RESTRICTED  
  
WT/CTE/M/70  
 
17 March 2021  
(21-2235) Page: 1/38 
Committee on Trade and Environment    
 
 
REPORT OF THE MEETING HELD ON 16 AND 20 NOVEMBER 2020  
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Regular) met on 16 and 20 November , chaired by   
H.E. Mr Chad Blackman (Barbados ). The Committee adopted the Airgram,  WTO/AIR/CTE/13, 
issued on 22 September 2020.  The Report of the last CTE  meeting, held on 3 July 2020, is contained 
in WT/CTE/M/6 9. 
_______________  
 
 
1   ENVIRONMENTAL MEASURES AND MARKET ACCESS (PARAGRAPH 32 (I) OF THE 
DOHA MINISTERIAL DECLARATION)  ................................ ................................ ...............  4 
1.1   Fossil fuel subsidy reform (FFSR)  ................................ ................................ ..................  4 
1.2   Circular economy and plastics  ................................ ................................ ......................  5 
1.2.1    Informal Dialogue on Plastics Pollution and Environmentally Sustainable  
Plastics Trade (IDP)  ................................ ................................ ................................ ............  5 
1.2.2    Members' sharing of experience on circular economy and plastics pollution  .....................  8 
1.2.3    Presentati ons by observer organizations  ................................ ................................ ... 10 
1.2.3.1    Presentation by the United Nations Environment Program (UNEP)  .............................  10 
1.2.3.2    Presentation by the United Nations Economic Commission for Europe (UNECE)  ...........  12 
1.2.3.3    Presentation by the World Customs Organization (WCO)  ................................ ..........  13 
1.3   Other  ................................ ................................ ................................ ......................  14 
1.3.1    Presentation b y Colombia on the integrated management of Colombian  
sustainable coffee growing  ................................ ................................ ................................  14 
1.3.2    Presentation by Paraguay on sustainable me chanized production systems  ....................  15 
1.3.3    Presentation by Sri Lanka on sustainable paper production  ................................ .........  16 
1.3.4    Briefing by the European  Union on trade relevant aspects  
of the European Green Deal  ................................ ................................ ..............................  17 
1.3.5    Update by New Zealand on the Agreement on Climate Change, Trade  
and Sustainability (ACCTS)  ................................ ................................ ...............................  22 
1.3.6    Presentation by Canada on the launch of the Structured Discussions on Trade and 
Environmental Sustainability  ................................ ................................ .............................  22 
1.3.7    Costa Rica's report on the side event "Sustainable Livingand International Trade"  .........  24 
2   OTHER ITEMS OF THE CTE WORK PROGRAMME  ................................ ........................  26 
2.1   Multilateral environmental agreements and the WTO (I tem 1 of the  
CTE Work Programme)  ................................ ................................ ................................ ..... 26 
 
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/ 70 
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  2.1.1    The Convention on Biological Diversity (CBD)  ................................ ............................  26 
2.1.2    The United Nations Framework Convention on Climate Change (UNFCCC)  .....................  28 
2.1.2.1    Update by the United Kingdom on the planning for CoP26  ................................ ........  28 
2.1.2.2    Canada's report on the side event on "E -commerce and Climate Change  
in the COVID -19 Era: A game changer for the green economic recovery?"  ..............................  29 
2.1.2.3    Barbados' report on the side event on "Climate Change, Natural Disasters  
and Recovery Efforts: Tapping into Trade Facilitation as an effective response tool"  .................  30 
2.2   Transparency of environment -related trade measures (Item 4 of the  
CTE Work Programme)  ................................ ................................ ................................ ..... 31 
2.2.1    WTO Environmental Database  ................................ ................................ .................  31 
2.3   Services and the environment (Item 9 of the CTE Work Programme)  ..............................  32 
2.3.1    Environmental services  ................................ ................................ ...........................  32 
3   OTHER BUSINESS  ................................ ................................ ................................ ..... 32 
3.1   Report on the WTO -UNEP High -level event "Environment and Trade for a Sustainable  
and Inclusive Economic Recovery from COVID -19" ................................ ...............................  32 
3.2   Report by Barbados on the side event on " The Future of Trade and Environment – 
Interactions with Geneva's youth"  ................................ ................................ ......................  33 
3.3   Briefings by other observer organizations  ................................ ................................ .... 34 
3.3.1    International Trade Centre (ITC) ................................ ................................ ..............  34 
3.3.2    Organisation for Economic Co -operation and Development (OECD)  ..............................  35 
3.4   Other matters  ................................ ................................ ................................ ..........  36 
 
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  ACRONYMS  
  
 ACCTS  Agreement on Climate Change, Trade and Sustainability  
BRS Conventions  Basel, Rotterdam and Stockholm Conventions  
CBAM  Carbon Border Adjustment Mechanism  
CBD Convention on Biological Diversity  
CoP Conference of the Parties  
CTE Committee on Trade and Environment  
DEAL Data for Environment A lliance  
ECTD  Economic Cooperation and Trade Division (UNECE)  
EDB WTO Environmental Database  
EPA Environmental Protection Agency  
EU European Union  
FAO Food and Agriculture Organization of the United Nations  
FAST group  Friends of Advancing Sustainable Trade  group  
FFSR Fossil Fuel Subsidy Reform  
GBF Global Biodiversity Framework  
GHGs  Greenhouse Gases 
GPAP  Global Plastic Action Partnership  
HS Harmonized System  
IDP Informal Dialogue on Plastics P ollution and Environmenta lly Sustainable 
Plastics Trade  
IISD International Institute for Sustainable Development  
IRP International Resource Panel  
ISO International Organization for Standardization  
ITC International Trade Centre  
MC Ministerial Conference  
MEAs  Multilateral Environmental Agreements  
MSMEs  Micro, Small and Medium -sized Enterprises  
NDCs  Nationally Determined Contributions  
OECD  Organisation for Economic Co -operation and Development  
PPPs Public -Private Partnerships  
SBI Subsidiary Body for Implementation  
SBSTTA  Subsidiary Body on Scientific, Technical and Technological Advice  
SDG Sustainable Development Goal  
SIDS Small Island Developing States  
TPR Trade Policy Review  
TESSD  Structured Discussions on Trade and Environmental Sustainability   
UNEA  United Nations Environment Assembly  
UNECE  United Nations Economic Commission for Europe  
UNEP  United Nations Environment Programme  
UNFCCC  United Nations Framework Convention on Climate Change   
UWI University of the West Indies  
WCEF  World Circular Economy Forum  
WCO World Customs Organization  
WEF World Economic Forum  
  
 
 
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1  ENVIRONMENTAL MEASURES AND MARKET ACCESS (PARAGRAPH 32 (I) OF THE DOHA 
MINISTERIAL DECLARATION)  
"The effect of environmental measures on market access, especially in relation to 
developing countries, in particular the least -developed among them, and those 
situations in which the elimination or reduction of trade restrictions and distortions 
would benefit trade, the environment and developme nt." 
1.1  Fossil fuel subsidy reform  (FFSR)  
1.1.  The representative of New Zealand  recalled  that a group of 12  developing and developed 
Members had launched a Joint Statement on Fossil Fuel Subsidy Reform (FFSR), at the eleventh 
WTO Ministerial Conference (MC11).  The signatories had confirmed their intention to seek the 
rationalization and phase -out of inefficient fossil fuel subsidies that encouraged wasteful 
consumption, while recognizing that reform needed to take into account the specific needs and 
conditions of developing countries and to minimize the possible adverse impacts on their 
develo pment in a way that protected vulnerable  communities. The signatories also recognized the 
importance of the WTO as a forum to advance discussions to achieve ambitious and effective 
disciplines, including through enhanced transparency and reporting to enabl e the evaluation of the 
trade and resource effects of fossil fuel subsidy programmes.  
1.2.  The signatories continue d to highlight the benefits and opportunities of FFSR in a range of fora. 
New Zealand had spoke n on FFSR at virtual events including those organi zed by the International 
Institute for Sustainable Development ( IISD) in May and the University of Eastern Finland in October  
2020. New Zealand  had hosted a virtual side event during WTO Trade and Environment Week  2020 
at the CTE on "FFSR and the green recovery "2 with panellists from IISD,  the International Renewable 
Energy Agency  (IRENA ) and the United Nations Environment Program ( UNEP ) providing expert 
interventions on the linkages between FFSR, the international trading system and the COVID -19 
recove ry.  
1.3.  The sharing of information and experience was even more important following the COVID -19 
pandemic. Countries were launching stimulus packages of unprecedented size to assist the economic 
recovery. Governments were investing in infrastructure, supporti ng private investment, and 
considering tax policies to assist all those affected by the economic consequences of the pandemic. 
This, combined with low global oil prices , presented a window of opportunity for reform.  More than 
ever, it was important not to introduce new fossil fuel subsidies that might prove hard to remove in 
due course.  The webinar also looked at what progress ha d been made and the vital role and expertise 
of the WTO in addressing inefficient fossil fuel subsidies. Action on fossil fuel sub sidies could help 
build public confidence in the multilateral trading system 's ability to deliver on its core objective of 
sustainable development and make a trade -related contribution to the very real and urgent challenge 
of climate change.  
1.4.  New Zealand a nd other signatories ha d been actively engaging with WTO Members towards  a 
Ministerial Statement on F FSR for MC12 , building on the efforts at Buenos  Aires. This Statement 
made explicit the key next step: sharing information and experiences at the WTO  to develop a 
supportive international setting for addressing these subsidies and to assist domestic reform.  While , 
due to COVID -19, engagement had been paused  for a time, signatories  remain ed committed to 
renewing the Ministerial Statement at MC12 and looked  forward to further engagement on the topic 
with Members interested to join.  
1.5.  The representative of Switzerland  reiterated its support for the rationaliz ation and phasing out 
of fossil fuel subsidies that encourage d wasteful consumption . To achieve the objectives set out in 
the Paris Agreement and the Sustainable Development Goals ( SDGs ), immediate action was 
required. Switzerland  was engaged on this very important issue with New Zealand and four other 
WTO Members in the Agreement on Clima te Change, Trade and Sustainability " (ACCTS)  negotiations , 
which  sought  to establish binding trade rules that eliminate d environmentally harmful fossil fuel 
subsidies .  
 
2 https://www.youtube.com/watch?v=zdAx0O_K -Qk&feature=youtu.be . WT/CTE/M/ 70 
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  1.6.  Many countries, including Switzerland, had since  set the goal of achieving net-zero by 2050. 
Working towards net-zero and continuing fossil fuel subsidies was setting the world on different 
paths : the first towards a world livable for future generations ; the latter towards a world with 
massive temperature overshoot, endangering livelihoods a nd ecosystems across the globe.  Not only 
did fossil fuel subsidies ha ve a detrimental impact on climate change, but they also had trade -
distorting effects, especially on low emission technologies. The WTO was the right place to discuss 
this issue.  She invited all WTO Members to join this important initiative and hoped that, by MC12 , a 
much bigger group would take forward this issue.  
1.7.  The representative of Indonesia  said that the  issue of FFSR should be discussed in the right 
framework  and objected  to dis cussing it in the  WTO. Indonesia noted  that the capability and capacity 
of Members should also be taken into account.  
1.8.  The representative  of the Russian Federation  said that c omprehensive work was being done on 
this issue  in the G20 forum . His delegation  reiterated that G20 should stay the main forum for 
discussion of the FFSR.  
1.2  Circular economy and plastics  
1.2.1   Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics 
Trade  (IDP)  
1.9.  The Ambassador of Fiji briefed the Committee on  the side event that marked the inaugural 
meeting of the Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade  
(IDP)3, held on the margins of WTO Trade and Environment Week 2020.  
1.10.   The goal of the IDP was to provide a dedicated platform where Members could explore how 
the WTO could contribute to domestic and global effort to tackle plastics pollution and transition to 
more circular and sustainable plastics trade. The aim of this inaugural meeting was t o launch the 
initiative, to discuss its future program me of work, and to encourage Members to join. The key 'take -
aways' from the discussion were the following. First, the presence of a strong – and growing – 
support among Members for a plastics initiative  in the WTO , reflected not only in the broad 
participation in the meeting (with over 230 registered participants), but in the strong engagement 
with two other plastics -related events also held during WTO Trade and Environment Week  2020. 
Members recognized that trade played a central role in the global plastics economy, that trade -
related measures could be highly relevant to tackling plastics pollution, and that cooperative, 
coherent, and transparent approaches were more important than ever. The IDP aimed to channel 
that growing energy and commitment into positive results.  
1.11.   Second, possible subjects for discussion included improving transparency and information 
exchanges; examining the role of trade -related measures in encouraging companies and consum ers 
to shift towards more sustainable plastics; exploring the scope for encouraging trade in plastic 
substitutes, for promoting the diffusion of sustainability -related services and technologies, and for 
better assessing Members' technical and capacity need s. Members were encouraged to develop and 
circulate proposals for how discussions should move forward – ideally well in advance of the next 
meeting early in 2021. Fiji would work with other co -sponsors on a concept paper suggesting what 
a multi -stakeholder  plastics trade transparency exercise might involve.  
1.12.   Third, any WTO plastics initiative needed to support and complement , not duplicate , global 
environmental efforts. WTO's value  added would lie in focusing on the trade dimension of the 
challenge and in e ncouraging cooperative trade -related approaches. It would be important to work 
closely with other sustainability initiatives in the WTO, including the recently launched Structured 
Discussions on Trade and Environmental Sustainability (TESSD) and the centra l work of the CTE. It 
would be particularly important to work cooperatively and coherently with relevant agencies, such 
as the Basel, Rotterdam and Stockholm Conventions (BRS Conventions) Secretariat, UNEP, the 
International Organization for Standardizatio n (ISO), and the United Nations Conference on Trade 
and Development (UNCTAD ), as well as with intergovernmental discussions in the context of the UN 
 
3 See do cument RD/CTE/175 . WT/CTE/M/ 70 
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  Environment Assembly. Plastic pollution was a multi -dimensional challenge and , to effectively 
address it, i t was required to start thinking, working and acting coherently.  
1.13.   The inaugural meeting of the IDP had been a great start to the initiative. The success of the 
initiative would be measured, not in terms of good intentions or aspirations, but in the positiv e, 
pragmatic, and result -oriented progress made in the months ahead.  
1.14.   China and Fiji had asked several like -minded Members to co -sponsor the communication 
"WTO Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade".4 Many 
Members had already agreed to co -sponsor , including Australia, Barbados, Canada, China, Fiji, 
Jamaica, Morocco and Switzerland. Others were still consulting with capitals or had not yet been 
approached. This was an ideal opportunity for Members to send a st rong, positive signal that plastics 
pollution was a global concern , which  Members were determined to address , and that the WTO 
remained highly relevant. She urged other Members to join the initiative.  
1.15.   The representative of China , on behalf of the Ambassador, said this issue could demonstrate 
that the WTO was still relevant for emerging topics of concern for stakeholders. T his was an 
important issue for both developing and developed Members. His delegation appreciated the support 
expressed by interested delegations and welcomed others to join the initiative. He invited Members 
to work together  to advance discussions on the IDP and to engage in other discussions on 
environmental sustainability at  the WTO . He invited Members to work together and engage in 
discussions at the WTO.  
1.16.   The representative of Australia  noted his delegation's concern with the amount of plastics 
polluting the oceans and the environment. Addressing plastic pollution was a key focus of Australia's 
domestic policy framework. Australia was making considerate efforts to reduce plastic pollution in 
the world's oceans. This was a point that had been reiterated by Australia's Prime Minister during 
his address in the UN General Assembly last year where he had outlined the  commitment to combat 
plastic pollution, tackle overexploitation of fisheries and prevent ocean habitat destruction. His 
delegation was concerned with the effect of waste, and especially plastic waste, on the environment 
and on human health. The WTO had a role to play in this area. It was uniquely placed to support 
dialogue and action on the trade -related aspects of tackling plastics pollution. Ways needed to be 
found within the WTO to support and complement intergovernmental efforts to reduce plastic 
pollution. This initiative provided a mechanism to do that. His delegation saw value in discussing 
how to enhance transparency on relevant domestic and international policy developments and 
sharing and promoting best practices to facilitate more sustainable tra de in plastics to reduce plastics 
pollution. His delegation echoed the call for other Members in this forum to join the WTO plastics 
initiative.   
1.17.   The representative of Canada  said his delegation was committed to reducing plastics waste 
and pollution and ad vancing circular economy approaches. Canada was implementing a range of 
complementary measures across the plastics value chain to achieve Canada's vision of zero plastic 
waste by 2030 and to contribute to strengthened management of plastic resources global ly. There 
was a continued need for international cooperation and consistency on global issues such as this 
one. His delegation looked forward to working with China, Fiji and others to identify and explore the 
potential specific contributions that trade, an d the WTO , could make to address plastic pollution. It 
would be important to examine how the efforts could complement existing work underway in other 
international fora to tackle plastic pollution and streamline plastics trade. Canada also looked forward 
to advancing this work in close collaboration with the TESSD  that had been launched earlier this 
week and to being as transparent and as inclusive as possible.  
1.18.   The Ambassador of the Philippines  noted that exploring how the rules and mechanisms of the 
WTO c ould contribute to domestic, regional and global efforts to reducing plastics pollution and to 
improve trade cooperation would be a great legacy for future generations. His government had set 
a target of zero waste in Philippine waters by 2040. His delegat ion wished to see a stronger role for 
the WTO and the CTE through greater coherence between trade and environmental policies and 
active cooperation with other stakeholders. The CTE was the ideal forum to share concrete success 
stories and best practices th at were responsive to contemporary challenges in this area. This issue 
had attained great political weight globally with governments, businesses and civil society and it was 
 
