted without the following key considerations: a science -based risk assessment or other 
assessment of available scientific and technical information, adequate domestic recycled conte nt WT/CTE/M/7 2 
 
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  supply to meet production targets, cost -benefit analysis, evaluation of the cost, suitability and 
environmental impacts of alternative products, or sufficient time for supply chain adjustment. These 
were necessary considerations to ensure that regulator y requirements were both implementable and 
met the desired objectives.  
The representative of Guatemala  asked whether the delegations of Barbados and Ecuador 
would circulat e a draft declaration to Members and whether they could provide more clarity.  
The rep resentative of the Philippines  said the Philippines was exploring how to achieve zero 
waste in its waters by 2040. Efforts were also ongoing on harmonizing the local level ordinances 
banning single -use plastics at the national level. To further support the se efforts, the Philippines was 
banning single -use plastics in all government offices. The Philippines was likewise exploring possible 
participation in the WEF -led GPAP . His delegati on looked forward to further discussions on how to 
include environmental c oncerns at MC12.  
The representative of Costa Rica  said her delegation was following the IDP with great interest 
and recognized the efforts made by the organizers. This was a global challenge with legitimate 
objectives at stake. Her delegation would continu e to follow discussions closely because there were 
opportunities for synergies and complementarity with TESSD. Costa Rica supported dialogues and 
configurations that would allow better understanding of issues related to trade and the environment.  
The repre sentative of the Kingdom of Saudi Arabia  said that effective plastic waste 
management practices, including trends and responses, along with the role of international 
cooperation and trade, would be more beneficial in addressing plastic waste pollution. Her delegation 
encouraged further knowledge and information -sharing in this area.  
The representative of the Central African Republic  noted that his delegation was a member of 
the IDP. At the national level, there were actions and initiatives und ertaken to transform plastic 
waste into other products that continued to circulate in the economy. The issue of plastic pollution 
was important. The WTO had a key role to play in ensuring coherence between trade and 
environmental policies. His delegation s upported the initiative but noted the need to ensure that 
there were no overlapping responsibilities and duplication of effort.  
The representative of Australia  noted that Australia was a n IDP  co-sponsor. Addressing trade 
in plastics and the impacts it had on sustainability was an important part of the work at the WTO 
going forward. At the most recent IDP meeting, conversations had turn ed to potential outcomes  and 
practical elements of possible contributions on this issue. These included transparency, the sh aring 
of best practices, developing customs procedures that could contribute to greater understanding of 
the problem and the ability to respond to it, challenges and work on standards.  Australia looked 
forward to chairing the next session of the IDP. On th e question of preparing a potential ministerial 
statement , he noted that the co -conven ers, China and Fiji , had been working on a potential draft 
outcome document that they intended to share in due course for Members' comments ahead of the 
next IDP meeting.  His delegation encouraged all WTO Members to co -sponsor this initiative and 
engage in discussions.  
The representative of the Russian Federation  said his delegation recognized the importance 
of the issue of plastic pollution and fully supported int ernational cooperation and efforts promoting 
sustainable development and more environmentally sustainable plastic trade while considering the 
interests of all WTO Members.  Regarding Members ' attempts to find effective tools, measures , and 
best strategies f or adaptation and climate change mitigation, the Russian Federation noted that the 
circular economy was useful for achieving relevant SDGs , including economic and environmental 
ones. It was important to continue exchanging views, knowledge , and best practi ces on this issue.  
The representative of Ukraine  emphasized that countries would not be able to achieve the 
SDGs and effectively address the problem of plastic pollution alone. These were global issues that 
required global responses. WTO bodies needed to  be seen as a platform that could provide the space 
to understand Members' particular challenges in tackling plastic pollution and to explore together 
ways of addressing such problems. Her delegation would continue to work towards a transition to 
more sustai nable production and consumption processes at a national level and would be monitoring 
discussions on this topic closely at the WTO.  WT/CTE/M/7 2 
 
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The representative of Chile said that the IDP had allowed Members to look at the different 
matters and areas in which the W TO could address the issue of plastic pollution.  
The representative of China  said that plastic pollution was an important issue for both 
developing and developed Members. Addressing the issue could demonstrate that the WTO was still 
relevant for emerging t opics of concern for stakeholders. He invited Members to work together and 
engage in discussions at the WTO. His delegation looked forward to more Members joining this 
initiative and jointly work ing towards achieving a tangible result at MC12.  
The representative of Turkey  said these were useful presentations and discussions for 
understanding the current situation in plastics trade and the role of multilateral and regional 
platforms.  Plastic pollution was a planetary threat, affecting nearly ever y marine and freshwater 
ecosystem globally , and thus it  was important to explore what could be done at the WTO level. 
Turkey would continue to observe all WTO discussions related to the plastics trade and especially 
the IDP process.  Finally, echoing Guatem ala, Turkey asked how the IDP envisaged going forward 
with the preparations for MC12.  
2.2.2   Briefing by Canada on developments on trade and circular economy  
The representative of Canada  briefed delegations on developments in trade and the circular 
economy. Canada would  host the World Circular Economy Forum 2021 (WCEF) with the Finnish 
Innovation Fund , Sitra, and in collaboration with partner organizations, virtually, from 
13-15 September  2021. The Forum was a global event that brought together business leaders, policy 
makers, and experts to present circular economy solutions to accelerate the global transition to a 
circular economy.  It sought  to drive ambitious action over the next five y ears to accelerate the 
circular economy transition, focusing on concrete actions. Hosted in North America for the first time, 
WCEF -21 would build on previous fora events, including April 's WCEF+Climate , hosted by the 
Government of the Netherlands . The Euro pean Commission, the Government of Finland, and the 
Government of the Netherlands were partner organizations collaborating with Canada and Sitra.  The 
program me would explore cross -cutting issues such as leadership for the circular economy, the 
circular eco nomy as a solution to the biodiversity and climate crises, and the role of small and 
medium -sized enterprises and rural and remote communities in accelerating the circular economy 
transition.  
The International Chamber of Commerce (ICC) and the Organisation  for Economic 
Co-operation and Development (OECD) would host a session exploring the role of international 
cooperation and policy coordination in overcoming barriers to the global circular economy transition. 
The Government of Finland 's Ministry of Foreign  Affairs would host a session on harnessing the 
Canada -European Union Comprehensive Economic and Trade Agreement to advance the circular 
economy. Circular Economy Leadership Canada would host a session on transborder challenges for 
circular plastics.  The forum would contribute to the global momentum on environmental action in 
the lead -up to the meetings of the CBD's  COP15 and UNFCCC 's COP26. It would also convene a 
high-level meeting of the Global Alliance on Circular Economy and Resource Efficiency, to dis cuss 
priorities to cataly se a just transition to a circular economy, including opportunities to contribute to 
the UN S DGs and the Paris Agreement. Attendance at the virtual forum was open to all and free of 
charge.  
The representative of Chad, on behalf of the LDC Group, said that Barbados ' and Ecuador's 
interventions  and Canada's briefing were useful in showing the collective work that was required. 
Plastic pollution was a major concern in LDCs. Technical assistance,  capacity building, and 
technology transfer would be vital for LDCs to help manufacturers and producers meet 
environmental standards in export markets. The circular economy was key for achieving SDGs. There 
were some excellent LDC examples in the area of t he circular economy. Reuse, recycling, and 
reprocessing were important concerns and the private sector had an important role to play in the 
circular economy. Information about the circular economy had made governments think more 
carefully about the need to  incorporate these aspects into policies aimed at achiev ing the objectives 
of the Paris Agreement.  
Trade had a role to play in implementing the Paris Agreement. Many of the proposals 
considered at the WTO, such as on the circular economy and plastic pollut ion, encouraged further 
progress on environmental issues. Dealing with trade and environment issues and interaction WT/CTE/M/7 2 
 
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  between  WTO rules and the provisions of the Basel Convention also  needed  to be taken into account. 
Coherence of the relationship between exi sting WTO rules and specific trade rules in Multilateral 
Environmental Agreements (MEAs ) was also requir ed. The LDC Group was interested in pursuing 
discussions on plastic pollution and the circular economy. LDCs had low levels of income and 
structural cha llenges that impeded their growth. Thus, LDCs had special recognition within the WTO 
and needed to  benefit from specific flexibilities in implementing WTO agreements , for instance, 
through provisions on special and differential treatment. LDCs needed technical assistance and 
capacity building and counted on the membership for support in this regard.  
The representative of Norway  said that it had finalized the strategy for a green, circular 
economy. This strategy outlined how to move towards  a circular a nd more resource -efficient 
economic development  and demonstrate d that circularity was good for the environment and for 
businesses . The strategy presented concrete measures in areas with potential for circularity such as 
bio-economy, processed industry, bui lding, construction, and real estate and services sector s. Her 
delegation informed the Committee that Norway was finalizing and updating a revised strategy on 
plastics.  
The delegation of Ecuador , as IDP co-coordinator and co -sponsor, welcomed Members'  
interest. The purpose of its third meeting was to continue the discussions with a view to preparing 
inputs for MC12 . The IDP's work could contribute to positive synergies with the Basel Convention, 
UNEA, and TESSD.  
2.2.3   Presentation by the WTO Secretariat on the WT O e-Learning course on Trade and 
Circular Economy  
The representative of the WTO Secretariat  presented the new WTO e -Learning course on 
Trade and Circular Economy. The course, developed with the support of the WTO's Institute for 
Training and Technical Coop eration ( ITTC), sought to introduce the concept of circular economy and 
its contact points with trade. An effort was made to be as concrete as possible by focusing on specific 
examples. The course explored the concept of circular economy, its interface wit h trade, including 
some of the risks and concerns related to policies that had been raised in the Committee. It used 
data on relevant notifications from the WTO's Environmental Database (EDB). It presented the tools 
available at the WTO to support the transition to a circular economy, including transparency, policy 
dialogue, peer review, negotiations, and Aid for Trade. The course contained interactive exercises 
and was available in English, with Spanish and French translations available soon.  
This course was the latest in a series of Trade and Environment e -learning courses. The 
Secretariat first updated the course on Trade and Environment , which was now available in the three 
WTO official lan guages. In collaboration with the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora ( CITES ) Secretariat, the WTO Secretariat had also developed a 
course on CITES and the WTO , which was available in the three WTO official langu ages and focused 
on the connecting points between the two institutions and their agreements.  
The representative of the European Union  noted that the  importance of the circular economy 
was rising in the WTO. This e -learning tool would contribute to explaini ng the links between trade 
and circular economy.  
The representative of Chad noted that the  course was very useful , especially for LDCs , which 
were looking for concrete results at the WTO on trade and environment. He asked about the course's  
format and crit eria for participation , plus whether it would further evolve and how it would be 
integrated in to the broader e -learning range . 
The representative of Switzerland  shared the positions expressed by Canada and the 
European Union  on the importance of circulating the agenda in a timely manner. Switzerland was 
an active member of  the IDP and looked forward to contributing to the preparation of concrete 
elements for the next Ministerial Conference and to discussing them with all WTO Members. Her 
delegation thanked the Secretariat for setting up a new training module  that contributed to a better 
understanding of the issues at stake in the field of trade and the environment.  
The representative of Guatemala  noted that the topic of circul ar economy was evolving quickly  
and asked whether  the course would be updated in accordance with such developments.  WT/CTE/M/7 2 
 
