MOREPRESS RELEASE
TRADE AND ENVIRONMENT BULLETIN
PRESS/TE/035
20 February 2001
(01-0939)
CTE ADDRESSES DOMESTICALLY PROHIBITED GOODS;  CBD AND TRIPS
AGREEMENTS;  MARKET ACCESS EFFECTS OF ENVIRONMENTAL MEASURES;
SECTORAL "WIN-WIN-WIN" OUTCOMES FROM TRADE LIBERALIZATION;
ENVIRONMENTAL REVIEWS;  THE PRECAUTIONARY PRINCIPLE;  AND A
CONSULTATIVE MECHANISM ON THE WTO –MEA RELATIONSHIP
At the meeting of the Committee on Trade and Environment (CTE) on 13-14 February 2001,
participation was particularly lively with several proposals and papers submitted by Members and the
Secretariat on a broad range of issues.  The focus was on market access issues, specifically market
access implications of environmental measures and the "win-win-win" potential for trade,environment and development arising from trade liberalization in the fisheries, energy, agriculture,
and non-ferrous metals sectors.
There was also constructive debate on domestically prohibited goods, protection of traditional
knowledge, access to genetic resources and the TRIPs Agreement, environmental reviews of trade
agreements, the precautionary principle, and New Zealand's proposal for an informal consultative
mechanism related to the WTO-MEA relationship.
The Chair, Ambassador Biké emphasized the importance of addressing practical issues of
particular relevance to developing countries, such as the export of domestically prohibited goods, as
well as broadening the participation of developing and least-developed countries in the CTE.  UNEP
had helped to broaden the participation in the CTE by funding environmental experts from developingcountries.
Several observer organizations (the FAO,  OECD, UNCTAD, UNEP and WIPO) reported on
their recent CTE-related activities.  The Chairship was passed from Ambassador Yolande Biké
(Gabon) to Ambassador Alejandro Jara (Chile).  The CTE will hold its next meeting on 27–28 June2001 ( see attached Annex).
This Bulletin has been prepared by the WTO Secretariat, under its own responsibility.  Papers
referred to in this Bulletin can be accessed through the WTO website (www.wto.org), and are
available from the Trade and Environment Division of  the WTO Secretariat.  An updated list of CTE
documents from January 1995 to December 2000 can be found in WT/CTE/INF/3.PRESS/TE/035
Page 2
MORESUMMARY OF MAIN POINTS
• The meeting focused on market access issues .  Iceland presented the Nordic eco-labelling criteria
for fisheries.  India shared its national experience on the effects of environmental measures onmarket access.  Members also addressed potential "win-win-win" outcomes for trade,
environment and development in the fisheries, energy, agriculture and non-ferrous metals sectors.
• Discussions on the fisheries sector  built on previous CTE debate and the constructive dialogue at
the UNEP Fisheries Workshop on 12 February 2001.  UNEP had provided funding to ensure the
participation of environment and fisheries experts from developing countries.  The FAO, OECD
and UNEP reported on their respective fisheries work.
• The EC submitted a new paper on environmentally harmful and trade distorting measures and
policies in the energy sector .  Following the EC's request, the Secretariat will prepare a
background paper in this area.
• The Chair, Ambassador Biké emphasized the importance to developing and least-developed
countries, particularly in Africa, of addressing the issue of exports of domestically prohibited
goods  (DPGs).  Based on Egypt's proposal, it was decided to invite the UN Consolidated List of
banned or severely restricted products to inform the CTE about its activities at the June 2001
meeting.
• Concerning the linkages between the Conven tion on Biological Diversity (CBD) and the TRIPs
Agreement , Members commented on Peru's paper on its legislation on the protection of
traditional knowledge and access to genetic resources and Brazil's paper on issues arising from the
review of Article 27.3(b) of the TRIPs Agreement.
• There was discussion of the precautionary principle  based on a submission by the EC
containing a European Council resolution adopted in December 2000.  The EC called for a clear
definition of this principle;  several Members pointed out that WTO rules already accommodatedthe reasonable use of precaution.
