WT/GC/W/894, WT/CTE/W/255  
G/C/W/830, IP/C/W/703  
G/AG/W/239  
13 July 2023  
(23-4788) Page: 1/7 
General Council  
Committee on Trade and Environment  
Council for Trade in Goods  
Council for Trade -Related Aspects of Intellectual 
Property Rights  
Committee on Agriculture  Original: English  
 
  
PRINCIPLES GUIDING THE DEVELOPMENT AND IMPLEMENTATION OF TRADE -RELATED 
ENVIRONMENTAL MEASURES  
COMMUNICATION FROM THE AFRICA N GROUP (ANGOLA; BENIN; BOTSWANA; BURKINA FASO; 
BURUNDI; CABO VERDE; CAMEROON; CENTRAL AFRICAN REPUBLIC; CHAD; CONGO; CÔTE 
D'IVOIRE; DEMOCRATIC REPUBLIC OF CONGO; DJIBOUTI; EGYPT; ESWATINI; GABON; THE 
GAMBIA; GHANA; GUINEA; GUINEA -BISSAU; KENYA; LESOTHO; LI BERIA; MADAGASCAR; 
MALAWI; MALI; MAURITANIA; MAURITIUS; MOROCCO; MOZAMBIQUE; NAMIBIA; NIGER; 
NIGERIA; RWANDA; SENEGAL; SEYCHELLES; SIERRA LEONE; SOUTH AFRICA; TANZANIA;  
TOGO; TUNISIA; UGANDA; ZAMBIA AND ZIMBABWE)  
The following communication, dated 13 July 2023, is being circulated at the request of the Africa n 
Group.  
 
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1  INTRODUCTION  
1.1.  With growing awareness of the linkage between trade and environment, the Africa n Group (AG) 
notes the unrelenting efforts being made at various levels, as well a s by individual countries at the 
World Trade Organi zation (WTO) to integrate trade and environment policies.  
1.2.  The AG acknowledges the importance of the climate agenda, but equally acknowledges that 
issues on trade and environment that are currently being de bated and likely to be pursued in the 
short-and medium -term in the Committee on Trade and Environment (CTE) could have far -reaching 
implications for developing countries.  
1.3.  Of particular concern are the unilateral environmental measures being pursued by some  
countries, which are implemented with little consideration of their potential impact on developing 
countries and have the effect of:  
(i) undermining the multilaterally agreed mandate of nationally determined contributions 
(NDCs) of the countries of export,  
(ii) conflicting with and undermine the common but differentiated responsibility and equity 
(CBDR) principle,  
(iii) creating a preferential treatment for domestic over imported goods, restricting the 
market access of developing countries and least developed c ountries (LDCs) and creating 
a distortive effect on international trade,  
(iv) diminishing the prospects for development of developing countries, and  
(v) leading to a change in trade patterns with no significant reduction on emissions, and 
such actions will not su cceed in either forcing or encouraging other countries to adopt 
equivalent environment policies.  
 
1.4.  A study commissioned by the African Climate Foundation measured the potential impact based 
on different scenarios for ETS carbon price per tonne and product c overage. It found that even in WT/GC/W/894 • WT/CTE/W/255 • G/C/W/830 • IP/C/W/703 • G/AG/W/239  
 