4 See document WT/CTE/W/249 .  WT/CTE/M/ 70 
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  the right time to move this initiative forward. His delegation remained committed to further 
engage ment on this topic and encouraged others to support the initiative.  
1.19.   The representative of Turkey  noted that the dynamics of trade and plastic waste had been 
subject to serious changes recently. In this context, Turkey accorded great impor tance to 
international commitments and to organi zations such as the WTO. Plastic pollution was a planetary 
threat affecting nearly every marine and freshwater ecosystem. Multilevel mitigation strategies had 
been adopted but there was a need for a quantitative assessment of how such strategies would 
reduce plastics pollutio n. Her delegation was convinced that global environmental problems such as 
plastics pollution could be more efficiently dealt with in multilateral forums rather than at the 
individual state level. Turkey would continue to observe all discussions related to  plastics trade at 
the WTO and would contribute to the work of the IDP. 
1.20.   The representative of Switzerland  said that her delegation supported the initiative and 
welcomed efforts on exploring how the WTO could contribute to reducing plastics pollution and a 
more sustainable plastics economy.  Trade could play a supportive role in reducing the environmental 
impacts of plastics. Different policy levels came into play for implementing effective measures: from 
local (e.g. waste collection) to international (e.g. r euse and recycling). The WTO could also play a 
role in identifying the potential trade barriers to a more sustainable and circular plastic economy. It 
would be important to increase synergies with the recently launched TESSD  and to ensure that the 
IDP would complement and strengthen other international processes aiming at tackling plastic 
pollution such as the ongoing discussions on a global agreement on plastic pollution. It would also 
be important to stay abreast of current international developments such  as the entry into force of 
the Basel amendments. Her delegation attached great importance to the question of circular 
economy and the reduction of environmental impacts from plastics, among other issues.  
1.21.   The representative of the United  States  said the is sue of plastic waste and scrap could be 
addressed through a trade -facilitative approach to support resource efficiency and to manage plastic 
waste and scrap. Materials could be recovered, recycled and returned to commerce. Trade and 
environmental goals wer e mutually supportive , including in the case of plastics. Trade should play 
an important role to support post -consumer materials recovery and recycling. The United  States  
continued to encourage WTO Members to look beyond plastic as solely a pollution issue . Post -
consumer recycled scrap had economic value as a tradable commodity. It was needed to ensure 
these materials did not encourage the additional production of virgin plastics or other materials when 
recyclable commodities could and should remain in the production stream. The WTO could support 
better environmental outcomes by taking a trade -facilitative approach to address environmental 
challenges such as material recovery and recycling. His delegation urged any informal dialogue to 
include discussions of  how to facilitate trade to address these challenges rather than focusing on 
trade -restrictive measures that resulted in a flattening of circular economy loops and reverting to a 
more linear model with harmful environmental effects.  
1.22.   The representative of the European Union (EU)  said that plastics were an important material 
for the economy. However, plastics could have serious downsides for the environment and health. 
Action on plastics was set as a priority in the EU Circular Economy Action Plan adopted by  the 
European  Commission in March 2020. The Plan contained a coherent set of actions to support the 
global transition towards a carbon -neutral, resource -efficient and circular economy. It included 
moving forward towards a global agreement on plastics and p romoted the uptake of the EU's circular 
economy approach on plastics. The European  Union  supported the engagement by China and Fiji on 
plastics, particularly on how national and global efforts could reduce plastics pollution and the 
transition to a more ci rcular and environmentally sustainable economy. Her delegation was 
particularly keen on complementarity with international processes in this context. This forum could 
serve for learning and exchange of perspectives. Several events had been organi zed on the  topic 
this year, including by some EU member States. The WTO work on plastics should create positive 
synergies with ongoing international processes. For the European  Union , the launch of the global 
agreement on plastics remained a key focus. The fifth United Nations Environment Assembly  
(UNEA -5) would be a key milestone to ensure that the negotiation process officially started.  
1.23.   The representative of Norway  said that her delegation saw merit in the work on plastics and 
sustainable trade. Plastic pollution was a challenge affecting also marine litter. Norway underlined 
the urgent need for a new global agreement to combat marine litter and microplastic and to create 
long-term incentives for the support of a circular economy of plastics globally. Such an agreement 
should support ambitious national plastic policies and enable countries to improve sustainability WT/CTE/M/ 70 
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  aspects throughout the plastics lifecycle. The overall global g oal agreed by UNEA -3 in its 
resolution  4/L.7 on marine litter and microplastics was the "long -term elimination of discharge of 
litter and microplastics to the oceans and of avoiding detriment to marine ecosystems and the human 
activities dependent on them from marine litter and microplastics". A strong international 
governance structure was needed to support multilateral cooperation in key areas such as developing 
a common science and knowledge -base, mobili zing and channelling financing both at the national  
and the international level, building capacity in all countries, strengthening systems for prevention, 
recycling and management of plastic waste globally and enabling communities to keep track of 
progress made under the goal. The WTO could play an importa nt role in this regard. Her delegation 
looked forward to discussions on the circular economy and plastics , which were issues that could 
also be included in the forthcoming TESSD .  
1.24.   The representative of Indonesia  said that this initiative was important for the current urgent 
situation of plastics pollution. Indonesia underscored the importance of circular economy and the 
role of trade policies to fight against plastics pollution to achieve  a sustainable environment. 
Indonesia had implemented several related measures in national regulations on waste management 
and environment protection.  
1.25.   The representative of Pakistan , on behalf of the Ambassador, noted that plastics were very 
useful, but their careless use could also become harmful to human health and the en vironment. The 
issue needed the concerted global effort from different entities and forums. It was important to 
address it through targeted efforts for global solutions that helped developing countries  – who 
needed better technology  – to tackle the growing  environmental problems. Actions could be based 
on discussions that would add to the understanding of the problem and explore possibilities for more 
sustainable and environmentally friendly approaches in developing countries.  
1.26.   The representative of Mauriti us noted that the global annual production of plastics had 
reached close to 400 million tons and its multifunctionality had made it omnipresent. Years of 
unrestrained usage of plastics had given rise to the intergenerational and interdisciplinary problem 
of plastics pollution in contemporary environmental and ocean governance. The multifaceted nature 
and the environmental, social and economic impacts of plastics pollution had made the issue a major 
priority on the global agenda. Small islands states, like M auritius, were inevitably bearing the brunt , 
including irreversible damages to the marine ecosystem. Mauritius supported initiatives addressing 
plastics pollution, such as the Action Group on marine plastic pollution under the Commonwealth 
Clean Ocean Isla nds. At the national level, regulations had been adopted for the control and ban of 
single -use plastics. His delegation welcomed the IDP and discussions on the specific role of the WTO 
in addressing the issue. Capacity and resource constraints of certain Members should be considered.  
1.2.2   Members' sharing of experience on circular economy and plastics pollution  
1.27.   The representative of the United Kingdom , on behalf of the Ambassador, reported on the side 
event "Global Plastic Action Partnership – Lessons Learned"5 that took place on 18  November  2020 
during WTO Trade and Environment Week  2020. The event was hosted by the United Kingdom, in 
collaboration with the Global Plastic Action Partnership, a multi -stakeholder platform within the 
World Economic Forum (WEF). The event highlighted the role of public -private partnership s (PPPs) 
in driving positive outcomes on plastics waste. Marine plastics pollution was causing a significant 
damage to the entire marine ecosystem. Two -thirds of marine mammals and half of the sea bird 
species were affected by the rising levels of plastic in the oceans. Scientists estimated that 80% of 
the plastics pollution ending up in the marine environment came from land -based sources often far 
away. Globally, it was estimated that aroun d 12 million tons of plastics entered the oceans every.  
1.28.   The panel had discussed several areas where greater cooperation and coordination among 
governments, businesses and civil society was needed to eliminate plastics pollution and to achieve 
the transiti on to a global circular economy for plastics. This included enhancing the trade stability 
and transparency in the plastics value chain and developing common standards and definitions. 
Improving the capacity and quality of waste management systems was an es sential element of 
reducing marine plastics pollution. This initiative could also improve the welfare of hundreds of 
thousands of informal waste workers in the Global South. The mismanagement of waste and 
 
5 https://www.youtube.com/watch?v=eDKmQiCDedY&feature=youtu.be . WT/CTE/M/ 70 
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  pollution had been leading to the annual death of n ine million people with the vast majority occurring 
in low - or middle -income countries.  
1.29.    It was important to improve the investment landscape for recycling and processing plastics 
waste and to generate better data about plastics flows to inform policies at  national and global levels. 
Marine plastics pollution was a global problem requiring global cooperation. The United Kingdom was 
committed to supporting efforts to improve plastic waste management in low - and middle -income 
countries particularly through th e Global Plastic Action Partnership. Her delegation was encouraged 
by the three side events on the topic of plastics during WTO Trade and Environment Week  2020 
examining the issue from different perspectives. The United Kingdom had joined two relevant 
multilateral efforts: the TESSD  and the negotiations of the new UN global agreement on plastic 
pollution. This would help the United Kingdom to build upon its work to tackle marine litter 
domestically and internationally and support its commitment to eliminate  plastics entering the 
oceans.  
1.30.   The United Kingdom provided funding for Geneva Trade Week and hosted a session on "How 
can multilateral trade policy advance the global sustainability agenda?" .6 The event had brought 
together a diverse panel of expert repr esentatives of governments, non -governmental organizations 
and industries. The United Kingdom was pleased to demonstrate its commitment to explore the 
opportunities that trade could offer to tackle the climate change crisis and to build back better and 
greener from C OVID -19. Global environmental threats like climate change and plastics pollution 
demanded greater dialogue and collaboration among governments, business groups and civil society 
at the WTO and beyond.  
1.31.   The representative of Chinese Taipei  said t hat his delegation supported the development of 
circular economy for preventing plastics pollution and that the WTO was the right forum to discuss 
this matter, in particular for trade -related multilateral actions. His delegation  shared its own 
experiences and policy in the area of circular economy for plastics resources. To promote the 
circulation of resources, the Environmental Protection Agency (EPA) had launched the Resource 
Recycling and Reuse Plan  in 2018. Plastics circulation was a focus of the circul ar economy policy and 
an important part of the Plan. Under the Plan, the EPA had unveiled the Blueprint for plastic circular 
economy which included four pillars: (i) Green Design; (ii) Reduction at Source; (iii) Enhanced 
Recycling; and (iv) Circular Regeneration. The goal was, by the year 2040, to: reduce the quantity 
of single -use plastic packaging by 50%; achieve a 100% recycling rate for plastic packaging; and to 
have 35% of plastic packaging come from rec ycled materials. The following measures had been 
adopted by the EPA in order to promote the recycling of plastics materials and to prevent marine 
plastics pollution. First, the EPA required that manufacturers and importers of goods subject to 
mandatory rec ycling declare the quantity manufactured or imported and that they pay recycling and 
processing fees. These goods included plastic packaging materials and plastic containers and 
utensils. Second, for the purpose of reducing marine plastics container waste and rising public 
awareness and participation in plastics container recycling, the EPA had proposed to establish a 
certification scheme for products manufactured by recycled marine plastic container waste. Third, 
for the purpose of preventing plastic micro beads entering into river and ocean ecosystems and 
reducing their quantities as much as possible from the source, the EPA had initiated a two -stage 
control measure targeted at cosmetics and personal hygiene products. Since January  2018, the 
manufacturing a nd importation of hair -cleaning products, facewash, makeup removal products, 
body-wash products, soaps, facial scrubs and toothpaste that contained plastic microbeads had been 
prohibited. The restriction had been extended to the sale of these products sinc e July 2018. As a 
result of these measures and other implementation mechanisms, the recycling rate of all plastic 
materials in Chinese Taipei was around 60%. His delegation welcomed the sharing of experiences 
with other Members, including the interactions and collaborations between relevant authorities and 
industries.  
1.32.   The representative of Canada  noted that Canada was a founding partner of the Global Plastic 
Action Partnership (GPAP ) and  had invested CND 6 million to support its activities. This was part o f 
Canada's broader CND 100 million commitment to support developing countries tackle plastics 
pollution and accelerate their transition towards sustainable and circular economies. His delegation 
was pleased with the significant progress made by GPAP to dat e, in particular in advancing National 
Plastic Action Partnerships (NPAPs) in Indonesia, Ghana and Viet  Nam. GPAP brought key actors 
together and leveraged their support for delivering meaningful and concrete actions needed to 
 
6 https://www.youtube.com/watch?v=8W -uMF-tjC0. WT/CTE/M/ 70 
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  guarantee a sustainable and p rosperous future free of plastics pollution. His delegation looked 
forward to working with the United Kingdom and other GPAP partners to continue advancing this 
important work. Canada was also taking domestic action to eliminating plastics pollution. As pa rt of 
its comprehensive plan to achieve zero plastic waste by 2030, Canada planned to ban harmful single -
use plastic items where warranted and supported by science, and to propose performance standards, 
such as recycled content requirements in plastic prod ucts. 
1.33.   The representative of China  welcomed the fact that three side events had taken place on 
plastics pollution during the Trade and Environment Week  2020. This was a strong signal that 
Members shared the goal to further discuss this issue in the WTO. His  delegation would welcome the 
United  Kingdom and other interested Members to join the IDP and to explore how the WTO could 
help Members develop more coordinated, coherent and effective trade -related approaches while 
avoiding fragmented policies and complem enting other international efforts.  
1.2.3   Presentations by observer organizations  
1.2.3.1   Presentation by the United Nations Environment Program (UNEP ) 
1.34.   The representative of the United Nations Environment Programme  (UNEP) presented the 
report "Sustainable Trade in Resources: Trade, Global Material Flows and Circularity", prepared 
jointly by UNEP's Environment and Trade Hub and the International Resource Panel (IRP).7 The 
report focused on the links between global materials flows, circularity and trade and sought to 
improve understanding among trade and environment policy makers and practitioners of the 
material footprints of trade and the potential of trade to contribute to the transition to a green and 
circular economy. The report was based on the findings and data  of four recent IRP reports and the 
International Resource Global Material Flow database. It analysed data up to the year 2017 on 
material extraction, direct trade and indirect trade flows. Indirect trade flows comprised the 
materials embedded in trade and  included the raw materials used in the extraction and the 
production of traded goods that were left behind as waste and emissions in exporting countries. In 
the panel's database, these were referred to as the raw material equivalents of trade, which could  
reveal the real contributions of trade to material use and could be considered as proxies to the 
ecological impacts of trade.  
1.35.   According to the report, trade in material resources – biomass, fossil fuels, metals and 
non-metallic minerals – had grown consid erably, increasing more than fourfold between 1970 and 
2017. The volume of trade had increased at a faster pace than the volume of extracted resources, 
signifying a growing dependency of the global economy on material resource trade. For every ton of 
mater ial resource traded, over three times as many resources needed to be extracted in the 
exporting country. In 2017, "indirect" or embodied materials in trade amounted to 35 billion tons, 
compared with 11 billion tons for the direct volume of goods traded. At  a global scale, one -third of 
the total of 92 billion tons of materials extracted in the global economy were destined to produce 
goods for trade. When looking at the physical trade balance, Europe and Asia and the Pacific were 
net importers of material res ources, but when looking at the raw material trade balance, only Europe 
and North America were net importers. Asia and the Pacific were net exporters of raw materials, 
which were driven by export volumes of manufactured goods. The high -income countries had  much 
larger positive trade balances when measured in embodied materials of trade than by direct trade. 
The opposite of this was true for low -income countries. Measuring embodied materials in trade 
revealed the high and ever -increasing dependence of afflue nt nations on the resource base and 
manufacturing capacity of the rest of the world. It signified the shift of resource intensive processes 
from high -income importing countries to low - and middle -income exporting countries, with a 
corresponding shift in th e associating environmental burdens. Increased trade could accentuate this 
inequality if environmental impacts were not fully incorporated in trading decisions. With appropriate 
policies, trade could have positive impacts on the environment. For example, b y allowing the 
extraction of resources and production commodities in locations where it was less burdensome on 
the environment, by facilitating access to green technologies and other environmental goods and 
services and by creating opportunities for innova tion.  
1.36.   Addressing the environmental consequences of extraction and trade would require a global 
transition to a more sustainable and circular pattern of consumption and production. According to 
 