• Canada circulated its new framework for undertaking environmental assessments  of trade
negotiations.  Research institutions from Argentina and Senegal presented UNEP-sponsoredpapers on their national experience with assessing trade liberalization in the fisheries sector.
• On the WTO-MEA relationship , broad support was expressed for New Zealand's proposal for an
informal consultative mechanism.  Members welcomed the development of such a voluntarymechanism as representing a constructive step forw ard, while having questions as to how it would
operate.
• The EC circulated an informal discussion paper  entitled The Non-Trade Impacts of Trade Policy
(www.cc.cec.8082/com/trade/index_en.htm.), with respect to which the EC is holding discussion
meetings with civil society.
• UNEP noted its Environment Ministerial Meeting  on Environment, Sustainable Development
and Trade in Berlin, 20-22 March.  Members were invited to submit project proposals for theUNEP-UNCTAD Capacity Building Task Forc e on Trade, Environment and Development
(www.unep-unctad.org/cbtf).
• Discussion of the requests for observer status  was postponed pending developments in the
General Council on this matter.PRESS/TE/035
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MOREDETAILED DESCIPTION OF THE ISSUES ADRESSED
Issues postponed from the 24-25 October 2000 meeting
Item 7 – Domestically prohibited goods
Members welcomed a new Secretariat paper updating information on the coverage of
international instruments dealing with domestically  prohibited goods (DPGs) (WT/CTE/W/161).  The
Chair, Ambassador Biké emphasized the significance to developing and least-developed countries,
particularly in Africa, of addressing the DPG issue.   Egypt, the EC and others noted the importance of
the United Nations Consolidated List of Products Whose Consumption or Sale have been Banned,
Withdrawn, Severely Restricted and said it was vital to increase information on these products, such
as soap containing mercury ( see PRESS/TE/034).  India recalled the need to take into account the
right of countries to regulate imports based on domestic considerations.
Based on Egypt's suggestion, the CTE decided to invite the Secretariat of the UN
Consolidated List to brief the CTE at the June meeting.  Reference was also made to the reportcirculated by the Basel Convention Secretariat of the First Continental Conference for Africa on the
environmentally sound management of hazardous wastes (Morocco, 8-12 January 2001).
Argentina said the EU's exports of bonemeal, a product that had been banned for sale within
some EU countries, should be considered to constitute a DPG export and that the CTE should addressthis issue.  Canada noted the reference to the Cartegena Protocol on Biosafety in the Secretariat's DPG
paper and emphasized that biotechnology products were  new and that their environmental impacts had
yet to be determined.
Item 8 – Trade-related aspects of intellectual property rights (TRIPs)
Members addressed Peru's submission on its Experience with the Protection of Traditional
Knowledge and Access to Genetic Resources  (WT/CTE/W/176), and Brazil's paper, initially
submitted in the TRIPs Council, on issues arising from the Review of Article 27.3(b)
(WT/CTE/W/186).  Members appreciated Peru's readiness to share its experience with legislation inthis important area.  India, Kenya, Colombia, Co sta Rica, Cuba, Guatemala, Thailand and Venezuela
emphasized the increasing importance of biodiversity-related issues.  Kenya and Côte d'Ivoire
underscored the African proposal on traditional knowledge and genetic resources in the TRIPs
Council.  Brazil said it was necessary to promote biotechnology in a balanced and sustainable manner,
avoiding biopiracy.
The EC noted that this was one of the CTE items where debate had been the richest.  Brazil,
India, Peru, Norway, Thailand, and the EC favoured international action to address the relationship
between biodiversity and intellectual property issues, such as traditional knowledge and access to
genetic resources.  The EC also referred to the issue of geographical indications, an issue which has
similarities with environmental protection.   Brazil, Peru, India and others expressed appreciation for
the constructive and flexible approach of the EC and Norway (at a previous meeting, see
PRESS/TE/034) to address these issues in the cu rrent review of Article 27.3(b) of the TRIPs
Agreement.  Japan said traditional knowledge had yet to be well defined in intellectual property terms.
