RESTRICTED  
  
WT/CTE/M/73  
 
21 January 2022  
  
(22-0527) Page: 1/30 
Committee on Trade and Environment    
 
 
REPORT OF THE MEETING HELD ON 12 OCTOBER 2021  
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Regular) met on 12 October 2021, chaired by 
H.E. Mr Manuel  A.J. Teehankee (The Philippines). The Committee adopted the Airgram, 
WTO/AIR/CTE/1 6, dated 23 September 2021. The Report of the last CTE meeting, held on 
23 June 2021, is contained in WT/CTE/M/7 2. 
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Content s 
 
1   ENVIRONMENTAL MEASURES AND MARKET ACCESS, PARAGRAPH 32(I) OF THE 
DOHA MINISTERIAL DECLARATION - ITEM 6 OF THE CTE WORK PROGRAMME  ...............  4 
1.1   Circular Economy and Plastics  ................................ ................................ ......................  4 
1.1.1    Central African Republic's presentation on the legal and institutional framework of plastic 
management and on private initiative in plastics recycling.  ................................ .....................  4 
1.1.2    Morocco's Presentation on the National Strategy "Littoral sans Plastique". .......................  4 
1.1.3    Briefing  by Barbados and Ecuador on the Informal Dialogue on Plastics Pollution and 
Environmentally Sustainable Plastics Trade (IDP)  ................................ ................................ ... 5 
1.1.4    Canada's briefing on the World Circular Economy Forum (WCEF2021)  ............................  9 
1.2   Fossil Fuel Subsidy Re form ................................ ................................ ........................  10 
1.3   European Union Green Deal  ................................ ................................ .......................  12 
1.4   Other  ................................ ................................ ................................ ......................  17 
1.4.1    United Kingdom's update on activities related to making supply chains more sustainable  17 
2   TECHNICAL ASSISTANCE AND CAPACITY BUILDING, PAR. 33 OF THE DOHA 
MINISTERIAL DECLARATION  ................................ ................................ ........................  18 
2.1   Update on seminars and webinars  ................................ ................................ ..............  18 
3   MULTILATERAL ENVIRONMENTAL AGREEMENTS (MEAS), ITEMS 1 AND 5 OF THE CTE 
WORK PROGRAM  ................................ ................................ ................................ ...........  19 
3.1   The United Nations Framework Convention on Climate Change (UNFCCC)  .......................  19 
3.1.1    United Kingdom's update on the 26th session of the Conference of t he Parties (COP 26) to 
the UNFCCC.  ................................ ................................ ................................ ...................  19 
3.1.2    UNFCCC's update on the preparation for COP26 and most pressing issues  ....................  20 
3.1.3    New Zealand's update on negotiations towards the Agreement on Climate Change, Trade 
and Sustainability (ACCTS)  ................................ ................................ ...............................  21 
 
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/73  
 
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  4   TRANSPARENCY OF ENVIRONMENT -RELATED TRADE MEASURES, ITEM 4 OF THE CTE 
WORK PROGRAM  ................................ ................................ ................................ ...........  21 
4.1   Update by the WTO Secretariat on data available for the Environmental Database 2020  .... 21 
5   MEMBERS' SUGGESTIONS AND PROPOSALS  ................................ .............................  22 
5.1   Costa Rica will provide an u pdate on behalf of the Coordinators of the Trade and 
Environmental Sustainability Structured Discussions (TESSD) ................................ ................  22 
5.2   MC12 -Related Suggestions  ................................ ................................ ........................  23 
6   RELATIONS WITH INTERGOVERNMENTAL AND NON -GOVERNMENTAL 
ORGANIZATI ONS, ITEM 10 ................................ ................................ ............................  26 
6.1   Briefings by other observer organizations  ................................ ................................ .... 26 
6.1.1    Organisation for Economic Co -operation and Development  ................................ ..........  26 
6.1.2    International Trade Centre  ................................ ................................ ......................  27 
7   OTHER BUSINESS  ................................ ................................ ................................ ..... 28 
7.1   Other matters  ................................ ................................ ................................ ..........  28 
 
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  ACRONYMS  
  
 ACCTS  Agreement on Climate Change, Trade and Sustainability  
APEC Asia-Pacific Economic Cooperation  
Basel Convention  Basel Convention on the Control of Transboundary Movements of 
Hazardous Wastes and their Disposal  
CBAM  Carbon Border Adjustment Mechanism  
CBDR-RC Common but differentiated responsibilities and respective capabilities   
COP Conference of the Parties  
CTE Committee on Trade and Environment  
FACT Forest, Agriculture and Commodity Trade dialogue  
FFS Fossil Fuel Subsid ies 
FFSR Fossil Fuel Subsidy Reform  
GHGs  Greenhouse Gases  
IDP Informal Dialogue on Plastics Pollution and Environmental ly 
Sustainable Plastics Trade  
IISD International Institute for Sustainable Development  
ITC International Trade Centre  
LDCs Least developed countries  
MC Ministerial Conference  
MEAs  Multilateral Environmental Agreements  
MSMEs  Micro, Small and Medium -sized Enterprises  
NDC Nationally Determined Contribution  
OECD  Organisation for Economic Co -operation and Development  
SDG Sustainable Development Goal  
SIDS Small Island Developing States  
TPR Trade Policy Review  
TESSD  Structured Discussions on Trade and Environmental Sustainability  
UK United Kingdom  
UN United Nations  
UNEA  United Nations Environment Assembly  
UNEP  United Nations Environment Programme  
UNFCCC  United Nations Framework Convention on Climate Change  
UNIDO  United Nations Industrial Development Organization  
WCEF  World Circular Economy Forum  
  
  
  
  
  
 
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  WT/CTE/M/73  
 
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  1  ENVIRONMENTAL MEASURES AND MARKET ACCESS, PARAGRAPH 32(I) OF THE DOHA 
MINISTERIAL DECLARATION - ITEM 6 OF THE CTE WORK PROGRAMME  
"The effect of environmental measures on market access, especially in relation to 
developing countries, in particular the least -developed among them, and those 
situation s in which the elimination or reduction of trade restrictions and distortions 
would benefit trade, the environment and development".  
1.1  Circular Economy and Plastics  
1.1.1   Central African Republic's presentation on the legal and institutional framework of 
plastic m anagement and on private initiative in plastics recycling.  
The Ambassador of the Central African Republic  presented2 on his country's legal and 
institutional framework of plastic management and private initiative in plastics recycling.  The Central 
African Republic had adopted a law3 banning the production, import, marketing, distribution, and 
possession of non -biodegra dable plastic packaging and bags in the country. The law consisted of 
eliminating the spread of plastic bags in rural areas, protecting health and hygiene, cleaning up the 
population's living environment, promoting the use of biodegradable packaging and pl astic bags and 
other types of innovative packaging. This law applied to the producers of biodegradable packaging 
and bags, the importers, and any person carrying out a commercial, industrial, artisanal, or 
professional activity that required the use of pla stic bags. The Central African Republic had created 
a special Unit for the Observation and Repression of Environmental Offences, which was responsible 
for investigating, observing and prosecuting offenders. A national trade negotiation commission had 
also been created within this committee. To further environmental protection and fight against the 
effects of drought, the Central African Republic had put in place the National Drought Plan. Also, a 
National Strategy for Sustainable Development had been adopte d in March 2021.  
Concerning the contribution of the private sector to recycling, in the building sector  paving 
stones were offered for the construction of houses  and streets.  For the collection of wastes as well, 
there were  41 waste collection teams of three people in the 41 waste depots. Explaining that they 
did not have efficient transportation means, t he Ambassador noted the technological and financial 
challenges faced in this area. The efforts made by the Central African government would require  
artisanal transformation as the supply was below the national demand and financing was needed. 
His delegatio n appealed for support for the training of entrepreneurs and for the search for 
partnerships in the expertise  of paving technology.  
1.1.2   Morocco's Presentation on the National Strategy "Littoral sans Plastique".  
The representative of Morocco  presented the outli ne of the National Strategy for a Coastline 
without Plastics, recently finalised by Morocco with the assistance of the World Bank. Plastic s 
pollution was a global issue with almost 8 million tons of plastic waste being dumped into the oceans 
every year lea ding to considerable risks to ecosystems and human health. This issue was a priority 
at both the international and regional levels, reinforced by the adoption of the 2030 Agenda and 
through the decisions taken in this area in the UN forums, including the U nited Nations Environment 
Assembly (UNEA) and the Conference of African Ministers of the Environment (AMCEN).  
Morocco had taken  necessary measures for the implementation at the national level of the 
decisions arising from these bodies, as well as those ad opted within the framework of regional 
agreements such as the Basel Convention and the Abidjan Convention. Morocco was very concerned 
about the problem of marine plastic s pollution. The preparation of the National Strategy for a 
Coastline without Plastics and its action plan consolidated the measures already adopted by Morocco 
to combat plastic s pollution, including the law relating to the ban on plastic bags, the revision of the 
law on waste to integrate the Principle of Extended Producer Responsibility, t he implementation of 
a parafiscal instrument to finance the recycling/recovery of plastic waste, and the licensing of imports 
of raw material that could be used for the production of banned bags.  
 
2 See document RC/CTE/198.  
3 The law N° 20 -017 of 16 June 2020 . WT/CTE/M/73  
 
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The Strategy was in line with the recommendations of the New  Development Model adopted 
by Morocco, which sought to integrate a circular economy approach that considered the local 
specificities and potentialities. The Strategy had been  developed using a participatory approach with 
all the actors concerned. This appr oach made it possible to conduct a baseline study targeting the 
different sources of plastic pollution (terrestrial and marine) to identify hot spots that required urgent 
action; understand the situation and challenges; define the scope, vision, mission an d objectives of 
the strategy; and define the short, medium and long -term measures and projects of the Action plan.  
The carried -out diagnosis revealed that the plastics industry generated nearly 75,000 direct 
jobs and more than 320,000 indirect jobs, with s ales of approximately $2.3 billion in 2019. It had 
about 650 industrial units. The recycling rate of plastic waste remained low to date (< 10%). It was 
dominated by the informal sector for almost 80%. The sector had a large recycling potential, 
estimated a t nearly 795,000 tons, and projections showed a recyclable potential of about 1.4 million 
tons/year by 2030. The sector faced the challenge of improving its economic competitiveness 
through access to quality recycled raw material at a competitive price as a substitute for imports of 
virgin material.  
Based on the elements of the above -mentioned diagnosis and the analysis of gaps and 
challenges, the National Strategy for a Coastline without Plastics was divided into six Strategic 
Objectives and 12 Operationa l Objectives. The strategic objectives related to: (i) improving 
governance and strengthening the technical and managerial capacities of coastal local authorities 
and all relevant stakeholders to ensure the integrated, efficient and sustainable management of 
plastic waste from land and sea sources; (ii) prevention and reduction of plastic waste through the 
adoption of circular economy approaches to minimi ze the negative impacts of plastics while 
maximising the benefits of plastics and their products, and pr oviding environmental, economic and 
societal benefits; (iii) integrating the informal "ecosystem" into the value chain, to help communities 
and waste management companies recover post -consumer waste in an efficient and more inclusive 
way; (iv) strengthenin g surveillance and monitoring for flow and life cycle analysis; (v) promoting 
research and development for sustainable alternatives; (vi) strengthening communication, education 
and consumer awareness for more environmentally friendly consumption patterns; and 
(vii) knowledge sharing on a regional level to collectively fight plastic pollution.  
The implementation of these actions and measures was aimed at creating an enabling 
environment for the development of the plastic waste value chain, removing the techn ical and 
economic barriers to a greater substitution of recycled plastics for raw plastics, and thereby helping 
reduce plastic -related pollution.  A monitoring and reporting system was envisaged to track Morocco's 
National Plan progress and implementation, assess its effectiveness, and make changes when 
required.  
The representative of the Kingdom of Saudi Arabia  said that effective plastic waste 
management, along with the role of international cooperation and trade, would be more beneficial 
in addressing th e environmental side aspects of plastic waste pollution. Her delegation encouraged 
further knowledge and information -sharing in this area.  She noted that the Circular Carbon Economy 
(CCE) framework, which was introduced by the Kingdom of Saudi Arabia and e ndorsed by the 
G20 leaders in 2020, was an opportunity to address not only the waste side but also the emissions 
and recycling aspects. It was a bottom -up framework that captured national circumstances  and 
needs and encouraged cooperation.  
The representati ve of the European Union  (EU) commended Morocco's efforts in addressing 
the issue of plastic pollution. She noted that Morocco 's membership of the Global Alliance on Circular 
Economy and Resource Efficiency (GACERE), launched last February by the European Union , the 
United Nations Environment Programme ( UNEP ) and the United Nations Industrial Development 
Organization ( UNIDO ), was a clear indication of Morocco 's interest in moving from linear to circular 
economic sectors, plastics included.  Plastic s pollution was a global challenge that countries needed 
to tackle together in a coherent and complementary manner both in the WTO and in UNEA.  
1.1.3   Briefing by Barbados and Ecuador on the Informal Dialogue on Plastics Pollution 
and Environmentally Sustainable P lastics Trade (IDP)  
The ambassador of Ecuador  said that the presentation by the ambassador of the Central 
African Republic echoed the problems and challenges faced  by many and each country's  capacity for WT/CTE/M/73  
 