7 Available at  https://www.unenvironment.org/es/node/28509  and at 
https://www.resourcepanel.org/reports/sustainable -trade -resources . WT/CTE/M/ 70 
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  the IRP, the adoption of resource efficiency and sustainable c onsumption and production measures 
could reduce resource extraction globally by 25%, lower greenhouse gas emissions by 90% and 
increase economic activity by 8% by 2060. Transition to a circular economy was needed to reduce 
energy and resource energy demand  and the accompanying environmental impact of extraction. 
While some countries were adopting circular economy policies at the national level, trade and trade 
flows played a critical role in the transition to a more circular economy due to the interdependen cies 
between countries and global value chains. While a circular economy was desirable from an 
environmental perspective, it was important to consider the economic implications for low -income 
resource dependant countries. A circular economy transition coul d create many opportunities for 
developing countries in terms of environmental, economic and job creation benefits. At the same 
time, the transition for low -income resource exporting countries may also imply loss of export 
earnings which might in turn crea te a need and incentive to diversify the economy and, in some 
cases, implement  appropriate compensation and adjustment measure for the most affected part of 
the population. Government strategies would be needed to capture a greater share of value and 
diversify into emerging sectors such as sustainable agriculture, recycling or renewables. This would 
require very targeted capacity building, assistance and maintaining sufficient policy space to use a 
wide range of policy instruments to green local industries.  
1.37.   The anticipated shifts in trade, resulting from a transition to more circularity, might include 
slower trade growth in primary raw materials, changing patterns of trade in waste and scrap for 
recycling, increased trade in secondary raw material, second -hand goods and goods for 
remanufacturing, increased trade in services (waste management, recycling, refurbishing, 
remanufacturing) and increased trade in products that met circular economy standards. Multilateral 
trade rules and regional trade agreements cou ld be used proactively to leverage support for 
developing countries in reducing the environmental impacts associated with resource extraction and 
mitigating some of the negative spill -over effects resulting from a circular economy transition. Trade 
rules c ould also be used to alleviate barriers to trade and investment in environmental good and 
services. Trade agreements could also play a key role in reducing material resource extraction by 
prohibiting harmful fossil fuel subsidies and liberalizing trade in renewable energies. Agreements 
should also ensure that they did not undermine commitments under the M EAs, for example, under 
the Basel Convention. Finally, WTO Aid for Trade could be a mechanism support developing countries 
in building targeted capacity fo r moving towards a more circular economy.  
1.38.   The representative of the European  Union  welcomed UNEP's work on trade and the circular 
economy, drawing on the results of a number of reports by the IRP, in particular the "Global 
Resources Outlook 2019". As part of the European Green Deal, the Circular Economy Action Plan, 
adopted by the European Commission in March 2020, had indicated the need for decoupling 
economic growth from resource use. This called for accelerating the transition towards a 
regenerative grow th model, advancing towards keeping resource consumption within planetary 
boundaries and reducing the consumption footprint. The European  Union  aimed to double its circular 
material use rate in the coming decade. The transition to a more circular economy a t a global level 
would benefit from further development of common and global standards that promoted more 
circular business models, goods, technologies, and services.  
1.39.   The European  Union  further noted its efforts, in cooperation with UNEP and the United  Nations 
Industrial Development Organization (UNIDO), in setting up the Global Alliance on Circular Economy 
and Resource Efficiency. The European  Union  intended to launch this initiative at UNEA -5 in February 
2021. Bringing together governments and relevant ne tworks and organi zations, the Alliance would 
provide global impetus for initiatives related to the circular economy transition, resource efficiency 
and sustainable consumption and production, building on efforts being deployed internationally, 
including by  the G7  Alliance on Resource Efficiency and the G20 Resource Efficiency Dialogue, 
offering an opportunity to deepen strategic partnerships in this area. The Alliance would: (i) advocate 
for the transition to a global circular economy to achieve sustainable  consumption and production, 
thus contributing to the Paris Agreement goals, halting and reversing biodiversity loss, and curbing 
pollution and waste; (ii) undertake a mapping of domestic policies, fiscal and regulatory frameworks 
on the sustainable manage ment of natural resources and the circular economy transition; (iii) 
identify barriers, knowledge and governance gaps that hinder circular and just transitions; (iv) 
identify research needs and possible global governance improvements ; (v) take forward and  support 
sectoral, bilateral and/or regional partnerships; and (vi)  work towards the establishment of a global 
resource efficiency forum for the sustainable management of natural resources through resource -
efficient and circular approaches.  WT/CTE/M/ 70 
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  1.40.   The representa tive of Switzerland  welcomed UNEP's report which built on other reports from 
the last five years. The report's recommendations could help the transition to a greener and more 
circular economy. Her delegation supported a reinforced cooperation between UNEP and the WTO.  
1.2.3.2   Presentation by the  United Nations Economic Commission for Europe  (UNECE ) 
1.41.   The representative of the United Nations Economic Commission for Europe (UNECE)  briefed8 
the committee on its work on circular economy. UNECE had identified "Promoting circular economy 
and sustainable use of natural resources in the UNECE region" as the topic of the Sixty -Ninth Session 
of the Commission scheduled for April 2021. Thus, all UNE CE divisions led activities contributing to 
the circular economy. The Environment Division, serving five Multilateral Environment Agreements 
(MEAs), supported key initiatives to further environmental promotion and monitoring processes. The 
Statistics Divis ion worked on measuring the circular economy. The Transport Division had a 
normative tool, Regulation No. 133, targeting the reusability, recyclability, and recoverability of 
motor vehicles. The Sustainable Energy Division developed the United Nations Fram ework 
Classification for Resources (UNFC). UNFC looked at resources such as cobalt, copper, lithium, rare 
earth elements and provided reliable data on their availability. The Forest and Timber Division 
addressed the circular economy through the entire prod uction chain of forest -derived goods and 
services. The Housing and Land Management and Population unit worked towards circular production 
and consumption cycles within city boundaries.  
1.42.   The Economic Cooperation and Trade Division (ECTD) had identified five  entry points and 
looked at three priority sectors – agriculture, agri -food, and garments and footwear. The five entry 
points included waste management and reduction, traceability of value chains, the efficiency of trade 
and logistics chains, standardizati on and regulatory framework, and sustainable procurement. ECTD 
worked on advancing circularity through transparency and traceability of value chains to transform 
resource -intensive sectors. The project focused on the garment and footwear sectors and combin ed 
regulatory normative tools with innovative technologies such as blockchain. Her delegation thanked 
the European Commission and the International Trade Centre (ITC) for the implementation of this 
project. The project aimed to foster circularity by identi fying hotspots, tracing the use of resources, 
and linking them to norms and standards. UNECE had been also rolling out a blockchain pilot project 
tracing the cotton supply chain to empower consumers to make informed choices.  
1.43.   UNECE worked on fostering circu larity by reducing, reusing, and recycling waste. ECTD had 
developed three tools to support better management and reduction of waste. The United Nations 
Centre for Trade Facilitation and Electronic Business (UN/CEFACT) Standard for the Transboundary 
Moveme nt of Waste allowed the tracking and tracing of transboundary movements of waste and 
their disposal/exchange in compliance with the Basel Convention. The UNECE Guidelines on 
Promoting People -first Public -Private Partnerships Waste -to-Energy Projects for th e Circular 
Economy, still under development, promoted PPPs in waste energy processes and looked at 
transforming waste to energy. UNECE, together with the Food and Agriculture Organization (FAO), 
had just launched FeedUP@UN, a blockchain tool which identifi ed, quantified, and traced the food 
that disappeared from food supply chains before ever reaching the points of retail.  
1.44.   The representative of the Kyrgyz Republic  acknowledged the importance of the circular 
economy and explained that the Ministry of the Eco nomy was the main state body promoting 
sustainable development. Circular economy offered an avenue to sustainable growth, good health, 
and decent jobs while preserving the environment. Sustainable production and consumption were 
part of the SDGs. The imple mentation of the circular economy depended on the economic and 
ecological capacity of each country. Transition economies faced opportunities and challenges 
regarding the circular economy and technical assistance was vital. The UNECE supported the 
Kyrgyz  Republic in projects related to innovation, trade facilitation, PPPs, and sustainable trade. His 
delegation underscored the importance of capacity building and welcomed cooperation between WTO 
and UNECE on the circular economy.  
1.45.   The representative of Canada  said that fostering a circular economy offered new opportunities 
to advance common commitments to achieving the SDGs and the Paris Agreement's goals and 
targets. Canada was pleased to host the next World Circular Economy Forum (WCEF) with the Finnish 
Innova tion Fund Sitra. WCEF -2021 would take place from 13 to 15 September 2021, and this was 
the first time that WCEF would be held in North America. WCEF -2021 would bring together business 
 
8 See document RD/CTE/174 . WT/CTE/M/ 70 
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  leaders, experts and policymakers to demonstrate how businesses could se ize new opportunities 
and gain a competitive advantage through circular economy solutions, and to examine how the 
circular economy contributed to achieving the SDGs. WCEF -2020 had been held virtually on 
29-30 September 2020 and had attracted 4,200 particip ants from around the world.  The event 
focused on the role of the circular economy in rebuilding the economy post -COVID -19. The 
Netherlands would also host a WCEF -affiliated event in April 2021 in the lead up to WCEF -2021. The 
event would address the links between circular economy and climate, a nd would seek to position 
the circular economy higher on the agenda of the United Nations Framework Convention on Climate 
Change (UNFCCC) CoP26. WCEF -2021 would present an opportunity to explore the systemic -level 
changes required to move towards a global circular economy, including how trade rules and trade 
policy could facilitate this transition. Previous Forums had explored the topic of trade and circular 
economy with active participation from WTO experts.  
1.46.   The repre sentative of Switzerland  reiterated her delegation's support for a transition to a 
more circular economy and the work of UNECE. The TESSD  could serve as an appropriate forum for 
work towards this goal and queried about UNECE's workstream on PPPs regarding "waste energy".  
1.47.   The representative of the European  Union  welcomed UNECE's work on circular economy and 
said that his delegation was ready to explore options for enhancing relevant UNECE normative 
instruments to fill gaps in governance and good practice rel ated to the management of natural 
resources and to further promote the circular economy.  
1.48.   The representative of Chile reported on the work on circular economy undertaken by Chile. 
In April 2020, the Ministry of the Environment had launched a survey on this topic. The survey was 
based on responses by more than 3 ,700 participants. It had found that 75% of participants sorted 
plastics, 76% were ready to change their purchasing habits when buying phones, 90% would make 
purchasing decisions based on the circular economy, and 74% would make decisions considering 
what was available in the market. Moreover, 72% of the respondents had said that they knew what 
the circular economy was and 92% would choose environmentally preferable products and services. 
However, only 10% of the respondents would pay more for a product made with recycled or reusable 
components and more than 40% had affirmed that information on product reusability was difficult 
to access. The survey provided information on different options and challenge s related to the 
implementation of the circular economy in Chile. This information had been presented to the 
Strategic Committee to draft a roadmap for the circular economy. The Strategic Committee was 
created in 2020 by the Ministry of the Environment and  was composed of representatives of the 
public and private sectors, academia, and experts. The Strategic Committee would be working on 
the roadmap by focusing on raw materials, production, consumption and services, and waste 
management.  
1.49.   The representative  of UNECE  said that UNECE focused its work on 17 programme countries 
which were typically countries with economies in transition. These were in Central Asia, Southern 
Caucuses, Western Balkans, and Eastern Europe. On UNECE's work on PPPs concerning waste t o 
energy, the presentation referred to UNECE Guidelines on Promoting People -first PPP Waste -to-
Energy Projects for the Circular Economy. The guidelines were under preparation and would be 
discussed in early December 2021 by the Working Party on PPPs. UNECE  recognized the importance 
of PPPs as a source of financing and investment to address sustainable development challenges. 
UNECE strived to make PPPs fit for purpose and to ensure that they provided value for people. 
UNECE's People -first approach to PPPs lo oked at five entry points: (i) access and equity ; 
(ii) environmental sustainability ; (iii) economic effectiveness ; (iv) replicability and scalability ; and 
(v) stakeholder consultation and inclusiveness.  
1.2.3.3   Presentation by the World Customs Organization ( WCO ) 
1.50.   The representative of the World Customs Organization ( WCO)9 said that the WCO was actively 
considering how customs could facilitate trade the transition towards a circular economy and reverse 
chain logistics. This included looking at identification issues and how the regulatory, trade facilitation 
and compliance frameworks needed to adapt. Measures promoting circular economy and dealing 
with returning end -of-life goods and border control programs for the movement of wastes should 
achie ve the desired results without resulting in increased trade costs and longer clearance times. 
For countries to apply effective and appropriate measures at borders, clear identification of end -of-
 
9 See document RD/CTE/173 . WT/CTE/M/ 70 
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  life products and waste and scrap commodity streams at the bo rder was required. Through the 
Harmonized System Committee and its Sub -Committee, WCO members were working on creating 
Harmonized System codes, with legal definitions where necessary, to enable greater visibility of 
global trade and legal cross -border move ments. The first changes, for e -wastes, were already 
finalized and approved for HS 2022, and work was expected to continue on other types of waste for 
HS 2027 upon receipt of future proposals from the Basel Convention and from HS  Contracting 
Parties. The m ain challenges were the definitions of end -of-life, recyclable and other relevant 
categories for different materials and product types. Identification was also one of the main 
challenges related to the detection of illegal cross -border movements of certain  types of waste. The 
difficulties of distinguishing waste, scrap and recyclable materials needed to be addressed to allow 
for effective controls at the border. To overcome this challenge, the role of international standards 
in establishing definitions was of the utmost importance, along with capacity building. The WCO's 
Asia-Pacific Plastic Waste Border Management Project was in progress under the auspices of the 
WCO Environmental Programme. The Project aimed to strengthen the capacity of customs 
administra tions to mitigate and appropriately respond to environmental threats in the Asia/Pacific 
region, with a special focus on the implementation of the Basel Convention. In terms of trade 
facilitation, WCO instruments and tools already offered trade opportuniti es for voluntary compliance 
and harmonized, simplified and rapid release procedures for compliant companies, subject to 
advance information sharing to customs for risk analysis. Fostering the implementation of existing 
tools might set the preconditions for  the effective implementation of future regulatory policies that 
might be targeted to green supply chains.  
1.51.   The recent sessions of the WCO Permanent Technical Committee had been concluded in 
October 2020 with WTO secretariat participation and had addressed the topic of sustainability and 
circular economy, including the mapping of the existing suite of WCO tools and instruments to the 
SDGs. Key regulatory questions had been identified, including supply chain traceability for 
environmental sustainability and s mart border solutions, and support for environmentally 
responsible trade. These issues should be addressed in order to strengthen customs' role in fostering 
sustainability through trade facilitation efforts. The Permanent Technical Committee had discussed 
a study proposal on "Customs in transition towards a circular economy" and the WCO secretariat 
was currently working on a business case to evaluate the possibilities for proceeding on this, 
including evaluating the opportunities to coordinate with interest ed organizations.  
1.3  Other  
1.3.1   Presentation by Colombia on the integrated management of Colombian sustainable 
coffee growing  
1.52.   The representative of Colombia  briefed delegations on the integrated management of 
Colombian sustainable coffee growing10. On behalf of Colombia, a representative of the National 
Coffee Research Centre, which was supported by the National Federation of Coffee Growers of 
Colombia (FNC),  gave a presentation on this topic. For the last years, Colombia had produc ed 40 
million bags of 60 kilograms of coffee of which it had export ed 12.6 million bags. This represented 
around 9.9% of the world's exports. Colombia was unique among coffee -produc ing countries as its 
rainy conditions allowed the production of fresh coffee throughout the year. Colombia's coffee 
plantations were located on mountain slopes which exposed them to different temperatures and 
environmental conditions.  The differences in te mperature across the country enabled the production 
of a large variety of coffees with different flavours and characteristics.  
1.53.   Coffee production in Colombia was a family business – there were 540,000 families producing 
coffee in 660,000 farms. These were small producers in small areas. The coffee producers in 
Colombia were associated with the FNC since 1927. FNC enabled the fair and inclusive activity of 
coffee production and promoted peaceful development throughout the country. Coffee production 
generated  two million rural jobs. The income from coffee exports was distributed throughout the 
Colombian countryside. Coffee plantations covered 0.86 million hectares out of the 7.6 million 
hectares used for agriculture in Colombia. Agronomical developments maximi zed the use of land.  
1.54.   Colombia was susceptible to coffee rust, a disease that caused a lot of losses across the 
country. The use of rust -resistant varieties avoided the use of fungicides which was good for the 
environment. Plantation renewal practices allo wed food security intercrops. Every hectare of coffee 
 
10 See docum ent RD/CTE/177 . WT/CTE/M/ 70 
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  removed 4.7 tonnes of CO 2 equivalent per year. The coffee plantations supported more than 
180 flower visitor insect species, including 34 species of bees and many natural enemies. Trees 
provided shade t o the coffee plantations, so these agroforestry systems mitigated climate change 
variability, regulated the temperature and humidity in those areas and provided micro -climate 
diversity across the country.  
1.55.   FNC viewed coffee farms as the integration of the components of a production system. The 
objective was to strengthen the building of resistant, resilient and profitable coffee production 
systems, whil e being supported by science and rural expansion. Colombia's integrative farming 
practices were based on two principles: productivity was fundamental for economic sustainability, 
and economic sustainability was critical for environmental and social sustaina bility. These practices 
included using appropriate plant varieties; proper density and age  of plantations ; correct 
fertilization; long -term soil preservation; sound biodiversity conservation; and fair and safe labour.  
1.56.   There were two approaches to the ecolo gical processing of washed coffees. The first one 
consisted of using less water. There were technologies for the reduction of coffee contamination 
from 40 litres per kilogram of coffee processed to 0.5 litres of water used for every kilogram of 
coffee. The  other approach consisted of cleaning and purifying that water before releasing it into the 
environment. There were technologies such as green filters, that reduced water contamination of 
the equivalent of the wastewater from two million people a year.  
1.57.   The representative of Colombia  noted that the ir national policies had economic, social and 
environmental dimensions for sustainability. Colombian coffee was a clear example of a consumer 
product that was fulfilling the highest standards to reach markets worl dwide, while also benefitting 
small producers and the environment.  
1.3.2   Presentation by Paraguay on sustainable mechanized production systems  
1.58.   The representatives of Paraguay  presented11 on sustainable mechanized production systems 
in Paraguay . Two speakers int ervened on this topic: an international expert and former Minister of 
Agriculture and Vice Minister of Livestock; and an engineer, Head of the Soil Management 
Department of the Ministry of Agriculture. Agriculture faced the challenge of producing food for a 
growing population with an increasing purchasing power, and which was urbanizing at an 
unprecedented rate. This required efficient and sustainable use of natural resources. According to 
the FAO, sustainable agriculture had to meet the needs of present an d future generations and 
guarantee profitability, environmental health, and social and economic equity. Sustainability implied 
the balance of the economic, social, and environmental dimensions which depended on each 
country's needs and productive system. T hus, it was impossible to use a single model applicable 
worldwide.  
1.59.   Paraguay, with a population of approximately seven million inhabitants, produced food for 
11 times its population. This production was carried out under market conditions without any price 
support programs or other trade -distorting subsidies. In the previous five years, agribusiness had 
represented 59% of the country's total exports. Paraguay was the fourth largest soybean exporter 
and the ninth largest exporter of beef in the world. The cou ntry also exported tapioca starch, corn, 
grapefruit juice, sesame, and wheat, among other products. The agricultural and forestry value 
chains represented 25% of the Gross Domestic Product (GDP) of Paraguay. Agriculture had allowed 
poverty reduction, inclu sive economic growth and the country's positioning as a major food producer. 
The agriculture sector was a major source of employment.  
1.60.   Paraguay only emitted 0.02% of the greenhouse gases (GHGs) on the planet. This figure did 
not measure the carbon capture generated by production systems, such as direct seeding and grass -
fed meat production. Paraguay was among the countries with the highest number of trees per 
inhabitant, reaching 1 ,000 trees per person, which was well above other regions of the world. Since  
the 1990s, Paraguay had moved from a conventional system to a direct seeding system (no -till 
farming) which had led to an increase of productivity by approximately 100%, as well as a six -fold 
increase in total production. This had been done through a syst em of soil rotation and biotechnology, 
without expanding the agricultural frontier or modifying land use which preserved the forests.  
 