The US said that the CBD and the TRIPs Agreement are compatible and that this discussion should
take place in the TRIPs Council.  Switzerland said  discussions on traditional knowledge should take
place in WIPO, not the WTO.
Several delegations said the discussion demonstrated the practical linkages between the WTO
and MEAs, specifically the CBD, and how implementation of both needs to be sufficiently flexible
and mutually supportive.  Thailand and Brazil and others said Article 27.3(b) of the TRIPs Agreement
provides flexibility for countries to put in place sui generis  systems.  This flexibility should be a stepPRESS/TE/035
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MOREforward and, thus, supported the introduction of such  an obligation in the TRIPs Agreement during a
new round of WTO negotiations.  India and Brazil have made proposals in this respect ( see
PRESS/TE/033).  India appealed to Members to gr ant the CBD observer status in the TRIPs Council.
 WIPO reported on its new Intergovernmental Committee on Intellectual Property and Genetic
Resources, Traditional Knowledge and Folklore, established in October 2000 (WT/CTE/W/182-
IP/C/W/242).  UNCTAD referred to its Expert Meeting on Systems and National Experiences forProtecting Traditional Knowledge, Innovations and Practices in November 2000 (papers available at
www.unctad.org/trade_env/index.htm).
Members took note of a letter from the Convention on Biological Diversity (CBD) informing
the relevant WTO bodies of Decision V/26 taken by the CBD Parties in May 2000.  This Decision
invites the WTO "to acknowledge the relevant provisions of the CBD, and to take into account the
fact that the provisions of the TRIPS Agreement and the CBD are inter-related and to further explorethis inter-relationship."  It was decided that the Secretariat would respond by sending the most recent
Secretariat papers related to the CBD.
Items related to market access
Item 2 – Environmental and trade principles
Members commented on a new submission by the European Communities containing the
Resolution of the European Council on the Precautionary Principle , adopted in Nice, 7–9 December
2000 (G/SPS/GEN/225-G/TBT/W/154-WT/CTE/W/181).  The precautionary principle is underpinnedby the need to be cautious in situations where sc ientific information is incomplete, preliminary or in
other ways uncertain.  This Resolution states that measures taken based on the precautionary principle
should be science-based, transparent, proportional, not arbitrary, unwarranted or discriminatory and
use the least trade-restrictive approach available.  The EC noted agreement on shared principles on
precaution would ensure that it was not an excuse for protectionism.  Japan, the US and Brazil askedfor clarification from the EC as to the definition of this principle.  There was discussion on the status
of this principle in public international law.  Several delegations noted that WTO rules can
accommodate the reasonable use of the concept of precaution.  Australia, Malaysia, Brazil, and
Norway were among the delegations that noted that the application of precaution would vary
depending on a case-by-case analysis and, that its use was context specific.
As described in a recent Secretariat paper on Environmental (Sustainability) Assessments of
Trade Liberalization Agreements at the National Level  (WT/CTE/W/171), several countries are
conducting assessments of the impact of trade negotiations on the environment.  Canada presented its
new Framework for Conducting En vironmental Assessments of Trade Negotiations
(WT/CTE/W/183).  The Czech Republic referred to its environmental assessments of trade
liberalization in the agriculture, energy, and environmental services sectors (www.env.cebin.cz).Norway supported further efforts to develop methodologies for environmental reviews and said it was
currently conducting assessments in several sectors.  UNEP briefed Members on its reference manual
for integrated assessments of trade-related policies and the country projects under preparation.  The
participating institutions from Argentina and Senegal presented their national experiences with
assessing trade liberalization in the fisheries sector.
Several delegations noted that it would be difficult to develop a multilateral "one-size-fits-all"
method of assessing environmental impacts, but that national experience case studies were useful.