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  action could be enhanced through multilateral proces ses and initiatives. He recalled that t he Informal 
Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP) had been  
established by a group of WTO Members in 2020 as an expression of the will of developing and least 
developed cou ntries (LDCs) to  coordinate action to address the growing environmental, health and 
economic costs of plastic pollution and the importance of the trade dimension of what the WTO could  
do as part of this solution. There were currently 18 co -sponsors from de veloping  countries , LDCs 
and developed economies. The initiative promoted the exchange of views, ideas and experiences on 
the subject . Further it aimed  to identify opportunities for enhanced trade cooperation within the 
rules and mechanisms of the WTO so as to support domestic, regional and global efforts to reduce 
plastic pollution and to support the transition to a more circular and environmentally sustainable 
global plastics economy.   
The co -coordinators of the initiative were Australia, Barbados, China , Ecuador, Fiji and 
Morocco, and valuable contributions were received from other WTO Members who were also 
cosponsoring  the dialogue: Cape Verde, Canada, Central African Republic, Costa Rica, Gambia, 
Jamaica, Kazakhstan, New Zealand, Switzerland, Russia, T hailand and the United Kingdom. The 
dialogue was open to all WTO Members, in line with other initiatives with which it shared a common 
goal and had a multi -stakeholder approach.  
Debates in the IDP were rich and diverse and reflected the number, diversity and breadth of 
issues addressed. The IDP's factual report, circulated on 5 December 2021 to the WTO membership 
presented the input of Members and stakeholders. The ambassador hoped to move forward with the 
initiative at the next Ministerial Conference, as co -sponsors would  have gathered the fruit of this 
exchange in a draft document that they hoped would  be adopted in a ministerial declar ation at MC12. 
The draft declaration contained several pragmatic and concrete elements on six core issues: 
(i) improving transparency and monitoring trade trends; (ii) promoting best practices; 
(iii) cooperating with other international efforts and process es; (iv) identifying the scope for 
collective approaches; (v) strengthening policy coherence; and (vi) assessing capacities and 
technical assistance needs. MC12 would be an important milestone and all efforts should look further 
into the future.  
Co-sponso rs were discussing how to achieve concrete results and follow up on the initiative 
in the coming year and beyond. The importance of the issue was evident and making headlines in 
the media and specialised publications, and the WTO should show the political will of the co -sponsors 
and the relevance of trade and trade policy to their goals. The IDP was a platform that offered to 
discuss how the WTO could  support current and future processes to address plastic pollution, 
including the identification of challeng es and opportunities in the circular economy at the WTO. The 
ambassador said that it would be necessary to take into account the challenges faced by developing 
countries, in particular LDCs, especially those countries most affected by plastic pollution, su ch as 
small island  developing  states  (SIDS) . There was no nation in the world that was not impacted by 
this issue both from an  environmental and trade perspective  and global solutions needed to be 
found . The IDP effectively demonstrated the WTO's capacity to contribute positively to 
environmental objectives. The next meeting would take place on 22 October, presided by the 
Ambassador of Australia, and would focus on discussing the draft declaration, as well as reaching 
out to other Members in order to seek t he adoption of a declaration at MC12 with the widest possible 
support.  
The representative of Barbados  said that the nexus between trade and environment was  one 
in which WTO Members could make a positive impact on current and future realities. Barbados was  
pleased to join Ecuador in updating the CTE on the work of the IDP. Through the IDP, co -sponsors 
sought to identify opportunities for enhanced trade cooperation within the rules and mechanisms of 
the WTO to support efforts in other fora and form a crucial  part of broader WTO  discussions in 
advancing environmentally sustainable objectives. Since its launch in November  2020, IDP 
participants comprising of both WTO Members and invited stakeholders managing the issues of 
plastics pollution and plastics trade, shared their views, policies, and experiences. The IDP had also 
engaged in technical discussions on specific topics of focus during meetings held on 29 March and 
21 June 2021. On 4 October, co -sponsors had circulated a factual report summarizing IDP 's work  
and the discussions thus far.  
As a means of transparency, as well as to ensur e that IDP 's work continued to be part of the 
broader WTO discussions in advancing environmentally sustainable objectives, co -sponsors were 
pleased to update  the CTE on the outco mes of these meetings. Rich discussions were held and had WT/CTE/M/73  
 
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  provided a clear outlook on MC12 and the IDP work program for the post -MC12 phase . Relating to 
transparency and monitoring trade trends, there were challenges in collecting data about trade and 
plastics. This had been largely attributed to the presence of hidden flows, which could obscure the 
flow of trade and plastics both in terms of vo lume and value of trade. With respect to promoting 
best practices, between 2009 and 2019 WTO Members had notified 129 measures to address plastic 
pollution, the majority of which had been notified in the last few years, highlighting the high 
importance tha t WTO Members pla ced on reducing plastic pollution and trade and the role that the 
WTO was already playing in addressing this issue.  
Discussions at the core of IDP 's work should focus on international cooperation due to the 
high priority Members had placed  on collaborating with external stakeholders as a means of better 
understanding how trade cooperation within the rules and mechanisms of the WTO could 
constructively contribute to efforts in other fora. Mapping international trade action co -operation 
with international institutions and focusing on the core WTO capabilities would be key to avoiding 
duplication and ensuring any trade discussions would add value to ongoing domestic regional and 
international efforts to address plastic pollution. IDP discussion s had stressed the importance of 
capacity building and technical assistance in particular for SIDS, vulnerable developing countries 
and LDCs. In this connection, it had been highlighted that several international institutions and 
stakeholders where either currently focused on , or included efforts in , addressing capacity and 
technical assistance needs. Stakeholders had strongly welcomed the IDP and a potential outcome at 
MC12 noting the mutual supportive and complementarity with other international efforts t o address 
plastic s pollution.  
Since the last meeting of the IDP, Costa Rica and the Russian Federation joined the group of 
IDP co -sponsors. Barbados wanted to formally welcome both countries and looked forward to 
working with them within the IDP framework.  The next meeting of the IDP was scheduled for 
22 October 2021 and was open to the participation of all WTO Members and looked forward to 
welcoming new co -sponsors. On 24 March, IDP co -sponsors had circulated a proposal for a roadmap 
and potential outcome for MC12, providing  elements expected to form part of  a potential MC12 
declaration including : taking stock of the discussions on the six aspects of the initiative , emphasizing 
the importance of the topic , expressing the political will of the co -sponsors, i dentifying next steps, 
instructing officials to carry out the work, promoting work through the coordinators and striving to 
achieve concrete outcomes at MC13.  
The representative of Guatemala  said that Guatemala advocated for a solution to plastic 
pollutio n that focus ed on the proper management of waste and solid waste. For this reason,  
Guatemala published on 10 August 2021  Governmental Agreement 164 -2021 on the integrated 
management of waste and solid waste, which defined the competent authorities, gave a maximum 
of 2 years for implementation, defined the actors involved, and took a circular economy approach 
into account. Guatemala  believed that a sustainable and economically viable solution to the issue of 
plastic pollution needed to  be based on the promot ion and integrated management of waste and 
solid waste. She noted that within the elements for an outcome document for MC12 , the objective 
of "expanding trade and improving access to sustainable substitutes" was included and mention was 
made of "cost -effective and environmentally friendly alternatives". The representative said that her 
delegation encourage d caution on the issue of plastic substitutes, since many sustainable substitutes 
were based on biodegradable plastics that required industrial decomposit ion processes, and 
necessitated large infrastructure investment and, if not handled properly, could create even more 
environmentally harmful waste.  This was not a matter of substituting one problem for another, 
since substitute materials such as paper, wo od, etc. also ha d negative effects on the environment. 
She added that her delegation was convinced that the circular economy of plastics, as well as proper 
waste management, was the right way to fight the problem of plastic pollution.  
The representative of  Canada  said that the sustainable plastic trade and related waste 
management issues were a global imperative that required coordinated global action, and that 
Canada supported having an IDP statement on plastics wastes and sustainable plastics trade at 
MC12. Such statement should raise awareness of the role trade policy could  play in addressing 
sustainability issues, recognized other initiatives that were currently underway to address plastics 
pollution, and highlighted how the WTO could  play a key role in supporting them. The representative 
said that Canada was pleased to see these elements were reflected in the current version of the 
draft statement and invited all WTO Members to co -sponsor the IDP statement.  WT/CTE/M/73  
 
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The representative of Costa  Rica said that the IDP was an effort that her delegation considered 
of great relevance for the economy of developing countries. Costa Rica had been developing a legal 
framework that would progressively eliminate the use and consumption of single -use plast ics, 
prohibit their commercialisation and regulate recycling processes, in order to encourage the use of 
other environmentally friendly goods. This effort sought not only to raise public awareness towards 
greater environmental protection and conservation, but also to advance an increasingly circular 
economy. The Informal Dialogue provided the space to present national experience and held 
potential for synergies and collaboration with the Structured Discussions on Trade and Environmental 
Sustainability  (TESS D). She urged more Members, especially developing countries, to join this 
valuable initiative.  
The representative of Switzerland  said that Switzerland was an active member of the IDP and 
thanked the co -convenors for their leadership and the elaboration of the Ministerial Declaration 
recalling the need to take further action throughout the life cycle to combat plastic pollution, 
including through a circular economy approach. Switzerlan d commended the level of ambition of the 
latter and encouraged all Members to join this Ministerial Declaration, which also contributed to 
supporting the work in other fora such as the UNEA.  
The representative of the United States  encouraged Members to ful ly consult with other 
Members and industry before implementing restrictive actions, such as bans or recycled content 
requirements for plastic products, to ensure the market could  meet those demands.  As noted in the 
report that the IDP circulated, the role of trade and trade facilitation was a key tool in combat ting 
pollution from plastic waste. The representative encouraged the co -sponsors and participants to 
continue to identify the key trade -related elements under the IDP. The WTO ha d competency in 
trade,  not waste management and recycling and therefore any discussion regarding addressing 
pollution from plastic waste needed to  be focused on the WTO's core competencies. Trade in 
recyclable materials was essential for broader adoption of more circular econom y approaches to 
resource efficiency. Facilitating trade in plastic scrap reduced the demand for virgin material, offered 
an economic opportunity for recyclers, and kept plastic materials in productive use. Restrictions on 
imports limited these opportunitie s and could result in materials being directed to landfills or ending 
up in the environment rather than sent to facilities capable of processing materials to a suitable 
feedstock for manufacturing. The representative reiterated the United States' interest in the 
application of trade facilitative approaches for all post -consumer materials and other related goods, 
such as reverse supply chain products and intermediaries as these products ha d inherent economic 
and commercial value and support greater resource efficiency and circularity, and trade policies were 
needed to  facilitate rather than impede movement to close the loop, and keep these materials in the 
economy, out of landfills, and out of oceans.  
The representative of Cabo Verde  said that Cabo Verde joi ned this initiative as a country that 
suffer ed because of plastic pollution.  Since 2017, Cabo Verde ha d implemented a law that prohibit ed 
the use of plastics and was raising awareness among traders and the population in general to entirely 
ban the use of plastics. As a SIDS, Cabo Verde was also sensitising other countries  to join this 
important initiative under the leadership of Ecuador and Barbados and would like to continue to work 
constructively to reach a declaration during MC12.  
The representative of  the Russian Federation  said that Russia supported the efforts of the IDP 
co-sponsors through the recognition that plastics pollution was a global issue and needed to be 
addressed at multilateral level. Russia had decided to join the Dialogue format and st ated their 
interest in discussion. He encouraged other WTO Members to join this initiative to find a multilateral 
approach to tackle this issue.  
The representative of Japan  said that Japan was considering joining the draft proposal of the 
MC12 declaration  on plastics as a co -sponsor. Trade aspects were not clearly addressed in some 
parts of the draft, including, for example, regarding subparagraph (i) in the sixth bullet for 
"Commitments for MC12 and beyond (2021 -2023) ", which Japan understood as describin g the 
framework and cooperation for the prevention of general plastic pollution. Japan was curious about 
the intentions of the co -sponsors in this regard and would listen to the views of the co -sponsors on 
how to discuss these policies in the WTO given the  references to policy details such as definitions, 
scope, standards, and design for plastics.  
The representative of the European Union  said that tackling plastics pollution was very 
important to the European Union , and the reason why the European Union adopted its WT/CTE/M/73  
 