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The Chair noted that he would work with the Secretariat to ensure that a list of available trade 
and environment courses would be circulated . 
The delegation of Ecuador  welcomed the work of the WTO Secretariat on the new WTO 
e-learning course on Trade and Circular Economy.  
The representative of the Kingdom of Saudi Arabia  said that the Circular Carbon Economy 
(CCE) framework, introduced by the Kingdom of Saudi Arabia and endorsed by the G20 leaders in 
2020, was inclusive, integrated , and holistic. The CCE covered not only materials waste but also 
emissions by fully utilizing all technologies to address these challenges. Rather than top -down, it 
was an approach that captured national circumstances and needs and encouraged cooperation.  
The representative of the WTO Secretariat  responded that t he course was organized by 
modules , which could be completed at the participant 's own pace. WTO e -Learning  courses were 
open to delegates in Geneva and in capitals  via registration  on the e -learning site . Some advanced 
courses and certain  regional and national activities required participants to do online courses. While 
it was important to keep courses up to date, it was difficult to provide a precise schedule of updates 
as this depended on staff availability and resources.  
2.3  Sustainable fisheries  
The Ambassador of the Maldives  made a presentation on obstacles for sustainable fisheries 
and how to overcome them . As a SID S, fisheries was an important area of economic activity for the 
Maldives. The Government of the Maldives recognized the importance of fisher ies as an export sector 
and had put in place several policy interventions to further develop it. In the Mald ives, t he dominant 
type of fisheries was pole and line -fishing, widely regarded as a sustainable fishing method to catch 
tuna. 
One major obstacle for sustainable fisheries was the issue of overfishing. Sustainable fisheries 
management would maintain fish s tocks and reduce overfishing and bycatch. The proliferation of 
industrial fishing in the global oceans was another issue. Industrial fishing methods were prohibited 
by law in the Maldives as these methods also caught non -target bycatch species resulting in  wider 
damage to the ocean ecosystem. Despite best efforts, overfishing often happened due to strong 
economic incentive s. This had important implications on the fisheries subsidies negotiations , which 
the Maldives hoped would reach a conclusion soon.  
Illegal, Unreported and Unregulated (IUU) fishing was the biggest threat to sustainable 
fisheries worldwide. One of the biggest challenges was to ensure fish stocks were maintained at 
sustainable levels. Poaching and encroachment from foreign -flagged vessels wa s a major IUU threat 
to the Maldives. It was estimated that such vessels harvested in the range of 10 -15 thousand tonnes 
of fish from the Maldives'  Exclusive Economic Zone ( EEZ) annually. The Maldives' Fisheries Act of 
2019 formulated principles to prevent , deter , and eliminate IUU fishing.  
At a regional level, the Maldives actively participated in the Indian Ocean Tuna Commission 
(IOTC) and had put forward an ambitious plan to save the Indian Ocean yellowfin tuna, which could 
collapse within the next five years if fishing pressure was not reduced.4 The Maldives ' Seafood 
Processors and Exporters Association had announced that the Maldives was able to reduce its catch 
by five times in recent years to adhere to the IOTC requirement. Maldivian fishermen, processors, 
and the government had joined forces in 2019 for three national campaigns dedicated to reducing 
yellowfin tuna catch, with a strong focus on reducing the number of juveniles caught .5 Following the 
campaigns, there was a 10 .6% decline in the fish catch during 2019, as compared to 2018.6 
Another major obstacle was related to the labelling  of fish products. Worldwide demand for 
sustainable fish and fisheries products had increased in recent years due to consumer s' increased 
environmental awareness and consciousness. Green labels had thrived worldwide and consumers 
had started to take eco -labels  into account when shopping. Eco-labels and product certifications, 
 
4 https://www.gov.mv/en/files/media -statement -ss4-iotc-2021.pdf . 
5 https://www.seafoodsource.com/news/supply -trade/maldivian -fishermen -processors -band-together -
and-reduce -yellowfin -tuna-catche -by-five-times -the-iotc-requirement . 
6 http://statisticsmaldives.gov.mv/nbs/wp -content/uploads/2020/12/Statistical -Pocketbook -2020-
updated -12820.pdf . WT/CTE/M/7 2 
 
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  such as the certification of Marine Stewardship Council (MSC), were requirements for entering any 
high-end markets. However, there were serious barriers to attaining such eco -labels as the 
certification costs were prohibitive and the certification requirements were unrealistic for small -scale 
and artisanal fish eries. Labelling  schemes and standards could impact market access opportunities 
of small -scale fisheries.  It would be more beneficial and cost -effective for SIDS like the Maldives if 
labelling standards and auditing procedures were more streamlined.  
Anothe r important obstacle to fisheries production related to market access. The pole and line 
and handline tuna fisheries of the Maldives were widely acknowledged as one of the most sustainable 
fisheries worldwide. However, the Maldives paid tariffs in the high est bands for almost all major tuna 
importing countries. This made it harder for Maldivian products to effectively compete with others 
who did not practice sustainable fisheries in the pursuit of higher returns. There was an opportunity 
to reverse these tr ends and encourage the trade of environment ally friendly products and improve 
the competitiveness of sustainable products. Imposing import tariffs on fisheries products sourced 
from such fisheries could be differentiated based on fishing methods and their impact on the marine 
environment , rather than just the development status of the country. Unsustainably sourced fishing 
products needed to  face higher tariff s. 
Markets could play an important role in the growth and expansion of sustainable fisheries. It 
was important for markets to provide incentives for sustainably sourced fisheries products. The 
Generalised System of Preferences (GSP) system needed to be revise d to include incentives for 
environmentally vulnerable countries and for countries that practiced sustainable fish ing. The 
markets could also provide premiums to such fisheries to incentivi ze the expansion of th eir products . 
The Maldives stood ready to wor k with the WTO and its Members to provide a favourable 
environment for sustainably sourced products , including fisheries products , and to enhance the trade 
and sustainable agenda.  
The representative of Canada  said that coordinated, coherent , and collaborat ive action was 
required to address trade and environmental sustainability issues, such as sustainable fisheries 
management. With respect to the WTO fisheries subsidies negotiations, Members were working to 
advance negotiations and reach an agreement as soo n as possible, and preparations were underway 
for the meeting of Ministers on 15 July 2021.  
2.4  Fossil Fuel Subsidy Reform  (FFSR)  
The representative of New Zealand  provided an update7 on the topic of fossil fuel subsidy 
reform (FFSR) and recalled the renewed efforts to present a joint ministerial statement on FFSR at 
MC12 in November 2021. The WTO was established with a view to ensuring economic progress was 
achieved in accordance with the objective of sustainable development. The WTO was also one of the 
imple menting agencies identified for work under the SDGs . Given Members ' experience in addressing 
trade -distorting subsidies using trade rules and norms of the WTO, it was an obvious candidate for 
advancing FFSR multilaterally. The goal was to advance discussio ns on FFS at the WTO  including the 
trade effects. New Zealand acknowledged the challenges of reform for Members supporting 
vulnerable communities. New Zealand noted that a transition away from FFS would also support the 
transition towards a green COVID -19 recovery.  
Last month, a panel discussion on the trade impacts of FFS was held under the TESSD 
initiative where FFSR experts reflected on how subsidies distorted trade and the importance of 
addressing this issue at the WTO. FFS had a significant impact on t rade. Subsidies reduced the 
marginal costs of fossil fuel production, in turn, decreasing the costs of fossil fuel inputs used by 
various industries. This in turn distorted the production costs of goods that incorporated inputs made 
with subsidized fuels. Subsidies reduced the cost of investment in fossil fuel production. Subsidies 
reduced the competitiveness of sustainable alternative energy sources, acting against global efforts 
to reduce carbon emissions. The panel discussion had looked at why existing s ubsidy disciplines may 
not appropriately constrain the harmful impacts of FFS.  
New Zealand acknowledged the work of the Friends of FFSR and like -minded Members for 
advocating and advancing this issue at the WTO. His delegation welcomed the recent high -level 
statements calling for action on FFS, such as the G7 Climate and Environment Ministers ' communiqu é 
and the Statement  of the Asia-Pacific Economic Cooperation (APEC)  Ministers Responsible for Trade. 
 
7 See document RD/CTE/195 . WT/CTE/M/7 2 
 
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  New Zealand welcomed the opportunity to discuss this issue and the proposed MC12 statement with 
interested Members.  
The representative of the Kingdom of Saudi Arabia  recalled that the issue of FFS was dealt 
with under the G20 forum whereby a voluntary peer review of inefficient FFS that encouraged 
wasteful c onsumption was done in accordance with countries' national circumstances, priorities, and 
needs.  
The representative of Venezuela  reiterated the position that her delegation did not support 
the inclusion of this item on the WTO agenda.  
The representative of  the Russian Federation  welcomed collective efforts aimed at 
environmental protection combat ting climate change. There were various types of inefficient and 
environmentally harmful subsidies, including fisheries agricultural subsidies that need ed to be 
addressed. His delegation noted countries' different levels of development. Some countries were 
transferring to alternative sources of energy and some still faced the task of electrification. Fossil 
fuels were presently the only affordable, reliable, and sust ainable sources of energy in line with 
SDG 7. The FFSR would result in the rising price of energy sources, as there was no source of clean 
and renewable energy affordable for all Members. The reform would lead to negative consequences, 
including economic d estabilization and a decline in economic activity. People would face increased 
prices of goods and services. Finding methods to cut emissions without undermining economic and 
social goals was important. There was no proof that the elimination of FFS had no  alternative for 
combat ting climate change, by the reduction of GHG emissions. This goal could be achieved by 
various means, including enhancement of energy efficiency, energy savings, measures improving 
production processes, low emission energy, absorptio n, and removal of GHG s. Countries should be 
free to choose appropriate solutions. The "right to choose" was a key element of the environmental 
agreements signed under the auspices of the United Nations (UN)  and choice s needed to  be made 
from WTO-consistent  options. The Russian Federation noted that effective results could only be 
achieved by paving a common path that would consider interests and different national 
circumstances.  
The representative of the United States  said that under Executive Order 14001, 
President  Biden had directed US government agencies to take steps to ensure that , to the extent 
consistent with applicable law, federal funding was not directly subsidizing fossil fuels. His delegation 
recognized the importance of phasing out inefficient FFS that encouraged wasteful consumption, in 
line with the goal of achieving net -zero emissions by 2050 and meeting the goals of the 
Paris Agreement.  
The representative of Costa Rica  thanked New Zealand for its efforts in bringing forward this 
new proposal for crafting a ministerial statement on FFSR. Costa Rica, as a member of the 
co-sponsors, supported the initiative. FFSR was an issue that should be discussed at the WTO 
because of the impact on trade. In the current post -pandemic phase, countries had to use other 
energy sources. Costa Rica welcomed discussions on this topic in other configurations such as 
TESSD. Her delegation encouraged other Members to support the statement.  
The repre sentative of Switzerland  reiterated her delegation's support for the intention of 
rationalizing and phasing out FFS that encouraged wasteful consumption. To achieve the goals set 
in the Paris Agreement or the SDGs action was needed now. Switzerland was eng aged on this very 
important issue with New Zealand and four other WTO  Members in the negotiations on the 
Agreement on Climate Change, Trade and Sustainability (ACCTS) initiative , which aimed, among 
others, to establish binding trade rules to eliminate FFS harmful to the environment. The WTO was 
the appropriate place to discuss this issue. Switzerland, therefore, invited all WTO Members to join 
this important initiative. Switzerland thanked and supported New Zealand for preparing a joint 
ministerial  declarat ion at the end of the year. Her delegation hoped that this draft declaration would 
soon be available and encouraged Members to look at it.  
The representative of Norway  welcomed FFSR and a ministerial declaration at MC12. Norway 
echoed Costa Rica 's and Swit zerland's statement s on the importance of this issue for combat ting 
climate change. Her delegation stood ready to cooperate in that regard. Norway was also a member 
of the Friends of FFSR and encouraged other Members to join.  WT/CTE/M/7 2 
 