11 See d ocument RD/CTE/176 . WT/CTE/M/ 70 
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  1.61.   The direct seeding (no -till farming) was based on three pillars: (i) no soil removal; (ii) use of 
coverage (green manures) ; and (iii) the grain crop rotation system. This had brought benefits to 
producers, the economy and the environment as it controlled erosion; had optimized the use of 
resources, including less use of water and fertilizers; and had reduced the use of phytos anitary 
products. Phytosanitary products were used based on good agricultural practices and within a 
framework of integrated pest management. A study on the quality of water in the grain -producing 
areas of the southeast of the country had been carried out in the framework of technical cooperation 
between Paraguay and Germany to detect the presence of phytosanitary residues, before and after 
sowing. This study indicated that, of the 598 active ingredients analysed, no residues had been 
detected.  
1.62.   This produc tion system had also led to a positive carbon balance. Direct seeding added highly 
diversified biomass, which increased the life of the soil; ensured surface aggregates and nutrient 
availability; reduced the rate of carbon oxidation; improved soil fertilit y; and increased the 
productive capacity. Paraguay's production change in agricultural activity, from conventional tillage 
to a conservation system, had modified the entire soil system of the country and had transformed 
it from a source of atmospheric carb on emission to an organic carbon sink.  
1.63.   The representative of Paraguay  said her delegation hoped that the presentation would further 
the discussions in the CTE about sustainability and the important role that trade and agriculture 
could play in this area. Given the growing population, producers faced the challenge of producing 
more food while preserving natural resources. Sustainability was very important for farmers because 
natural resources allowed them to produce, work and ensure their families' well -being. Paraguay 
underscored the use of the "direct seeding" technique to restore the soil and reduce costs; crop 
rotation to protect resources and biodiversity; and also, the use of modern biotechnology. These 
were key tools for Paraguay's agriculture and part of its strategy on sustainability and environmental 
protection. Different climatic conditions in different parts of the world required different approaches 
to sustainability. Paraguay was committed to working together to find strategie s that worked for 
everybody and to have a dialogue to understand the multifaceted nature of sustainability and its 
social and economic implications. Sustainability was important to ensure food security and to reduce 
poverty. Her delegation underscored that  trade was crucial to achieving these objectives, especially 
for developing countries such as Paraguay.  
1.3.3   Presentation by Sri Lanka on sustainable paper production  
1.64.   The representative of Sri Lanka  presented12 on sustainable paper production in Sri Lanka. The 
presentation was done by  the Founder and Managing Director of Eco -Maximus  whose  objective was 
to use 100% waste as a raw material. Waste was freely available in the form of industrial waste 
(e.g. waste from printers and agro -waste), elephant dung and banan a bark. The company had 
started producing a range of elephant dung paper. The company's factory was located next to the 
Millenium Elephant Foundation ensuring the elephant dung was ethically procured from well -cared 
elephants. Eco -Maximus was an equal oppo rtunity employer with female staff representing over 
70% of its workforce. It was a member of the World Fair Trade Organization.  
1.65.   The process of conversion of elephant dung into paper consisted of collecting, drying, and 
boiling the dung. It was then proces sed into sheets or balls of paper that could be converted into 
many products. All Eco -Maximus's products such as notebooks, paper holders, greeting cards, and 
calendars were handmade. The company also customized corporate gifts, wedding cards and many 
custom products for sectors, such as tourism, tea trade and spice trade. The company operated 
using retail outlets at tourist spots in Sri Lanka and exported its handmade products to Italy, 
Australia, the Netherlands, Singapore, Norway, the United  States , Japa n, the United Kingdom, 
Maldives, France, Canada, Belgium and Germany.  
1.66.   Eco-Maximus had received several awards globally (including the "Excellence in Social 
Responsibility " award by the American Apparel and Footwear Association in 2005 and the "Green 
Busin ess Leader " award by Coop America in 2008) and locally (including the Sri Lankan Award for 
Entrepreneurship in 2008) which had been a testament to its commitment towards sustainability. 
COVID -19 had a devastating impact on the business as all Eco -Maximus' shops and outlets had been 
 
12 See document RD/CTE/172 . WT/CTE/M/ 70 
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  closed and exports had dwindled to a fraction of the previous  year. Despite the challenges, 
Eco-Maximus conducted tree -planting programmes, with over 15,000 trees planted over the years.  
1.67.   Eco-Maximus was in the process of setting  up a new production line that would recycle and 
make paper out of Tetra Pak cartons. This was an addition to the existing elephant dung paper 
range. Tetra Pak, the Swedish -based multinational, had selected Eco -Maximus to partner and pilot 
the first -ever r ecover, recycle and reuse of Tetra Pak cartons, preventing them from going to landfill. 
A three -tonne -per-day carbon -recycling plant was ready to be commissioned by December 2020. 
This would create new market opportunities and further reduce the ecological  footprint in Sri Lanka. 
Eco-Maximus hoped to prevent almost 1,000 tonnes of Tetra Pak cartons from going to landfills in 
Sri Lanka annually. Eco -Maximus planned to help make Sri Lanka a country at the forefront of 
sustainability. The company hoped to esta blish in the future a 350 ton per day kraft paper 
manufacturing facility that would substantially substitute imports of Sri Lanka 's paper needs while, 
at the same time, strengthening a circular economy.  
1.68.   The Ambassador of Sri Lanka  said this example depicte d how her country had been balancing 
between sustainability and trade. This raw material – elephant waste – had been converted into a 
meaningful product. There had been a lot of challenges, including due to C OVID -19, for such a small -
scale company. Sri Lanka was exploring many avenues to promote this product and hoped to raise 
awareness about it worldwide.  
1.69.   The Ambassador of the Philippines  noted how the exchange of creative experiences and best 
practices was useful to the work of the CTE.  
1.3.4   Briefing by the  European  Union  on trade relevant aspects of the European Green 
Deal 
1.70.   The representative of the European  Union  briefed delegations13 on the trade aspects of the 
European Green Deal whose political goal was for Europe to become the first climate -neutral 
continent. This required investment in innovation and research, redesign of the economy and update 
of the industrial policy. The preservation of Europe 's natural environment was another priority. 
Climate change, biodiversity, food security, deforestation and l and degradation went together. 
Preserving and restoring the ecosystem would  guide all EU's work. Setting new standards for 
biodiversity cutting across trade, industry, agriculture and economic policy was required.  
1.71.   To transform the EU's economy for a sustainable future  and leave no one behind , the following 
was required:  a zero -pollution ambition for a toxic -free environment ; preserving and restoring 
ecosystems and biodiversity ; the "F arm to Fork " strategy, i.e.  a fair, healthy and environmentally 
friendly food system ; the accelerati on of the shift to sustainable and smart mobility ; building and 
renovating in an energy and resource -efficient way ; mobilizing industry for a clean and circular 
economy ; supplying clean, affordable and secure energy ; and inc reasing the E uropean  Union 's 
climate ambition for 2030 and 2050. All this had to be done in line with the principle of a j ust 
transition  and mobilizing the necessary resources to finance the transition .  
1.72.   The European "Climate Law" would enshrine the objective of climate neutrality by 2050. The 
plan was to increase the EU 's climate target for 2030 to  reducing GHGs to at least 50%, and towar ds 
55% compared to levels in 1990 . This would require reviewing and revising all relevant legislative  
measures  to deliver on this ambition  (e.g. energy and mobility emissions standards) . A carbon 
border adjustment mechanism (CBAM) for selected sectors woul d be put in place to avoid carbon 
leakage. A revision of the Energy Taxation Directive was also envisaged to align it with the Green 
Deal's objectives.  
1.73.   The E uropean  Union  also highlighted its Farm to Fork strategy (which aimed to significantly 
reduce the u se of chemical pesticides, fertilizers and antibiotics) and its Biodiversity Strategy 2030 
(which would seek to reduce species and habitats loss, including through trade -related deforestation 
measures). The E uropean  Union  further briefed delegations on oth er trade -related elements of its 
plan, including: the promotion of sustainability in material and product use through its Circular 
Economy Action Plan  (including plastics),  Industrial Strategy  and specific legislation on batteries ; 
reduction of non -GHG emi ssions through the Zero Pollution Action Plan; an initiative on Chemicals 
 