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  comprehensive EU Plastics Strategy in 2018. Plastic pollution was a global problem which urgently 
needed  concrete global acti on to prevent plastic pollution by addressing the entire plastics life cycle. 
The EU was therefore fully supportive of taking decisive steps at the resumed session of UNEA -5, 
where it hoped to see the establishment of an intergovernmental negotiating commi ttee for a global 
agreement on plastics and invited all WTO Members to join.  The representative welcomed the work 
done by the Members of the IDP and said that the WTO's work on plastics was important for the 
European Union  and should create positive syner gies with ongoing multilateral processes in the 
UNEA , including the perspective of launching negotiations for a new global agreement on plastics. 
The European Union was reviewing possible co -sponsorship of the statement.   
The representative of Australia  said that reducing plastics pollution continued to be a focus of 
Australia's domestic policy framework and welcomed the IDP 's contribution to facilitating 
engagement and collaboration between governments, relevant environmental organisations,  and 
experts to  explore how trade policy could  contribute to global efforts to deal with plastics pollution 
in a WTO -consistent way. Australia was pleased to be taking an active role in this initiative and 
looked forward to chairing the upcoming meeting of the IDP in Oct ober and hoped that co -sponsors 
could finalise a statement affirming their commitment to ongoing work by MC12. Australia welcomed 
the ongoing discussions and saw an important role of the WTO in this area, particularly towards 
explor ing trade liberali zing and trade facilitating policies rather that trade restricting policies. The 
representative  welcomed the updates from Members on domestic efforts and the contributions of 
Members including questioning the role that trade could play in addressing plastic poll ution. 
Facilitating increase trade in alternatives or reusable recycling plastics were issues that the IDP 
hoped to continue to deal with and was a clear reason that trade ha d a role to play in plastic s 
pollution. Research by the United Nations Conference on Trade and Development ( UNCTAD)  
recogni zed that trade in plastics accounted for roughly 5% of global trade, a figure which highlighted 
the importance of the role of trade in addressing plastic s pollution and a clear reason that Members 
were committed in addressing plastics pollution and to engage in  the IDP on how WTO Members 
could contribute to this problem. The number of IDP co -sponsors did not reflect the true diversity of 
co-sponsors, as it included developed countries, developing countries and LDCs, including 
membership fr om North and South America, Europe, Africa, Asia and Oceania. He encouraged all 
WTO Members to co -sponsor this initiative.  
The representative of China  welcomed the presentations of Morocco and the Central African 
Republic on their national strategy and legal and institutional framework. H is delegation believed 
the IDP-related discussions and information sharing were helpful for WTO Members to understand  
this issue  in depth . Tackling plastics pollution was an issue where the WTO could demonstrate its 
relevance to new major challenges. The IDP did not duplicate nor replace efforts in other fora but 
would be complementary and actively cooperate with other processes. The WTO could and should 
contribute to joint global efforts so as to  demonstrate the WTO's relevance to supporting  Sustainable 
Development Goals ( SDGs ). The issue of plastic s pollution was of shared  importance among all WTO 
Members including LDCs , developing and developed members, and there was strong and growing 
support among Members for the plastics initiative in the WTO. He said that MC12 would be a critical 
time for all WTO  Members. The IDP which was open, transparent, and inclusive aimed to c hannel 
growing energy and commitment into positive results. Co-sponsors were drafting a Ministerial 
statement and all WTO Members were welcome  to participate in this effort towards achieving a 
tangible result in MC12.  
The representative of Chile thank ed the delegations of Ecuador and Barbados for the report 
on IDP. Although this was an initiative that Chile had not joined as a co -sponsor, it was something 
that Chile was following closely.  
1.1.4   Canada's briefing on the World Circular Economy Forum (WCEF2021)  
The representative of Canada  briefed delegations on the World Circular Economy Forum 
(WCEF2021) held as a virtual event on  13-15 September 2021  and hosted by Canada co -organized 
with the Finnish Innovation Fund Sitra as well as with international and domestic partner 
organizations. The 3 -day event had featured 14 main sessions hosted by Canada and Sitra, and 
25 Accelerator Sessions hosted by partners and collaborators.  Recordings of the main sessions were 
available for viewing on YouTube and could be a ccessed via WCEF2021.com.  The theme of the 5th 
annual World Circular Economy Forum was "Game changers! Seizing the circular opportunity ". The 
programme had explored a range of topics, including the important role of the circular economy to WT/CTE/M/73  
 
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  help meet climat e and biodiversity targets, and actions needed in the next 5 years to raise circular 
ambition globally.   
WCEF2021  was the first forum hosted in North America  and it reached record participation 
numbers. Over 8,900 people from 160 countries registered, repr esenting a range of sectors including 
business (32%), public sector (24%), academia/research/think tanks (20%), and others.  The Forum 
had featured 95 speakers and sought to introduce new voices to the circular economy conversation, 
including 10 youth and six Indigenous speakers. Speakers had called for collective action and 
collaboration with new allies, as well as intersectional approaches to circularity that were informed 
by geographic and sociocultural contexts.  
Several Accelerator Sessions on Day 3 had focused on the opportunities for the creation of 
more circular global value chains in industries such as textiles, metals and minerals, and plastics. 
Discussions across all three days had highlighted the critical role of international trade in the 
transiti on to a more resource -efficient circular economy. Of note, the International Chamber of 
Commerce and the Organization for Economic Cooperation and Development had organized an 
Accelerator Session titled "Towards a mutually supportive trade and circular eco nomy agenda ". The 
session had explored the trade barriers that prevent ed private enterprises from engaging in a circular 
economy transition and discussed how international cooperation could provide solutions to overcome 
these barriers, including suggestion s for the WTO forward agenda on circular economy. Speakers 
had underscored the necessity of improved transparency, data, common definitions, and cooperation 
between stakeholders.  
1.2  Fossil Fuel Subsidy Reform  
The representative of New Zealand  provided an upd ate on the efforts to deliver a joint 
Ministerial Statement  on fossil fuel subsidy reform (FFSR) for MC12. The revised version of the 
statement was circulated to all Members on 16 September as document JOB/GC/264/Rev.1. The 
empirical evidence  supporting the need for action on fossil fuel subsidies (FFS) to meet climate 
change and sustainable development objectives was increasingly clear. Effectively addressing 
inefficient FFS could deliver economic, social, and environmental benefits, as well as release 
government funds to support a green and climate -resilient COVID -19 recovery . 
Since the late -2000s, world leaders had recogni zed this potential and committed to 
rationali zing and phasing out inefficient FFS in a range of international fora. Commi tments had been 
made through the UN S DGs, Asia-Pacific Economic Cooperation ( APEC), the G20, the G7, and the 
Vulnerable Twenty (V20). But despite growing evidence of the fiscal burden of such subsidies to 
governments – and their overt conflict with interna tional commitments to reduce carbon emissions 
– these aspirational words had so far not translated into swift action. New  Zealand was of the view 
that effective and long -lasting reform of inefficient FFS needed to occur in a rules -based, multilateral 
setting.  
With this joint statement, his delegation would commit to working with Members to advance 
the issue within a multilateral forum, in a manner that acknowledged the specific needs and 
conditions of developing members and vulnerable communities. New  Zealand was joined by 35 other 
WTO Members in co -sponsoring  the joint statement  which included Fiji, as the most recent Member 
to notify of its intention to join. New Zealand invited all remaining Members to consider 
co-sponsorship ahead of MC12, and therefore  play a role in helping to shape the possible options for 
advancing this issue at the WTO in the period after MC12. His delegation encouraged Members to 
reach out to New  Zealand, or any of the other co -sponsors, to discuss any aspect of the proposed 
statem ent over the coming weeks.  
The representative of the United States  noted that the United States was making a concerted 
effort to reduce its FFS. Under Executive Order 14001, President Biden had directed U.S. government 
agencies to take steps to ensure that , to the extent consistent with applicable law, Federal funding 
was not directly subsidizing fossil fuels. The President 's FY22 Budget Request to Congress 
recommended termination of certain federal level  FFS. His delegation recognized the importance of 
phasing out inefficient FFS that encouraged wasteful consumption, especially with the view of a low -
carbon future with the objective of net  zero emissions by 2050 and meeting the goals of the Paris 
Agreement but also noted the potential political difficulties  of reaching a consensus on this issue.  WT/CTE/M/73  
 
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The representative of Costa Rica  reiterated its support for New Zealand's work and leadership 
on FFSR. This was an issue of utmost importance to Costa Rica which was co -sponsors of the 
initiative and the MC12 Ministe rial Statement. Her delegation welcomed Fiji and the European Union 
as new members of this group. Costa Rica urged developing Members to take note of the importance 
and the value of this initiative. Costa Rica was available to share with Members, especiall y developing 
Members, about its progress towards clean energy and decarboni zation by 2050.  
The representative of Switzerland  reiterated her delegation's support to the intention of 
rationalizing and phasing out FFS that encouraged wasteful consumption. To achieve the goals, set 
in the Paris Agreement or in the SDGs, action was needed now. In addition to being a member of 
the Fr iends Group on FFSR, Switzerland was engaged on this very important issue with New Zealand 
and four other WTO Members in the negotiations on the Agreement on Climate Change, Trade and 
Sustainability (ACCTS) which aimed, among other things, to establish mea sures to eliminate FFS 
harmful to the environment.  The WTO was the appropriate place to discuss this issue and it was the 
right time to intensify discussions  to see how WTO could play a central role in reducing the trade 
and investment distortions FFS caus ed. Switzerland expressed its gratitude to New Zealand for 
preparing the Ministerial Declaration for MC12 and announced that it had joined the statement. 
Switzerland encouraged all Members to join this initiative which was essential for achieving the 
clima te goals set by the international community.  
The representative of the Russian Federation  noted his delegation's attention to fighting 
climate change and ensuring environmental protection. Many efforts were put at the state level to 
protect rare species of  flora and fauna, create wildlife areas, protect forests and organise a waste 
collection. In recent years, the Russian Federation had been accelerating efforts, both in internal 
and international areas, on many issues. He noted that the Russian Federation actively participated 
in the Conference of Parties of the UN Convention on Biodiversity taking place in Kunming, China, 
and restated its full support of international cooperation in this field.  
Turning to FFSR, the representative said that proponents had f ailed to explain what the 
definition of these subsidies was and how they contradicted the WTO agreements. There were too 
many economic, much less environmental, and few legal and social considerations in this offer. The 
so-called "reforms of FFS", implied,  inter alia, equalisation of prices at national and world's market 
levels. He asked  whether this was a subsidy and noted the need to evaluate possible social 
implications of potential reforms. The rise in the cost of fossil fuels would lead to a significan t increase 
in cost for social needs and would affect 100 million people worldwide. The reform initiative 
undermined one of the key goals of the WTO: combatting poverty by the means of trade. He stated 
that the latest studies were showing that FFSR was not the largest contributor to emissions reduction 
and mentioned in this regard the report of the Global Subsidies Initiative published in July 2021. He 
noted that the burden of responsibilities had to be shared between all involved. If there was a need 
to red uce subsidies to sectors engaged in the production of greenhouse gases  (GHG) , his delegation 
suggested starting with those which negatively influenced trade and were recogni zed as such by the 
whole membership. The representative gave as an example the agri culture sector. He stressed the 
importance of applying methods of emissions reduction without undermining the economic and social 
goals and disrupting trade. These methods were available and needed to be discussed and promoted 
at the international level.  
The representative of Chile thanked New Zealand for the leadership on the issue of FFSR.  
Countries adopted or maintained FFS for a variety of public policy reasons. While these motivations 
might be legitimate, inefficient FFS caused significant economic, social and environmental problems, 
locally and globally. Perhaps the most concerning of these problems was that the wasteful 
consumption of fossil fuels led to the acceleration of climate change, putting at risk the goal of 
limiting global warming to 1.5°C . Various international fora were currently addressing the issue of 
FFS. There was no doubt that the WTO, with its tools, could also make a significant contribution to 
the global effort to phase out these subsidies. Furthermore, such a contribution would b e fully 
consistent with the commitment to sustainable development and the preservation of the 
environment as enshrined in the WTO Agreement. Chile was pleased to be a co -sponsor of the draft 
Ministerial Statement  on FFS for the upcoming MC12 and invited th e other WTO Members to join.   
The representative of the Kingdom of Saudi Arabia  said that while it encouraged information 
sharing, his delegation reiterated  its position that the issue of FFS was dealt with under the G20 
forum whereby a voluntary peer rev iew of inefficient FFS that encouraged wasteful consumption was WT/CTE/M/73  
 