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  the lightest scenario with the most limited impact, 'Africa 's economy will be negatively affected by 
the CBAM with exports to the EU declining by 4% in total, that Africa will be worse affected than any 
of the other major eco nomies analyzed ...that even at €40 per tonne, the CBAM will raise EU import 
tariff revenue substantially, but have little impact on global CO2 emissions. ' With a higher carbon 
price and more extensive product coverage, Africa 's exports to the EU would decr ease by 5.75%, 
'with Africa 's GDP falling by 1.12% (almost twice the initial scenario of a partial CBAM and a lower 
carbon cost) '. With the impact unevenly distributed among individual countries, some would be 
affected by more than these averages. These in clude Mozambique (an LDC), one of whose most 
important exports is smelted aluminium. According to the Center for Global Development, the CBAM 
levies on its aluminium exports could reduce its GDP by 1.5%. This places a huge disproportional 
responsibility to  a continent that is among the least responsible for greenhouse gas emissions, but 
among those most effected by climate change.  
1.5.  WTO rules do not prevent countries from adopting environmental policies. WTO rules allow 
complementary trade measures that are conducive to effective implementation of domestic 
environmental policies but aim to prevent such measures from creating unnecessary obstacles to 
trade. Therefore, any climate justified measures that directly restrict market access by developing 
countries a nd LDCs ( e.g. by imposing levies), particularly where research shows the gains in 
reduction of carbon emissions is minimal, should be avoided.  
1.6.  Beyond trade, unilateral environmental measures could have implications from an investment, 
industrial developmen t, and job creation perspective. In addition, the distributional impacts of such 
measures will be huge and the administrative and compliance burden and cost for exporting will 
require adequate systems, controls, and procedures to calculate and report on th e quantity of carbon 
embedded emissions. These will be difficult and prohibitive for most, if not all developing countries, 
particularly if the products contain several different inputs as implications will be felt on the 
composition and dynamics of entire  value chains.  
1.7.  Environmental concerns also risk being used as the justification for technical barriers to trade 
(TBTs), further limiting developing country, including LDCs market access. In addition, attempts to 
recategorize  and "greenwash " agricultural su bsidies in the context of agricultural reform 
negotiations, only perpetuate the imbalances in global agricultural trade.  
1.8.  Environmental requirements are increasing daily and increasingly will affect developing 
countries ' market access significantly. The AG seeks to ensure that the climate agenda and measures 
implemented in the context of the environment are not used to advance unilateral and protectionist 
measures and create competitive disadvantages or limit foreign competition for countries that do 
not mee t those standards.  
1.9.  There is a need to shift the narrative regarding the trade -environment nexus, with more 
emphasis on how to address the harmful impacts of trade or trade agreements on the environment, 
while recognizing  the needs of developing countries. Green industrial policies are key if developing 
countries are to adapt to the stresses of a changing climate and are important as there is a need to 
enhance developing country resilience to better manage, adapt and respond to climate risks. 
Developing coun tries are already suffering economic losses due to climate -related disasters. 
Adaptation costs for developing countries are continuously increasing and these will only rise further 
as temperatures increase. Adaptation is less a matter of risk management an d more one of industrial 
development and policies.  Therefore, measures adopted by developed countries as part of industrial 
policies aimed at developing green industries should be available to developing countries. As such, 
the use of policy tools to promo te green industrialization  should be generalized and made available 
to developing countries to level the playing field. This necessitates that the CTE engages on issues 
of importance to developing countries. Doing so highlights the need to better understan d the 
complex relationship between trade, sustainable development and the environment, and the link 
and role international trade can play.  
1.10.  This paper serves as an essential point of reference in addressing trade and environment 
issues; to promote policy d ialogue among the members; to enhance the transparency of unilateral 
measures; to identify gaps; and to address the interface between trade, environment and 
sustainable development with the aim of ensuring that all trade and environment measures are 
geared  towards a sustainable development framework.  WT/GC/W/894 • WT/CTE/W/255 • G/C/W/830 • IP/C/W/703 • G/AG/W/239  
 
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  2  MANDATE OF COMMITTEE ON TRADE AND ENVIRONMENT (CTE)  
2.1.  The CTE is a specialized  body that addresses the relationship between international trade and 
environmental policies. Its mandate is to examine the trade -related aspects of environmental 
measures and ensure that trade rules and environmental policies are mutually supportive. Therefore, 
it is important to note that the committee's mandate is focused on the trade and environment 
interface within the context of the WTO. Its role is to facilitate discussions and promote a better 
understanding of the relationship between trade and environmental policies, rather than establishing 
binding environmental regulations.  
2.2.  Paragraph 32 of the Ministerial declaration adopted in 14 November 2001 instructs the CTE, 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 countr ies, in particular the least -developed among them, and those situations in which 
the elimination or reduction of trade restrictions and distortions would benefit trade, the environment 
and development.  
2.3.  The CTE is moving away from its core mandate and is be ing used to expand the potential for 
the use of environmental measures to restrict market access of goods from certain countries. 
Inclusion of non -mandated issues in the CTE means an expansion of the mandate and effectively a 
change in the CTE work program me. 
2.4.  New initiatives seeking putting environment at the center of trade discussions are given 
prominence in the CTE - the Trade and Environmental Sustainability Structured Discussions (TESSD), 
the Informal Dialogue on Plastics Pollution and Sustainable Plas tics Trade (IDP), and Fossil Fuel 
Subsidy Reform (FFSR). These initiatives are intent on moving forward and examining how trade 
and trade rules can play a positive role in addressing each of their concerns, and how these issues 
could be addressed effective ly within the framework of the WTO. These initiatives occupy an 
important position in the CTE agenda when they should be discussed under Any Other Business 
(AOB) or as experience sharing.  
2.5.  In addition, there is increasing use of unilateral measures, which a re being justified as 
environmental measures. Such measures may not only violate WTO rules, but also undermine the 
WTO principles, and multilaterally negotiated rights and obligations of countries.  
2.6.  Paragraph 14 of the MC12 Outcomes Document recognizes  global environmental challenges 
including climate change and related natural disasters, loss of biodiversity and pollution. However, 
the paragraph does not speak to the CTE mandate. The CTE mandate is reflected in the Doha 
Ministerial Declaration.  The CTE shou ld not be used as a platform for the discussion of non -mandated 
issues. Instead, given the importance of global environmental challenges, now is an opportune time 
for the CTE to refer to its mandate and work programme and review any progress it has made to  
date on the Doha environment mandate. Where there has been no progress, it must be understood 
why. From a substantive perspective, the CTE has not yet succeeded in resulting or coming to closure 
on many of the issues relating to the interface between trad e liberalization  and environmental 
conservation.  
2.7.  Now is also the time for the CTE to invigorate the necessary political will amongst Members to 
move forward on the more difficult environmental issues based on the CTE mandate and work 
programme, and in a ma nner that fits countries ' needs and priorities, and this includes discussions 
taking place within a sustainable development framework that better suits the long -term interests 
and needs of developing countries.  
3  DEVELOPMENT APPROACH TO TRADE AND ENVIRONMEN T 
3.1.  The approach to the trade and environment discussions in line with the CTE mandate and work 
programme requires a holistic, development -oriented and inclusive approach that comprehends the 
complex relationship between trade, environment and sustainable de velopment, taking into account 
the developing country interests and challenges. This is not about being for or against protection of 
the environment. Rather, it is about protection of the environment in a manner that also takes into 
account the unintended consequences of environmental measures on trade, global economy and 
recognizes  the interests and the needs of developing countries.  WT/GC/W/894 • WT/CTE/W/255 • G/C/W/830 • IP/C/W/703 • G/AG/W/239  
 