India, Argentina and others said it was important to encourage trade liberalization to bring economic
dividends to help developing countries devote more financial resources to environmental protection.PRESS/TE/035
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MOREItem 3(b) – Eco-labelling
Iceland presented the Report of the Nordic Technical Working Group on fisheries eco-
labelling criteria  (available at http://fisk.norden.org/fisk/sk/kriterier.pdf), which recommended that
the process for the development of criteria for the voluntary certification and eco-labelling of productsof marine capture fisheries should be transparent, based on scientific grounds, use verifiable criteria
and avoid technical barriers to trade and the proliferation of labels and expensive certification
processes.  Iceland also noted that eco-labelling can be regarded as both a threat and as an opportunity
in terms of market access;  it was important to ensure equal opportunities for developing countries to
benefit from new market trends for fish products, while providing consumers with clear informationon the sustainable use of fisheries resources.
Members also commented on the Secretariat's paper entitled Information Relevant to the
Consideration of the Market Access Effects of Eco-Labelling Schemes  (WT/CTE/W/150).  Several
delegations said voluntary eco-labelling can contribute to sustainable resource management if based
on scientific and objective criteria.  Japan and others said criteria would differ reflecting the various
conditions in each country and the fish species involved.  New Zealand, Thailand, India and Koreahighlighted the concept of equivalency, whereby consideration could be given to recognizing schemes
from other countries.
Concerning the potential trade implications of labelling, several Members said due regard
should be given to the provisions of the TBT Agreement during the development and implementationof eco-labelling schemes.  India, Malaysia, Thailand and Indonesia were among the delegations that
noted the possible trade effects of eco-labelling and said consideration should be given to the
timeframe for implementation and consequences for developing countries.  Citing its practical
experience, Venezuela said eco-labels could be trade distorting and could become a condition for
market access even if they were voluntary.  The EC called for the clarification of the definition ofstandards in the TBT Agreement with respect to the production and processing (PPM) issue in the
context of labelling.     
Item 4 – Trade measures for environmental pu rposes and environment measures with trade
effects
The Secretariat is preparing the WTO Environm ental Database containing the environment-
related measures or provisions notified by Members in 2000;  it will be circulated at the June meeting.
Item 6 – Effects of environmental measures on  market access and environmental benefits of
trade liberalization
Concerning the market access part of this Item, Members commented on India's recent paper
entitled The Study on the Effects of Environmental Measures on Market Access  (WT/CTE/W/177).
The paper sets out India's experience and suggests ways to minimize the market access effects of
environmental measures.  While noting the lack of technical, human and financial resources to take
advantage of the increasing demand for environmentally friendly products, India acknowledged thatdeveloping countries can take steps to increase domestic coordination and make information available
on environment-related requirements, to small and medium size enterprises in particular.  India called
for international cooperation on several issues to move the debate forward, including transparency of
the range of environment-related measures currently in force.  Members said it would be necessary to
find ways in which to put these suggestions into effect.
Several Members made reference to the increasing tendency for environmental measures to
be based on life cycle analysis and production a nd processing methods that were not necessarily
degradation and poverty.  Cuba, Indonesia, the Philippines, Thailand and Venezuela called for
capacity building and technology and financial transfer, as well as increased participation ofPRESS/TE/035
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MOREdeveloping countries in standards-making bodies.  No rway, the EC and others recognized that certain
measures may have a negative impact on the exports of developing countries, even if these measureswere taken to address genuine environmental concerns.
Switzerland, the EC and India referred to the emerging market opportunities for developing
countries in green products, such as environmentally friendly tropical products.  Citing the
development of a multistakeholder dialogue in a new European Sustainable Trade Centre, the EC saidone way forward may be for the private sector and NGOs to provide information on standards and to
address obstacles such as lack of capacity.  Switzerland said the Cleaner Production Centres in
developing countries were a cost-effective way to reduce environmental degradation.  Kenya and
Cuba emphasized the need for special and differentiated treatment to integrate developing countries
into the world economy and ensure predictable market access for their exports.
With respect to the sectoral analysis of the environmental benefits of trade liberalization,
statements were made on agriculture, energy, fisheries, non-ferrous metals, and environmental
services.  Members noted that the way forward in the CTE was to focus on "win-win-win" initiatives
that demonstrate the benefits to environmental protection, trade liberalization and development.