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  done, in accordance with countries' specific national circumstances, priorities and needs. The issue 
of FFS needed to be addressed under the dedicated forums.  
The representative of the Europea n Union  thanked New Zealand for the leadership and 
recalled that the European Union  had joined the initiative. Her delegation encouraged all WTO 
Members to join.  
1.3  European Union Green Deal  
The representative of the European Union  provided an update on trade -relevant aspects of 
the European Green Deal.4 On 14 July 2021, the European Commission published the "Fit-for-55" 
package, setting out how the European Union intended to achieve climate neutrality by 2050, 
including the intermediate target of at least 55% net reduction in greenhouse gas emissions by 
2030. It was noted that the EU co -legislators were deliberating on t he proposed measures.  
The package was based on a comprehensive set of impact assessments, which – together 
with the 2030 Climate Target Plan – demonstrated that, with the right policy mix, the new target 
was ambitious yet achievable. Th e set of interconne cted proposals represent s a balance between 
strengthened and expanded carbon pricing, targets, standards and support measures. It comprise s 
a mix of existing legislation upgraded to deliver new ambition plus a number of new initiatives, 
covering a range of  policy areas and economic sectors: climate, energy, transport, fuels, buildings, 
taxation, land use, agriculture and forestry.  
The representative of the European Union elaborated on one of the proposals in this package 
– the Carbon Border Adjustment Mech anism (CBAM). The CBAM was there to support the success 
of the other proposals against the risk of carbon leakage that might result from the increased 
requirements imposed on EU businesses. It was noted that CBAM's should be viewed alongside the 
EU Emissio ns Trading System (ETS) , which sets a price for carbon emissions in selected 
EU industries. This carbon price ha d increased significantly and had now reached the level of 
60 euros per tonne. Without carbon leakage protection, there would be a risk of carbo n leakage. In 
order to more effectively reduce emissions, CBAM proposed to maintain this carbon price in the 
European Union  and adjust this carbon price on imports. So, imports would need to pay a carbon 
adjustment corresponding to the price they would hav e paid if the goods had been produced under 
the EU's carbon -pricing rules (the ETS). The CBAM charge would be adjusted to reflect the level of 
EU ETS free allowances allocated to the EU production of sectors within its scope. CBAM ha d been 
designed to comp ly with WTO rules and other EU international engagements.  
A second important element of CBAM was that it should not result in double carbon pricing. 
Thus, if a non -EU producer could show that they had already paid a carbon price for the production 
of the imported goods in a third country, that amount could be deducted from the CBAM charge 
applicable to the EU importer. CBAM was a climate measure, which would  complement the EU ETS, 
and whose sole objective was to reduce CO 2 emissions in the European Union and globally. Moreover, 
CBAM was a regulatory measure that tried to replicate as much as possible the features of the 
EU ETS with some justifiable differences. Thus, CBAM was a measure that focused on sectors whose 
carbon emissions were the highest and wher e the risk of carbon leakage was also the highest, i.e. 
cement, iron and steel, aluminium, fertilisers and electricity. These sectors represented nearly half 
of CO 2 emissions in industries in the European Union . The European Union would  look at the 
possibi lity of extending the scope of CBAM, in particular, to cover indirect emissions. Again, this 
would be done in a way that complied with WTO rules.  
The CBAM would be introduced gradually. The idea was that it would be in place in 2023 
starting with 3 years in which there was no financial adjustment, but only the collection of data on 
the embedded emissions in goods imported into the European Union (direct and indirect emissions). 
Then, it would be slowly phased in from 2026 to 2035 in parallel to the reduction of free allowances 
under EU ETS. CBAM was organized in conjunction with the EU ETS making sure that carbon 
emissions were priced equally on E U production and imported goods.  
In terms of design, the EU had made sure that there was no discrimination among countries. 
When there were exceptions, they were based on the fact that there was an equal carbon price so 
 
4 See documen t RD/CTE/199.  WT/CTE/M/73  
 
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  as to avoid double -pricing. In othe r words, if a carbon price existed abroad, the CBAM charge would 
be reduced to the level of the adjustment. Moreover, CBAM would be assessed on actual declared 
emission of goods of a selection of products that were justified to avoid carbon leakage. Where there 
were differences between the CBAM and the EU ETS, these differences were justified. For example, 
the EU ETS was a cap -and-trade system, but there was no question of capping imports. So, instead 
of replicating the features of the EU ETS in this contex t, it replicated its effects. Furthermore, while 
CBAM was based on actual declared emissions, it would be much more difficult to establish this in 
the case of electricity. Thus, in this context, the default value could be used but relying on actual 
emissio ns would always be a possibility.  
It was highlighted that CBAM would take into account actual declared emissions, meaning 
that if any country reduced the emissions of its industries, or if any business decided on its own to 
reduce emissions on its producti on, this would be considered by CBAM and the level of adjustment 
would be lower. There might be international agreements on how to take into account the carbon 
price paid abroad. Moreover, non -EU countries that applied the EU ETS would not be subject to 
CBAM. There would be special rules for electricity but only subject to very strict conditions and for 
countries whose electricity grid was coupled with that of the European Union . To sum up, CBAM 
would have an impact on emissions, on companies, but not on co untries. Companies subject to 
CBAM were only subject to CBAM taking into account the level of free allocation that would still be 
under the European Union , their individual performance and the carbon price they would have paid. 
Any possible exemptions woul d be subject to very strict conditions linked to the EU ETS.  
In terms of international dialogue, counting bilateral discussions and forums such as the CTE, 
the European Union had talked to most countries around the world. Since there had been more 
frequen t discussion on carbon pricing, CBAM was even mentioned in the G20 finance Ministers' 
communiqué of July 2021. The European Union 's proposed CBAM was an open mechanism, which 
took into account the approaches of its partner countries. CBAM was a very specif ic tool to deal with 
the risk of carbon leakage when faced with different levels of ambition in tackling climate change. 
Its only intention was to tackle the overly high carbon content of products coming into the 
European  Union . Of course, such measures sh ould respect WTO rules, in particular, the principle of 
non-discrimination and be conducive to achieving its overarching aim of cooperation on climate 
action. The representative of the European Union concluded by reiterating that climate change was 
a globa l challenge that required global action. That was why the European Union was committed to 
transparency and dialogue, as well as respect of its international commitments, when designing its 
legislation.   
The representative of Australia  welcomed the consult ative approach that the European Union  
had taken in relation to CBAM, which was part of the legislative package released on 14 July 2021. 
However, aspects of the policies remain ed unclear. Australia encourage d the European Union to 
continue to share to the maximum extent possible details of its policy deliberations and any updates 
on the likely form the CBAM might take, consistent with the essential WTO principle of transparency. 
Australia  appreciate d the European Union 's commit ment to ensuring the consistency of its eventual 
measures with its WTO obligations . Further detail and clarity on how the European Union would  
address the issue of consistency would  be helpful for Members, including for those that ha d questions 
and concerns about the possible protectionist impacts of such policies. Australia noted its strong 
commit ment to addressing climate change and highlighted that international trade could  contribute 
to this objective. In particular, trade policies could  facilitate trade in environmental goods and 
services and related investment in low emissions technology could  make a strong contribution in 
support of international climate policy. Australia encourage d the European Union to consider and 
clarify how it would be  ensure d that  the CBAM policy recognize alternative measures to explicit 
carbon pricing, such as higher standards or Australia's technology led approach, which could  be 
equally if not more effective at reducing emissions.   
The representative of Turkey  began by appreciating the information shared by the 
European  Union at the CTE and noted that it was analyzing the proposal with a view to sharing 
comprehensive comments on the proposed legislation. Turkey reiterated its expectation that any 
border carbon measure would be in line with WTO rules and principles and international 
environmental agreements, as indicated by the European Union . All members of the international 
community should play their part to combat climate change. This should be done based on historical 
responsibilities and the principle of common but differentiated responsibilities and respective 
capabilities  (CBDR -RC), as set out in the United Nations Framework Convention on Climate Change 
(UNFCCC). The UNFCCC affirm ed that responses to clima te change should be coordinated with social WT/CTE/M/73  
 
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  and economic development in an integrated manner with a view to avoiding adverse impacts of 
response measures. Turkey stated that it would  continue following these measures from the 
perspective of multilaterally accepted environmental principles and WTO rules . 
The representative of Ukraine  expressed interest to stay informed on further developments 
of the EU Green Deal. While implementing the SDGs, in particular fighting against climate change, 
all Members should develop their regulatory acts by bearing in mind both the protection of the 
environment and WTO rules. Ukraine hope d that the European Union would  continue the 
development of the CBAM in a transparent manner with the involvement of all interested 
WTO Membe rs and stakeholders to ensure its consistency with WTO rules and the provisions of the 
UNFCCC and the Paris Agreement . 
The representative of China  highlighted that promoting sustainable development to tackle 
climate change require d implementing the UNFCCC and the Paris Agreement, lowering tariffs, 
reducing trade barriers, and promoting trade and investment liberalization and facilitation. China 
indicated that CBAM was inconsistent with the principle of CBDR -RC and the nationally determined 
contributions (ND C) arrangement. It was also not consistent with open and free multilateralism and 
would  damage the mutual trust of the international community and the prospects for economic 
growth, particularly in the context of the post -pandemic global economy recovery. China hope d that 
the relevant legislative measures of the European Union would  conform to WTO rules and avoid new 
trade barriers  and expressed its willingness to strengthen communication and coordination with all 
parties including the European  Union , promo te the liberalization and facilitation of trade and 
investment in the green sector, and tackle climate change . 
The representative of India noted that a thorough legal examination would  be required on 
various elements of the European Green deal, including the CBAM to ascertain its conformity with 
relevant WTO rules.  India reiterated that any such mechanism needed to  take into consideration the 
principle of CBDR -RC, in light of different national circumstances, fiscal conditions and development 
levels. India also noted  that multilateral environment agreements  (MEAs)  were the right forum to 
discuss and solve the issues pertaining to the environment and climate . 
The representative of Thailan d began by recognizing that the international community share d 
a common cause in tackling climate change, which was why Thailand's long -term low GHG emission 
development strategy would be communicated to the UNFCCC Secretariat during COP26. At the 
same tim e, Thailand highlighted the importance of ensuring that international rules and principles 
were respected, including those under the WTO and the UNFCCC. With respect to the proposed 
CBAM, Thailand recognized that this was  undergoing legislative process. Ho wever, at present, the 
tension and unease surrounding the CBAM were a headwind against the collaborative spirit and 
mobili zation of international efforts which were critically needed in the global fight against climate 
change. Thus, Thailand stress ed its strong hope that all Members undertaking actions to combat 
climate change ensure adherence to all relevant international rules and principles, steer far away 
from unilateralism and coercion and be guided instead by the spirit of international cooperation . 
The representative of Guatemala  noted that during the presentation  it was indicated that, in 
the first phase, there would  be a focus on high -level emission sectors, such as cement, iron, fuel, 
aluminium, and there would be a second stage focusing on extending it to other sectors and indirect 
emissions. Guatemala queried what kind of sectors would be covered, and what would be the scope 
of indirect emissions, for the second stage of implementation. Second, Guatemala asked how a 
country -wide exception i n CBAM would work, including the selection of countries for this kind of 
exception.  
The representative of Canada  indicated that, taking action to protect the environment and 
combat climate change was a priority for the Canadian government, and that Canada and the 
European Union ha d a longstanding history of fruitful cooperation on environment and climate 
change. As there was a great deal of interest in the potential implications for trade as a result of the 
European Green Deal, today's update enhance d transparency by providing new and more in -depth 
information to WTO Members. Canada noted its interest in better understanding how the EU's CBAM 
would  be implemented in a manner that was consistent with WTO rules, while ensuring that trade 
and climate policies were mutually supportive. Canada welcomed further information on how the 
"international agreements" mentioned in the European Union 's presentation would  take into account 
other carbon prices.  WT/CTE/M/73  
 
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The representative of the Russian Federation  noted  that, while most of the EU initiatives under 
the Green Deal were still at the stage of development, a set of tools ha d been implemented by 
EU Members for some  time, like technical requirement on goods or subsidization of renewable 
energy. Implementation  of these elements ha d significant influence on competition conditions on 
the EU market. The Russian Federation recalled the statement by the delegation of the U nited States 
in the context of the European Union 's Trade Policy review in February 2020 , which stated that the 
combination of legislative and non -legislative green policy initiatives create d a strong risk of 
additional trade restrictions in the EU market.  These policies, while pursuing legitimate  
environmental objective s, risk disruption in the global supply chain. The Russian Federation 
considered that the United States was  not far from the truth and that today's EU statement did not 
shed more light on th e development of this strategy. The Russian Federation added  that the 
membership would also benefit from the EU Green Deal's presentation at the Subsidies and 
Countervail ing Measures  Committee , as this strategy was based on a massive state aids whose scale  
and nature should be addressed  under the Agreement on Subsidies and Countervailing Measures.  
The Russian delegation noted that it ha d many questions with respect to the CBAM proposal , 
including its relationship with international agreements, such as  the W TO Agreement , and o ther 
aspects , such as methodology, coverage, non -discrimination, utilizing methods of emissions 
reduction available to different countries . The Russian Federation stated that discussion at the CTE 
was welcomed but not enough. As this iss ue was connected directly with trade, these issues ha d 
been raised in the Committee on Market Access  (G/MA/W/172 ) and the Council for Trade in Goods  
(G/C/W/800 ). The Russian Federation  invited  the European Union  to enter the dialogue with WTO 
Members on this issue.  
The representative of Saudi Arabia  support ed the statement by the Russian Federation. This 
issue ha d been addressed under the agenda of the Committee of Market Access , which should  
continue to be used to discuss these concerns. Furth ermore, Saudi Arabia stated that any climate 
measures impact ing trade negatively would  have an impact on  the spirit of cooperation among 
nations under the UNFCCC. This was why the UNFCCC provide d that measures taken to combat 
climate change, including unil ateral ones, should not constitute any arbitrary or unjustifiable 
discrimination or disguised restriction on international trade . 
The representative of Korea  reiterated that trade measures to achieve legitimate policy 
objectives should be fit -for-purpose a nd should not constitute a disguised restriction on international 
trade. Trade -related measures aimed at protecting the environment should be carefully designed to 
advance environmental objectives in accordance with WTO rules and principles. They should pr ovide 
adequate conditions to avoid the misuse for protectionist ends. In this regard, the proposed CBAM 
had drawn special attention from WTO Members. Some Members ha d raised concerns over its 
potential incompatibility with WTO rules such as National Treatment, MFN treatment, and general 
elimination of quantitative restrictions. Noting the EU's efforts to ensure consistency of its eventual 
measure with WTO rules and pri nciples, Korea encourage d the European Union to continue to share 
details of the CBAM in a transparent manner and to conduct enough consultations or bilateral 
discussions with interested Members and stakeholders before implementing concrete actions , and 
to fully consider each country 's circumstances and its efforts to achieve a net zero economy.  
The representative of Switzerland  noted  that, tackling climate change was one of the greatest  
challenges of our time, which require d common efforts and cooperation at the international level, 
especially within the multilateral trading system. Switzerland therefore welcomed the discussion on 
trade -related climate measures that ha d taken place in the context of the TESSD. Switzerland 
indicated that it was closely follo wing Members' efforts to this end, including the developments 
around the European Union 's planned CBAM, and that it saw the European Green Deal as a possible 
way for responding to the challenges of the 21th century. While it recognized that "carbon leakage " 
formed part of these challenges, Switzerland expected that carbon taxes would  neither increase 
distortions in competition nor lead to unnecessary administrative and regulatory costs or trade 
barriers. Switzerland noted that it pursue d ambitious sustainab ility, environmental, energy and 
climate policies, which were witnessed, for instance, by its emissions trading systems. Working 
towards a net zero target by 2050, Switzerland highlighted that it fulfilled its obligation s under the 
Paris Agreement and cont ribute d to limiting global warming below the critical threshold of 
1.5 degrees . 
The representative of Egypt  stressed the need to consider carefully the proposed mechanism 's 
potential long -term implication s on global trade.  It must comply with WTO rules , including by not 
creating unnecessary barriers to trade. Egypt echoed the call by other Members that the proposed WT/CTE/M/73  
 