13 See document RD/CTE/171 . WT/CTE/M/ 70 
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  for Sustainability ; the revision of state aid guidelines on climate, energy, environment and the Non -
financial Reporting Directive ; and  the Just transition and the Sustainable Invest ment Plan covering 
inter alia  the use of EU  funds. The European  Union  highlighted the "do no harm " and "better 
regulation"  principle s that would inform its actions:  all Green Deal initiatives should achieve their 
objectives in the most effective and least burdensome way and all other EU initiatives should live up 
to a green oath to "do  no harm ".  
1.74.   On the timeline, the Green Deal had been presented in December 2019. In the first h alf of 
2020, the European  Union  had prepared the EU Green Deal Investment Plan, the Just transition 
mechanism, a Circular Economy Action Plan, the European Industrial Strategy, the European climate 
law, the EU Biodiversity Strategy 2030 and the Farm to For k strategy. In summer -autumn 2020, the 
European  Union  had developed : the EU strategies for energy system integration and hydrogen ; the 
2030 Climate Target Plan ; the Renovation wave ; the Methane Strategy ; and the Chemicals strategy 
for sustainability. By th e end of 2020, the European  Union  had made legislative proposals on 
batteries ; climate and biodiversity strategies ; a review on financial reporting directives ; the 
8th Environmental Action Programme ( EAP) proposal ; and new forest strategies and deforestati on 
measures. As for 2021, the European  Union  planned to work on measures to avoid biodiversity loss, 
a revision of 2030 target related legislation, an energy taxation directive proposal, a proposal for 
CBAM, a revision of State Aid Guidelines and a zero-pollution action.  
1.75.   The European Green Deal was central to the design of all internal and external policies of the 
European  Union , including trade policy. The environmental challenges were complex and interlinked. 
The European  Union was open to work, engage and share its experience with others to enhance 
global ambition. The European  Union  would further step up its climate diplomacy efforts. The next 
climate and biodiversity C oPs would be very important.  
1.76.   Specifically, on the CBAM, the European  Union  noted that it was committed to EU climate 
neutrality by mid -century, and that there was a risk of "carbon leakage" if the ambition was not 
shared globally . The European  Union  was thus working towards introducing a CBAM for selected 
sectors, which would be WT O-compatible through a fully transparent process. Public consultations 
with citizens and domestic and international stakeholders and an impact assessment were currently 
underway, covering, inter alia , environmental, social and financial impacts, economic e fficiency, and 
legal feasibility in terms of WTO rules and other EU trade agreements, as well as its complementarity 
with the EU Emissions Trading Scheme (ETS). The European  Union  was engaging with trading 
partners at the bilateral and multilateral level a nd it planned to host a CBAM conference towards the 
end of February or early March 2021.  
1.77.   The European  Union  aimed to end fossil fuel subsidies while taking into account social 
considerations (just transition) through internal measures, launching internati onal initiatives, and 
engaging with trading partners. The possible targets  included the phasing  out of financing by 
multilateral institutions and new coal plant construction, strengthening sustainable financing  and 
reducing methane emissions. More broadly on both climate and environment, the European  Union  
would work towards supporting open and attractive EU and global markets for sustainable products, 
promote domestic and imported products that did not involve deforestation and forest degradation, 
and ensu re that European consumers ' were better informed and empowered to make sustainable 
choices.  
1.78.   The biodiversity crisis had to come to the forefront of the global political agenda – similar as 
for climate change ahead of the Paris Agreement back in 2015. The post -2020 global biodiversity 
framework would be crucial for addressing the global ecological crisis, safeguarding sustainable 
development and poverty eradication.  The COVID -19 pandemic had raised awareness about the 
interdependence of biodiversity loss and human health. The risk of emergence and spread of 
infectious diseases increased as nature was destroyed. Protecting and restoring biodiversity was 
therefore key to boost resili ence and prevent future outbreaks.  The EU Biodiversity Strategy was a 
key part of the European Green Deal and a central element of the EU 's post -COVID recovery plan. 
Trade policy had to  actively support and be part of the ecological transition. The Europea n Union  
would ensure full implementation and enforcement of the biodiversity provisions in all trade 
agreements. The European  Union  would also better assess the impact of trade agreements on 
biodiversity, with follow -up action to strengthen the biodiversit y provisions of existing and new 
agreements if relevant.  The European  Union  called for an ambitious post -2020 global biodiversity 
framework that would put nature on a path to recovery by 2030 to ensure healthy ecosystems and 
stop avoidable human -induced ex tinction of species by 2050. The European  Union  looked forward to WT/CTE/M/ 70 
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  working with partner countries to reach a meaningful deal in Kunming in 2021, in line with the level 
of ambition of the recent UN Biodiversity Summit and Leaders Pledge for Nature.  
1.79.   Finally, the European  Union  stressed that trade policy could make an important contribution 
to the transition to a carbon -neutral economy. This included investment in clean technologies, green 
goods and services, climate -friendly public procurement and sustainable standards across a range 
of areas.  
1.80.   The representative  of Colombia  welcomed the opportune presentation given the important 
trade implications the European Green Deal could have for developing countries. Colombia shared 
the view expressed by FAO that sustain able agriculture should  meet the needs of present and future 
generations, while ensuring profitability, environmental health, and social and economic equity . His 
delegation had presented several questions to the European  Union  in different WTO Committees, 
including on its deforestation policy. He note d that some of the European Green Deal measures could 
create costs often borne by the smallest producers, excluding them from international markets in 
favour of middle and large size producers. His delegation w as interested to know how the 
European  Union  was planning to guarantee that costs were not all borne by the producers.  The 
objective of the European  Union  to ensure that producers throughout the value chain could profit 
from higher premiums linked to susta inable agriculture practices was welcomed. However, recent 
concerns expressed by Latin American banana exporters regarding new maximum residue level 
requirements, stricter private standards and reduced prices were affecting their ability to supply the 
European market. His delegation hoped the European  Union 's constructive and open engagement in 
the CTE would also happen in other WTO Committees.  
1.81.   The representative of Paraguay  said that, while it shared the European  Union 's objectives,  
her delegation was of t he view that  the European  Union  had been reticent to recognize other 
methods to achieve them  based on specific geographic and climatic conditions as well as different 
good agricultural practices . Paraguay stressed the need to consider the principle of comm on but 
differentiated responsibilities  and respective capabilities (CBDR -RC). Her delegation had presented 
specific questions to the European  Union  regarding the Green Deal within the framework of the Trade 
Policy Review ( TPR), in the committees on Agriculture, Market access , Sanitary and Phytosanitary 
Measures and the Council for Trade in Goods. These were questions about schedules, evaluation 
methodologies, and consideration of comments as well as compliance with WTO  rules. These 
questions were usually answered only partially  or evasively . There was a concern about the possible 
instrumentalization of environment al protection  – a legitimate and shared objective – for the 
justification  of unfounded , non-science -based  obstacles to trade to protect the competitiveness of a 
highly subsidized agriculture.   
1.82.   Paraguay noted that the FAO -OECD report on the outlook for agriculture 2020 -2029, 
recommended governments reduce subsidies that distorted the market as they were the most  
environment ally harmful . The European  Union  provided a high level of trade -distorting subsidies to 
sustain and support its agriculture. Paraguay was of the view that the European  Union  could consider 
ceasing or reducing the almost 7 billion euros it provided as aggregate measurement of s upport  as 
a genuine way to redress environmental degradation . One of the objectives of the European  Union  
was to finance a transition that left no one behind ; however,  producers in developing countries would 
be affected by these policies as the European  Union was an important trading partner for most of 
them. The European Green Deal provided exceptions only for European  producers which  would  
further  create  imbalance s on the market.  Her delegation reiterated its call for  the European  Union  
to establish a bro ad, two-way dialogue to address green policies, including the establishment of the 
CBAM , Farm  to Fork and Biodiversity strategies, and the levels of subsidy for the next EU Common 
Agricultural Policy (CAP).   
1.83.   The representative of Norway  said her delegation  intended to contribute to the 
implementation of the European Green Deal to secure a modern, resource -efficient, and competitive 
European economy in line with its sustainability goals. Norway welcomed the idea of using the Green 
Deal to rebuild the economy  following the COVID -19 pandemic. The objective of carbon neutrality 
by 2050 coupled with a strong policy framework was an essential precondition for green growth and 
job creation. This required ensuring compliance with WTO rules.  
1.84.   The representative of Canada said his delegation and the European  Union  had a long -standing  
history of fruitful cooperation on the environment and climate change. Like the European  Union , 
Canada was committed to ambitious action and global leadership on climate change. Canada was WT/CTE/M/ 70 
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  watching with great interest the EU 's work on the European Green Deal and intended to be an active 
participant in international discussions on these issues. It w as required to ensure that the transition 
to a low -carbon economy model was done in a way allowing workers and businesses to continue to 
thrive.  Canada expected that the European Green Deal would be implemented in a manner consistent 
with the EU 's internat ional trade obligations and with the European  Union  – Canada Comprehensive 
Economic and Trade Agreement ( CETA). His delegation encouraged the European  Union  to continue 
to be transparent in its work and to use appropriate WTO committee meetings to keep the  broader 
WTO membership apprised of developments.   
1.85.   The representative of the Kingdom of Saudi Arabia  said this issue had been discussed under 
the agenda of the Committee of Market Access for Goods and disagreed with discussing the subject 
in the CTE.  
1.86.   The r epresentative of India requested the European  Union  to share specific information on 
the CBAM. In his delegation's view, a thorough analysis was required to determine whether the EU 
Green Deal, and specifically the CBAM, were WTO compliant.  
1.87.   The representat ive of the Russian Federation  noted  the European Green Deal strategy 
contained the proposal to introduce, inter alia , a CBAM  for selected sectors to reduce the risk for 
carbon leakage. This proposal  of a protectionist nature  dealt with market access issues  and should 
be discussed in the specialized working bodies of the WTO, in particular the Committee on Market 
Access and the Council for Trade in Goods. The mechanism should be consistent with international 
law and the European  Union's commitments under the  climate and trade agreements including the 
UNFCCC, the Paris Agreement on Climate Change and the WTO  Agreement s. The climate agenda 
should not be used as a pretext for introducing import restrictions in the European  Union . Relevant 
provisions were both Ar ticle XX of the GATT  1994 and Article  3.4 of the UNFCCC. Article  2.2 of the 
Paris Agreement provided that the Parties to the agreement should act in a manner that reflected 
equity and the principle of CBDR -RC. The European  Union 's intention to impose its i nternal policies 
on other countries violated inter alia  the above -mentioned principle. The Green Deal required 
additional studies and consideration. His delegation reserved the right for further statements and 
comments under this agenda item.  
1.88.   The represen tative of the United  States  said h er delegation would follow the evolution of the 
Green Deal particularly on the issues that might affect its bilateral trading relationship with the 
European  Union . Her delegation would welcome outreach and insights from the European  Union  as 
it moved to impl ement the Green Deal. The United  States  urged the European  Union  to ensure that 
the regulations under the Green Deal did not create unnecessary barriers to trade and were 
compliant with WTO obligations.  
1.89.   The representative of Turkey  noted that the EU Green Deal included the long -term objective 
of climate  neutrality and the European  Union 's climate ambition to decrease GHG emissions. The 
international community played a vital role in combat ting climate change and all Members should 
take the necessary steps to  address it. Turkey welcomed the efforts of the European  Union  to combat 
climate change. However, as countries had different social and economic conditions and capabilities, 
the UNFCCC adopted the principle of CBDR -RC to combat climate change justly and ef fectively. Her 
delegation wished that the European  Union  would take into account this principle and the fact that 
Members of the international community could not have the same level of ambition because of 
different levels of capabilities and industrializa tion.  
1.90.   International trade was one of the major driving forces for sustainable development and 
economic diversification efforts. Therefore, any restrictive measure on trade could affect the 
development goals of developing countries. International trade was  essential for Turkey's  
development goals and the European  Union 's share in Turkey's total exports accounted for nearly 
50%. The European Commission should give all interested parties enough time to make necessary 
adjustments and provide details on the met hodology on how the carbon contents of imported goods 
would be measured, calculated and verified. All countries would need time and information to analyse 
and adjust to the European  Union 's proposal. Her delegation believed that the European  Union 's 
future  CBAM should  be fully aligned with GAT T rules and principles and they should  not be applied 
arbitrarily or constitute unjustifiable discrimination or disguised restrictions on international trade.  WT/CTE/M/ 70 
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  1.91.   The international climate change regime had acknowledged t hat mitigation measures could 
affect the social -economic development of countries. The UNFCCC affirmed that responses to climate 
change should be coordinated with social and economic development in an integrated manner with 
the view to avoiding adverse imp act of response measures.   
1.92.   The representative of the European  Union  responded on the question  from Colombia related 
to embedding the concept of sustainability in the way food was produced and consumed, that this 
would bring benefits for all actors in the f ood chain and in particular for farmers. These included 
higher returns, a stronger role in the food supply chain, lower costs, new business opportunities and 
stronger connections with consumer tastes and trade partners. Concerning farmers in third 
countrie s, more sustainably produced food would enable their products to be marketed in Europe 
and obtain premium prices on the European market and worldwide. This would also increase the 
long-term viability of agriculture in those countries and thus food security.  
1.93.   On deforestation measures, the Commission had not yet formulated measures and a public 
consultation was ongoing and open until 10 December 2020. The questionnaire included a question 
on potential costs of different options, including voluntary me asures, and had an open -ended 
question in which respondents could include any additional relevant information or points that were 
not in the questionnaire.  The initiative was planned to be adopted in the second quarter of 2021.  
1.94.   On the specific issue of the  Renewable Energy Directive (RED II), the issue of amendments 
to the EU Renewable Energy Directive was subject to WTO dispute settlement proceedings, notably 
under DS593 (EU – Certain measures concerning palm oil and oil palm -based biofuels). To preserve 
the integrity of such proceedings the European  Union  would defer all discussions to that forum and 
accordingly refrain from discussing this matter in the CTE .  
1.95.   On subsidies in agriculture, her delegation was ready to continue discussions in the Committee 
on Agriculture. The European  Union  disagreed that they led to environmental degradation. In the 
context of climate change, resilience and sustainability were key concerns that had to be addressed 
by governmental policies. Environmental aspects had been at th e core of the EU CAP and would be 
further enhanced in the future CAP. The EU Farm to Fork and Biodiversity strategies proposed 
ambitious EU actions and commitments to halt biodiversity loss and to transform the food systems, 
in line with the European Green  Deal objectives. These aimed to contribute to reaching the SDGs  
and work with international partners to strive towards a higher level of sustainability in the food 
system globally. Creating sustainable food systems in Europe should go hand in hand with su pport 
to increasing sustainability in third countries. The European  Union  remained the largest development 
aid donor in the world and continued its work on agriculture and rural development policy 
cooperation in international fora where the CAP was often h eld up as a role model for embedding 
sustainable agricultural practices in mainstream policy, while also maintaining livelihoods in rural 
areas.  
1.96.   On the CBAM and interventions by Norway, Canada, India, the Russian Federation, the 
United  States, and Turkey, the European  Union  noted this instrument was one of the  many  measures 
the Commission would adopt to reach the goal of climate neutrality . In the European Green Deal 
Communication of December 2019, the European Commission had announced that it would propose  
by mid -2021 a CBAM , for selected sectors, to reduce the risk of carbon leakage. This measure would 
be designed to comply with WTO rules and other international obligations of the European  Union . 
The Commission was carrying out a detailed impact assessment  that would notably look at 
environmental, social and financial impacts, economic efficiency and legal feasibility, in particular 
concerning WTO rules and trade agreements, as well as in terms of complementarity with the 
EU ETS. As part of the impact asses sment, the Commission had actively consulted citizens and 
domestic and international stakeholders and had encouraged them to give their views on the best 
option to enforce ambitious policies against climate change in an open economy while addressing 
the ri sk of carbon leakage.  
1.97.   Her delegation welcomed the request to work together as well as the request for transparency 
expressed in  a number of interventions. The Commission was committed to transparency and the 
inputs for the consultation had been published o n the Commission 's central consultation page. T he 
Commission would engage in multilateral and bilateral forums and restated that a conference on 
CBAM was planned for end of February or the beginning of March 2021 . WT/CTE/M/ 70 
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  1.3.5   Update by New Zealand on the Agreement on Climate Change, Trade and 
Sustainability (ACCTS)  
1.98.   The representative of New Zealand  recalled that, in the margins of UN  General Assembly  
Leaders ' Week 2019, New  Zealand, Costa Rica, Fiji, Norway and Iceland had announced the launch 
of the first -of-its-kind "Agreement on Climate Change, Trade and Sustainability " (ACCTS).  
Switzerland had joined the initiative not long after. ACCTS included a  host of known trade policy 
actions that could contribute meaningfully to combatting climate change and other environmental 
challenges. The ACCTS aimed to demonstrate, in practical terms , how trade rules and architecture 
could be used to support climate and broader sustainable development objectives while generating 
momentum towards multilateral outcomes. Since the ACCTS launch announcement, the COVID -19 
pandemic had drastically shifted t he global context.  In responding to this crisis, governments and 
businesses around the world were taking and considering actions with potentially wide -reaching 
trade and climate implications. Against this backdrop, the aims of the ACCTS initiative remained  as 
pertinent and significant as ever.  
1.99.   The ACCTS covered four key areas: (i) the removal of tariffs on environmental goods; (ii) the 
establishment of new and binding commitments for environmental services; (iii) the establishment 
of disciplines to eliminat e harmful fossil fuel subsidies; and (iv) the development of guidelines to 
inform the development and implementation of voluntary eco -labelling programmes and 
mechanisms. Following a pause between March – May 2020 due to C OVID -19, negotiations had re -
comme nced using videoconferencing. The first two rounds of discussions had been focused on 
establishing the overarching objectives and scope of each of the four pillars.  
1.100.   The third round of negotiations was currently in progress with meetings taking place 
throu ghout November and December. While the virtual format had impacted the pace and approach, 
the parties remained committed to concluding an ambitious agreement as swiftly as possible.  This 
treaty-level and WTO -consistent instrument would be open to other cou ntries to accede to , provided 
they were able to meet its obligations.  New Zealand and co -participants remained committed to 
keeping the CTE informed of progress and were willing to engage further with interested Members.  
1.101.   The representative of the European  Union  welcomed more information on the initiative, 
noting its possible trade and climate initiative announced by EU Commission Executive Vice -
President Dombrovskis . The objective would be to bring various building blocks  (with variable 
geometry of delegat ions' participation) under a green umbrella such as the liberali zation of 
environmental goods and services, greening aid for trade and transparency of domestic measures, 
which for the European  Union would include its CBAM . The European  Union  did not want t o develop 
its initiative in isolation but rather work with interested WTO Members on bringing various elements 
forward, including ideas for topics for other building blocks. This type of initiative could result in a 
tangible contribution by trade to global  efforts to mitigate climate change.  Her delegation was keen 
to work with New Zealand and other WTO Members in bringing the environmental agenda forward.   
1.102.   The representative of  Indonesia  agreed that the WTO had to remain relevant by addressing 
current issu es of concerns, including trade and environmental sustainability and supported efforts 
to internalize environmental considerations into measures in the global trade system. However, her 
delegation noted that measures should respect the principles of common  but differentiated 
responsibilities and respective capabilities and these must become an integral part of the discussions 
on trade and environment. Mutual supportiveness and special and differentiated treatment should 
also be the basis of the work under t hese specific issues at the WTO. Issues under ACCTS should be 
discussed under the relevant framework of the UNFCCC, while the WTO should focus on trade 
agreements and on its primary agenda that remained unresolved.  
1.103.   The representative of the Kingdom of Sau di Arabia  restated its objection to discussing 
climate change issues under any forum other than the UNFCCC . 
1.3.6   Presentation by Canada on the launch of the Structured Discussions on Trade and 
Environmental Sustainability  
1.104.   The representative of Canada , on behalf of the Members of Friends Advancing Sustainable 
Trade (FAST), briefed delegations on the side event launching the Trade and Environmental 
Sustainability Structured Discussions  (TESSD).  At the event on 17 November 202 0, and with the WT/CTE/M/ 70 
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  support of 23  co-sponsors , representing 50 WTO Members, the TESSD  had been launched.14 In 
opening the event, Costa Rican Ambassador Gloria Abraham Peralta had noted the importance of 
this achievement for the WTO.  Panellists  at the  high-level event , representing the International 
Chamber of Commerce (ICC),  WTO, ITC, UNEP , IISD a s well as Ambassador Blackman,  Chairperson 
of the CTE welcomed the launch of the TESSD and the opportunity that it presented for the WTO.  
1.105.   The event had provided insigh tful takeaway messages, including that the TESSD should: 
work to complement and enhance discussions within existing WTO bodies, including most 
importantly, the CTE; offer an opportunity for the WTO to demonstrate its credibility and relevance 
in the 21st century; address the global cross -border environment challenges (including climate 
change, bio diversity  loss, pollution); be open for a multi -stakeholder approach to achieve coherence 
and consistency; and develop concrete ideas and proposals for action. The se messages reflected the 
importance that the broader WTO stakeholder community attached to action on trade and 
environmental sustainability issues as well as the imperative to act. The TESSD could help shape a 
positive, inclusive, sustainable 21st century  agenda for the WTO.  
1.106.   The event also had indicated the key interest from stakeholders on the initiative, with one 
panellist  noting the launch of the TESSD demonstrated that WTO Members were finally listening to 
what stakeholders wanted. The TESSD would be m ulti-stakeholder from the outset, with almost 
400 individuals (representing governments, non-governmental organizations , international 
organizations , academia and the business community) who had registered to attend the event. The 
first meeting of the TESSD would be in early 2021. Co -sponsors would operate with maximum 
transparency and inclusiveness and would keep this committee apprised of developments and 
progress. FAST looked forward to welcoming additional Members to the TESSD . 
1.107.   The Ambassador of the Philippines  congratulated the co -sponsors for the launch of the 
TESSD . It was necessary to capitalize on the work of the WTO on trade and sustainability, specially 
the one carried out by the CTE.  He welcomed the recognition that the TESSD would not result in 
duplication of work. It would be key to ensure effective coordination and collaboration, not only with 
other international organizations but also with the private sector and civil society. The Philippines 
remained interested in gathering more details o n the framework of this initiative and how it 
interfaced with past market access negotiations at the WTO, environmental goods and services as 
well as the result envisaged for this initiative. His delegation stood ready to actively support and 
engage in the TESSD . 
1.108.   The representative of Japan  reported to the committee that her delegation had recently 
joined this co -sponsorship. This was an initiative aiming to facilitate open and transparent discussion 
on WTO's role on trade and sustainability. Japan wanted to  actively contribute to future discussions.  
1.109.   The representative of the United  States  expressed its interest in the TESSD . The 
United  States  looked forward to informally engaging in this process and reiterated its understanding 
that the initiative would be o pen to all WTO Members . 
1.110.    The representative of Colombia  expressed its interest in participating in the TESSD . His 
delegation shared the same objectives.   
1.111.   The representative of Turkey  noted development issues should constitute an important part 
of the discu ssions, as national circumstances, capacity building and technical assistance should be 
considered. Her delegation expressed interest in this initiative and its willingness to take part in the 
TESSD . 
1.112.   The representative of Ecuador  thanked the proponents for  moving forward the debate on 
trade and environmental sustainability. Ecuador was interested in this proposal which addressed the 
link between trade and environmental sustainability, particularly with regards to international trade 
and conservation.  The wo rld faced major challenges including climate change, oceans , biodiversity 
losses  and food security. Countries needed to come together to promote the debate on trade and 
environmental sustainability within the WTO.  Environmental changes and climate change, if left 
 