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The representative of Japan  noted that , as discussed in the G20, Japan acknowledged that 
the objective of a discussion of FFS was a reduction in inefficient consumption of fossil fuels to 
contribute to addressing the proper allocation of resources and combat ting climate change, as well  
as easing the balance of supply and demand on energy markets. Any inefficient FFS should be 
streamlined and abolished. A one -size-fits-all approach would not work, rather , effective measures 
taking into consideration each country's circumstances were need ed. Japan would continue to 
engage in the discussion.  
The representative of Korea  underscored the importance of reforming inefficient FFS that 
encouraged wasteful consumption, which had been reaffirmed in the G20 Energy Ministers ' meeting. 
She drew  attenti on to the recent announcement by President Moon that Korea would stop its 
coal-powered plants overseas and expand the decision to phase out coal, as part of Korea's Green 
New Deal strategy. The strategy focused on renewable energy, green infrastructure , and the 
industrial sector. At the end of 2020, Korea had submitted to the UNFCCC its Nationally Determined 
Contribution ( NDC) and 2050 Carbon Neutral Strategy. Korea was committed to its long -term 
strategy for achieving carbon neutrality by 2050.  
2.5  EU Green Deal  
The representative of the European Union  provided an update on trade -relevant aspects of 
the European Green Deal. Late 2 019, the European Commission had tabled a policy agenda  to 
become the world's first climate -neutral continent by 2050. The European Green Deal, which was 
based on that target, was a comprehensive plan to make the economy and society ready for a 
climate -neutral future. It applied to every sector and every region and appealed to everyone to 
grasp the opportunities inherent to the transition.  To make this long -term target realistic, the 
European Union  had upgraded its NDC  under the Paris Agreement, including  a new 2030 target of 
at least minus  55% compared to 1990. The European Union  had agreed to enshrine both target s in 
the European Climate Law. Achieving climate neutrality would transform economies profoundly. 
There was no contradiction between growth and cl imate action, as borne out by Europe 's 
"decoupling " experience: between 1990 and 2019, emissions were cut by 23% whil e EU economies 
grew by 60%.  
The European Green Deal was not only Europe 's answer to the climate and ecological crisis, 
but also the European Union 's new growth strategy. It sought to transform the European Union into 
a modern, resource -efficient and competitive economy where there would be  no net GHG emissions 
by 2050, economi c growth would be  decoupled from resource use, and no one would be  left behind 
in what would be a "just" transition.  The transition to a sustainable, socially just, clean and 
climate -neutral economy and the post -COVID -19 economic recovery went hand in hand . The way 
the recovery  from the current pandemic would be shaped would determine our succe ss in the fight 
against the climate crisis. It would require investments , while at the same time creating 
opportunities for growth and jobs creation . 
Since the Europe an Union 's presentation in the CTE in March  2021, the main developments 
included the adoption of the Action plan for organic production in the European Union ; the Action 
plan "Towards Zero Pollution for Air, Water and Soil "; and the publication of a c ommunication on 
sustainable blue economy in the European Union for the industries and sectors related to oceans, 
seas and coasts. The European Union was working on overhauling its relevant climate and energy 
legislation to align with the agreed target to r educe emissions by at least 55% by 2030, as compared 
to 1990 levels. This would be brought together in a "Fit for 55 " package.  The minus 55% target and 
the European Climate Law would shape the European Union 's green recovery, provide a clear 
pathway for in dustries, and ensure a socially just , green transition. The European Commission would 
present the "Fit for 55 " package on 14 July.  
The "Fit for 55 " package would consist of a number of interlinked legal proposals that would 
combine pricing, targets and reg ulatory standards and would pave the way for the European Union  
to deliver their minus 55% reduction in a fair and cost -effective manner.  On pricing, the "Fit for 55 " 
package would reinforce the role of carbon pricing. The EU Emissions Trading System – a cornerstone 
of the European Union 's climate policy – would be strengthened and extended to maritime activity. 
A new system was being considered for emissions from road transport and buildings. Complementary 
to it, the Energy Taxation Directive aimed to align fiscal policies with the EU  climate ambition. At the 
same time, the Carbon Border Adjustment Mechanism (CBAM), would be designed to address the 
risk of carbon leakage, which could lead to an increase of global emissions . WT/CTE/M/7 2 
 
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On targets, t he Effort Sharing Regulation set ting national targets for emissions red uction in 
sectors like transports, buildings and agriculture  would be revised in order to  tighten  national targets , 
in line with  the European Union's increased climate ambition.  The revision of the Regulation on Land 
Use, Land Use Change and Forestry aim ed at enhancing the sector 's ability to absorb CO 2 and 
reversing the current trend of a diminishing EU land carbon sink by 2030. This regulation was 
increasingly important since the minus 55% was a net target, which meant that it was not only 
based on reductions of emissions but also on the absorption of CO 2 thanks to  carbon  sinks.  In 
addition, revision s of the Renewable Energy Directive and the Energy Efficiency Directive aimed at 
increasing the European  Union 's renewables target . 
Regarding regulatory standards, the European Union would revise CO2 emission standards for 
cars and vans to ensure a clear pathway towards zero -emission mobility. In addition, there would 
be proposals for s ustainable transport fuels and infrastructure to further underpin the transition 
towards sustainable mobility across all transport modes.  
Some of the measures in the "Fit for 55 " package were mainly internal, while others like CBAM 
had an external dimension. When designing these measures, one objective wa s to design them in a 
manner that respect ed WTO rules, in particular the principle of non -discrimination, so as to avoid 
unnecessary tensions with trading partners  and to reach the European Union's  overarching objective  
of cooperation on climate action. The European Union was aware that pursuing global challenges 
such as combat ting climate change, biodiversity loss, pollution, or promoting more sustainable 
production and consumption could not be done alone . The European Union would therefore engage 
with trading partners to promote international rules, standards and alignment of regulatory 
approaches. The European  Union would also engage  with developing countries to support their green 
transition. This included financial s upport, promoting climate projects  and capacity building.  
The CBD's COP15 in October and UNFCCC's COP26 in November would mark key milestones 
in an intense year for international  environment and climate engagement. The European  Union 
hoped to finish the year by setting an ambitious agenda  on environment and the WTO  at MC12 . 
The representative of Paraguay  requested the agenda to be circulated earlier for future 
meetings to ensure enough time to prepare. Paraguay thanked the European Union for reaffirming 
that many of its measures would only have implications at the European Union 's internal level and 
would  not be discriminatory.  Paraguay asked for  further information regarding the Action plan for 
organic production in the European Union, which addressed and implemented targets for organic 
farming. Paraguay reiterated its concerns regarding the high level of  subsidies that the 
European  Union provid ed to its organic farming and which had distorting effects on trade. Paraguay 
also noted that the recent report of the European Court of Auditors highlighted that, despite the 
European Union's spending of over US D 100 billion on greening its agricultural policies, no reductions 
in emissions  or CO2 had resulted from this spending. A Cornell University study found that the 
European Union's reluctance to adopt certain agricultural technologies had resulted in an increas e 
of 33 million tons of CO 2 in the environment.  
The representative of Canada  said that taking action to protect the environment and combat 
climate change was a top priority for the Canadian government and Canada was a like -minded 
partner of the European Un ion in this area, as demonstrated at the recent Canada -European Union  
Leaders Summit.  There was a great deal of interest in the potential trade implications surrounding 
the European Green Deal. The updates at Committee meetings provided important informati on and 
highlighted the importance of ensuring that transparency remained a key principle in th e CTE. 
Moving forward, Canada encouraged the European Union to continue to provide updates to 
the CTE on the development and implementation of the European Green Deal as it evolve d. Canada 
was confident that the European Green Deal could be implemented in a way that complemented and 
reinforced the benefits of open and rules -based international trade, while ensuring that trade and 
climate policies were mutually supportive.  
The Chair  asked the European Union how the measures mentioned in the presentation would 
impact market access.  
The representative of Norway  noted that her delegation shared the European Union 's high 
level of ambition and supported its actions to address climate change and environmental WT/CTE/M/7 2 
 
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  degradation. A stable and predictable carbon price in years ahead would provide a strong incentive 
to invest in and deploy zero -emissions technologies and to enable companies and other stakeholders 
to plan  better ahead. Increased carbon pricing was an important part of Norw ay's plan to reach its 
goals under climate challenges. Regarding the upcoming CBAM, Norway reiterated that the proposals 
should be developed in compliance with WTO  rules. It was also impo rtant that the mechanism's 
connection to the  EU Emission Trading System was made clear. Such a mechanism would have a 
wide range of implications outside of the European Union. It was essential that CBAM was exclusively 
designed to advance climate objective s. 
The representative of Ecuador  said his delegation recogni zed the importance of the objectives 
pursued by the Green Deal and joined the concerns and questions raised by Paraguay, as well as 
those asked by the Chair regarding the global overall impact tha t the Green Deal would have on 
trade. Ecuador underscored the importance of respecting the principle of common but differentiated 
responsibilities and respective capabilities as outlined under the Paris Agreement, which was based 
on NDCs.  Also, Ecuador hig hlighted the importance of respecting trade obligations and avoiding 
discriminatory and unnecessary obstacles to trade. Several measures proposed by the European 
Union could be incompatible with WTO  rules. These concerns had also been raised by Members in 
other Committees, but the European Union had not responded to them yet.  Ecuador reiterated its 
concern regarding the impact that the Green Deal could  have within the WTO and its possible 
significant impact on trade with other countries, including Ecuador.  
The representative of the Kingdom of Saudi Arabia  thanked the European Union for the update 
on trade -relevant aspects of the European Green Deal such as the CBAM. This issue had been 
addressed under the agenda of the Committee o n Market Access. Members had discussed and would 
continue to discuss in depth  their views and concerns under that Committee. It should be noted that 
any trade aspect of climate that would negatively impact trade would convert the spirit of 
cooperation among nations under the UNFCCC into confrontation. Therefore, the UNFCCC, in its 
"Principles", outlined in Article 3 , paragraph 5, had warned against such approaches. It stated, 
"Measures 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" . 
 The representative of Turkey  noted that Turkey was closely following developments on the 
European Green Deal. Within the context of the Green Deal, the European Commission was going to 
unveil a proposal for a CBA M in July 2021. Turkey believed that all members of the international 
community should play their part to combat climate change considering the historical responsibilities 
of GHGs. Turkey also underlined this needed to  be done in accordance with the common but 
differentiated responsibilities  principle . It was also important that any CBAM  respected WTO rules 
and was applied in a manner that least disturbed trade that did not constitute a disguised restriction 
on international trade. Turkey highlighted that any CBAM should be designed in a transparent way, 
and different levels of development of countries should be considered to address trade distortions.  
The monumental  green transformation required massive investment and financing , which 
were lacking in many developing countries and LDCs. Cooperation in terms of implementing 
investment projects and mobilizing finance for green projects was essential throughout value cha ins. 
An adequate transition period should be provided for all relevant parties before implementation of 
the CBAM. Apart from the ad aptation needs of the business world, it would take time for countries 
to adopt climate policies and fulfil the legislative a nd administrative requirements to guide the private 
sector. Accordingly, it was important for the transition period to award  sufficient time to sectors and 
companies, especially Small and Medium -sized Enterprises (SMEs ), to adapt to the changed 
circumstanc es and possible new requirements stemming from a CBAM.  
The representative of the Russian Federation  expressed deep concern and reiterated its 
statement regarding the implementation of the European Green Deal and its impacts on global trade 
and economic rec overy. His delegation wondered whether the instruments of this strategy would be 
consistent with the European Union 's WTO obligations.  WTO Members had raised Specific Trade 
Concerns ( STCs) about certain elements of this  Green  Deal and t he CBAM had been  criticized by 
more than 20  Members at meetings of the Committee on Market Access and the Council for Trade 
in Goods.  
Another measure discussed at the relevant WTO working bodies was the draft EU Regulation 
on batteries and waste batteries . This document set  out requirements on the maximum level of 
carbon footprint over the life cycle of batteries, material recovery targets and minimum level of WT/CTE/M/7 2 
 