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  mechanism must take into consideration the principle of CBDR -RC of different countries in light of 
their differen t national circumstances and the levels of development.  
The representative of Argentina  pointed out that the proposed CBAM continue d to generate 
concern among WTO Members. In particular, Argentina expressed doubts about CBAM's consistency 
with WTO rules. T he fight against climate change was a commitment by all nations. Actions taken 
to that effect needed to  respect international agreements without becoming more trade restrictive 
than necessary to fulfil legitimate objectives, or disguised restrictions on in ternational trade. All 
measures adopted to combat climate change needed to  take into account the principle of CBDR . 
Argentina indicated that it would follow this measure's development and welcomed further 
information.  
The representative of Norway  supported  the notion that CBAM was exclusively for climate 
objectives  and that it was in compliance with WTO rules. Norway underscored that the connection 
between CBAM and the EU ETS was clear and that the European Union 's presentation gave useful 
information in th at regard.  Norway stated that it would follow the work on the EU Green Deal and 
CBAM closely, and welcome regular updates on the issues in the CTE and elsewhere.  
The representative of Japan  reiterated its views on CBAM previously expressed in previous 
CTE meetings, as well as in TESSD meetings  and indicated that it would continue to engage in the 
discussion with other Members . 
The representative of the European Union  responded to the questions raised by delegations. 
The European Union ha d been transparent on its proposed CBAM from the beginning, launching 
public consultations since it was first announced at the beginning of 2020, with more detailed public 
consultations in July 2020 in the context of its impact assessment. It was gathering vie ws and would 
continue sharing information and being transparent on its proposal and it s legislative process.   
With respect to the comments on the compatibility of CBAM and the principle of CBDR , the 
European Union reiterated that CBAM was a measure that was there only to ensure the integrity of 
the policies adopted by the European Union , and to address the risk of carbon leakage. It aim ed to 
ensure that the carbon price that applied on EU production was also the carbon price that was applied 
on import goods  to make sure that they were treated the same. As regards the principle of CBDR , 
the CBAM was designed to deal with a world in which different parties under the principle of CBDR 
had taken different levels of ambition, including through the NDCs under the Paris Agreement. It  
was precisely because of this principle that the European Union  had, as a developed party, 
demonstrated leadership with ambitious climate policies including a commitment to reach net  zero 
by 2050. In this context, and through the CBAM, the European Union  needed  also to ensure that its 
ambitious policies did not lead to a rise in carbon emissions elsewhere. As all parties to the Paris 
Agreement align ed their emission pathways with the Paris Agreement goals, policies like CBAM would  
become  less necessary. In the meantime, the European Union , as the world's largest provider of 
climate finance, would  continue to support those countries that need ed aid in the transition to net  
zero emissions.  
The European Union pointed out that, a number of independent evaluations suggest ed that 
the aggregated impact of parties' NDCs, if fully implemented, would  not put the world on a pathway 
to achieve the Paris Agreement goal. Thus, the CBAM did not intend to  dictate at all how a countries' 
policies should be decarbonized . Countries remain ed sovereign to decide how they want ed, and at 
which speed they want ed to decarboni ze. However, as long as there was not the same level of 
ambition, CBAM was necessary in ord er to protect the integrity of the European Union 's climate 
mitigation efforts and ensure that they were not undermined by carbon leakage. Climate change 
was a global responsibility, and CBAM would  encourage further progress in fighting climate change 
globally. The European Union  hoped that all countries that ha d signed the Paris Agreement would  
make the necessary efforts to achieve this objective.  
Turning to the justification for CBAM, the European Union highlighted that all countries were 
fighting a clim ate crisis and thus we all had to act.  The European Union added that it was taking 
action in many different ways, and that CBAM was there to make sure that this action was effective,  
and it  was not undermined by carbon leakage. The European Union  observed that it had made sure 
that CBAM was targeted to areas where the risk of carbon leakage was most important.  WT/CTE/M/73  
 
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With respect to CBAM's impact on trade, the European Union underscored that its CBAM 
proposal would  be adopted at a slow pace and have a transition period. Thus, all parties were 
informed, and all would have  the time to adjust to this measure and to take the necessary steps to 
take into account the fact that CBAM would  enter into force. In terms of its compatibility with 
WTO rules, the Euro pean Union reiterated that CBAM was not a standalone measure; it was a 
measure that expand ed the effects of the EU ETS to ensure that, regardless of whether goods were 
produced in the European Union  or outside, and regardless of which trading partner outsi de the 
European Union  goods were produced, they were subject to the same carbon price if they were sent 
to the European Union . 
The CBAM was designed so that it could  be extended to more sectors. However, the sectors 
would  have to be selected on the same ba sis as those that were selected, meaning that there needed 
to be a risk of carbon leakage, meaning those sectors where emissions are were and trade was 
significant, and sectors where it was possible to assign a carbon content to imported goods. In terms 
of the understanding of indirect emissions, the European Union elaborated that it was referring to 
scope two emissions, meaning emissions taking place in the production of electricity, which in turn 
was used in the production of goods. With respect to a ques tion on agreements, the European Union 
stated that CBAM should not result in a double carbon price, so if there was a carbon price that was 
paid in the country of origin of the goods, this carbon price should be factored into the adjustment 
that would be a pplied when goods were imported in the European Union . Of course, countries ha d 
different ways of imposing carbon prices, and it would  be easier to take into account the carbon 
price if information with the countries of origin could  be shared. The idea beh ind having an 
agreement would be to facilitate taking into account the carbon price paid at origin.  
In response to further questions from the Chair, the European Union stated that possible 
sectors that could be included at a later stage would be industrial  sectors with a high level of 
emissions, but it refrained from pointing at specific sectors because the elements to define them 
were not yet present. In terms of the exemption, it was noted that it would be applied in very 
restricted manner to only countri es that ha d a carbon price equal to that of the European Union  and 
that applie d in the same manner as the European Union . For instance, the European Union specified 
that it applie d the exemption to countries which participate d in the EU ETS system without being 
part of the European Union  (these were countries part of the European Economic Area), and to 
countries that ha d concluded an agreement to fully link their ETS system to the E U ETS. However, 
if a country ha d a carbon price in the form of a carbon tax or in the form of an ETS that deliver ed a 
carbon price as high as the one that applie d in the European Union , this would  bring the adjustment 
to zero. Although this would not be an  exemption as would apply to countries of the 
European  Economic Area, it would result in the same economic result that there would be an 
adjustment. Moreover, the European Union clarified that the objective of the European Union  with 
the CBAM ha d never bee n to raise revenue. The objective was climate mitigation. Therefore, if the 
carbon price paid at origin was at the same level as that of the EU ETS, this would reduce the CBAM 
charge to zero. The European Union added that, during the transition period in w hich free allowances 
to EU producers were still being granted, the level of the adjustment to be applied on the imported 
goods should factor in a lower carbon price to take account of free allocation.  
1.4  Other  
1.4.1   United Kingdom 's update on activities related to making supply chains more 
sustainable  
The representative of the United Kingdom  (UK) provided an update on activities related to 
making supply chains more sustainable. She underscored that to address climate change, meet "net 
zero" commitments, address biod iversity loss, and achieve the SDGs, trade  -in the sense of moving 
to sustainable supply chains - had to play a vital role, as it formed the basis of global economic 
activity. Trade could help by facilitating and increasing access to environmentally benefic ial goods 
and services. Trade could also be harmful by driving or amplifying environmental degradation, 
including through the unsustainable production and consumption of internationally traded goods.  
The transition to sustainable production methods, nature -based solutions, and more sustainable 
forms of agriculture was expected to add an additional $2.3 trillion in productive growth to the global 
economy. According to UNEP, sustainable production created 64% fewer GHG emissions, per 
hectare, and supported gr eater levels of biodiversity than conventional agricultural production.  WT/CTE/M/73  
 
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Moving to sustainable supply chains required an approach that considered measures to 
support sustainable production and consumption. Collaboration between producer and consumer 
countri es was a key part of this approach. One of the priority sectoral commitments related to nature 
and forests. The United Kingdom , along with its co -chair Indonesia, convened the Forest, Agriculture 
and Commodity Trade Dialogue (FACT) which included over 25 a ctors. A key objective was to agree 
on principles for producer -consumer collaboration, develop a shared roadmap of actions and to break 
the link between commodity production and net deforestation globally by promoting a partnership -
based dialogue. Four the matic and related areas were discussed: i) trade and market development; 
ii) support for small producers; iii) traceability and transparency; and iv) research, development, 
and innovation. Participants identified actions that, if combined, would sustain th e protection of 
forests and other vital ecosystems while promoting trade and development. The United Kingdom  
encouraged WTO Members to support the outcomes and goals of the FACT dialogue.  
In an earlier update on this issue, the United Kingdom  informed Mem bers about a webinar 
organised on March 24 , 2021 by the International Institute on Sustainable Development ( IISD) on 
Reducing Deforestation and Enhancing Forest Conservation Through International Trade Policy. The 
webinar explored novel and existing mechanisms used in international trade policy to encourage 
forest conservation and reduce deforestation associated with  forest commodities. It also included a 
discussion on voluntary sustainability standards, including their effectiveness and scalability as 
market -based instruments, as well as the opportunities and limitations of other environmental 
provisions included in international trade agreement.  
The United Kingdom  would like to explore with CTE Members, the challenges and opportunities 
international trade present ed in tackling climate change, biodiversity loss and promoting sustainable 
supply chains. The United King dom also wanted to identify barriers to progress and understand how 
the WTO could  support, collaborative efforts. The CTE was the appropriate forum for Members to 
share their existing best practices related to measures in place to support sustainable suppl y chains, 
particularly for commodities at high risk of causing deforestation.  The representative  encouraged 
Members to share what they considered to be the key elements of a sustainable supply chain, what 
they deemed as the biggest obstacles to transitioni ng to more sustainable supply chains, and how 
the WTO and the membership could support the global transition to more sustainable supply chains 
and improve the protection of forests and biodiversity.   
The representative of the European Union  thanked the United Kingdom  for their leadership in 
G7 that led to the G7 Environment Ministers recogni zing the important links between agricultural 
expansion and deforestation.  The European Union  looked forward to sustainable supply chains that 
decouple agricultural pro duction from deforestation and forest degradation and was willing to discuss 
how WTO work could contribute to this regard.  
2  TECHNICAL ASSISTANCE AND CAPACITY BUILDING, PAR. 33 OF THE DOHA 
MINISTERIAL DECLARATION  
2.1  Update on seminars and webinars  
The represent ative of New Zealand  briefed delegations about a side event launching the Asia-
Pacific Trade and Investment Report 2021.5 This event was hosted by New  Zealand alongside the 
United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), UNEP and 
UNCTAD. The event included the participation of trade, commerce and climate change Ministers, 
Ambassadors and other distinguished speakers from around the Asia -Pacific region.  The report 
underscored the urgent need for economies in the Asia -Pacific region to reduce GHG emissions, and 
the opportunity to align trade and investment policies in pursuit of climate action. It made several 
tangible recommendations, including in the fol lowing areas: (i) liberali zation of trade in climate -
smart and other environmental goods and services; (ii) the phasing out of FFS, in a way that 
support ed the most vulnerable parts of society; (iii) the adoption of climate -smart non -tariffs 
measures and v oluntary eco -labelling; (iv) encouraging climate -smart investment and private sector 
initiatives; (v) accelerating digital trade facilitation; (vi) incorporating climate considerations into 
regional trade agreements; and (vii) recommendations relating to c arbon pricing and preparations 
for possible carbon border adjustment measures in the region.  New Zealand encouraged delegations, 
 