14 See document WT/CTE/W/249 . WT/CTE/M/ 70 
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  unconsidered, could harm economic development and economic sustainability. Collective action to 
address these challenges was required.  
1.113.   A low -carbon environment was important for the world. Ecuador was the first country in the 
region to develop and  launch the guidelines adopted by the UNFCCC . Ecuador's national contribution 
for 2020 -2025 was laid out and Ecuador had reaffirmed its commitment to saving the oceans and 
ensuring sustainable use of resources by putting in place measures addressing unregu lated fishing 
and plastic waste. The international community needed to step up efforts to ensure economic, social 
and environmental resilience and sustainable development. For Ecuador and many other countries, 
concluding the WTO negotiations on fisheries s ubsidies was essential.  
1.114.   Discussions on trade and environment had moved forward at a different speed. It was 
needed to recognize the importance of various debates, based on transparency and inclusion. The 
dialogue had to include various stakeholders from t he private and public sector, the financial sector, 
academia, civil society. It was required to boost continuity in production, access to technology, 
productivity and efficiency of value chains. Ecuador underscored that modern and sustainable trade 
should consider the needs of developing and least developed countries. His delegation would 
examine in detail the proposal and looked forward to working with the proponents.   
1.115.   The representative of Mauritius  expressed his delegation 's interest in the discussion. A s a 
small island country, Mauritius was vulnerable to the adverse impacts of climate change. The 
challenges for Mauritius were huge and included declining production, coastal erosion, and the 
consequent economic and social -economic impacts. Environmental s ustainability was high on its 
agenda. Mauritius had recently revamped its national environment plan. Last year, Mauritius had 
allocated 57 million USD in this regard.  Mauritius was implementing international agreements 
including the UNFCCC, the Paris Agree ment, and the Kyoto Protocol, through relevant sector 
strategies and action plans. It had also recently introduced a climate change bill to address the 
adverse effects of climate change and develop Mauritius into a green economy.  Trade could promote 
econom ic efficiency and environmental conservation if trade and environmental and sustainable 
development policies were aligned. Mauritius welcomed the TESSD and called for it to include sharing 
of experiences and best practices and identifying areas of common i nterest for future work while 
considering technical assistance and capacity building needs of developing Members.  
1.116.   The representative of Paraguay  said that her delegation was interested in the TESSD  that 
sought to address various issues related to trade and  sustainability.  
1.117.   The representative of Chile said his delegation intended to join the TESSD . Trade policies, 
WTO, and the TESSD could contribute to tackling today's environmental challenges. His delegation 
looked forward to working with other co -sponsor and other interested Members.  
1.118.   The representative of the United Kingdom  said his delegation was pleased to join the FAST 
group to progress the enforcing agenda of trade and the environment forward. More than ever, 
international cooperation was vital to combat climate change and environmental threats such as 
plastic s pollution. This group represented a positive opportunity to improve dialogue and progress 
work with international partners on trade and environment. It was important that this platform was 
inclusive and considered the needs of developing countries. As C oP26 President in partnership with 
Italy, the United Kingdom was commit ted to a leading role in spreading global green growth as the 
world recovered from the COVID -19 pandemic.  
1.119.   The representative of China  commended all proponents for launching the communication on 
TESSD and for the side event. China recognized the importance of conversation and collective action 
in addressing environmental challenges and risks. Her delegation wished to explore how trade and 
trade policies could seek to preserve the environment while considering Members ' respective needs 
and concerns. China' s capital officials were reviewing the communication. His delegation encouraged 
discussion under this initiative to remain open and inclusive and looked forward to continuing the 
dialogue.   
1.3.7   Costa Rica's report on the side event "Sustainable Living and Interna tional Trade"  
1.120.   The representative of Costa Rica  briefed delegations on the event "Sustainable Living and 
International Trade: Achieving mutual supportiveness – Costa Rica 's portrayal of sustainable WT/CTE/M/ 70 
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  economic recovery post -COVID -19" that took place on 17 November 2020 .15 The event was 
moderated by Victor  Umaña, agricultural economist and researcher at INCAE Business School. In 
their introductory remarks, both the Ambassador of Costa Rica to the WTO, Gloria Abrahams and 
Minister (a.i.) of Foreign Trade, Duayner Salas, discussed Costa Rica's decision  to pro mote its 
economic development through integration into international trade and respect for the environment. 
Economic and green growth were not only desirable and possible but also mutually supportive. The 
event had first focused on three specific projects that exemplif ied Costa Rica's vision in these areas.  
1.121.   Firstly,  the green growth platform, developed by Costa Rica's Foreign Trade Promoter 
(Procomer ), had been  awarded the best trade and sustainability initiative in 2020 by the ITC. 
According to Procomer's General Manager, Pedro Beirute, Costa  Rica's export promotion strategy 
was based on positioning itself to the world as a country of well -being that did business with purpose. 
The green growth platform was part of this overall strategy and sought to insert seed capital into 
small and medium -sized enterprises  (SMEs)  interested in converting to a greener business model. 
This boosted their competitiveness and allowed them to access international markets through a more 
diversified offering of export products. Ab out USD 4.5 million had been distributed in projects that 
had benefited 260 SMEs over 4 years. The program had resulted in significant reductions in both 
costs and the ecological footprint of enterprises  and had led to a significant increase in their exports.  
1.122.   The second project – "Descubre" (Discover), introduced by Henry Benavides, Agricultural 
Coordinator of the Ministry of Foreign Trade , aimed to discover new potential export products to 
diversify the coun try's agricultural exports. Through its free trade agreements, Costa Rica had 
already achieved significant export diversification and positioned itself as an important exporter of 
some  agricultural products, such as bananas, pineapple and coffee. However, many of the companies 
producing goods and services with the highest value added were in urban areas, instead of rural 
ones with lower relative development. To counter this reality, "Descubre" sought to revive agriculture 
and fisheries in rural areas and im prove their economic and social indicators. The program had 
identified around 150 high -potential products and had started developing 14 products, including 
papaya, hemp and orange sweet potato. Similarly, the program had identified production 
improvement t echniques, as well as new irrigation systems and equipment, to help beneficiaries join 
international markets more competitively.  
1.123.   Finally, Xinia Chaves, Executive Director of the Costa Rican Coffee Institute, had presented 
two program s promoted by her inst itution concerning coffee production in Costa Rica: (i) Nationally 
Appropriate Mitigation Actions (NAMA ) Café; and (ii) the coffee traceability and sustainability project. 
The NAMA Café was based on a commitment to produce and process low -carbon coffee  and had 
enabled better differentiation in international markets through measures  with verifiable impact. To 
date, the program had prevented the emission of more than 1,800 tons of carbon , had included 66 
companies and certified  7,000 coffee farmers as produce rs of NAMA Café. The program was 
complemented by Costa Rica's coffee traceability and sustainability project, which connected coffee 
producers with consumers , provid ing consumers with information on producers ' carbon mitigation 
efforts through a web and mo bile application known as CR  Café. 
1.124.   The event had focused next on Costa Rica's experience with the bioeconomy. Sacha Trelles, 
Technical Coordinator of the Inter -American Institute for Cooperation on Agriculture (IICA), had 
stressed that the bioeconomy sough t to increase agricultural productivity through sustainable 
production of goods and services and could become an important tool for addressing current 
challenges in Costa Rica and in Latin America, such as population growth and climate change. 
Gabriela Cou to, consultant and former Director of the Biomedical Cluster in Costa Rica had noted 
the experience of Costa Rica with the development of life -sciences technologies and the importance 
of financing and public -private partnerships as tools towards the transi tion to the bioeconomy.  
Lastly, Manuel Otero, Director -General of IICA, had presented the event's final remarks,  highlighting 
the role of agriculture for post -COVID economic recovery  and emphasizing the importance IICA 
attached to the bioeconomy as a great bridge between productivity and sustainability.  
1.125.   The representative of the European  Union  said there were lessons to be learned from this 
unprecedented crisis. The pandemic had shown  that companies who put sustainability at the core of 
their long -term strategies were much better placed to face the disruptions  caused . Sustainable value 
chains and due diligence would need to be an important part of the recovery to build a resilient 
economy that mitigated adverse impacts on the environment, workers  and companies in the future. 
 
15 https://www.youtube.com/watch?v=SGhIv_jgSWE&feature=youtu.be . WT/CTE/M/ 70 
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  Open trade could be the means for rebuilding more sustainable and resilient supply chains and 
networks going forward.  
2  OTHER ITEMS OF THE CTE WORK PROGRAMME  
2.1  Multila teral environmental agreements and the WTO (Item 1 of the CTE Work 
Programme)  
"The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral 
environmental agreements (MEAs)."  
2.1.1   The Convention on Biological Diversity (CBD)  
2.1.  The representative of the Convention on Biological Diversity  (CBD) briefed delegations16 on 
recent developments under the Convention and the preparatory process for the upcoming C oP15, 
which would take place in 2021 in Kunming, China. The Strategic Plan for Biodiversity 2011 -2020 
(Aichi Biodiversity Targets – ABT) was about to expire and CoP14 had decided on the process for 
the development of the post -2020 Global Biodiversity Framework (GBF). While the CBD had observer 
status in the CTE in regular session, C oP14 had requested continued liaising with the WTO and 
following up on pending requests for observer status in other WTO bodies.  
2.2.  He recalled that the Nagoya Protocol on Access to Genetic Re sources and the Fair and Equitable 
Sharing of Benefits Arising from their Utilization (Nagoya Protocol on ABS) counted now with 
128 Parties. Close to 2,000 internationally recognized certificates of compliance for access to genetic 
resources had already be en published in the Access and Benefit -sharing Clearing -House 
(ABS Clearing -House). The Cartagena Protocol on Biosafety had 173 Parties, while the more recent 
Nagoya -Kuala Lumpur Supplementary Protocol on Liability and Redress to the Cartagena Protocol, 
which had entered in force in 2018, counted 48 Parties.  
2.3.  CoP14 had established a dedicated Open -ended Working Group (OEWG) to develop the post -
2020 global biodiversity framework under the leadership of two co -chairs (from Uganda and Canada) 
and overseen by th e CoP bureau (decision 14/34). Co -chairs would seek to ensure coherence and 
complementarity with other international processes, in particular the 2030 agenda for sustainable 
development. C oP14 had also established overarching guiding principles for the pro cess and set out 
an additional roadmap aiming at consultations through online forums, global, regional, and thematic 
workshops.  
2.4.  An updated zero draft had been prepared by the two co -chairs based on the outcomes of the 
regional and thematic consultations an d discussions during the first and second meeting of the 
Working Group. The revised zero draft would be further considered and then negotiated at the third 
meeting of the Working Group. The zero draft already served as a basis for discussions on specific 
aspects of the post -2020 framework – such as the draft monitoring framework, mainstreaming or 
resource mobilization – which would take place at the upcoming meetings of the two subsidiary 
bodies of the Convention: the Subsidiary Body on Scientific, Technica l and Technological Advice 
(SBSTTA) 24 and the Subsidiary Body for Implementation (SBI) 3.  
2.5.  SBSTTA 24, SBI 3, the third meeting of the OEWG, as well as C oP15 were supposed to take 
place in 2020. Due to C OVID -19, all meetings would take place in 2021. Other  events closely tied 
to the post -2020 GBF process had already taken place, such as the Biodiversity Summit on the 
margins of the United Nations General Assembly in September 2020. Others would happen in the 
lead up to C oP15, such as the upcoming meeting of  the International Union for Conservation of 
Nature (IUCN) World Conservation Congress in 2021.  
2.6.  The current draft post -2020 GBF set out five goals and 20 specific targets to be met by 2030. 
It included a comprehensive monitoring framework with indicators under development. All 
biodiversity -relevant  international conventions had been engaged in the consultation and were part 
of the development process.  The draft post -2020 GB F made specific reference to wildlife trade in 
draft Target 4 and under means of implementation. The interface with trade policy was also linked 
 
16 See document RD/CTE/169 . WT/CTE/M/ 70 
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  to Target 13 on biodiversity mainstreaming. It aimed at integrating biodiversity  values in other 
policies, regulations, planning and developing processes which might include trade policies. It also 
related to the draft Long -term Approach to Biodiversity Mainstreaming, requested by C oP14 and 
developed with an Informal Advisory Group. T he draft specifically refer red to trade as one of the 
policies in which biodiversity mainstreaming should occur. It would be considered by SBI -3.  
2.7.  On incentives measures (draft Target 17), he recalled that the ABT already included a strategic 
plan aiming t o eliminate, phase out, or reform incentives including subsidies that were harmful to 
biodiversity. Based on the review of the Global Biodiversity Outlook, CoP14 had identified this target 
as one of those for which progress needed to be accelerated and urg ed Parties and governments to 
take action accordingly (decision 14/1).  
2.8.  On invasive alien species (IAS – draft Target 5), there was a long -standing CBD -WTO 
collaboration on trade -related pathways for IAS. WTO Secretariat and SPS standard -setting bodies 
were Members of the CBD liaison group on IAS and had developed useful and fruitful actions over 
the years. C oP14 had provided supplementary voluntary guidance to avoid the unintentional 
introduction of IAS associated with trade in live organisms and encourage d the use of it by 
governments and relevant sectors and organizations (decision 14/11). It urged governments to 
coordinate with the authorities responsible for customs, border controls, and sanitary and 
phytosanitary measures to prevent unintentional intro ductions of invasive alien species associated 
with trade in live organisms. It further requested exploring the development of a system of 
classification and labelling of living organisms that posed a hazard or risk to biodiversity related to 
IAS. The work had been undertaken with the liaison group and progress would be considered by 
SBSTTA 24. As a result, the issue had been considered by the United Nations Economic and Social 
Council  (ECOSOC) Sub -Committee of Experts on the Transport of Dangerous Goods and  the WCO 
had included IAS in the Technical Specifications under its Framework of Standards.  
2.9.  The latest Meeting of the Parties to the Nagoya protocol on ABS had taken decisions in three 
key areas: (i) support to ratification and implementation of the Nagoya  Protocol (including decisions 
on capacity -building and the Access and Benefit -sharing Clearing -House); (ii) progress towards 
implementation and compliance with the Protocol; and (iii) further policy developments, including 
on the need for and modalities o f a global multilateral benefit -sharing mechanism, specialized 
international access and benefit -sharing instruments and digital sequence information on genetic 
resources.  
2.10.   CoP9 of the Cartagena Protocol on Biosafety had adopted several technical guidance el ements, 
encouraged Parties to require responsible operators to provide information on reference material to 
enable detection and identification of modified organisms for regulatory purposes, and requested 
the Executive Secretary to finalize a manual thereo n (CP -9/11). C oP9 also set out an intersessional 
process to supplement the Guidance on the Assessment of Socio -Economic Considerations in the 
context of living modified organisms with relevant information on experiences with such assessments 
(CP-9/14). Fin ally, as part of its work on liability and redress, it had requested the preparation of a 
study on financial security mechanisms including an assessment of the environmental, economic 
and social impacts and on the possible entities that could provide such financial security.  
2.11.   The representative of China  said that as the host country, China appreciated the strong and 
continued support from the CBD Secretariat on the preparation for C oP15. His delegation also briefed 
Members on the latest preparatory work. C oP15, under the theme "Ecological Civilization: Building 
a Shared Future for All Life on Earth ", would review the implementation of the Strategic Plan for 
Biodiversity 2011 -2020 and achievement of the ABT, and would set the course for global biodiversity 
conservation for the next decade and beyond.  
2.12.   The Organizing Committee and Executive Committee for CoP15 had been set up in 
February  2019, and preparations were progressing smoothly. China had hosted and participated in 
about 100 international meetings and bilateral consultations and looked forward to working with 
Parties on a global discussion on the post-2020 GBF. As a firm proponent of multilateralism, China 
was an active participant and contributor to the global biodiversity agenda and process. China was 
committed to fulfil its mandate as the host country and play a constructive role in its capacity as 
holder of the CoP15 presidency. His delegation called for providing sufficient support to developing 
countries, building a compound governance system centering on all parties and multi -party 
participation, incorporating the private sector, communities, youth and women. China encouraged WT/CTE/M/ 70 
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  all stakeholders to engage in the Sharm El -Sheikh to Kunming Agenda for Nature and People, and 
to make concrete commitments and contributions to biodiversity conservation.  
2.13.   In light of the COVID -19 pandemic, CoP15 had been postponed and was provisionally 
scheduled to  be held  on 17-30 May 2021, in Kunming China. On 30 September, President Xi J inping 
had extended an invitation to CoP15 at the United Nations Summit on Biodiversity. His delegation 
welcomed everybody to Kunming, to discuss the protection of global biodiversity.  
2.14.   The representative of the European  Union  noted  that the COVID -19 pandemic had raised 
awareness about the interde pendence of biodiversity loss and human health. Protecting and 
restoring biodiversity was therefore key to boost resilience and prevent future outbreaks.  The 
post-2020 GBF would be crucial for addressing the global ecological crisis, safeguarding sustainab le 
development and poverty eradication.  The EU Biodiversity Strategy was a key part of the European 
Green Deal and a central element of the EU 's post -COVID recovery plan. Trade policy had to  actively 
support and be part of the ecological transition. The Eu ropean  Union  would ensure full 
implementation and enforcement of the biodiversity provisions in all trade agreements. The 
European  Union  would also better assess the impact of trade agreements on biodiversity, with 
follow -up action to strengthen the biodiv ersity provisions of existing and new agreements if relevant.  
The European  Union  called for an ambitious post -2020 global biodiversity framework that put nature 
on a path to recovery by 2030 to ensure healthy ecosystems and stop avoidable human -induced 
extinction of species by 2050. The European  Union  looked forward to working with partner countries 
to reach a meaningful deal in Kunming in 2021, in line with the level of ambition of the recent UN 
Biodiversity Summit and Leaders Pledge for Nature.  
2.15.   The repres entative of Switzerland  noted that the upcoming CoP15 was expected to provide  a 
new and effective post-2020 GBF. A clear framework of objectives  with measurable targets was 
required to deal with the main global causes of biodiversity loss such as the overexploitation of land 
and sea, the direct exhaustion of natural resources, pollution, climate change, and IAS. Her 
delegation underscored the need  to globally preserve 30% of land and sea zones  by 2030 through 
the creation of protected areas and other efficient zone conservation measures.  An effective 
implementation  mechanism,  a binding review process  and solid reporting  were required . Switzerland 
stressed the need to reinforce coherence between different treaties and processes and to create new 
synergies.   
2.1.2   The United Nations Framework Convention on Climate Change (UNFCCC)  
2.1.2.1   Update by the United Kingdom on the planning for C oP26 
2.16.   The Ambassador of the United Kingdom  provided further news on planning for C oP26. It would 
take place in November 2021 in Glasgow. Although C oP26 had been postponed, climate action could 
not wait. The UK presidency would accelerate progress towards achieving the goals of the Par is 
Agreement through increased ambition in all three of these areas : Adaptation, Mitigation and 
Finance. The United Kingdom  was committed to fulfilling the potential of the Paris Agreement by 
facilitating agreement on outstanding elements of the "Paris rul ebook " as part of a balanced 
negotiated outcome that accelerated climate action, enabled greater ambition and powered the 
process forward. His delegation urged countries to come forward with enhanced emissions reduction 
targets for 2030 in their nationally  determined contributions (NDCs), to meet the collective 
commitments set out under the 2015 Paris Agreement. The United Kingdom also wished for countries 
to develop a long -term strategy with a pathway to net -zero greenhouse gas emissions.  
2.17.   The UK CoP26  presidency, the UN and France would host a virtual leader -level Climate 
Ambition Summit on 12 December 2020 on the fifth anniversary of the Paris Agreement, in 
partnership with Chile (as C oP25 President) and Italy ( CoP26  partners). The Summit would provide 
a platform for leaders to come forward with announcements of new, more ambitious nationally 
determined contributions and long -term strategies to net -zero; as well as new climate finance 
pledges; and ambitious adaptation plans. This was an opportunity to sh ow higher ambition to meet 
the Paris goals and urgent action.  
2.18.   Meeting the shared goals for avoiding dangerous climate change required a dramatic 
acceleration of progress towards clean growth and resilience. To drive this acceleration, the 
United  Kingdom wo uld bring governments, businesses, and civil society together to accelerate WT/CTE/M/ 70 
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  change in the global economy. The United Kingdom would focus on addressing major shared 
challenges in the areas of adaptation and resilience, energy transition, nature, transport a nd finance.  
Trade could play an important role in advancing progress across these campaigns and in meeting 
the challenge of climate change. As part of the nature campaign, the United Kingdom  would seek to 
protect forests, while promoting development and tr ade. The United Kingdom would use its 
CoP presidency to bring forest -risk commodity consumer countries, producer countries, and 
companies together to meet this challenge and make the most of a market transition to sustainable 
commodity trade.  
2.19.   The energy t ransition campaign would seek to drive ambition on product energy efficiency 
standards by doubling the efficiency of four key products sold globally by 2030 electric motors, air 
conditioners, refrigerators, and lighting. The United Kingdom was asking count ries to join and 
actively engage in the Super -efficient Equipment and Appliance Deployment (SEAD) Initiative and  
raise their product efficiency standards. Changes to standards of this kind would have an impact on 
trade, and there would be an important role  for the WTO in promoting transparency and cooperation 
as the world undertook this crucial shift. The United Kingdom looked forward to exploring further 
the links between climate change in the Committee in the coming year. His delegation was 
committed to u sing the presidency to push climate and environmental issues to the front and centre 
of the multilateral trade agenda, not just in this Committee but also at the upcoming Ministerial 
Conference.  
2.20.   The representative of Canada  commended the United Kingdom fo r its leadership on climate 
change including the CoP26  presidency and efforts to keep ambitious climate action at the top of the 
global agenda, especially in light of the pandemic. His delegation looked forward to working with the 
United Kingdom in shaping  CoP26  discussions and strongly supported the United Kingdom's efforts 
to advance transformative action across the five campaigns, including on  sustainable finance flows, 
and energy transition.  
2.21.   The representative of Switzerland  said that within the framework of the Paris Agreement, 
Switzerland had confirmed its objective of minus 50% by 2030 and adjusted its target for 2050 to 
net-zero. This conformed with the recommendations of the Intergovernmental expert group on 
Climate Chan ge (IPCC).  Switzerland would present its full communication with the necessary 
information for the clarity, transparency, and understanding of its NDC in December 2020, in view 
of the summit organized by the United Kingdom and the UN Secretary -General, wit h Chile, France 
and Italy for the  fifth anniversary of the Paris Agreement.  Switzerland had concluded a bilateral 
agreement with Peru in October 2020 to allow the implementation of foreign compensation. An 
agreement with Ghana was to follow soon. The bilat eral agreements implemented Article  6 of the 
Paris Agreement.  Switzerland wished to set high standards for the UN negotiations in this area. This 
would make it possible to improve the quality of the mechanisms decided under the aegis of the 
United Nations.  
2.1.2.2   Canada's  report on the side event  on "E-commerce and Climate Change in the 
COVID -19 Era: A game changer for the green economic recovery? " 
2.22.   The representative of Canada  reported on the side event "E-commerce and Climate Change 
in the COVID -19 Era: A game ch anger for the green economic recovery? ".17 Climate change was a 
clear and present reality with a severe impact on lives, economies and nature. Action was required 
to mitigate the most harmful impacts of climate change. Success in the fight against climate change 
would require coherenc e, consistency and engagement between and across a broad range of actors 
and policy issues, including trade.  Since 2018, Canada and France, in cooperation with the ICC, had 
organized a series of workshops at the WTO highlightin g the issues at the nexus of trade and climate 
change. The objective was to inform and to stimulate discussions on how the trade policy world 
could help contribute to the fight against climate change.  
2.23.   The workshop, held on 18 November 2020, looked at the i ntersection of trade, climate change 
and e -commerce. Attended by over 150 individuals, the workshop had sought to layout the climate 
impacts of e -commerce; the views of the private sector in this area; and to consider what actions 
the trade policy world co uld take in response.  The key observations from the workshop were that 
e-commerce was becoming an increasingly ubiquitous way for consumers to purchase goods and 
services. For example, between 2000 and 2019, internet users grew from 0.4 billion to over 4 b illion. 
 