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  recycled materials such as cobalt, lithium and nickel. Apparently, the requirements for the minimum 
level of recycled materials in batteries were aimed at reduc ing the use of primary metals in the 
European Union . It was no secret that the European Union did not have sufficient capacities of 
primary non -ferrous metals within its territory to meet internal dem and. By introducing a provision 
that discriminated against imported primary materials vis -à-vis those domestically remanufactured, 
the draft Regulation intended  to substitute imported primary metals for like domestically recycled 
ones. Other requirements s et out in this draft Regulation were n either  based on science nor on 
international standards or guidelines that specified the content of recycled materials in batteries, 
material recovery targets and the levels and methodologies for calculati ng the carbon footprint of 
this product over its life cycle.  
The third issue under the Green Deal discussed at the relevant WTO working bodies was the 
Chemical Strategy for Sustainability. This Strategy may have a trade -distorting effect in a wide range 
of economic sect ors. It implied the imposition of new technical barriers to trade within the 
Registration, Evaluation and Authorization of Chemicals (REACH) and the Classification, Labelling 
and Packaging (CLP) Regulation s and new bans and restrictions in respect of prima ry non -ferrous 
metals that were unscientifically classified as hazardous materials by the Commission using the 
precautionary principle.  
In this context, the Russian Federation believed that more efforts should be invested into 
the transparency of environmental measures related to trade. The Green Deal dossier included more 
than 100 pages of just enumeration of EU trade -related measures ado pted or planned to be adopted 
under the Green Deal umbrella. Connection s between some of these measures and environmental 
policies w ere not easy to establish. Thus, his delegation would appreciate more details from the 
European Union.  The core principle of  the WTO , trade liberalization , should  not be foregone and 
covered by restrictions and prohibitions. New trade restrictions needed to be  avoided. Meanwhile, 
talks on the elimination of trade barriers should be actively fostered, especially if such eliminat ion 
contributed to the achievement of development and environmental goals.  The Russian Federation 
underscored that environmental policies should not result in the imposition of unnecessary 
restrictions in international trade.  
The representative of Japan  acknowledged that interest in CBAM had increas ed among 
WTO Members as it would have significant impacts on trade.  It was a prerequisite that the CBAM 
was designed to be consistent with WTO rules. Japan circulated a paper8 to Members to highlight 
possible is sues other than the issue of WTO -consistency.  His delegation noted that a CBAM should 
be designed to consider each country 's circumstances  and efforts to reduce carbon emissions. It also 
needed  to achieve its objective of preventing carbon leakage with the least effect on trade. It was 
important to consider measurement or evaluation methods for carbon emissions per product unit 
that was internationally reliable. It was also important to consider  the actual verification of carbon 
costs, including any costs borne by the product in proportion to carbon emission. Adequate 
international discussions on this issue would be necessary going forward.  
The representative of China  welcomed the European Union 's transparency effort regarding 
recent developments related to the CBAM. The European Union had disclosed on different occasions 
the likely industries focused on by the CBAM and its intentions to phase out free emission allocations.  
China noticed that Members had expressed concerns over CBAM regarding its compliance with WTO 
rules and potential protectionism effects. China had shared these concerns during the CTE meeting 
in March and the TESSD meeting in May.  China urged Members to ex ercise caution when proceeding 
with the legislation process, to maintain full transparency, and to reach out, communicate with and 
consult stakeholders in advance in order to ensure consistency with WTO rules.  
The representative of Argentina  said that a po ssible CBAM  raised concern among the WTO 
membership, and raised serious doubts as to its  consistency with the WTO agreements, in particular, 
with the provisions of the GATT 1994.  Combatting climate change was a global challenge. The actions 
and instruments  used for this purpose needed to  respect international commitments and n either  
restrict international trade more than necessary nor constitute a disguised restriction on international 
trade. In this regard, Argentina highlighted the validity of the princip le of common but differentiated 
responsibilities. Argentina would closely follow the evolution of this initiative and hoped to have 
 
8 See document WT/CTE/GEN/26 , initially circulated in the framework of the Trade and Env ironmental 
Sustainability Structured Discussions, under INF/TE/SSD/W/13 on 26 May 2021 . WT/CTE/M/7 2 
 
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  detailed information on the possible design of the mechanism, its scope and calculation methodology, 
and the sectors it cove red. 
The representative of Ukraine  joined other WTO Members' concerns about the CBAM 
initiative. Ukraine understood the importance of a CBAM as a tool to support climate and 
environmental objectives but noted that possible challenges to its implementation still needed to be 
addressed. Ukraine hoped that the European Union would continue development of the CBAM in a 
transparent manner with the involvement of all interested WTO Members and stakeholders to ensure 
its consistency with WTO rules and the provisions of the  UNFCCC and the Paris Agreement.  
The representative of India thanked the delegation of the European Union for the update on 
trade-related aspects of the EU Green Deal. India indicated that it had serious concerns about 
measures such as the CBAM  with regard s to its compatibility to some of the basic WTO rules. His 
delegation would thus request the European Union to share specific d etails of the CBAM, as envisaged 
in the EU Green Deal. A thorough legal analysis was required to examine whether such a mechanism 
would be in conformity with the relevant WTO rules. His delegation stated that any such mechanism 
must consider the principle of common but differentiated responsibilities and respective capabilities  
in the light of different national circumstances , as enshrined in the Paris Agreement.  
The representative of Australia  thanked the European Union for the update and its ongoing 
commi tment to transparency. Australia expressed its strong commitment to addressing climate 
change and its belief that trade could contribute to this objective. Policies that facilitated increased 
trade in environmental goods and services, and related investmen t, could make a strong contribution 
in support of international climate policy, trade and development. Australia welcomed the 
consultative approach that the European Union  had taken so far in respect to the CBAM. Australia 
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, consistent with the central WTO princip le of transparency. Australia also noted the 
European  Union 's commitment to ensur ing consistency of its eventual measure with its 
WTO obligations, underscoring that further detail addressing the issue of WTO -consistency would be 
helpful for a large number of Members , including Australia.  
The representative of Korea  emphasized the importance of designing a CBAM in a manner 
consistent with WTO rules and principles and the European Union 's other  international trade 
obligations. Korea reiterated its position th at sufficient discussions about the rationale and detailed 
plans of the CBAM needed to be shared  in multilateral fora, including the WTO and the OECD. Korea 
underscored that a CBAM should be designed with a sufficient  transitional period for trad ing partners. 
Korea noted that climate policies had to  be formulated with due consideration to avoid double 
regulation.  
The representative of the European Union  responded to the questions raised by delegations. 
The European Union was of the view that the cost  of action on climate change was much smaller 
than the cost of inaction. It required massive investment, which would be recoupled later by the 
savings. The cost of many clean solutions had fallen  tremendously, plus they were labour -intensive 
and created jo bs. Achieving climate neutrality would transform economies profoundly. It was 
legitimate for countr ies, in particular developing ones, to continue pushing for prosperity and job 
creation . There was no contradiction between growth, trade and climate action,  as borne by Europe's 
decoupling experience. Between the 1990s and 2019, emissions were cut by 23% while  
EU economies grew  by 60%. The European Green Deal was the European Union 's growth strategy.  
The European Union was very determined to reach its climate  ambition goals  and was 
translating these goals into legislation. The climate challenge was a global challenge,  and the 
European Union needed its international partners to share the same level of ambition. As long as 
climate action was not equally taken at  the global level, there was a risk of carbon leakage. 
Companies would transfer production to places where carbonization requirements were less strict, 
resulting in an increase in global emissions. This undermined the global climate ambition s outlined 
in the Paris Agreement. The introduction of a CBAM addressed this carbon leakage and was aimed 
at achieving climate objectives. When designing its legislation, the European Union ensure d it was 
WTO compatible , including its legislation on sustainable batteries or the chemical strategy that the 
Russian Federation had referred to. The European Union also sought to ensure equal treatment 
between domestic producers and producers of imported goods.  WT/CTE/M/7 2 
 
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On questions regarding transpare ncy in EU legislation, the European Union said it was a 
champion of transparency. The proposals were supported by comprehensive assessments of 
environmental, social and economic impacts as well as  stakeholder consultations. This had also been 
done at the beginning of 2020 for the CBAM measure , at which time  the European Union  had received 
around  40 contributions from different trading partners. The European Union would continue 
consulting with countries throughout the legislative process after the proposal was issued in July. 
The European Union highlighted that  the CBAM was a climate policy instrument, which contribut ed 
to achieving commitments under the Paris Agreement. The CBAM was not inconsistent with the 
principle of common and differentiated responsibi lities. Its purpose was not to force other countries 
to change their NDCs but rather to preserve the effectiveness of the European Union 's own 
measures.  The CBAM measure would be released within the "Fit for 55 " package , to be presented 
on 14  July 2021. 
3  RELEVANT PROVISIONS OF THE TRIPS AGREEMENT, PARAGRAPH 32(II) OF THE DOHA 
MINISTERIAL DECLARATION − ITEM 8 OF THE CTE WORK PROGRAMME  
The representative of the WTO Secretariat  gave a presentation on the 2021 WTO Workshop on 
the Implementation of the Agreement on Trade -Related Aspects of Intellectual Property Rights 
(TRIPS ) Article 66.2: Incentive for Technology Transfer for LDCs in the Area of Environment .9 The 
TRIPS Agreement had many provisions on tech nology transfer. Article 66.2 specifically obligated 
WTO developed countr y Members to provide incentives to enterprises and institutions t hat 
encourage d technology transfer to LDC Members and enable d them to create a sound and viable 
technological base.  
In 2001, six years after the TRIPS Agreement came into force, upon the request of the 
LDC Group, WTO Members agreed to establish a Reporting Annual Review Mechanism to ensure the 
monitoring and implementation of Article 66.2. In 2003, the TRIPS Council adopt ed a decision on 
implementation of Article 66.2. The decision provided detailed information on what developed 
country Members needed to show in their annual reports on actions taken to fulfil their Article 66.2 
obligations. Since then, 291 reports had been  submitted from eight developing country Members.  
These reports had produced a significant amount of information from various government 
agencies on technology transfer in various technology setups. In the meantime, the TRIPS Council 
had conducted 18 annua l reviews of these reports. And, since 2018, upon the request of the 
LDC Group, the Secretariat had organized a series of annual workshops, which had enabled informal 
and practical dialogue between the delegates from developing country Members and LDC Memb ers. 
The Secretariat highlighted three improvements made in the February 2021 workshop that 
were directly related to technology transfer in the environmental technology sector. For the first 
time, the workshop had a dedicated session on technology transfer  in the field of environmental 
technologies. In that session, experts from Australia, Canada, Switzerland, the U nited Kingdom  and 
the U nited States had shared their national experiences regarding the issue of technology transfer.  
Secondly, a survey had bee n conducted  on the needs and priorities of technology transfer for 
LDCs. The Secretariat had received responses from 14 LDC Members that identified environmental 
technologies as one of the top three priority technology sectors. In their responses, LDCs had  
indicated a wide range of the technologies and priority needs, including renewable energy, solid and 
waste management (e.g.  plastics), water management and sanitation and energy infrastructure and 
services.  
Thirdly, the Secretariat had prepared a summary  of 158 technology transfer incentive 
programmes in environmental technolog y sectors reported by nine developed country Members from 
2018-2020. Of these 158 programmes, 25 reports had been  submitted by developed countr y 
Members in the past three years. Out of nine reporting Members, the European Union  had provided 
65 programmes , which was about 40% of all programmes in the field of environment. This included 
any national programmes provided by individual EU member States. The United St ates ha d provided 
31 programmes, which was about 20% of total programmes, followed by Norway, Switzerland and 
the U nited Kingdom . Out of 44 WTO LDC Members, 40 LDCs had been able to benefit from these 
programmes. Tanzania , Uganda and Zambia were the top three LDC beneficiaries,  with each 
 