5 https://www.unescap.org/kp/APTIR202 . WT/CTE/M/73  
 
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  particularly those in the Asia -Pacific region, to review the report and its conclusions and 
recommendations.  
3  MULTILATERAL ENVIR ONMENTAL AGREEMENTS (MEAS), ITEMS 1 AND 5 OF THE CTE 
WORK PROGRAM  
3.1  The United Nations Framework Convention on Climate Change (UNFCCC)  
3.1.1   United Kingdom 's update on the 26th session of the Conference of the Parties 
(COP  26) to the UNFCCC  
The representative of the United Kingdom  provided a n update on COP26. The COP would begin 
in just over 19 days in Glasgow and would be the largest conference of its kind in the world since 
the COVID pandemic began, with over 30,000 delegates expected to attend, as well as the la rgest 
summit the United Kingdom  had ever hosted. Over 100 leaders had already confirmed their 
participation in the World Leaders Summit. While noting that it would be an opportunity to bring 
parties together to accelerate action towards the goals of the Pa ris Agreement and the UNFCCC , the 
benefits of tackling climate change were numerous and fundamentally in the interest of all parties, 
which included: cleaner air, healthier communities, sustainable economic growth, energy security, 
and a safer, more stable  climate. For COP26, the United Kingdom was committed to facilitating the 
agreement of a comprehensive, ambitious, and balanced set of negotiated outcomes, while ensuring 
that no issue and no one would be left behind. The UK Presidency aimed to accelerate progress 
towards achieving the goals of the Paris Agreement through increased ambition in all domains. The 
United Kingdom  further noted that national commitments were at the heart of COP26 outcomes, 
including Nationally Determined Contributions  (NDCs) , Long-Term Strategies, commitments to meet 
the $100 billion goal, and adap tation communications. It also urged all countries to maximise their 
ambition across the piece.  
The representative  noted the importance of a dramatic acceleration of progress towards cl ean 
growth and resilience in order to meet the shared goals for avoiding dangerous climate change. To 
drive tis acceleration, the United Kingdom brought governments, business, and civil society together, 
and focused on addressing major shared challenges in  the areas of energy transition, finance, 
transport, nature, and adaptation and resilience. It also urged countries to sign up to priority sectoral 
commitments in the following key areas : (i) energy  with the s igning of the Coal to Clean Power 
Statement, wh ich would include commitments to scale up clean power and investments in new coal 
power and make a just transition away from existing coal power, phasing it out by 2030 in developing 
countries and by 2040 in emerging economies ; (ii) finance  with the m obilization of  public finance to 
achieve the 100 billion necessary to fund ambitious NDCs, National Adaption Plans and the transition 
to a net  zero and resilient world ; (iii) transport  with the s igning of the Joint Statement on the 
Transition to Zero Emission V ehicles, with commitments from all major markets and global 
manufacturers to making all new cars and vans zero emission by 2030 ; (iv) nature  with the s igning 
of the Glasgow Leaders' Declaration on Forests and Land Use, committing to work collectively to ha lt 
and reverse forest and land degradation by 2030 while delivering sustainable development and 
promoting an inclusive and rural transformation ; and (v) adaptation with an Adaptation 
Communication ahead of COP26 , the idea being  to increase the volume and a ccess to predictable 
adaptation finance and to step up action and support to enable vulnerable countries to respond to 
loss and damage.  
The representative  recogni zed the important role that trade, and the multilateral trading 
system in particular could pl ay in advancing progress and in meeting the challenge of climate change 
more generally. It stated the importance of addressing these issues together because they were 
strongly interlinked, and because the world would be able to achieve urgent and decisive shifts to 
the benefit of all countries through greater collaboration. As the international community prepared 
for MC12, which was scheduled for the end of the year, the United Kingdom recogni zed that it was 
vital that states harness the momentum of COP26 t o ensure that the multilateral trading system 
played its part in addressing the unprecedented and interdependent crises of climate change and 
biodiversity loss. In conclusion, the United Kingdom committed to using this opportunity to push 
climate and envir onmental issues to the front and centre of the multilateral trade agenda, not just 
in this Committee but also at the upcoming Ministerial Conference.  WT/CTE/M/73  
 
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  3.1.2   UNFCCC's update on the preparation for COP26 and most pressing issues  
The representative of the UNFCCC  updated delegations on C OP26 that would be held in Glasgow 
from 31 October to 12 November  2021. In addition, the session would include the 16th session of 
the COP serving as the meeting of the Parties to the Kyoto Protocol (CMP), the 3rd session of the 
COP serving as the meeting of the Parties to the Paris Agreement (CMA), and the 52nd to 55th session 
of the Subsidiary Body for Scientific and Technological Advice.  COP26  came against the backdrop of 
two important reports. Fir st, the Intergovernmental Panel on Climate Change (IPCC)  Working Group 
I Report under the 6th assessment round, released in early August, had shown that, unless there 
were rapid, sustained, and large -scale reductions of GHG emissions, the Paris  Agreement g oal of 
limiting global warming to 1.5 °C would be increasingly difficult to reach. Second, pledges by 
countries on their mitigation efforts  (NDCs), had been synthesized in a report by the secretariat 
which showed that, under the current path, temperatures could rise to 2.7 °C with devastating results 
for humanity. The report had shown that the total global GHG emission level in 2030, taking into 
account implementation of all the latest NDCs, was expected to be 16.3% above the 2010 level. 
Accordi ng to the IPCC, to attain a warming limit of 1.5 °C, emissions had to decline by about 45% 
below the 2010 level by 2030. Both reports indicated that the 1.5 °C goal was still in reach but only 
with very rapid changes and scaling up of ambition.  
The Conferenc e would open on 31 October; the World Leaders' Summit would take place on 1 
and 2 November, followed by parallel negotiating sessions throughout. There would also be a high -
level segment on 9 and 10 November with ministerial statements. Regarding the subst ance of the 
negotiations, there were four key areas of priority for the intergovernmental process: (i) ambition 
(in both mitigation and adaptation); (ii) finance; (iii) transparency; and (iv) cooperative 
implementation of Article 6 and transition from Kyot o Protocol mechanisms. While there was no 
dedicated negotiating stream on ambition or on considering the pledges in the NDCs, they were 
likely to be referenced in the overarching decisions – decision number 1 of the COP, the CMP, and 
the CMA.  
With regard t o ambition on adaptation, the key areas of negotiations would be on: (i) the global 
goal on adaptation which was yet to be defined since there was already a global goal for 
GHG mitigation, and it was important that Parties provide further direction on how to assess progress 
towards the goal; (ii) further addressing responses to averting, minimizing, and addressing loss and 
damage; and (iii) accelerating and facilitating access to support for implementation of actions in 
national adaptation plans (NAPs). On finance, negotiations would take place on enhancing clarity in 
the mobilization and provision of the pledged US$100 billion by 2020 and would start shaping -up 
the post -2020 climate finance to mobilize climate finance at scale from all sources to meet the n eeds 
of developing countries.  
On transparency, negotiations would need to lay out the ground for implementing the Enhanced 
Transparency Framework by all Parties through the creation of a common set of accepted rules, 
based on environmental integrity and tr ansparent reporting and review data procedures. With 
respect to cooperative approaches and carbon markets, Article 6 of the Paris Agreement provided 
three incentive instruments, especially for engaging the private sector: "cooperative approaches" 
(Article 6.2), the market "mechanism" (Article 6.4), and "non -market approaches" (Article 6.8). The 
post-Paris negotiations to operationalize cooperation instruments had continued but were not yet 
concluded. At the same time, the operation of the Clean Development Mechanism under the Kyoto 
Protocol was coming to an end as the second commitment period expired at the end of 2020.  
Regarding non -party stakeholder s' engagement, the plan for engaging them involved about 
250 side events and 200 exhibits planned for C OP26, including a Global Climate Action High-Level 
Event that was reporting back to Parties on the progress made by non -party stakeholders towards 
tangible climate action and enhanced ambition. These covered a range of topics and issues, such as 
business practic es, sports, tourism, and fashion to name a few. There would be also some future 
labs to explore bold imaginative ideas for system change aimed at accelerating climate action and 
catalysing  the transition to a regenerative and just world.  
The representative  of Canada  commended the United Kingdom 's COP26 Presidency for its 
continued effort to keep ambitious climate action at the top of the global agenda, especially in light 
of the pandemic. Despite the logistical challenges created by the pandemic, C OP26 rema ined one of 
the most significant climate meetings since the Paris Agreement was adopted in 2015. Canada looked 
forward to continuing its work towards a successful C OP26, with key outcomes on implementation WT/CTE/M/73  
 
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  and ambition, including continuing to work with Ge rmany and engaging with global partners on a 
plan to deliver on the US$100 billion Climate Finance Goal ahead of C OP26. Canada also strongly 
supported the United Kingdom 's efforts to advance transformative action across each of the four 
goals: adaptation, mitigation, finance, and collaboration. It was important that the work at the WTO 
on trade and environmental sustainability issues, including on climate action, kept pace with 
international developments to ensure a just, realistic, and reasonable transitio n to a low -carbon 
economy.  
3.1.3   New Zealand's update on negotiations towards the Agreement on Climate Change, 
Trade and Sustainability (ACCTS)  
The representative of New Zealand  provided an update on negotiations towards the ACCTS  
on behalf of Costa Rica, Fiji,  Iceland, New  Zealand, Norway, and Switzerland. These Members' trade 
Ministers had met in Paris the week before to discuss progress and take stock across the four pillars 
of the negotiations.  
On goods, Ministers had welcomed progress in developing the list of environmental goods for 
tariff elimination and looked forward to further expansion in the months ahead. Ministers had 
acknowledged the important work of trade, customs, and environmental authorities to ensure that 
the list was ambitious, implementable, and appropriately targeted to deal with any issues of dual 
use. In the environmental services working group, Ministers had noted that positive progress was 
also being made to expand the understanding of  environmental and environmentally related  services 
in order to reflect a more contemporary understanding of this dynamic sector. Ministers looked 
forward to making new commitments that would facilitate access and create certainty for service 
suppliers to support environmental outcomes and sustainable development.  
On eco -labelling, the development of guidelines for voluntary eco -labelling programmes was 
well advanced, alongside institutional mechanisms to support their implementation. Ministers 
expected the se guidelines to prove a useful tool that would help ensure that eco -labels were able to 
best achieve their environmental purposes, while avoiding the inadvertent creation of barriers to 
trade. Finally, positive steps were being made on disciplines to elim inate harmful FFS.  Ministers had 
acknowledged that this was complex work, with little available precedent but had encouraged 
negotiators to draw from the analytical work of the Organisation for Economic Co -operation and 
Development (OECD) and internationa l environmental agreements, and on lessons from other 
institutions like the WTO and APEC.  
The parties continued to strive for the ACCTS to be a WTO -consistent pathfinder agreement 
that inspired action by other Members. In this regard, New  Zealand looked fo rward to continuing to 
provide Members with regular updates on progress. The parties aimed to conclude the negotiations 
as swiftly as possible and looked forward to other WTO Members joining the initiative.  
4  TRANSPARENCY OF ENVIRONMENT -RELATED TRADE MEASURE S, ITEM 4 OF THE CTE 
WORK PROGRAM  
4.1  Update by the WTO Secretariat on data available for the Environmental Database  
2020  
The WTO Secretariat  provided an update6 on the WTO Environmental Database (EDB).7  Data 
collection for 2020 was under way using the new EDB data entry platform.  The number of 
notifications published had gone up from 6141 notifications in 2019 to 6729 at present. About 
600 notifications had been uploaded which contained over 1000 environment -related measures. 
Environment -related notified me asures had been published from the T echnical Barriers to Trade 
(TBT)  Agreement, and the Agreements or Notification  Obligations on Import Licensing Procedures, 
Quantitative Restrictions, Agriculture, State Trading, and Safeguards. Other notifications data w as 
also almost ready and would be published shortly. Data had also been published on Trade Policy 
Reviews (TPR). For example, for 2020, entries were published from Australia's TPR. Unlike previous 
years where the EDB was published only once a year, the new  EDB data entry platform allowed for 
partial entry of data which allowed the Secretariat to report on 2020 information as and when it was 
obtained. Improvements made to the search keywords had been incorporated, including for 
 