Chile, Peru and others referred to the importance of solving any problems that may arise through
bilateral and regional cooperation.
– Energy – The EC submitted a new paper on environmentally harmful and trade distorting
measures and policies in the energy sector (WT/CTE/W/185).  The EC noted that the market failures
in the energy area affect the use of best available and environmentally sound technology.  Removing
energy subsidies had the potential to result in "win-win-win" outcomes.  UNEP reported on its
regional workshops on the economic and environmental effects of energy subsidy reform.  Following
the EC's request, it was agreed that the Secretariat would prepare a background paper on this sector.
– Fisheries – The FAO reported on the results of its expert consultation on economic incentives
on 28 November – 1 December 2000, which will be presented to the 24th session of the FAO
Committee on Fisheries, 26 February - 2 March 2001. The OECD briefed Members on its
preparations for the OECD Committee on Fisheries meeting on 5–7 March, particularly related to the
on-going Study on Market Liberalization.  UNEP reported on the results of its Workshop on Fisheries
Subsidies on 12 February, noting the need to notify subsidies to the SCM Agreement, apply a matrix
approach to categorize fisheries subsidies and their effects, ensure developing country concerns andenhance collaboration between the relevant intergovernmental organizations.  Japan noted that the
APEC study on fisheries subsidies had been finalized and was available on the APEC website.
Members welcomed the constructive dialogue at the UNEP workshop.   The EC, Japan and
Korea emphasized the lead role for FAO in dealing with sustainable fisheries management.  Iceland,
New Zealand, the US, and the Philippines said the WTO should continue work on the trade dimension
of fisheries subsidies in coordination with other relevant bodies, whose work focused mainly onsustainable fisheries management.   New Zealand, I celand, the Philippines, Norway and others said
that subsidy reform represented a "win-win-win" outcome for trad e, environment and development;
this was an issue in which the WTO had competence  and should be fully involved.  The Philippines
and Thailand were among the delegations that said the development dimension had to be taken into
account when assessing subsidies.  New Zealand said trade distortions caused by subsidies inhibitedsustainable development, particularly in developing and least-developed countries.  Korea recalled the
importance of socio-economic impacts.  Canada, Norway and others recalled that subsidies could not
be viewed in isolation from sustainable fisheries management;  subsidies were only one of several
elements that may have a negative impact on fisheries resources.
Canada was among the delegations that said the starting point of the discussions should be a
definition of fisheries subsidies.  Iceland and New Zealand said it was necessary to move beyond the
abstract definition of subsidies.  By defining the trade impact of subsidies in the real world, it wouldPRESS/TE/035
Page 7
MOREbe possible to identify the benefits that reform w ould bring to sustainable fisheries, particularly for
developing countries.  Japan asked why trade distorting subsidies could not be dealt with in the
framework of the WTO Agreement on Subsidies and Countervailing Measures (SCM).  The EC
joined New Zealand in appealing to countries to notify fisheries subsidies under that Agreement.
– Agriculture – Argentina referred to its submission for the 22-23 March meeting of the
Agriculture Committee on the legitimate non-trade concerns to be taken into account in the
agriculture negotiations.  The paper dealt with three non-trade concerns: rural poverty, unemployment
and environmental degradation, which were related to trade and price distorting subsidies and tariff
escalation (G/AG/NG/W/88).
– Non-ferrous metals – Chile noted the importance of sustainable resource management in the
non-ferrous metals sector and highlighted current international initiatives to develop an action plan for
the sustainable development of non-ferrous metals.