9 See document RD/CTE/193 . WT/CTE/M/7 2 
 
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  benefiting from over 30 programmes , while  Bangladesh, Cambodia,  Mozambique, Myanmar , Nepal, 
Rwanda  and Senegal had each benefited from over 20  programmes.  
For the purpose of this summary, the Secretariat had divided these p rogrammes into 
six categories: energy, water, climate change, biodiversity protection, waste management and 
disaster prevention. Any programmes comprising two or more of the above -mentioned categories 
were generalized as "environment". The energy sector le d with 76 programmes and water and 
climate change ranked second and third in terms of the number of programmes. Under energy, the 
focus was on renewable energy and, under water, the focus was on water sanitation treatment and 
groundwater management. Severa l programmes focused on climate change, resilience and 
adaptation technologies.  
Almost all 40 Members had provided programmes on the energy sector with the 
European  Union, Norway and the U nited States the top three providers. The European  Union was 
the mai n provider in both water management and biodiversity protection technologies, whereas 
Canada and the United Kingdom  focused on climate change. Japan appeared to be the main provider 
of programmes on disaster prevention. During the reporting period, six pro grammes related to waste 
management and treatment, e.g. an EU programme on hospital waste treatment facilities in 
Ethiopian hospitals. The COVID -19 pandemic had caused an unprecedented volume of waste medical 
products, which needed to be addressed. Regardi ng climate change, Australia had established a 
Green Climate Fund to provide grants and loans for climate change technologies in LDCs. Other 
examples from the reports included the Swiss Bluetec Bridge initiative, which aimed to ensure 
viability and sustain able management of water and sanitation in low-income  countries; and a 
US programme for scaling up renewable energy, which helped partners (including LDCs) to plan, 
procure, integrate and incentivize renewable energy.  
While Tanzania, Uganda and Zambia were  the top 3 LDC beneficiaries, Guinea -Bissau, 
São Tomé and Príncipe, Somalia and Timor -Leste had not benefited from any environmental 
technology transfer programmes during the reporting period. All 40 LDC beneficiaries had benefited 
from energy -related prog rammes, with Uganda top. The majority of LDCs had benefited from 
programmes in the areas of water management and climate change. Programmes on water 
management were most prominent in Niger and Zambia, whereas Bangladesh and Mozambique were 
greatest benefic iaries of climate change programmes.  
Regarding next steps, the WTO Secretariat would continue working with LDC Members to 
further improve the surveys on needs and priorities for LDCs in various technology sectors, including 
environmental technology. Guidan ce by LDCs would play an important role in directing the 
Secretariat's work thereby enabling them to respond to the evolving needs and priorities for 
LDC Members. The survey results would be used by the Secretariat to guide its preparation for the 
2022 wor kshop.  
On behalf of the LDC Group, the representative of Chad noted that, while progress had been 
made, it had been modest and much remained to be done. The implementation of Article 66.2 
remained a priority for LDCs in their work at the WTO. LDCs noted th at most notifications that sought 
to fulfil this requirement lacked specificity on whether countries benefited from these programmes 
or programmes required specific information about the incentives provided. LDCs welcomed the 
focus on green technology, whi ch looked at climate change adaptation to ensure sustainable 
development. The trading system, which was already subject to significant tensions before the 
pandemic, had seen its daily functioning overturned. Fortunately, virtual technology had allowed 
negotiations to continue. The COVID -19 crisis had revealed the importance of the use of 
technologies, particularly by and for LDCs. LDCs were particularly vulnerable to economic and 
environmental shocks. Human and infrastructure resources were limited, and the  pandemic had 
simply aggravated that fragile situation. Thus, technology transfer was an important driving force 
for supporting LDCs' development efforts. Technology transfer in the area of health and trade and 
the environment were also important. LDCs wer e looking for specific incentive measures introduced 
by developed countries to encourage companies, institutions and other bodies to intensify technology 
transfer to LDCs as a response to their obligations under Article 66.2. The LDC Group took note of 
the efforts made to effectively implement Article 66.2 and urged Members to ensure full 
implementation of this Article.  
The representative of Canada  thanked the Secretariat for its presentation and for organizing 
the February 2021 workshop on the implementati on of Article 66.2 of the TRIPS Agreement. During WT/CTE/M/7 2 
 
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  this year's workshop, Canada had presented key updates from its October 2020 annual report10 and 
participated in a panel discussion regarding technology transfer in the area of environment. Canada's 
report included many projects and initiatives under the theme of tech nology  transfer and the 
environment, such as contributions to the World Bank Clean Technology Fund and Forest Carbon 
Partnership Facility, both of which supported the transfer of technology and technical expertise in 
these areas. Canada welcomed bilateral discussions on any of the projects and initiatives contained 
in its 2020 report and looked forward to furthering dialogue with all Members on this important 
TRIPS commitment.  
The representative of Switzerland  noted that environmentally sound technologies (ESTs) and 
green innovations were key elements to address global challenges, such as climate change, 
biodiversity loss, environmental degradation and food security. Therefore, Switzerland had also 
actively par ticipated in the March 2021 workshop on TRIPS and green technology transfer . Her 
delegation thanked the WTO Secretariat for organizing this excellent workshop. During the 
workshop, Switzerland had presented its efforts regarding the transfer of ESTs to LDC s, in particular 
through its economic and development cooperation projects. She mentioned WIPO GREEN, an 
important World Intellectual Property Organization ( WIPO ) initiative, which connected various 
partners in the field of ESTs, including IP offices, tech nology providers and seekers. Switzerland 
remained committed to actively engaging in these discussions  to further promote the development 
and transfer of green technologies and knowledge.  
4  TECHNICAL ASSISTANCE AND CAPACITY BUILDING, PAR AGRAPH  33 OF THE DOHA  
MINISTERIAL  DECLARATION  
4.1  Update on seminars and webinars  
4.1.1   Report from Barbados on  an event entitled "COVID -19 and Green Economic 
Recovery : What Role for Sustainable Tourism ?" 
The representative of Barbados  reported on an event entitled "COVID -19 and green e conomic 
recovery: What role for sustainable tourism?", which was co -hosted by Barbados and the Maldives 
in collaboration with the WTO Secretariat on 22 June 2021. The event aimed at exchanging 
knowledge on 'building back better' in the tourism sector.  
In his keynote remarks at the event, Ambassador Chad Blackman had highlighted that, in 
addition to being challenged by high economic and environmental vulnerability, SIDS were not only 
dependent on trade but also on the front lines of climate change. Owing to a high dependence on 
tourism as the generator of foreign exchange and employment, the COVID -19 pandemic had had an 
immediate impact on many SIDS. He emphasized the need for SIDS to focus on green recovery and  
noted that the challenge for tourism was how to  make it more sustainable at the sectoral level. 
Coordinated approaches at the multilateral and national levels were needed to achieve sustainable 
tourism.  
At the event, Ambassador Dr Asim Ahmed of the Maldives had underscored the importance of 
tourism in achieving green recovery. The decline in tourism had a severe impact on the SIDS 
economy: a 3.6% decline in the GDP of SIDS was higher than the global GDP decline. Tourism in 
the Maldives accounted for 70% of its GDP and 20% of employment. His country's be st practices in 
sustainable tourism focused on sustainable energy, environment, conservation and diversification. 
The Maldives was investing in renewable solar energy in the tourism sector and desalinating water 
in order to provide sustainable sources of e nergy and water. It was also introducing innovative 
environmental policies aligned to SDG 7.  
The panel of experts had exchanged insights on how to improve the environmental, social and 
economic sustainability of the tourism sector through responsible trade  and investment. First, 
Ms Urosevic from the World Tourism Organization (UNWTO) had highlighted that travel restrictions 
resulting from the pandemic weighed heavily on the recovery of international tourism. It was 
important to integrate the tourism sector into economic recovery packages, to promote green 
investment and the emergence of new business models focused on reducing tourism's carbon 
footprint and increasing resource efficiency. The UNWTO was working with partners and stakeholders 
 
10 See document IP/C/R/TTI/CAN/1 . WT/CTE/M/7 2 
 
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  in developing coun tries, including SIDS, in this transition. To this end, the UNWTO was developing 
a tool to measure sustainable tourism.  
Ms Cristina Arbelaez Restrepo, from the Vice Ministry of Tourism of Colombia, had explained 
her country's roadmap for sustainable touris m development by 2030. Priority areas included 
improving information for the sustainable management of tourism; strengthening governance; 
fostering investment and innovation; supporting efforts by tourism businesses to manage natural 
capital responsibly an d sustainably; nurturing a culture of responsibility among travellers; and 
positioning Colombia as a sustainable travel destination.  
Next, Dr Sue Snyman from the African Leadership University had underscored the devastating 
impact of the pandemic on Africa 's tourism sector, which saw an 83% reduction in international 
arrivals to the continent. Moreover, natural resources and wildlife had traditionally been viewed as 
inputs, rather than assets, in national economies. This approach had resulted in limited gov ernment 
resources being invested in the wildlife economy. To reverse this situation, it was important to revise 
strategies and reform policies and practices for the post -COVID -19 era, improve government support 
for investment in wildlife and tourism, build  capacity and provide supportive institutions, as well as 
establish institutional arrangements for benefit -sharing.  
Mr Anders Aeroe from the International Trade Centre (ITC) had noted that the ITC was working 
on a number of areas to support the sustainable  transition of the tourism sector. These included 
greening operations and focusing on eco -tourism to reduce the sector's carbon footprint and promote 
green investments; creating an enabling environment for all actors along the value chain, including 
MSMEs,  local communities, women and youth; supporting skills development; and enhancing safety.  
Finally, the OECD, the Commonwealth Small States Office in Geneva, the World Bank and 
researchers from the University of Mauritius had highlighted the impact of the c risis throughout the 
entire tourism ecosystem. Reopening and rebuilding destinations would require a joint approach. 
Some tourism businesses and workers were benefiting from economy -wide stimulus packages, with 
several governments also introducing tourism -specific measures, but more needed to be done, 
especially to support small tourism businesses and their workers. The measures put in place today 
would shape the tourism of tomorrow. Governments, therefore, needed to be considering already 
the longer  term implications of the crisis, while staying ahead of the digital curve, supporting the 
low-carbon transition and promoting the structural transformation needed to build a stronger, more 
sustainable and resilient tourism economy. The current crisis was an oppo rtunity to rethink tourism 
for the future.  
5  MULTILATERAL ENVIRONMENTAL AGREEMENTS (MEAS), ITEMS 1 AND 5 OF THE CTE 
WORK PROGRAM ME 
5.1  The United Nations Framework Convention  on Climate Change (UNFCCC)  
5.1.1   Update  from the United Kingdom  on COP 26, including on the Forest, Agriculture 
and Commodity Trade (FACT) Dialogue  
The representative of the United Kingdom  (UK) provided a further update on COP26 and  the 
Forest, Agriculture and Commodities Trade Dialogue (FACT), as part of the United K ingdom 's COP26 
Presidency work. Her delegation noted that COP 26 would take place in November 2021 in Glasgow. 
The UK  Presidency was committed to accelerating transitions in the global economy in energy, 
transport, nature and finance and to driving action o n adaptation, building resilience, and arresting 
and reversing biodiversity loss. One of the United Kingdom 's COP26 objectives was to shape 
economic governance to reduce the usage and trade of energy -inefficient products.  
For COP26, the United Kingdom  had launched the Product Efficiency Call to Action, which aimed 
to double the efficiency of four key products by 2030. WTO efforts to ensure that standards were 
fair and accepted by other countries could help define product standards and make sure that 
standar ds relating to environmental measures were recognized. To meet the goals of the 
Paris Agreement, the global transition to clean power needed to progress four to six times faster 
than at present. The United Kingdom  had therefore launched the Energy Transiti on Council to bring 
together the political, financial and technical leaders of the global power sector to work together to 
accelerate the transition from coal to clean power as part of a green economic recovery and make WT/CTE/M/7 2 
 