6 See document RD/CTE/201.  
7 https://edb.wto.org/ . WT/CTE/M/73  
 
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  example, on plastics and natur al disasters. The Secretariat confirmed that the 2020 update would 
be completed by the next meeting and that in the meantime, data would be published as and when 
completed.  
The Chair referenced Chart 1.4 of the EDB 2019 Report (WT/CTE/EDB/19) and noted th at it 
contained a number of environment -related objectives. He asked whether these objectives were in 
any way overlapping, or if they would have some correlation to the SDGs and how these objectives 
were identified by the Secretariat.  
The WTO Secretariat  confirmed that there were 25 harmonized types of environment -related 
objectives used in the database which were listed in Annex III of the EDB 2019 Report. These 
harmonized objectives had been in use since 2009. There were instances where the objectives 
tagged to the data could overlap or duplicate. He illustrated by using the example of the objectives 
of "afforestation/reforestation", and "sustainable forestry management". There could be a measure 
that may meet both these criteria and therefore would have multiple objectives tagged to one 
measure. For the sake of consistency, these objectives had not changed much over the years which 
could enable comparison of data. However, the Secretariat noted that new keywords such as "plastic" 
and "natural disasters" w ere added, and left the door open for further improvements to the EDB.  
5  MEMBERS' SUGGESTIONS AND PROPOSALS  
5.1  Costa Rica will provide an update on behalf of the Coordinators of the Trade and 
Environmental Sustainability Structured Discussions (TESSD)  
The rep resentative of Costa Rica  updated delegations on the advance of the draft Ministerial 
statement  on behalf of the TESSD co -convenors. She said that before the summer of 2021, TESSD 
co-convenors had prepared a draft elements document containing a compilation  of issues that were 
discussed and presented by Members throughout the course of the year in the formal TESSD 
meetings. The elements document was reviewed and consulted among co -sponsors  and non -co-
sponsors  in the spirit of transparency that had distinguis hed the Structured Discussions. Feedback 
was also received with transparency. The topic that appeared to raise the most interest from 
Members was the approach TESSD could give to the discussion on environmental goods and services. 
Following the summer brea k, a second revision of the draft elements paper was issued, and co -
convenors invited Members to consultations which concluded in October 2021. The consultations 
had aimed to gather the different views on the most important aspects that were raised during the 
consultations. The consultations resulted in a draft text intended  to accommodate most of the views 
so far presented and shared with co -convenors.  
On behalf of the co -convenors, the representative of Costa Rica thanked all the delegations 
that had app roached them and that had expressed interest in being part of this conversation. Co-
convenors had done their best to try and incorporate all views while respecting the overall purpose 
of TESSD. Co-convenors ha d requested the support of co -sponsors  to revise language which would 
be presented in the following days and which could receive wider support from non -co-sponsors  
before MC12. Co -convenors would later communicate to the membership about the progress of the 
draft Ministerial statement . 
The representative of Canada  said that TESSD had been an important incubator for ideas and 
proposa ls to make trade policy more sustainable since its inception. She said that since 
November  2020, Members from different levels of development had provided positive engagement. 
TESSD had also provided an opportunity for stakeholders to contribute different perspectives to the 
discussions held. The ministerial statement on TESSD would be an important step to set a clear path 
forward post -MC12. As MC12 was a few weeks away, the representative said that co -convenors 
looked forward to continuing to work with Mem bers to achieve an ambitious outcome and 
encouraged all WTO Members to give serious consideration to co sponsoring  the TESSD initiative.  
The representative of Switzerland  said that her delegation was convinced that the work of the 
TESSD complemented that o f the CTE. The high quality of discussions amongst WTO Members and 
stakeholders had provided a better understanding of what was at stake and how trade should and 
could contribute to environmental issues. This enhanced dialogue also helped to understand the  
priorities of Members and the private sector. The Ministerial Statement  would be based on feedback 
received from Members and the representative encouraged all Members to sponsor the statement WT/CTE/M/73  
 
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  to demonstrate the common will of contributing to climate and e nvironmental objectives agreed by 
their governments.  
The representative of Ecuador  congratulated Costa Rica and Canada for their leadership of the 
TESSD initiative. His delegation appreciated the openness of the proponents of the Structured 
Discussions that allowed for the entire membership to express its views on the elements contained  
in the draft statement  that would be submitted for consideration at MC12 . Ecuador  looked favourably 
at several elements contained in the latest version of the draft declaration, including the 
incorporation of sustainable agriculture, an issue which Ecuado r considered to be a crucial element 
in line with the SDGs  that could contribute substantively to the discussions. Ecuador  appreciated the 
inclusion of the reference to the non -duplication of efforts with other initiatives within the WTO and 
with discussio ns with other international organisations on the subject. Ecuador also considered 
positively the inclusion of technology transfer, an issue that could be addressed in a broad and 
comprehensive manner while converging in the common goal of identifying how t rade could 
contribute to the environment. The representative reiterated Ecuador's constructive spirit and 
continued interest to participate actively in the discussions on this initiative.  
5.2  MC12 -Related Suggestions  
The Chair  updated the Committee on his con sultations relating to the work of the CTE and to 
potential input to MC12 which were held between 23 and 24 September 2021. The Chair's intention 
was to listen to delegations' views and ideas, and how best to prepare for upcoming MC12. 
12 delegations reach ed out to the Chair. Many delegations reiterated their strong support for the 
work being done at the CTE. Delegations shared the importance of : (i) enhancing transparency, via, 
for example, the Environmental Database and the MEA Matrix; (ii) continuing to play a role of forum 
for discussion and experience sharing as the Committee had conducted on a regular and active 
manner; (iii) highlighting the importance of new ideas and contributions to sustainable development 
and environmental protection as provided b y the WTO Preamble, including in relation to achieving 
the SDGs  as mandated by leaders, as well as in response to climate crisis; (iv) recognizing the 
importance of making sure that the overall CTE mandate was still up -to-date and that CTE processes 
were f it to address the challenges of the 21st century. The Chair invited delegations to share any 
views with the membership on this and to propose points or texts that could be reflected in a 
Ministerial outcome, as an input to the General Council.   
The repres entative of India reiterated his country's belief that MEAs were the right forums to 
discuss Members' commitments on climate. While India was committed to achieving the SDGs, the 
discourse should not be pressing for the WTO to be utilized as a forum to achieve long -term climate 
action including through new commitments on environmental issues. The representative concluded 
by emphas izing that issues related to environmental protection and climate change mitigation had 
already been more adequately addressed in appropriate international forums.  
The representative of the United Kingdom  (UK) noted that Members had a unique opportunity 
to build on COP26 by collectively supporting some form of ministerial statement that included 
references to climate change and environmental sustainability. The inclusion of such language in the 
ministerial statement would go alongside some of the ministeria l statements produced by TESSD 
and IDP. She also encouraged Members to review the draft ministerial statements and explore the 
possibility of signing them and then reflecting on how such language could be incorporated into a 
paragraph with a reference to t he environment in the ministerial statement.   
The representative of the United States  noted that pandemic constraints and delegation 
limitations posed a real challenge to moving issues forward during the past year. Referring to a 
possible outcome followin g MC12, he emphasized his country's support for an outcome that included 
references to work on trade and the environment, including climate change, as well as a reference 
to the importance of mutually supportive trade and environmental policies. Future WTO  work on 
trade, environment, and climate would be important to demonstrate the value of the WTO as an 
institution that could leverage trade as a tool to address environmental and climate challenges.  
The representative of Costa Rica  acknowledged that there  was a new dynamism among 
Members when it came to discussing issues related to environmental sustainability and trade, among 
others. She said that active participation in this committee testified to the fact that for the WTO and 
the multilateral trading sy stem there was a very important role to play when it came to achieving WT/CTE/M/73  
 
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  the SDGs. It was important to Costa Rica that the fundamental principles set forth in the Marrakesh 
Agreement establishing the WTO remained relevant, and that this would give rise to a Ministerial 
Declaration at MC12.  
The representative of Canada  noted that Members' priorities should be to achieve a 
meaningful outcome on environmental sustainability, sending a strong signal on the shared 
commitment to address the climate crisis with all  the tools at disposal, including trade policy tools. 
A strong outcome on environmental sustainability  was important for the relevance of the WTO in the 
21st century, while facing the impact of climate change.  
The representative of the Kingdom of Saudi  Arabia said that in the discussions regarding the 
MC12 outcome of the CTE, his delegation had noticed that some Members were pushing for different 
language attempting to change the mandate of the CTE. Saudi Arabia  could not support such 
approach and any para graph in the MC12 declaration related to trade and environment should be 
highlighting the importance of the mandate of the CTE /CTESS and the impact of trade policies on 
the environment and the comprehensive and inclusive work of programme that encouraged s haring 
experience. Ministers needed to encourage open, transparent, and inclusive dialogue amongst all 
WTO Members and without prejudice to the ir rights and obligations. Discussions of the relationship 
between trade and the environment needed to include al l dimensions of technological innovation 
and development to extend the range of benefits and ensure that all WTO Members participated 
inclusively.  
The representative of Ukraine  noted that it was crucial to concentrate all Members' joint efforts 
on issues w here meaningful outcomes were possible. Any final document issued by the Ministers at 
the end of MC12  should enshrine the commitment that Members' environmental policy, trade -related 
environmental measures should be in accordance with WTO rules, the UNFCCC , the Paris Agreement 
and not be used as a means of discrimination and protectionism.  
The representative of Turkey  welcomed the significant work undertaken in the CTE on the 
nexus of trade and environment noting that the CTE fulfilled a very significant wo rk in enhancing 
transparency by keeping all WTO Members informed on recent developments. This specific task of 
the CTE of informing all Members on the measures taken in the nexus of trade and environment had 
to take place in the scope of a possible paragra ph to be added to the MC12 declaration.  
The representative of New Zealand  noted that trade was a critical tool in advancing Members' 
shared climate change, environmental and sustainable development agendas, including those 
enshrined in the SD Gs and the Pa ris Agreement. The WTO had an important role in supporting such 
work at present and into the future, consistent with the principles set down in the 
Marrakesh  Agreement. New Zealand joined other Members in expressing the opinion that this should 
be reflecte d in the Ministerial Declaration at MC12. New Zealand  supported calls for a high -level 
political messaging that would strengthen the role of the multilateral trading system in attaining the 
shared goals of climate change and sustainable development and promote an inclusive approach to 
trade and development.  
The representative of Switzerland  noted that it was crucial to highlight that the multilateral 
trading system needed to contribute positively to the three planetary crises (climate change, 
biodiversity loss and pollution). She further remarked that the Dec laration had to mention the 
important work the WTO was doing on trade and environmental sustainably related issues, including 
in the CTE and the importance that the WTO stepped up its work on these issues post MC12.  
The representative of Australia  recogni zed the importance of addressing environmental 
sustainability in the run -up to and after MC12. He also emphasized Australia's  support for a reference 
within a statement for MC12 to the important work on trade and the environment to address 
environmental goa ls, including combat ting climate change, undertaken and consistent with 
WTO principles and the work being done in the CTE and elsewhere in the WTO. Australia recogni zed 
the important contribution that the agricultural trade reform could make to environment al 
sustainability, particularly reform of harmful agricultural subsidies that were exacerbating climate 
change. Concluding the fisheries subsidies negotiations would demonstrate the WTO's capacity to 
address environmental sustainability. Australia welcomed  the efforts underway in the TESSD to 
develop a statement by MC12 on future work. The discussions provided a useful avenue to explore 
how to progress trade -related environmental policies and sustainability issues at the WTO. Australia WT/CTE/M/73  
 
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  supported the develop ment of a work programme beyond MC12 that would also include facilitation 
of trade and environmental goods and services and exploring trade promoting avenues to address 
emissions technologies such as encouraging the global uptake of new and emerging low em issions 
technologies.  
The representative of Chile noted a revitalisation on the work on trade and environment in 
the WTO which was expected and necessary in view of the environmental challenges that human 
beings were facing. Chile supported the inclusion of language on trade and environment in the 
ministerial declaration to be concluded at MC12 . 
The representative of Japan  noted that Japan  would make every effort to cooperate with 
Members in drafting the Ministerial Declaration to be jointly agreed upon by  WTO Members as a 
whole in MC12. Japan would like to cooperate with Members to build on the discussion in the CTE 
and CTESS in setting the message for the direction Members should take after MC12 on the issue of 
trade and environment.  
The representative of  Norway  said that the outcome document should include a limited 
number of strong political messages, not only in relation to the pandemic, but also in relation to the 
climate -crisis related challenges, including the rapidly increas e of loss of biodiversity  and the 
pressure on the environment from different sources. The fundamental purpose of WTO was to 
contribute to a sustainable future, both in terms of economic and environmental and social 
sustainability. The delegate hoped that given the urgency of the g lobal challenges, trade and 
environment would be discussed by Ministers at MC12.  
The representative of the Russian Federation  noted that fighting climate change was a 
common  task of all the countries and Members could only address this problem multilateral ly. Any 
policy to mitigate climate change  should be fulfilled in a way not to limit economic growth, trade and 
so as to fight poverty. Taking into consideration the interest of everyone would provide synergy. A 
multilateral basis existed, such as the UNFCC C, the Kyoto Protocol, the Paris Agreement  and the 
WTO agreements. All initiatives by WTO Members should comply with these agreements. He 
mentioned Article 2.2 of the Paris Agreement and 3.5 of the UNFCCC.   
The multilateral trading system intended to avoi d trade restrictions and discrimination. In 
order to avoid discrimination, approaches to greenhouse gases (GHGs ) reductions should not be 
limited to only one method . It was also important to consider the climate projects implemented by 
countries. Every country and every company made efforts to develop ecosystems, including forests. 
These efforts should be considered. He stressed the principles that should be reflected : multilateral 
efforts, recognition and involvement of different methods of emission reduction, exclusion of trade 
limits.   
The representative of the European Union  noted that the world was faced with unprecedented 
environmental and climate challenges. The WTO had to play its role, as trade could make a positive 
contribution. Therefore, Members should collectively send a clear signal at MC12 of their 
determination to enhance the supportive role of trade in tackling climate and environmental 
challenges.  For the European Union the following points should be addressed in the Ministerial 
Declaration: i) in the introductory paragraphs, there should be a contextual recognition of the global 
challenges the world faced, which should include climate and the environm ent; ii) a recognition that 
the multilateral trading system could and should play a positive role in addressing global challenges 
such as climate change, biodiversity loss, and pollution while contributing to the achievement of the 
SDGs  and the objective o f the Paris Agreement; iii) the importance to ensure a sustainable and 
inclusive approach to trade that consider ed the legitimate development requirements of many 
WTO Members, in all areas of WTO work, including through technical assistance and capacity  
building; iv) commitment to further mainstreaming environmental and climate considerations 
through the work of the WTO and reaffirming the role of the CTE as a forum to discuss environmental 
and climate measures with an impact on trade; v) putting discussion s on "trade and environment " 
on the agenda of the ministerial conference, for example, by discussing how to change the wrong 
perception that trade was bad for the environment and the critical and positive role the CTE was 
playing to address it.  
The repres entative of Ecuador  said that his country was committed to environmental 
protection and welcomed any proactive work on trade and environment at the WTO and in other WT/CTE/M/73  
 