17 https://www.youtube.com/watch?v=DPcAgJX7Nl4&feature=youtu.be . WT/CTE/M/ 70 
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  However, w hen calculating the effects of e -commerce on climate change, the following elements 
should be considered . First, digital technologies had both direct and indirect effect on carbon 
emissions: they had direct emissions – from the energy nee ded to power data cent res, data 
networks, computers, and smartphones. E -commerce also had secondary effects on climate change 
through other services and sectors, like transport and packaging. While the direct effects were quite 
clear, the effects of digita lization on other sectors and activities were complex.  
2.24.   Second, e -commerce 's carbon footprint had to be calculated while bearing its "substitution 
effect " in mind, i.e. what would happen if e -commerce did not exist. It was likely to see increased 
energy use and emissions from more last -mile delivery, but there were energy savings from 
customers not having to drive to shops. And the increase in packaging and  warehousing might be 
offset by reduced energy needs for fewer retail shops.  Those balancing effects needed to be further 
explored to have a better grasp on the carbon footprint of e -commerce. The private sector was 
already making efforts to mitigate the c arbon impact of their e -commerce activities, including by 
adopting ambitious net -zero emission targets within their supply chains and in their packaging 
strategy . Action by the private sector alone would not be sufficient. Private sector action must be 
complemented by government action. At the WTO, the liberalization of environmental goods and 
services would be a concrete, achievable and tangible contribution that the trade policy community 
could make – the private sector representatives at the event had al so underlined this point.  
2.25.   Finally, it would be important to keep development considerations at the fore as discussions 
at the WTO proceed. France and Canada remained committed to facilitating further conversations 
on climate change in the context of digita l trade and to highlighting the importance of WTO action 
on this topic. France and Canada looked forward to organizing future events, exploring other issues 
at the nexus of trade and climate change at the WTO.  
2.1.2.3   Barbados' report on the side event on " Climate  Change, Natural Disasters and 
Recovery Efforts : Tapping into Trade Facilitation  as an effective response tool "  
2.26.   The representative of Barbados  reported on a webinar held18 on the 18 November 2020 during 
the WTO Trade and Environment Week. The government o f Barbados, in partnership with New castle 
University, the Shridath Ramphal Centre of the University of the West Indies (UWI) and the 
Commonwealth secretariat co -sponsored the event. The webinar sought to give a voice to trade and 
environment experts, acade mic communities, and other stakeholders to contribute to the building 
of Small Island Developing States (SIDS) resilience.  The webinar discussed the findings of a recent 
study published by the Commonwealth Secretariat examining how the WTO Trade Facilitati on 
Agreement could assist disaster risk and recovery efforts, identified trade facilitation challenges and 
best practices from recent recovery efforts in disaster -hit countries , highlighted the 
multi-dimensional  vulnerability of states and looked at enhanc ing climate and disaster resilience.  
2.27.   The speakers were joined by Geneva -based SIDS ambassadors from the Caribbean and the 
Pacific regions, New castle University and UWI. It was recognized that climate change continued to 
disproportionately affect SIDS even  though they contributed least to the problem. Decades of 
development gains could be lost because of one single event. Trade could play an important role in 
addressing some of the impacts of natural disasters. Severe natural disasters often hit economic 
activity by disrupting the production and consumption of goods and services and impacting their 
mobility through supply chains. Trade facilitation could support countries in the aftermath of a 
disaster by ensuring that timely and efficient clearing systems w ere in place to speed up entry of 
released goods to assist longer -term recovery efforts.  
2.28.   Trade facilitation also had the potential to relieve pressure created by clearing and 
streamlining trade practices as well as by using international best practices for  the release of critical 
goods. There was an opportunity to design and pursue trade facilitation regulatory reform in SIDS 
which would facilitate critical response after a disaster. The webinar had also revealed that 
consideration had been given to establi shing a regional trade facilitation mechanism based on the 
experiences of SIDS  from the Caribbean Community (CARICOM) . The mechanism was aimed at 
facilitating trade among pacific Members and other trading partners. The issue of COVID -19 had 
impacted SIDS economies and had exposed their overdependence on basic needs, including food 
and medicines as well as an over -relianc e on tourism.  
 
18 https://www.youtube.com/watch?v=tu -fcLNeMoc&feature=youtu.be . WT/CTE/M/ 70 
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  2.29.   The UWI was currently building on the work of the Commonwealth Secretariat with regards 
to vulnerabilities in the context of trade. The work surrounded the economic vulnerability index and 
made a strong case for treating countries' relative vulnerability as the main indicator of how a 
country should be accommodated in trade rules instead of other indicators for example GDP per 
capita. Within the framework of the issue of vulnerability and the use of per capita income measures, 
it was noted th at in the context of trade facilitation agreement, donor agencies and technical 
assistance providers often omitted high -income countries from being provided technical assistance. 
These negatively affected countries in implementing their commitments.  
2.2  Trans parency of environment -related trade measures (Item 4 of the CTE Work 
Programme)  
"The provisions of the multilateral trading system with respect to the transparency of 
trade measures used for environmental purposes and environmental measures and 
requirements which have significant trade effects."  
2.2.1   WTO Environmental Database  
2.30.   The WTO Secretariat  provided an update19 on the WTO Environmental Database (EDB) .20 
Trade Policy Review (TPR) data for 2019 had been uploaded and was accessible by clicking the TPR 
tab on the EDB platform. The data for notifications was being updated and would be uploaded on 
the EDB platform shortly. Apart from the data itself, work was also being conducted to improve the 
website both at the front end and the back end. At the fro nt end, work was being done to improve 
the tagging, search and infographics on keywords and at the back end, a new online data entry 
platform for TPRs and notifications had been created to facilitate future EDB updates. As for the TPR 
data for 2019, there were 758 TPR entries from 16 WTO Members , namely  Bangladesh, Canada, 
Costa Rica, Ecuador, East African Community (with TPRs of Burundi, Kenya, Rwanda, Tanzania and 
Uganda), Lao PDR, North Macedonia, Papua New Guinea, Peru, Samoa, Suriname, and Trinidad and  
Tobago. TPR data was classified based on keywords, sector and measures. On types of TPR 
information, EDB entries were based on Members' trade policy framework, trade polices by measure 
or trade policies by sector. Most of the information for 2019 was sect or-specific (over 50%). 
Agriculture and Energy were particularly important sectors in the TPRs of 2019 and  accounted for 
16% of the environment -related entries. Manufacturing, services and fisheries each contributed to 
10% of the entries in 2019. Other ent ries included waste and wildlife and accounted for 12.7% of 
the entries. The EDB also had harmonized categories to tag environment -related trade policies by 
measure. General environmental references were predominant but there were also a broad range of 
measures, including quantitative restrictions, technical regulations, and support measures in the 
2019 data.  The EDB's keywords allowed the database to be used to search and research on topic -
specific policies. In addition to the quantitative data, the EDB wa s also a rich repository of qualitative 
information of Members ' policies and measures for environmental sustainability. The Secretariat 
provided examples of EDB 2019 data on fisheries, forestry, climate change and plastic waste and 
pollution. Recent resear ch and working papers, using EDB data had been published.    
2.31.   The representative of the European  Union  thanked the WTO Secretariat for the presentation 
and work on the web -based Environmental Database. The EDB was a unique and useful tool. It 
provided a comp rehensive source of information for policymakers and researchers. Her delegation 
recognized the resource intensiveness of EDB data collection but encouraged the Secretariat to 
continue. The European  Union  drew attention to the new Data for Environment Alliance (DEAL) 
initiative and suggested that possible synergies could be explored with the EDB. DEAL aimed to 
foster collaboration on environmental data, supported by digital infrastructure, to build a stron ger 
global community and achieve sustainable development.  
2.32.   The representative of Guatemala  thanked the Secretariat for having updated the platform. 
Her delegation queried if there were any guidelines for the collection and harmonization of the 
environmenta l data.  
2.33.   The representative of the WTO Secretariat  thanked the European  Union  for information about 
the DEAL platform and would explore possible synergies. The Secretariat took note of Guatemala's 
 
19 See document RD/CTE/170 .  
20 https://edb.wto.org/ . WT/CTE/M/ 70 
- 32 - 
 
  question. Summary information on the collection and harmoniz ation of environmental data was 
included in the EDB reports published annually and further improvements could be considered.  
2.3  Services and the environment (Item 9 of the CTE Work Programme)  
2.3.1   Environmental services  
2.34.   The representative of Canada  recalled that on 21 October 2020, during the Council for Trade 
in Services – Special Session  (CTS-SS) meeting, Canada along with other co -sponsors (Australia, 
Mexico, Switzerland, New Zealand and the United Kingdom), had introduced a second 
communication21 on explorator y discussions on market access for environmental services. The 
objective of the session was to highlight additional services key sectors relevant to meeting 
environmental issues, and not limiting discussions to core environmental services. Discussions were  
open and constructive, with interventions from several WTO Members. Members had expressed their 
interests regarding further liberalization of environmental services and other related sectors such as 
engineering, architecture, distribution, tourism, financ ial services, research and development, and 
technical testing. The following aspects had been highlighted: the importance of the trade and 
environment nexus; the existing gap between developed and developing countries ; the 
disproportionate effect of climat e change on developing countries, especially LDCs; and the need for 
technical capacity for developing countries. Some important questions had been raised, such as how 
to reduce regulatory barriers under mode four and how to deal with dual -use sectors. Co -sponsors 
had taken note of all those elements and intended to respond at the next meeting.  
2.35.   The representative of  Australia  echoed Canada 's statement  on the recent discussions  
regarding environmental services in which Australia was an active participant.  His delegation noted 
the growing importance of environmental services and their role in expanding i nternational trade , 
particularly in the current context,  as environmental services and the associated technologies c ould 
support a more sustaina ble and inclusive post-COVID -19 recovery.  
2.36.   The representative of the Kingdom of Saudi Arabia  agreed with the value of information 
sharing but considered discussions on the topic should remain at the CTS-SS. 
3  OTHER BUSINESS  
3.1  Report on the WTO -UNEP H igh-level e vent "Environment and Trade for a Sustainable 
and Inclusive Economic Recovery from COVID -19" 
3.1.  The representative of the WTO Secretariat , on behalf of UNEP and the WTO secretariat, 
reported on the High -Level Event "Environment and trade for a sustainable and  inclusive recovery 
from COVID -19"22, held as part of WTO Trade and Environment Week 2020. The event featured a 
panel comprising leading personalities from international organizations, government, business and 
civil society . The online high -level session, organized by UNEP and the WTO as part of their 
collaboration to promote dialogue between the trade and environment communities, had brought 
together some 270 participants. It also had a very good rate of participation througho ut the WTO's 
social media platforms, with over 6 ,600 views23 and more than 700 instances of engagement such 
as comments, questions, shares, likes, or retweets.  
3.2.  Speakers had underscored the existential threats posed by the three planetary crises of 
climate,  pollution and nature. Although COV ID-19 continued to endanger millions of lives and 
livelihoods around the world and required urgent attention, it had been noted that the pandemic 
was just an overture to the huge damages expected from the collapse of the environmental systems 
that sustained human life. Tackling environmental challenges and shifting towards more sustainable, 
circular patterns of production, consumption and trade was critically important. It had been noted 
that trade officials could not rema in oblivious to this reality.  Speakers had emphasized that the 
response to environmental crises called for a whole -of-government and whole -of-society, approach 
 