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  clean power the most attractive opti on for new power generation in any country. Trade policy could 
play an important part in supporting the global green transition to clean and renewable technologies. 
Thus, the UK supported action at the WTO to remove barriers to trade in goods and services that 
support the energy transition.  
Meanwhile, global emissions from road transport were rising faster than any other sector.  
COP26 was a unique opportunity to double the pace of transitioning to zero -emission cars and vans, 
as part of a longer term and br oader effort to ensure 100% of global car and van sales were 
zero-emission. The United Kingdom  was committed to work together with its partners to ensure all 
new cars and vans were zero -emission by 2040 or earlier. The United Kingdom  was going further 
and faster than ever to decarbonize transport, harnessing the power of clean green technology to 
end the United Kingdom 's contribution to climate change by 2050 . The United Kingdom  welcomed 
countries' views on how trade policy and the WTO could enable greater international cooperation on 
this. 
Finally, at the 12 th Clean Energy Ministerial, the United Kingdom , in partnership with Canada, 
Germany and India, had launched the Industrial Deep Decarbonisation Initiative, which aimed to 
facilitate the harmonization of  emissions reporting, green product standards and public and private 
procurement practices for materials, such as steel and cement. The importance of industry 
decarbonization had been reiterated at the G7, with the launch of the G7 Industrial Decarbonisati on 
Agenda, which aimed to focus on policy alignment around industry transition, including standards 
and procurement. Trade needed to support a rapid industry transition through appropriate policies 
to drive emissions reduction across sectors and regions.  
With regards to FACT Dialogue, her delegation noted that over 25  countries were involved, with 
the aim of agreeing a roadmap of actions to protect forests and other vital ecosystems, while 
promoting trade and development. Participants were largely from the Environment or Agriculture 
departments of participating countries. However, trade was a key part of making the transition to 
sustainable supply chains and one priority for the dialogue would be considering collaborative action 
on trade and market developme nt. The United Kingdom  encouraged Members to engage with their 
relevant departments or ministries to better enable FACT to reset the global trading system in favour 
of sustainable production. In April 2021, at a Ministerial Roundtable, 24 countries had end orsed a 
joint statement on principles for collaboration,  as well as four key themes, which now had dedicated 
working groups: (i) Smallholder's Support; (ii) Transparency and Traceability; (iii) Research, 
Development and Innovation; and (iv) Trade and Marke ts (in which the working group was exploring 
consumer and producer policies that governed trade and market development for forest and 
agricultural commodities).  
The first round of working groups had taken place in June 2021 with Brazil, Colombia, Ghana 
and Malaysia as co -facilitators working alongside the UK and Indonesia as 'dialogue co -chairs'. Two 
or three broad areas for action had been identified in each work ing group to be taken forward under 
future rounds of the FACT Dialogue. Discussions had covered a range of issues and potential areas 
of focus, such as how to learn from systems such as the European Union Forest Law Enforcement 
and the Governance and Trade  Voluntary Partnership Agreements on timber, how to build policy 
mechanisms in trade and domestic policy to recognize sustainable land -use governance, and the 
need for effective traceability systems to enable market access. The United Kingdom  underscored 
that action on climate change would affect trade. Similarly, trade policy and WTO rules would play 
a role in shaping the actions to tackle climate change. The United Kingdom  thanked all participants 
of the first round of working groups and looked forward to  the next, which would identify tangible 
actions to be taken together through the FACT Dialogue to COP26 and beyond.  
Finally, the United Kingdom  updated delegations on development on trade and environment 
through the G7 this year. Strong progress had been made under this year's inaugural 'Trade Track' 
– an initiative pioneered by the United Kingdom . The G7 stood united in its commitment to free and 
fair trade as a foundation of the rules -based multilateral trading system, as well as to the 
modernization of international trade rules. Trade Ministers recognized 2021 as a crucial year to 
accelerate international efforts to address climate change and biodiversity loss. Discussions under 
TESSD were highlighted as a key opportunity to explore the role of trade in supporting climate and 
environmental goals and to build momentum in this regard.  
As the world transitioned to net -zero, the G7 had acknowledged the risk of carbon leakage to 
decarbonization goals, and the potential impact on countries that had adopted rigo rous approaches WT/CTE/M/7 2 
 
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  to reduce carbon emissions. It agreed that countries needed to work collaboratively to address this 
risk. The United Kingdom  would champion progress in this area and encourage countries to consider 
a full range of policy options to mitigate  carbon leakage, such as promoting carbon pricing and 
demand -side measures. The United Kingdom  would also encourage countries to consider policy 
solutions that were compliant with international trade laws, including WTO rules, and supportive of 
the needs o f the LDCs. G7 Trade Ministers had also committed to play a role in the global transition 
to sustainable commodities markets and supply chains, for example, with engagement at the WTO 
on potential trade policy approaches that supported this aim. In additio n, there was an agreement 
to work closely with the environment and other relevant ministries to share best practice and 
consider any appropriate domestic action to support sustainable supply chains and help tackle 
deforestation, for example, through the FA CT Dialogue. The G7 had expressed support for the WTO 
Director -General's efforts to conclude the fisheries' subsidies negotiations.  The United Kingdom  was 
happy to provide further information on any of its campaigns and looked forward to continued 
discussi ons on trade, environment and climate change at the WTO.  
5.1.2   Update from New Zealand on the Agreement on Climate Change, Trade and 
Sustainability (ACCTS)  
The representative of New Zealand  provided an update11 on the ACCTS initiative, which was 
being negotiated  by Costa Rica, Fiji, Iceland, New  Zealand, Norway and Switzerland. The fifth round 
of negotiations had been held virtually over four weeks and concluded on 10 June  2021. Participating 
countries had made substantive progress across the four pillars of the negotiations. The legal and 
institutional working group had also held its first set of discussions in Round Five.  
In the environmental goods working group, participants had drawn on extensive discussions 
and resources from other fora, including the APEC an d EGA co -chair lists. The consensus list of 
environmental goods had further expanded,  and delegations would continue to discuss and build on 
this work intersessionally. The consensus list was largely derived from HS chapters 84 and 85, while 
nominations ac ross other NAMA (Non -Agricultural Market Access) HS chapters also featured.  
In the environmental services working group, participants were seeking to expand the 
definition of environmental services beyond Central Product Classification (CPC) 94. Since the 
conclusion of the Uruguay Round, what was commonly understood to be an environmental service 
had expanded significantly beyond what was classified in CPC 94. This recognized that environmental 
services had the potential to make meaningful co ntributions as part of efforts against climate change. 
Services that increased the output and efficiency of environmental goods and infrastructure helped 
move the world towards greener technologies and methods of operation.  
ACCTS participants were consider ing how to assess which services needed to be included 
under this pillar. The environmental goods, environmental services and eco -labelling working groups 
had made strong advances in discussions on a chapter text. The FFS group discussed scope and 
definiti onal questions in detail, seeking to balance ambition with effective implementation of 
disciplines to eliminate harmful FFS. The group had also begun consideration of different 
categorization approaches to disciplines. Intersessional work would continue ov er the summer break, 
with the next round of negotiations scheduled in late August. New Zealand would provide an update 
on the progress of round six at the next TESSD meeting in September 2021.  
6  MEMBERS'  SUGGESTIONS AND PROPOSALS  
6.1  Update on Trade and Environm ental Sustainability  Structured Discussions (TESSD)  
The representative of Costa Rica , on behalf of the Coordinators of TESSD, provided an update 
on its second formal meeting, held on 26 -28 May 2021. The meeting was organized into thematic 
sessions during t he first day and a half, covering issues such as environmental goods and services 
(EGS); green Aid for Trade; FFSR; trade -related climate measures, including border carbon 
adjustments (BCA); and greening trade with a focus on circular economy and prioritie s for 
developing countries. For the last part of the meeting, a Members -only session discussed possible 
deliverables for MC12 and TESSD work post -Ministerial. The co -conveners welcomed the inclusive 
participation of co -sponsors and the wider membership, wh o had shared their views on the value of 
 
11 See document RD/CTE/196 . WT/CTE/M/7 2 
 
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  TESSD as an incubator for ideas, initiatives and projects on trade and environmental sustainability 
that could be developed and matured for discussion at a future stage. The active participation of 
stakeholders was highlighted, and their engagement was emphasized as TESSD's main added value, 
providing scientific and data -based inputs to the issues discussed.  
While there was broad interest on the importance of reviewing the conditions to discuss specific 
topics as del iverables for MC12, such as EGS, the preparation of an elements document that could 
serve as a basis for an overarching ministerial statement was viewed as a tangible first step. This 
document would be shared among TESSD co -sponsors before the summer break . Co-conveners 
reiterated TESSD's objective to complement discussions within the CTE. By incorporating 
stakeholders with expertise in the different areas and serving as an umbrella for sustainability and 
trade, co -conveners believed that the end result wou ld be a wider sensibilization and call for action 
on such important issues.  
The representative of Canada  noted Canada's commitment to ensuring that its own transition 
to a low -carbon economy was achieved fairly and predictably for businesses. Canada was ex ploring 
the potential of BCAs as one of several tools to mitigate carbon leakage while also encouraging other 
countries to step up and take effective action to reduce emissions.  Canada would continue to work 
with like -minded economies to consider how this approach fit into a broader strategy to meet climate 
targets while fostering green innovation, promoting global ambition on climate action, and avoiding 
carbon leakage. Canada had hosted a BCA workshop at the WTO on 4 March 2021 and led further 
discussions  on BCAs at May's TESSD meeting. The high number of participants at both events 
indicated strong interest in this issue. Continued discussion at the multilateral level on various 
aspects of BCAs was merited and Canada would continue to facilitate those dis cussions.   
The representative of Australia  supported a TESSD ministerial  declaration as an outcome at 
MC12, including on EGS liberalization. Australia was a longstanding advocate of this topic and an 
active participant that had chaired the EGA negotiations . The case for liberalizing trade in EGS was 
strong. There was growing recognition that enhancing trade in EGS would directly contribute to 
efforts to tackle climate change as reflected in the APEC Ministers Responsible for Trade joint 
statement.12 Austral ia saw tariff reduction and elimination as one important part of the EGS story 
but there were also substantial gains to be made by addressing non -tariff measures that impeded 
such trade.  
Australia saw MC12 as a major checkpoint for trade and environmental sustainability and a 
programme of work towards EGS liberalization as a vital element of the MC12 agenda, as emphasized 
in its joint communication with Korea and Singapore ahead of the first TESSD meeting.13 The scale 
of environmental challenges confronting  policymakers today was increasing, requiring several 
different policy domains to be mobilized at once, with trade policy being one such domain. There 
was renewed interest in cutting tariffs and removing other border restrictions to facilitate access to 
cheaper or more advanced equipment and technologies to prevent or mitigate environmental harm. 
The EGS agenda was one of the most compelling examples of a trade and environmental 
sustainability issue where trade liberalization could be linked to environmenta l outcomes. Such 
win-wins, which aligned the core trade liberalizing function of the WTO with international and 
domestic environmental goals, were invaluable in underlining the contribution that the WTO could 
make to the environment. Discussions in TESSD h ad also been useful in elevating this topic within 
the WTO and focusing attention in capitals. Work in other fora, such as APEC, had gained traction, 
and the upcoming COP26 summit was also serving to focus minds. Over the coming months, 
Australia looked fo rward to working toward an ambitious and credible outcome on trade and 
environmental sustainability at MC12, which included liberalization of EGS as a key element.  
The representative of Japan  expressed appreciation to the co -sponsors, Costa  Rica and Canada , 
for moving discussions forward. To contribute to TESSD discussions, Japan had submitted proposals 
regarding climate -related trade in goods and services,  including regulatory issues to address climate 
change. Japan had also provided a paper regarding its thoughts on CBAM. To ensure that TESSD 
achieved a significant outcome at MC12, Japan hoped to further engage in TESSD discussions, taking 
into consideration the role of the CTE in addressing multilateral discussions on trade and 
environment.  
 
12 https://www.apec.org/Meeting -Papers/Sectoral -Ministerial -Meetings/Trade/2021_M RT. 
13 See document INF/TE/SSD/W/9 . WT/CTE/M/7 2 
 