Items relevant to the linkages between th e multilateral environment and trade agendas
Items 1 & 5 – Relationship between MEAs and the WTO
Clarification of the WTO-MEA interface is very much at the center of the intergovernmental
public policy debate with respect to trade and environment.  As a follow-up to its submission in
WT/CTE/W/162 and in response to the discussions at the last meeting, New Zealand elaborated itsproposed informal consultative mechanism (WT/CTE/W/180).  The main tenets are:  (i) to establish a
consultative mechanism to ensure consultation between countries prior to use of trade measures under
MEAs.  The mechanism would be voluntary and inform al in nature.  It would seek to find the most
economically efficient solution to addressing an  environmental problem.  The mechanism would
apply between Parties to an MEA, as well as Parties and non-parties;  (ii) to create an informalmechanism for broad dialogue between WTO, MEAs, UNEP, and NGOs; and (iii) to encourage the
clear drafting of trade measures in MEAs, to avoid disputes over interpretation.
Members welcomed this proposal as a creative and practical way forward and broad support
was expressed for New Zealand's approach.  It was noted that mechanisms such as that proposed byNew Zealand could usefully serve to minimize trade-related MEA disputes, particularly between
MEA Parties, from arising.
The US supported the clear drafting of MEAs and had some questions about the practicalities
of New Zealand's approach to a consultative mechanism.  The EC and Switzerland found thisapproach to be useful, while acknowledging that there may still be a need to accommodate MEAs in
WTO rules.  Switzerland reiterated its proposed approach to develop an interpretative understanding
based on the mutual supportiveness approach ( see PRESS/TE/033).  UNEP referred to potential next
steps to enhance the mutual supportiveness of an d synergies between UNEP, MEAs and the WTO in
light of the forthcoming World Summit on Sustainable Development in South Africa in 2002.
Item 10 – Relations with IGOs and NGOs
 In order to enhance transparency and inform the public of activities in the WTO, Canada,
supported by the US, EC, Peru and others, noted the importance of public outreach on trade and
environment, suggesting that the Secretariat contin ue its outreach efforts with the public so as to
promote a constructive dialogue on trade and environment issues and further understanding of WTOwork.  Canada also confirmed its funding for the WTO regional seminar on trade and environment for
the Caribbean scheduled to take place later this year.  PRESS/TE/035
Page 8
COMMITTEE ON TRADE AND ENVIRONMENT
Revised Work Programme and Schedule of Meetings for 2001
1. The 2000 Report of the Committee on Trade and Environment (WT/CTE/5) sets out that the
CTE will continue to analyse all the items on its work programme based on the "cluster approach"
under the themes of market access and the linkages between the multilateral environment and trade
agendas.  Building on the contribution of Members, including where possible their national
experience, on the items of the work programme, the following tentative schedule of meetings is
proposed.  At each meeting, time will be allotted for Members, if they so wish, to return to Itemsdiscussed at the previous meeting, and to raise other issues of relevance to the fulfilment of the
Committee's mandate.
2. At a meeting to be held on 13–14 February , the Committee will address those Items relevant
to the theme of market access, including:
Item 2: the relationship between environmental policies relevant to trade and environmental
measures with significant trade effects and the provisions of the multilateral trading
system;
Item 3: the relationship between the provisions of the multilateral trading system and:
(a) charges and taxes for environmental purposes;
(b) requirements for environmental purp oses 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;  and
Item 6: the effect of environmental measures on market access, especially in relation to
developing countries, in particular to the least developed among them, and
environmental benefits of removing trade restrictions and distortions.
3. On 27–28 June , the CTE will meet to discuss the Items related to the linkages between the
multilateral environment and trade agendas, including:
MEA Information Session;
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 5: the relationship between the dispute settlement mechanisms in the multilateral trading
system and those found in multilateral environmental agreements;
Item 7: the issue of exports of domestically prohibited goods;  and
Item 8: the relevant provisions of the Agreement on Trade-Related Aspects of Intellectual
Property Rights.
4. Discussions at the CTE meeting on 3–4 October  will include:
Item 9: the work programme envisaged in the Decision on Trade in Services and the
Environment;
Item 10: input to the relevant bodies in respect of appropriate arrangements for relations with
intergovernmental and non-governmental organizations referred to in Article V of theWTO;
Review of the two thematic clusters of market access (Items 2, 3, 4 and 6) and the linkages between
the multilateral environment and trade agendas (Items 1, 5, 7 and 8);  and adoption of the 2001 Report
of the CTE.
END