21 Contained in JOB/SERV/299.  
22 https://www.youtube.com/watch?v=1xjusnnwpJk  and WTO | WTO -UNEP high level event 
environment and trade for a sustainable and inclusive recovery fr om COVID -19. 
23 "Views" in social media are simply the number of times people viewed the post of the event 
broadcast. Not all of them spent actual time watching it (e.g. they might have clicked and left and would still 
count as 1 view).  WT/CTE/M/ 70 
- 33 - 
 
  that firmly embedded environmental considerations in countries' development strategies. This had  
called for more and better coordination between the trade and environment communities, along with 
closer dialogue and cooperation between governments and stakeholders. Several speakers had 
indicated that businesses increasingly recognized the opportunitie s resulting from adopting 
sustainable practices and reducing environmental footprints. Clear signals and a level playing field, 
including in the form of high -quality regulations and standards could help accelerate this positive 
trend and the WTO could play  an important role in this area.  
3.3.  Speakers had agreed that there was no trade -off between trade and environmental goals and 
that trade policies had a huge potential to support sustainability. To turn this potential into reality 
and unlock opportunities for jobs and economic diversification, trade policies had to be fully aligned 
with sustainability goals. Speakers had called on WTO Members to redouble efforts in areas such as 
trade in environmental goods and services, environmentally harmful subsidies, circu lar economy and 
plastic pollution. Action across these areas would ensure that trade policies would help create an 
enabling environment for innovation, more efficient and circular manufacturing sectors and new 
decarbonized activities. Speakers had mentione d several successful examples in developing 
countries of sectors that had successfully embarked on green transitions that delivered green and 
decent jobs.  Several speakers had noted the importance of not only a green, but also a fair and just, 
transition. Enterprises in developing countries, particularly SMEs, were often unable to access the 
necessary finance and environmental technologies. Making global supply chains more resilient and 
sustainable posed additional challenges, not least their limited capaci ty to meet environmental 
standards. Aid for Trade could play a role in helping to overcome some of these challenges. More 
domestic and international competition was also considered an effective way to strengthen the 
incentives for large firms to adopt more  sustainable practices and for new pioneer firms to scale up.  
3.4.  During the question and answer segment, speakers had stressed the need to keep 
sustainability at the core of COVID -19 recovery efforts. The WTO had helped the global economy 
recover from past cr ises, and it could do so again to deal with both the COVID -19 and planetary 
crises. Several speakers had encouraged societies and communities around the world to reimagine 
a sustainable global economy, that brought prosperity for all, that did not harm the  environment 
and that did not inhibit trade and growth, and to work together to make it happen.  The WTO 
Secretariat had recently published a small booklet titled "Short answers to big questions on the WTO 
and the environment." It was accessible in the WTO website24 and provided easy -to-understand 
answers to some of the key questions of the trade and environment debate as they related to the 
global trading system. It aimed to serve as a "conversation -starter" by providing basic information 
and examples inspi red from the past 25 years of trade and environment discussions at the WTO, in 
particular in the CTE. It also followed from the WTO -UNEP High -Level Event held two years ago and 
the interest since that had been expressed by delegations and stakeholders for more clear and 
concise information on the topic.  
3.2  Report by Barbados on the side event on " The Future of Trade and Environment – 
Interactions with Geneva's youth " 
3.5.  The representative of Barbados  reported on the side event25 held on 19 November 2020 within 
WTO Trade and Environment Week 2020. Barbados had joined Germany in co -sponsoring the event 
"The Future of Trade and Environment – Interactions with Geneva's youth". The health of our planet 
was at risk and the challenges were interrelated such as air, water pollution, biodiversity loss, cl imate 
change and plastic pollution. While international trade could be a contributor to the problem, it could 
also be a part of the solution. The event benefited from presentations from the students of the 
German School in Geneva and Institut Flor imont who  had addressed the topic of "Plastic waste" and 
"Trade in Goods: Finding solutions for clean transport?" , as well as from a  young entrepreneur  on 
her sustainable coffee company in Australia.  
3.6.  The attendees of the event were asked  to identify  the major conce rns for the future of trade 
and the environment. They had identified climate change, pollution, and biodiversity loss as main 
issues. The responses were instructive as the views of the youth appeared to be in line  with those 
of WTO Members. The role for tr ade and the WTO in addressing today's environmental challenges  
 
24 https://www.wto.org/english/res_e/publications_e/envirqapublication_e.htm . 
25 
https://www.wto.org/english/tratop_e/envir_e/member_side_event_no_10_interactions_with_geneva_youth.p
df. WT/CTE/M/ 70 
- 34 - 
 
  was highlighted . The following points were made:  the challenge of ensuring high quality of life 
through businesses and trade while securing the sustainability of the environment ; the youth's le vel 
of awareness of ecological challenges ; the importance for trade diplomats to hear the views of the 
youth and to allow young people to get an appreciation of what WTO Members were doing.  
3.7.  During the presentation on plastics, students had addressed the i mportance of measures when 
transitioning to a more sustainable product. The impact of marine plastic pollution on the food cycle 
had been highlighted as issues for further assessment.  In addressing the issues of trade in goods, 
finding solutions for green transport, students had identified investing in green transport as a 
valuable solution to reduce carbon emissions. In her presentation of her sustainable coffee company 
in Australia, a young entrepreneur that her business model included ethical supply chai n, ensuring 
that sustainability was consistent and embedded at the corporate level, utilization of circular 
economy model, and funding climate resilience programmes with profit s from the company. Finally, 
Barbados expressed  its willingness to formally part ner with schools and to ensure that the young 
people of Geneva were champions of climate change awareness.  
3.8.  The representative of Canada  thanked the Secretariat for the hard work behind the scenes in 
making WTO Trade and Environment Week 2020 a success and  the Chair of CTE for the leadership.   
3.3  Briefings by other observer organizations  
3.3.1   International Trade Centre (ITC)  
3.9.  The representative of the International Trade Centre (ITC)26 recalled that the ITC was dedicated 
to assisting Micro, Small and Medium -sized Enterprises (MSMEs ) in developing countries become 
more internationally competitive and participate successfully in global trade. The ITC focused on 
supporting "Good Trade ", which was trade that was inclusive and contributed t o environmental, 
social and economic sustainability. The ITC placed Good Trade at the centre of its interventions in 
supporting women 's economic empowerment, youth entrepreneurship and environmental 
sustainability. The ITC contributed to the achievement of  the SDGs , such as decent work and 
economic growth, responsible consumption and production, and climate action. The ITC was 
currently working to upgrade the focus in this area through the development of new 'green to 
compete ' strategy.  
3.10.   Coming out of the COVID -19 crisis, a call for Building Back Better or Building Forward Bolder 
was also a call for building towards an economic system that was more inclusive, more sustainable 
and more responsible. One of the key trends observed from the surveys and analysis done by the 
ITC was that the pandemic would further amplify consumers ' demand for sustainable and green 
goods and services. The ITC had decided to host the first edition of the two -day virtual Good Trade 
Summit on 7 -8 October 2020 to put the spotlight on s ustainability and inclusiveness as key elements 
in accelerating and sustaining the economic recovery. The summit had showcased different 
examples, best practices and good solutions of how "Good Trade " creates positive and inclusive 
economic, environmental and social impact. Moreover, it had provided a platform for more than 
1,200 MSMEs from around the globe to network, learn and share.  
3.11.   The event  had featured more than 30 speakers from over 20 countries. Speakers had agreed 
that "recovery was an opportunity for systemic change ". There was a common strong message that 
the recovery would require collective efforts, underscoring the crucial role of an inclusive multilateral 
trading system that was cognizant of these issues, and thereby also underscoring the impo rtance of 
the work of the CTE.  To emerge stronger from the COVID -19 pandemic, it was required to embrace 
innovation, ensure fairer and better involvement of those impacted the most, namely women, youth 
and poor communities and ensure better environmental p rotection, while making progress on 
multilateral commitments. Discussions at the Good Trade Summit also had recognized that to "build 
forward better " a systemic shift from shareholder capitalism to stakeholder capitalism  was needed , 
in which externalities were taken into account and wealth was spread more equally along the value 
chains.   
3.12.   Several speakers had also pointed to the importance of investing in green jobs, and taking 
climate risks into account concerning all policy decisions while st rengthening multilateralism and 
 
26 See document RD/CTE/168 . WT/CTE/M/ 70 
- 35 - 
 
  ensuring that stimulus packages leave no one behind. Clean technologies were also high on the 
agenda, with speakers emphasizing the need for regulation, including trade rules, that encourage 
production and uptake of clean te chnologies.  The discussion had pointed to the importance that 
developing countries and their industries reaped as many benefits as possible from a green 
transition. Technical assistance to building up local expertise and knowledge could play an important 
role to ensure enterprises benefited from green opportunities and managed related risks well, 
allowing them to compete better in light of environmental requirements.  The speakers also had 
pointed to the related private -public dialogues as an important eleme nt in the process leading to 
policy formulation. Innovation and the impact of new technologies were also a topic frequently 
addressed, including how best to support technical solutions for more efficient, resilient, sustainable, 
and transparent supply chai ns. 
3.3.2   Organisation for Economic Co -operation and Development (OECD ) 
3.13.   The representatives of the  Organisation for Economic Co -operation and Development  (OECD ) 
briefed the Committee on its recent modelling work related to trade and the circular economy.27 28 
The OECD projected a near -doubling of materials use by 2060 to 167 gigatons, assuming no change 
in policies. This increase would have important environmental consequences, given that around half 
of greenhouse gas (GHG) emissions could be attributed to materi al management activities and 
primary materials were much more polluting on average than secondary materials in terms of GHG 
emissions and land and water pollution. There were also concerns about the geopolitical risks related 
to the supply of materials. Ag ainst this backdrop, there was a role to look at how societies could use 
materials in a more sustainable way, not least by closing material loops.  
3.14.   Under this baseline scenario (no changes in policies), trade patterns would not change 
significantly, with m etals represent ing almost 6% of total global exports  and minerals a little less 
than 3%. Iron and steel were the largest group of metals in terms of exports, followed by mining 
products (which exclude d coal and other extracted fossil fuels, but include d the mining of metal 
ores). These two categories  were projected to grow less rapidly than other categories , and thus their 
share in total exports would decline over time. Recycling products, which include d scrap metal, 
reflect ed less than 0.1% of total export s (not least because of low prices for many recycling products 
and limited international trade flows), but they were expected to grow more rapidly. These trends 
resulted from interactions at the sectoral level, where overall demand growth was combined with  
structural and technological change s (improved materials efficiency) that led to an increase in 
material s use that was less rapid than the growth in GDP.  
3.15.   The introduction of circular economy and resource efficiency policies would have wide-ranging 
consequences, including on trade. Given differences among countries in endowments, speciali zation 
patterns, and income levels, the application of circular economy and resource efficiency policies at 
the global level would cause some products t o become cheaper, while others became more expensive 
to produce. As these changes in costs and the resulting changes in demand patterns differed across 
regions, the competitive position of countries on the global market would shift, and export and 
import f lows would adjust. Trade impacts would be region -specific even with a uniform 
implementation of the policy package at the global level. With global resource efficiency and circular 
economy policies, primary non -ferrous metals were projected to decline by 3 5-50%, primary iron 
and steel by 15% and primary non -metallic minerals by around 10% by 2040. The full reduction in 
global materials use that would be induced by the policy package could be attributed to three distinct 
drivers: (i) a scaling of global prod uction of processed materials (scale effect); (ii) an improvement 
in the efficiency of materials inputs in this global production (efficiency effect); and (iii) regional 
shifts in production as well as shifts in the regional sourcing of the primary materia ls by the materials 
processing sectors (trade effect). The share of the trade effect – which came from changes in the 
regional composition of production and from changes in input sourcing – would be roughly one -third 
for aluminium and copper, much smaller for iron and steel and for non -metallic minerals, and 
substantially larger for other non -ferrous metals. This meant that trade could provide potential 
opportunities for resource efficiency via comparative advantage. For trade to play its role, trade 
barrie rs should be avoided to the extent possible. However, trade benefits should not come at the 
expense of environmental consequences. In some cases, there might be a need for further enhancing 
 
27 See document RD/CTE/167 . 
28 "The Consequences of a More Resou rce Efficient and Circular Economy for International Trade 
Patterns: A modelling assessment", available at: https://www.oecd -ilibrary.org/trade/oecd -trade-and-
environment -working -papers_18166881 . WT/CTE/M/ 70 
- 36 - 
 
  trade regulation, as had been done recently under the Basel Conven tion with respect to some plastic 
waste.  
3.16.   The OECD also presented its work on measuring government support for fossil fuels. The 
OECD Fossil Fuel Support Inventory Database (FFS Inventory Database) consisted of three main 
components: (i) the quantitative da ta, which was based on budgetary figures (i.e.  information by 
governments on the support they had provided to fossil fuels in their budgets); (ii)  the textual data 
describing the various measures; and (iii) a series of 2 -page country notes that discussed t he 
background of the country's energy economics and fossil  fuel support policy environment. The 
Inventory was updated every year and the latest update, which was released in June  2020, provided 
data up to 2019, covering 50 economies (37 from the OECD, seven from the G20, and six from the 
European  Union 's Eastern Partnership initiative) and close to 1,300 individual government policies 
that supported the production and consumption of fossil fuels.  
3.17.   According to the data, support for fossil fuel production had  risen by 38% in 2019.Oil and gas 
industries in several countries had received additional benefits, mostly through direct budgetary 
support to alleviate corporate debt, fossil  fuel infrastructure investments, and tax provisions that 
provided preferential t reatment on capital expenditures for fossil fuel production. Total fossil  fuel 
support linked to the production and use of coal, oil, gas and other petroleum products in advanced 
and emerging economies, in the form of budgetary transfers, tax breaks and sp ending programmes, 
had increased by 10% to reach USD 178 billion. This trend seemed to continue in 2020 with some 
countries targeting state aid to fossil fuels and related industries following the disruptions caused by 
COVID -19, which brought fuel price le vels to record lows. In most countries, support for fossil  fuel 
consumption remained widespread. Among energy products, support to petroleum remained the 
largest component with 74% of the total support estimate. Natural gas received the next largest 
portio n of the total support estimate with 12%, followed by electricity at 8% and coal at 7%. 
However, the total amount of fossil fuel subsidies had declined, due to the drop in global oil prices. 
Lower oil prices meant governments spent less subsidizing energy costs for end -users, but that did 
not reflect real efforts to phase out inefficient subsidies. The consumption subsidies were set to fall 
further in 2020 on account of the plunge in fossil fuel prices and use, catalysed by the COVID -19 
pandemic. Meanwhile,  sharp declines in revenues from oil and gas production because of the 
unprecedented price crash made subsidy reforms crucial to ease pressure on public finances in 
producer countries. This was an important opportunity for countries to act upon their commi tments 
to reduce fossil fuel subsidies.  
3.18.   The representative of the European  Union  thanked the OECD Secretariat for its work on trade 
and the circular economy, including the reports mentioned by the OECD representatives and the 
workshop that had been organi zed in February 2020, and had been co -sponsored by the 
European  Commission  . His delegation looked forward to continuing cooperation in the context of 
the upcoming discussions and future work undertaken by the Joint Working Party on Trade and 
Environment.  
3.4  Other matters  
3.19.   The Chairperson  of the CTE informed Members that the next meeting of the CTE was 
scheduled for March 2021.  
 
_______________  WT/CTE/M/ 70 
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  ANNEX 1:  ITEMS OF THE CTE WORK PROGRAMME (CTE WP)  
Item 1:  The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral 
environmental agreements.  
Item 2:  The relationship between environmental policies relevant to trade and environmental 
measures with signific ant 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 provisi ons 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 respe ct 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 countries, in particular to the least developed among them, and 
environmental benefits of removin g 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 Deci sion 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 the WTO.  
 
_______________  
 
 WT/CTE/M/ 70 
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  ANNEX 2: PARTS OF THE DOHA MINISTERIAL  DECLARATION (DMD) THAT RELATE TO 
THE WORK OF THE CTE REGULAR  
 
32. We instruct the Committee on Trade and Environment, in pursuing work on all items on its 
agenda within its current terms of reference, to give particular attention to:  
 
(i) the effect of environmental measures on market access, especially in relation to 
developing countries, in particular the least -developed among them, and those situations in 
which the elimination or reduction of trade restrictions and distortions would benefit trade, 
the environment and development;  
 
(ii) the relevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights; and  
 
(iii) labelling requirements for environmental purposes.  
 
Work on these issues should include the identification of any need to clarify relevant WTO rules. The 
Committee shall report to the Fifth Session of the Ministerial Conference, and make 
recommendations, where appropriate, with respect to future action, includin g the desirability of 
negotiations. The outcome of this work as well as the negotiations carried out under paragraph  31(i) 
and (ii) shall be compatible with the open and non -discriminatory nature of the multilateral trading 
system, shall not add to or dimi nish the rights and obligations of Members under existing WTO 
agreements, in particular the Agreement on the Application of Sanitary and Phytosanitary Measures, 
nor alter the balance of these rights and obligations, and will take into account the needs of 
developing and least -developed countries.  
 
33. We 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 exp ertise and experience be shared with Members wishing to perform environmental 
reviews at the national level. A report shall be prepared on these activities for the Fifth Session.  
 
51. The Committee on Trade and Development and the Committee on Trade and En vironment 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.  
 
 
__________