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The representative of Ecuador  noted that Ecuador had presented, together with Brazil, 
El Salvador and Paraguay, within the framework of TESSD, a proposal on sustainable agriculture, 
which was a topic of utmost importance for developing countries. Ecuador w as committed to the 
protection of the natural environment and therefore supported broad and proactive discussions on 
issues dealing with trade and environment at the WTO, such as agriculture. Agriculture was a 
fundamental part of any productive transformat ion, which had to consider the economic, social and 
environmental pillars of sustainable development. At the WTO, Ecuador had been promoting for 
years a development model based on the free exchange of goods and services. Trade decisions and 
options needed to be designed to protect the environment. Among those options was the elimination 
of trade -distorting agricultural subsidies. He recalled the importance of ensuring that the "green" 
notion was not used to justify restrictive trade practices in agriculture , which affected the social and 
economic pillars of sustainable development. Ecuador hoped that the proposal would open 
opportunities to discuss the issue of agriculture, which was relevant to trade and sustainability, and 
that it would be among the topics  included in an MC12 declaration.  
The Chair  noted TESSD's crosscutting and horizontal nature. He requested Costa Rica to clarify 
if the topics of sustainable agriculture and the relaunch of the EGS were being considered in TESSD.  
The representative of Costa Rica  noted that sustainable agriculture was not singled out as a 
topic within TESSD but had been discussed as one of the priorities of developing countries at the 
last TESSD meeting. TESSD was an open dialogue where Members could put forward their 
sugges tions and proposals and discuss any topic of interest that related to trade and environmental 
sustainability. For example, the sustainable agriculture proposal had been presented by a group of 
Latin American Members who were not TESSD co -sponsors. This sen t a message of inclusivity that 
any interested Member could participate in TESSD discussions. Environmental goods and services 
was the most mentioned topic by meeting participants. The co -sponsors and the wider membership 
expected to continue the discussio ns and evaluate the conditions surrounding EGS negotiations. 
However, this depended on Members and it was too soon to label this as an EGS revival. TESSD 
would continue the conversation with Members on post -MC12 work. TESSD was a member -driven 
initiative a nd discussions would move forward at the pace and intensity desired by Members.  
The representative of the Kingdom of Saudi Arabia  thanked the TESSD co -sponsors for the 
update on recent developments. Saudi Arabia participated in the TESSD meeting where its position 
was made clear. Saudi Arabia was aware of the importance of sustainable development and its social, 
economic and environmental pillars. They were not only fundamental goals of the WTO enshrined in 
the Marrakesh Agreement, but also played an import ant role in achieving the SDGs. However, the 
CTE was the WTO standing forum dedicated to dialogue between Members on the impact of trade 
policies on the environment. The CTE, since its creation, had followed a comprehensive and inclusive 
work programme tha t encouraged sharing information and experiences. For Saudi Arabia, it was 
very important to stick to the exploratory discussions mandate of the CTE.  
Her delegation recalled that the WTO was a Member -driven organization with the main 
common goal of strengt hening and safeguarding the multilateral trading system. Adhering to 
different approaches in the trade and environment work required consideration of certain elements: 
the TESSD discussions, which aimed at moving to a negotiating phase, had to not undermin e the 
discussions on the same topics in the CTE or the negotiations under the CTE  in Special Session 
(CTESS). It was important to consider the development dimension, policy space and concerns of 
developing Members and to avoid issues that were addressed more properly under their respective 
forums. Discussions needed to be open, transparent and inclusive to all WTO Members and without 
prejudice to their rights and obligations. Furthermore, any discussion on the relation between trade 
and environm ent needed to be inclusive of all technological innovations and development dimensions 
to broaden the coverage of benefits and ensure inclusive participation by all WTO Members.  
The representative of the United States  thanked the co -conveners for organizin g the May 
TESSD meeting. The wide -ranging topics for discussion clearly demonstrated the continued interest 
among Members on trade and environment issues, as well as the need to focus on the areas where 
the WTO could add value. The United States was suppor tive of an MC12 declaration that reflected 
the mutual supportiveness of trade and environmental policies and encouraged the declaration to 
recognize the importance of worker -centric approaches to achieving economic and environmental 
sustainability. His del egation continued to see opportunities to use trade tools to address climate 
change. This particular topic could be of greatest interest for Members in exploring the lead -up to WT/CTE/M/7 2 
 
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  MC12 and the work following. The United States looked forward to continued enga gement on these 
and other trade and environment issues.  
The representative of the Russian Federation  noted that his delegation supported multilateral 
activities aimed at combatting climate change and welcomed WTO Members' cooperative approach 
in this regar d. The Russian Federation was currently monitoring the initiative. He noted that a key 
prerequisite for success was to find a "common path" that countries could follow together while 
leaving no one behind. He underscored the importance of considering diffe rent national 
circumstances. When studying key international agreements on climate protection, a clear desire for 
nations to resolve climate -related issues based on consensus could be seen. Such documents 
unanimously highlighted the unacceptability of unil ateral actions that led to discrimination or 
established disguised restrictions on international trade. The successful experience of the Montreal 
Protocol on Substances that Deplete the Ozone Layer evidenced the feasibility of reaching ambitious 
climate ob jectives jointly within the multilateral trading system. The multilateral nature of such 
agreements ensured predictable rules and reduced the risk of competition distortions by individual 
states and groups of states. The only functioning globally fair clim ate-related trade regulations would 
be those adopted through a multilateral process.  
There was a growing expectation that such negotiations would be successful as all WTO 
Members were united by global climate concerns. His delegation saw certain elements w here 
Members could move together, such as those which contributed to trade liberalization, which was at 
the core of the WTO. A careful approach was needed for elements that did not fall under such criteria. 
Relevant work had to result in predictable, effec tive and trade -friendly environmental policies. It 
was promising that Members were engaging in this work within already agreed frameworks. The 
Russian Federation echoed other Members in saying that the process needed to be inclusive, 
transparent and open.  
7  RELATIONS  WITH INTERGOVERNMENTAL AND NON -GOVERNMENTAL ORGANIZATIONS, 
ITEM 10  
7.1  Briefing by New Zealand  on trade and environment initiatives by APEC  
The representative of New Zealand  updated delegations on trade and environment initiatives 
by the APEC, and th e APEC Ministers Responsible for Trade virtual meeting joint statement 2021 of 
4-5 June 2021. This update built on the presentation by New  Zealand at May's TESSD meeting on 
the trade and environmental sustainability initiatives in APEC 2021. APEC's 21 Memb er economies 
in the Asia -Pacific region made up nearly three -fifths of global GDP, 38% of the world's population, 
and nearly half of the world's trade. APEC's strength lay in its successful record of accomplishment 
as an incubator of ideas and economic ini tiatives. As reaffirmed by APEC Leaders in the 
APEC Putrajaya Vision 2040, a document that set the direction of the forum for the next 20 years, 
APEC played an important role in addressing environmental challenges and supporting a 
decarbonized future throu gh the use of economic and trade policy levers. In June 2021, the Ministers 
Responsible for Trade had met virtually to discuss the most pressing issues in the region. The 
meeting was chaired by New  Zealand's Minister for Trade and Export Growth, with the a ctive 
participation of the WTO Director -General. The statement issued by Ministers following this meeting 
was one of the most ambitious and forward -looking in recent years, particularly on issues related to 
trade and environmental sustainability.14 
His del egation underscored key elements related to CTE's work. Ministers had noted the value 
of using trade rules to support a green economic recovery and enhance sustainable development in 
the region. Specifically, Ministers had reaffirmed APEC's commitment to r ationalize and phase out 
FFS that encouraged wasteful consumption, while recogni zing the importance of providing those in 
need with essential energy services. Ministers had tasked officials with exploring options, for those 
members that were in a position to do so, for undertaking a potential voluntary standstill on 
inefficient FFS and with reporting to Ministers in November on progress made. Ministers had 
acknowledged the importance of capacity  building initiatives in supporting economies in this process.  
On environmental goods, Ministers had tasked officials with reviewing the implementation of 
the original APEC List of Environmental Goods, agreed in 2012, and updating the list in terms of 
HS tariff classifications for reference purposes by November's APEC  Ministerial Meeting. This had 
 
14 See document  WT/GC/232 . WT/CTE/M/7 2 
 
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  been consistent with New  Zealand's ambition, as the 2021 APEC host, to build upon the previous 
success of the original environmental goods list. In addition to supporting this work, Ministers had 
noted APEC's efforts to discu ss the impact of non -tariff measures on trade in environmental goods. 
Ministers had welcomed recent APEC reports on how the region's economies could support increased 
trade in environmental services, including a recently published report entitled "Environm ental 
Services in the APEC Region: Definition, Challenges and Opportunities".15 
APEC economies were working to advance efforts on enhancing trade in environmental 
services, including by identifying environmentally related services, and would report on prog ress at 
the APEC Ministerial Meeting in November. It was encouraging to see the active engagement and 
leadership shown by APEC economies on advancing work on issues at the nexus of trade and 
environmental policy. This included proposals to develop scoping and research papers on new 
environmental goods in order to inform discussions, which reflected the dynamic and innovative 
nature of these products. New  Zealand was approaching APEC's work on trade and environmental 
sustainability from the perspective of co ntributing to ongoing work in the WTO and initiatives such 
as the ACCTS. Any discussion on EGS liberalization would be a discussion of possible approaches, 
rather than seeking any form of commitment. The WTO and free trade agreements remained the 
appropria te vehicles for forming commitments in these areas.  
The Chair  drew delegations' attention to paragraphs 1.13 to 1.16 of the APEC Ministers 
Responsible for Trade virtual meeting joint statement . He also confirmed that the original APEC List 
of Environmental  Goods, agreed in 2012 , had 54 goods. He noted that the APEC list could be rooted 
in the Doha Round CTESS discussions of the universe of environmental goods . 
The representative of the Kingdom of Saudi Arabia  noted that this topic was discussed under 
item 1 0 of the CTE work program me. Saudi Arabia was concerned about the intention of some 
Members to bring the negotiations that took place in other forums, including but not limited to APEC 
negotiations, to WTO. Her delegation underscored that the negotiations on trade and the 
environment focused on three main themes: (i) the relationship between WTO rules and MEAs; 
(ii) the collaboration between the WTO and MEA  secretariats; and (iii) the elimination of tariffs and 
non‑tariff barriers on environmen tal goods and services. These discussions took place in the CTESS  
and there was no need for duplication of effort.  
The representative of Canada  commended New Zealand for its leadership as the Chair of the 
APEC 2021. Chairing a multilateral process was diff icult in the best of times and  chairing such a 
process during the global pandemic posed even more challenges. Canada was pleased by the 
comprehensive and detailed statement that the APEC Ministers Responsible for Trade had agreed 
on. The statement clearly outlined the importance that APEC members attached to the full 
functioning of the WTO. In addition, the statement also highlighted APEC members' views that trade 
could serve as an enabler to achieve environmental sustainability targets. Canada looked forwa rd to 
continuing to work with APEC members in advancing trade environmental initiatives forward.  
7.2  Briefings  by other Observer  Organizations  
7.2.1   Briefing by the World Bank16 
The representative of the World Bank  extended the World Bank's appreciation to colleague s in 
the WTO's Trade and Environment Division for the close and productive collaborative links and work 
on various topics. Accelerating climate held far -reaching developmental implications. The work at 
the World Bank demonstrated that left unchecked, clima te-induced shocks would push about 
132 million people into poverty over the next decade, undoing hard -won development gains. The 
threat of climate change remained critical for many countries. It was forcing people to evacuate 
homes, to grapple with food in security or the impacts of deforestation and biodiversity loss. These 
were challenges people faced even as they also dealt with the health and economic damage wrought 
by the COVID -19 pandemic.  
Natural disasters produced about USD 18 billion a year in damag e to power generation and 
transport infrastructure alone in low - and middle -income countries. They also triggered twenty -fold 
 
15 https://www.apec.org/Publications/2021/05/Environmental -Services -in-the-APEC-Region . 
16 See document RD/CTE/192 . WT/CTE/M/7 2 
 
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  economy -wide disruptions annually for households and firms of about USD 390 bn.17 For developing 
countries, trade was especially c rucial to mitigate food insecurity induced by climate shocks.  The 
impact of climate change would be experienced most acutely by developing countries, especially in 
the agricultural sector, with implications for employment and food security.  An additional 7 0 million 
people were predicted to be at risk of hunger by 2030 because of climate change, with the worst 
effects felt in South Asia and Sub -Saharan Africa. Since climate change would increase the volatility 
of food production at the national level, growin g trade flows and keeping trade channels open would 
be ever more important in reducing price volatility and delivering food supplies to those most in 
need. Nowhere was this more important than in countries that were structurally food deficient.  The 
arithme tic was simple: absent expanded food trade, more households in low  income countries would 
be food insecure because of climate change. This pointed to a clear supportive role for Members of 
this Organization, in this committee, but also in negotiations in a gricultural trade.  
To address these challenges, the World Bank Group was conducting analytical work because 
this was an area in which there was a need for better data, better metrics of measurement, and 
strategic support and lending. On the analytical side, the World Bank was trying to improve and 
expand climate diagnostics. The World Bank Group was committed to building a strong analytical 
base at the global and country -level, notably by introducing new Country Climate and Development 
Reports. The World Bank was also focusin g on climate results and impact, by measuring results and 
achieving impact through a greater focus on GHG emissions reduction, adaptation, and resilience 
goals, supported by new metrics.  
The third element of World Bank 's analytical response related to scal ing up their Trade and 
Climate Change work program me. The World Bank addressed various climate change and 
environment -related issues. Last year, there had been a very significant scale -up of World Bank 's 
analytical work within the global trade team. The fi rst set of findings would appear in a forthcoming 
report to be launched in September, including through a panel hosted by the Costa Rican mission at 
the WTO's next Public Forum. This would be followed by a scaled -up work program me that would 
focus on trade  and development in the transition to a low -carbon world.  
The World Bank 's forthcoming Trade and Climate Change Report examined the trade and 
climate change nexus through a developing country lens. The World Bank 's work showed that 
although trade played a role in GHG emissions that contributed to climate change, it could also form 
a central part of the solution through mitigation and adaptation efforts. The report drew attention to 
six transmission channels which included that economies could support green, resilient, and inclusive 
development through trade reforms that reduce the current bias towards carbon -intensive goods 
trade. They could also support green trade liberalization by focusing on goods and services of priority 
interest to developing country exporters. Countries could review trade -related measures, such as 
intelle ctual property rights, that may restrict the diffusion of clean technologies to developing 
countries. There was a need to help countries to better identify and develop "carbon competitive" 
goods and services that could help drive the shift away from relian ce on comparative advantages 
and value chains that were vulnerable to climate change.  
The earlier discussion on CBAM clearly pointed to methods of production and product 
categories that were more sensitive to these risks. Global and preferential trade and investment 
agreements could promote the adoption of common standards on environmental goods and services 
and address challenges with cross -border impacts. Reducing trade costs at and behind borders to 
promote trade and lowering tariffs and non -tariff barri ers on imports that embodied new technologies 
could drive productivity growth and climate adaptation, which was a very practical operational role 
for negotiations in the WTO. To the extent that nominee negotiations and negotiations on 
environmental goods a nd services could be indeed resumed.  
The second part of World Bank 's work was on providing strategic support and lending and 
funding. There was a very steep rise in the climate dimension of the World Bank 's lending portfolio. 
35% of World Bank financing ov er the next five years was geared towards featuring climate 
components. The lending portfolio increasingly internalized climate objectives and climate adaptation 
and mitigation objectives. 50% of World Bank climate financing was directed to supporting 
 