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  fora internationally. Ecuador considered it essential that Members acted on trade and the 
environment in the WTO. If climate change was ignored and dealing with it postponed, it would 
hinder economic development and growth. Therefore, it was necessary to address the issue 
collectively. Ecuador expressed its support in the preparation for  MC12. 
The Chair thanked all delegations for their constructive inputs and proposals. As a member -
driven organization, the Chair would keep in mind in the final report the 1994 Committee's mandate 
and the opportunity to take forward the concept of trade policy coh erence and the Committee's 
contribution to the debate on trade and the environment. The Chair took note of all the inputs, 
proposals and statements made during the meeting and encouraged delegations to continue 
reflecting on this very important issue as MC 12 was approaching.   
6  RELATIONS WITH INTERGOVERNMENTAL AND NON -GOVERNMENTAL ORGANIZATIONS, 
ITEM 10  
6.1  Briefings by other observer organizations  
6.1.1   Organisation for Economic Co-operation and Development  
The representative of the Organisation for Economic Co-operation and Development (OECD)  
briefed the Committee on its recent activities on trade and environment.8 The OECD had recently 
released  the OECD Work on Trade and Environment , A Retrospective, 2008 -20209. This was a second 
edition of an OECD series - the first of which covered the period 1991 -2008. Its main contents 
included OECD's work on multilateral and plurilateral trade agreements and environmental policies;  
Regional Trade Agreements  (RTAs)  and the environment including tracking the typology of 
environmental provisions in RTAs and a ssessing their implementation and effectiveness; trade and 
environment policy indicators as well as global environmental issues and related policy responses, 
including climate change, circular economy, biodiversity, en vironment labelling and digitalization.  
 The ongoing work on trade and environment by the OECD's Environment Directorate included 
two pillars: trade and circular economy and trade and environmental sustainability. On trade and 
circular economy , the work f ocused on securing reverse value chains towards a resource -efficient 
and circular economy. On trade and environmental sustainability , there were three sub -pillars: 
(i) greening RTAs focusing on services trade; (ii) the nexus of illegal trade in environment al crime; 
and (iii) the environmental effects  of regional trading blocs and reshoring amid COVID -19.   
A representative of OECD's Trade and Agriculture Directorate updated delegations on the 
release of the 2020 Inventory of support measures for fossil fuel s. The Inventory was an online 
tool10, which identified documents and estimated over a thousand individual policy measures 
supporting the production or consumption of fossil fuels. The Inventory was based on a bottom -up 
approach promoting the transparency of public policies. The scope of the Inventory covered the 
broad concept of support as defined in the WTO Agreement on Subsidies and Countervailing 
Measures (ASCM ). It focused mainly on direct budgetary transfers and tax expenditures. It covered 
50 economi es: OECD  countries and a set of selected partner economies.  
The representative also briefed delegations on the report on a critical review of methodologies 
for ex -ante sustainability impact assessments of Free Trade Agreements (FTAs). International trade 
policies were increasingly explicitly linked to the objective  of supporting sustainable development. 
The impact of FTAs depended on several economic and policy factors, both domestic and 
international. The report provided an assessment of methodologies for estimating the potential 
impact of trade policy on a range o f environmental, social and human rights outcomes. The 
assessment of methodologies was done according to several criteria, including the range of the scope 
of the analysis, the comprehensiveness of the analysis, the translation of the results into actionab le 
policy recommendation, transparency and objectivity and resource intensity.  
The OECD would be  organizing two events on trade and environment through its virtual pavilion 
at COP26 : one on "Tracking government support measures for fossil fuels: enhancing  transparency 
 
8 See document RD/CTE/197.  
9 Available at: https://issuu.com/oecd.publishing/docs/oecd -trade -environment -retrospective -2020.  
10 Available at: Fossil fuels - Organisation for Economic Co -operation and Development (oecd.org) .  WT/CTE/M/73  
 
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  through better data tools" and one on  "Assessing the impact of trade agreements on climate action:  
The critical role of the public voice".  
6.1.2   International Trade Centre   
The representative from the  International Trade Centre ( ITC) provided an overview of their 
work on trade and environmental sustainability.11 As a background, he identified that climate change 
was redefining competitiveness in value chains today and Micro, Small and Medium -sized Enterprises 
(MSMEs ) were facing new risks from cli mate hazards as well as opportunities from environment 
markets. ITC's work, therefore, involved an assessment of these challenges from a micro -economics 
perspective.  
One such challenge was the limited awareness of opportunities in the business case for go ing 
green. ITC recogni zed that sustainability was seen as a burden rather than opportunity for markets 
and value addition which in turn led to limited access to finance and the need for green Aid for Trade 
initiatives. ITC aimed to work closely with MSMEs and support institutions to help them understand 
the value chain risks and opportunities prevailing in their sectors and finding strategies to address 
risks from climate change. Due to these reasons, ITC had approved a new strategy about a year ago 
on trad e and environmental sustainability called Green to Compete. This strategy worked on three 
key themes: climate resilience, circularity, and bioeconomy. It also had a wide array of services and 
support tools that would be deployed to work with stakeholders, primarily small and medium -sized 
enterprises ( SMEs ) and entrepreneurs from developing countries, but also other ecosystem actors 
such as business support organisations and policy makers.  
ITC further demonstrated its new climate and environmental risk asse ssment work tool, which 
aimed at mapping climate risks and opportunities in value chains and enabling SMEs to make the 
most out of them. This methodology, described as a funnel, was developed recently and had begun 
application in countries roughly a year a go. At the value chain level, ITC approached stakeholders 
in a country and attempt ed to understand and identify one to two key products that were a priority 
for them. The standard framework was applied to the value chains of these products at three  stages:  
input supplies, agricultural production, and post -production activities from transport to retail. Each 
stage was said to have a number of risk points within it, and through ITC's analysis which combined 
inputs from stakeholders, primary data analysis, and  literature review of academic technical 
literature, it could zoom onto focus areas and production districts, thereby reducing the general 
founder framework of 27 risk points to a number that ranged between 8 -12 risk and opportunity 
hotspots.  
For each hot spot, it identified key issues and the areas that were most affected by these risks. 
It looked at the adaptive capacity of stakeholders to prepare for and dealing with impact, and finally 
assigned a risk rating which was very simple to understand for every body - low, medium, and high. 
Based on this rating, ITC then identified adaptation options for action by SMEs at each value chain 
risk hotspot and translated these options by making an additional filtering into capacity building 
modules for SMEs and ecosys tem actors that usually focused on three to four hotspots.  
ITC proceeded to provide an example of its work in Fiji, where it asked farmers and exporters 
in farmers workshops to provide an easy quantitative of their perception of risks. It was reported by 
farmers that pest management was a top concern, since they experienced plant disease outbreaks, 
particularly of ginger r oot during periods of heavy rainfall. Water management was also an issue 
since ginger was traditionally grown on slopes which impeded ar tificial irrigation systems, and 
farmers suffered from lack of water during periods affected by drought. This impacted the quality of 
their produce. At the post -production level, exporters told ITC that their highest risk was in post -
harvest management, du e to shortages in raw products. Poor links with farmers substrings had failed 
to allow them to undertake and implement risk mitigating measures.  
It also provided an example of its work in Iraq to demonstrate a strategy of moving from risk 
identification t o strategy formulation. The top concern for farmers and agribusinesses was water 
management, and Iraq was suffering from a water crise due to environmental, climate, and 
institutional practices such as traditional surface irrigation. ITC therefore advised partners and 
stakeholders to establish demonstration plots to sensitise farmers about the benefits of modern 
irrigation and that coupled with greenhouses and other equipment could drastically reduce the 
 
11 See document RD/CTE/200.  WT/CTE/M/73  
 
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  amount of water used in fields. These were examples o f capacity building modules that ITC 
implemented, moving from strategy formulation to implementation.  
ITC also introduced  its most recent work in Iran, where it worked in the medicinal plant value 
chain. Since medicinal plants were in high demand worldwid e, ITC recogni zed that there were unmet 
export opportunities for organic products in the EU Market. Therefore, it developed and implemented 
jointly with local partners a model of training programs on EU market requirements for organic 
agriculture. This tra ining included, both an in -depth comparison of Iranian and EU legal frameworks 
to identify possible gaps as well as practical farming methods and related teaching on topics such 
as plant protection, monitoring of pest, nutrition, soil and nutrient manageme nt.  
It concluded by provid ing another example of a case where it implemented recommendations 
and strategic lines of action from its assessments. Called GRASP, it was ITC 's most advanced project 
and was implemented in Pakistan. This example showed how ITC 's approach to technical assistance 
resulting from the assessment was an integrated one, which also included soft -skill training to 
farmers and MSMEs, Climate -Smart Agriculture Training for farmers to help build resilience to 
climate change, and adoption of  sustainable farming practices and agri -entrepreneurship trainings 
to encourage entrepreneurs to move to value -added activities by incorporating sustainability 
principles into their business. After designing these offers, ITC realised that it also needed t o enable 
beneficiaries to make the best use of these trainings and implement them. Therefore, it began work 
on developing green local markets for climate friendly and low input and low emission technologies.  
ITC explained that it was conducting a mapping jointly with a local university of Climate 
Technology in Pakistan to identify gaps in the provision of technologies such as installing equipment, 
seeds, and other climate friendly inputs that were not available in the country. It also mapped the 
ecosystem to see what enterprises could supply them, with the aim of making farmers aware of the 
opportunities for taking up such technologies. ITC also provided farmers and SMEs with financial 
means to take up these technologies, by implementing a grant scheme for acquiring machinery 
equipment and other working capital, where it assigned extra points to farmers and SMEs that were 
applying and demonstrating the usage of funds for taking up environmental technologies.  
The European Union  thanked the ITC and OECD for t heir important and analytical work on 
environmental sustainability. It noted aspects related to circularity and biodiversity with particular 
interest and encouraged them to continue their work and updates to the WTO.  
7  OTHER BUSINESS  
7.1  Other matters  
The Chair  said that the Committee took note of all the statements made. The next meeting of 
the committee would take place in the first trimester of 2022. The Chair informed delegations that 
the draft Annual Report would take note of all the reflections, suggestion s and issues in view of 
MC12 and would be circulated shortly. The Chair assured delegations about his availability to assist 
at the MC12 and reflect all the messages with faithfulness to the CTE's mandate.  
 
 
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  ANNEX 1: ITEMS OF THE CTE WORK PROGRAMME (1994)  
Item 1:  The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral 
environmental agreements.  
Item 2:  The relationship between envi ronmental policies relevant to trade and environmental 
measures with significant trade effects and the provisions of the multilateral trading 
system.  
Item 3(a):  The relationship between the provisions of the multilateral trading system and 
charges and taxe s for environmental purposes.  
Item 3(b):  The relationship between the provisions of the multilateral trading system and 
requirements for environmental purposes relating to products, including standards 
and technical regulations, packaging, labelling and re cycling.  
Item 4:  The provisions of the multilateral trading system with respect to the transparency of 
trade measures used for environmental purposes and environmental measures and 
requirements which have significant trade effects.  
Item 5:  The relationship  between the dispute settlement mechanisms in the multilateral 
trading system and those found in multilateral environmental agreements.  
Item 6:  The effect of environmental measures on market access, especially in relation to 
developing countries, in partic ular to the least developed among them, and 
environmental benefits of removing trade restrictions and distortions.  
Item 7:  The issue of exports of domestically prohibited goods.  
Item 8:  The relevant provisions of the Agreement on Trade -Related Aspects of I ntellectual 
Property Rights.  
Item 9:  The work programme envisaged in the Decision on Trade in Services and the 
Environment.  
Item 10:  Input to the relevant bodies in respect of appropriate arrangements for relations 
with intergovernmental and non -government al organizations referred to in Article  V 
of the WTO.  
 
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  WT/CTE/M/73  
 
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  ANNEX 2: DOHA MINISTERIAL DECLARATION PARAGRAPHS  
32.  We instruct the Committee on Trade and Environment, in pursuing work on all items on its 
agenda within its 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 purpos es. 
 
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 acti on, including the desirability of 
negotiations.  . . . xxx  
 
33.  We recognize the importance of technical assistance and capacity building in the field of trade 
and environment to developing countries, in particular the least -developed among them. We also  
encourage that expertise and experience be shared with members wishing to perform environmental 
reviews at the national level.  [A report shall be prepared on these activities for the Fifth Session.]  
 
51.  The Committee on Trade and Development  and the Committee on Trade and Environment  shall, 
within their respective mandates, each act as a forum to identify and debate developmental and 
environmental aspects of the negotiations, in order to help achieve the objective of having 
sustainable development  appropriately reflected.  
 
 
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