17 S. Hallegatte , J. Rentschler, J. Rozenberg , Lifelines: The Resilient Infrastructure Opportunity , 
Washi ngton, DC: World Bank  (2019), available at: 
https://openknowledge.worldbank.org/handle/10986/31805 . WT/CTE/M/7 2 
 
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  adaptation and resilience. The greening of World Bank 's lending portfolio was extremely important 
and very rapid by historical standards at the bank.  
The second area of work was on the strengthening of World Bank 's guiding frameworks. A  new 
Climate Change Acti on Plan (CCAP) was being designed to guide their actions over the next 
five years. The World Bank 's first CCAP, which ran from 2016 -2020, had resulted in USD 83 billion 
of climate finance for developing countries and focused centrally on increasing the dep loyment of 
renewable energy, reducing disaster risks for vulnerable communities, enhancing access to early 
warning systems, and restoring affected landscapes. The W orld Bank 's new CCAP  (2021 -2025) would 
further increase finance for climate mitigation and a daptation. It would ensure that World Bank 's 
funding decisions were aligned with the Paris Agreement 's goals and commitments and supported 
countries in transitioning out of coal.  
The COVID -19 pandemic and the increasing frequency of climate -related shocks highlighted 
the urgency for developing countries to strengthen their policy frameworks and economic 
foundations for green, resilient, inclusive development pathways. Emerging policy responses to 
climate change highlighted the imperative of diversification away from patterns of production that 
were heavily carbon intensive . Countries that were able to affect that diversification to engage in 
less carbon -intensive value chains and means of production were going to see expanded trade and 
investment opportunities. Developing countries had to engage more fully in discussions on trade and 
environmental sustainability at the multilateral level so that their concerns were taken into 
consideration. This included their participation in all discussions relat ed to the issues of 
environmental sustainability. Particularly important would be to build capacity in measuring and 
developing carbon competitiveness, climate financing and policy reform measures. Stepped up 
levels  – and the greening of – Aid for Trade co uld and needed to play a key role in such efforts. The 
World  Bank had scaled up dramatically, both in the context of COVID -19, but also in the context of 
recurring climate shocks, their response and toolkits. The World Bank encouraged countries to reach 
out to them. In country offices, the World Bank  was present in 154 developing countries. It was 
important for countries who faced these challenges to simply be alert to the tools that the World  Bank 
made available to them. The World Bank's Global Trade Team remained available for any queries 
and looked forward to seeing Members at the September launch of the flagship publication.  
The Chair  drew attention to the WTO -UNEP Report on Trade and Climate Change from 2009 . 
7.2.2   Briefing by the United Nations Industrial De velopment Organization  (UNIDO )18 
The representative of  the United Nations Industrial Development Organization  (UNIDO ) 
updated delegations on UNIDO's Global Consultations on Circular Economy, which were held virtually 
from 10 -12 May 2021. The Global Consult ations on Circular Economy were held following a UNIDO 
General Conference resolution in which the secretariat was requested "to organize consultations for 
experts from member States with a view to facilitating exchanges on best practices, and emerging 
innovations and the promotion and adoption of circular economy principles and practices by 
industries of UNIDO Member States". The objectives of the consultations were to consider ways and 
means to promote circular economy principles and practices, particularl y in developing countries, 
and identify barriers and devise action -oriented solutions. Co -chaired by the Ministers of 
Environment of Austria and Costa Rica, the meetings were attended by over 300 representatives of 
national governments, U N entities, interg overnmental and non -governmental organizations, the 
private sector and academia. Participants had agreed that a circular economy was strategically very 
relevant as it addressed a critical root cause of multiple global environmental challenges, i.e. climate  
change, biodiversity loss, and pollution, including marine plastic litter.  
Over 500 environmental agreements existed at the global stage, but they did not contain any 
reference to a circular economy. Only 8% of economic activities worldwide utilized circu lar economy 
practices. No internationally agreed definition of a circular economy existed. There were different 
interpretations and even a divergence on the concept. Various countries did have policies, which 
directly or indirectly referred to a circular e conomy. Harmonization of such policies would enhance 
the effectiveness of regional and global action. While there was a growing desire to implement 
circularity across the world  – as manifested in multiple partnerships and alliances  – there was a need 
for global governance to mainstream circular economy efforts. In this regard, it would be important 
to establish a consensus on a set of principles, which would accommodate the needs and conditions 
 
18 See document RD/CTE/194 . WT/CTE/M/7 2 
 
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  of all countries and respecting the circumstances of developing  countries and economies in 
transition.  
Circular Economy principles were required to assist countries to achieve the SDGs and 
promote inclusive trade and investment, in accordance with internally agreed rules and regulations. 
Trade and international value chains were identified as main avenues in the transition to a circular 
economy. In terms of the gaps and challenges, several issues had been identified as needing 
attention. There was a lack of capacity, understanding and awareness of circular economy prin ciples 
among stakeholders. There was insufficient data for accurate policymaking and strategy 
development on the circular economy, including target -setting for circular economy implementation. 
Incentives/disincentives were needed and a robust regulatory fr amework for the business sector. 
Innovative funding schemes did not exist and would be needed.  
There was a need to integrate circular economy into climate change strategies and 
intergovernmental processes. To date, efforts to tackle the climate crisis had mostly focused on the 
energy transition, which could reduce about 55 % of global GHG emissions. The remaining 45 % of 
emissions came from extraction and manufacturing industries and lifestyle choices. For that reason, 
it was imperative to integrate circular economy into climate change strategies and intergovernmental 
processes. The global consultations on circular economy raised the following specific 
recommendations which included developing global guidelines on how to implement circular 
economy ; supporting and pursuing global alliances and consultations on circular economy, utilizing 
the Global Alliance on Circular Economy and Resource Efficiency to promote awareness -raising and 
consensus -building; building on existing environmental agreements; devising new adaptive business 
models, regenerative and restorative by design; creating public -private partnerships at the national 
level. The outcomes and recommendations would be submitted to the next session of the Industrial 
Development Board, for the Board's consideration. The main findings of the global consultations 
would feed into major intergovernmental processes such as the High -Level Political Forum on 
Sustainable Development 2021 and the UNFCCC  Conference.  
8  CTE CHAIR'S BRIEFING  ON INFORMAL CONSUL TATIONS  
The Chair update d the Committee on his consultations relating to the annual work program me 
of the Committee for 2021 and Committee report, if any, in the lead -up to MC12. In the General 
Council  Chair's consultations on MC12 , he alerted all chairs a nd delegations to ensure that 
preparations from July onwards would be efficient and focused. CTE was not the main priority in the 
upcoming preparations. Members needed to  discuss as early as possible issues that would need to  
be brought up to MC 12. Paragraph 3.17 of the report by the Chair of the General Council on his 
MC12 consultations include d, among others, trade and environmental sustainability and the 
importance of transparency and need for horizontal enhancement and improvement of compliance 
with not ification obligations.19 
The intention of the consultations was twofold : to finalize the preparation for today's meeting 
and hear any suggestion on topics for discussion, within the CTE mandate ; and, given the intensive 
level of activity of the CTE in the last couple of years, to highlight the importance of not losing  the 
momentum. Therefore, in the lead -up to MC12, the Chair was of the view that it was  important to 
start thinking on what the CTE could  do to support delegations' efforts to advance even furt her the 
hard work done so far. In the Chair's view, it was  important to plan the work ahead carefully and to 
organize the work in the most efficient way. As to MC12, there were various potential discussions 
ongoing, in TESSD, fisheries, plastics, FFSR, potential sustainability and trade and climate change. 
In the Chair's view there were  several types of potential contributions to MC12: (i) administrative 
reporting to the General  Council , which would give  extra importance to the CTE Annual Report ; if 
there were  any recommendations there, it would  be noted by the General Council  for potential 
inclusion in the ministerial conference agenda for Ministers ; the l ast ever CTE report to a ministerial 
conference was in July 2003; (ii) if there was a ministerial declaration then it was up to Members to 
suggest to the ministers a paragraph relating to the work of the CTE.  
The n ext CTE meeting  was scheduled to take place  during the week of 11  October . The Chair 
informed Members of his intention to hold  informal consultations to gather ideas about the CTE work 
programme, logistics and activities.  
 
19 See document JOB/GC/259 . WT/CTE/M/7 2 
 
- 34 - 
 
  
Ten delegations had reach ed out for consultations  reiterating their strong support for the work 
of the CTE. They shared the importance of furthering the role of the CTE in the context of key 
environment issues. No particular way forward was outlined for the moment, but the Chair  sensed 
a common willingness to make sure that the CTE contribute d effective ly in any way possible to MC12.  
The Chair encourage d therefore  delegations to continue reflecting on this and to reach out to him 
promptly to try and organize the work as efficiently as possible in the months to come.  
_______________  
 
 
  WT/CTE/M/7 2 
 
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ANNEX 1: ITEMS OF THE CTE WORK PROGRAMME (1994)  
Item 1:  The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral 
environmental agreements.  
Item 2:  The relation ship 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 relationship 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 measures and 
requirements which have significant trade effects.  
Item 5:  The relationship between the dispute settlement mechanisms in the multilateral 
trading system and those found in multilateral environmental agreements.  
Item 6:  The effect of environmental measures on market access, especially in relation to 
developing cou ntries, in particular to the least developed among them, and 
environmental benefits of removing trade restrictions and distortions.  
Item 7:  The issue of exports of domestically prohibited goods.  
Item 8:  The relevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights.  
Item 9:  The work programme envisaged in the Decision on Trade in Services and the 
Environment.  
Item 10:  Input to the relevant bodies in respect of appropriate arrangements for relations 
with intergovernmental a nd non -governmental organizations referred to in Article  V 
of the WTO.  
_______________  
 
  WT/CTE/M/7 2 
 
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ANNEX 2: DOHA MINISTERIAL DECLARATION PARAGRAPHS  
32. We instruct the Committee on Trade and Environment, in pursuing work on all items on its 
agenda within its curre nt 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 relevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights; and  
(iii) labelling requirements fo r environmental purposes.  
Work on these issues should include the identification of any need to clarify relevant WTO rules. The 
Committee shall report to the [Fifth Session of the] Ministerial Conference, and make 
recommendations, where appropriate, with r espect to future action, including the desirability of 
negotiations.  
33. We recognize the importance of technical assistance and capacity building in the field of trade 
and environment to developing countries, in particular the least -developed among them. We also 
encourage that expertise and experience be shared with Members wishing to perform environmental 
reviews at the national level . [A report shall be prepared on these activities for the Fifth Session.]  
51. The Committee on Trade and Development  and th e 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.  
__________