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  3.1  Importance of Sustainable Development  
3.2.  Sustainable Development is an increasingly important consideration in our work in the WTO 
given the exponential interest to discuss and engage on matters as they relate to the Sustainable 
Development Goals and Trade. Sustainable Development emphasizes  the importance of integrating 
environmental protection, social equity and economic prosperity while aiming to create a more 
resilient, equitable, and prosperous future for people and the planet.  
3.3.  The CTE, along with the Trade and Development Committee, acts as a forum for debating 
environmental and development issues, as called for in paragraph 51 of the 2001 Ministerial 
declaration. The CTE is charged with identifying the relationship between trade measures and 
environmental measures to promote sustainable deve lopment and make appropriate 
recommendations on whether any modifications of the multilateral trading system are required. To 
date, the CTE has yet to agree on any such recommendations.  
3.4.  The CTE should therefore focus on placing sustainable development at t he center  of its 
mandate. The preamble to the Marrakesh Agreement, refers to the importance of sustainable 
development: "There should not be, nor need be, any policy contradiction between upholding and 
safeguarding an open, non -discriminatory and equitable  multilateral trading system on the one hand, 
and acting for the protection of the environment, and the promotion of sustainable development on 
the other. " 
3.5.  The AG proposes the following principles to guide the discussions towards the development 
and implem entation of Trade -related Environmental Measures (TREMs) while ensuring the 
achievement of trade related SDGs; this being our contribution to the discussion in the GC, CTE.  
3.6.  These principles are based amongst others on principles already enshrined in the Ma rrakesh 
Agreement Establishing the World Trade Organization , the 1992 Rio Declaration on Environment and 
Development, Law of the Sea, the United Nations Framework Convention on Climate Change and 
across other international environmental law.  
3.1.1   Guiding Princ iples  
3.7.  The principles are intended to serve as a basis for our engagement in the WTO with five (5) 
core objectives.  
• Increasing understanding among the WTO Membership on the principles underpinning 
TREMs, in particular those that have or will have a global  impact or impact on African 
countries.  
• Ensuring that TREMs achieves coherence with other international agreements and 
frameworks, including climate change agreements, international environmental law 
principles and trade rules. By design, TREMs shall avoi d undermining the objectives and 
principles of other international agreements and frameworks, while also ensuring policy 
coherence between domestic climate goals and international trade commitments . 
• Ensure a better understanding of the relationship between  trade, development and the 
environment, to better understand the links and the role international trade can play.  
• Ensure environmental measures do not create a competitive disadvantage for developing 
countries, or negatively affect developing countries, i ncluding LDCs.  
• Environmental concerns should not be used as justification for TBTs. Proper implementation 
and operationalization  of the Special and differential treatment given to developing countries 
should be provided in this context, to ensure that developing countries ' market share is not 
negatively affected.  
 
1. Compliance and interplay with existing WTO rules  – TREMs intersect with some 
existing rules, at the multilateral level. The principle of Coherence is also applicable to such 
rules in the development of new trade -related climate measures and policies.  
 
2. Common But Differentiated Responsibilities and Respective Capabilities  (CBDR -
RC), – a foundational principle of the United Nations Framework Convention on Climate 
Change (UNFCCC) is generally accepted as one of guiding principles in regulating the 
international standards and rules related to climate change. The CBDR -RC princ iple WT/GC/W/894 • WT/CTE/W/255 • G/C/W/830 • IP/C/W/703 • G/AG/W/239  
 
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  recognizes  that each country should take responsibilities and acknowledges the different 
capabilities and differing responsibilities of individual countries in addressing climate change, 
and that developed countries should bear primary responsibilitie s as they have contributed 
to the largest proportion of historical and current Greenhouse gas (GHG) emissions. (Article 
3 UNFCCC). Developed countries are instructed to take the lead in mitigating greenhouse 
gas emissions and to provide inter alia financia l and technological support to developing 
countries (Article 4 UNFCCC).  
 
3. Special and Differential Treatment (S&DT ) – an embedded treaty right in the WTO that 
requires developed country Members to provide differential treatment to developing country 
Member s. S&DT is based on self -selection and must be precise, effective, and operational.  
 
4. Historical responsibility  – It recognizes the historical responsibility of higher emitters for 
historical environmental degradation and CO2 emissions which have taken pla ce in their 
territories under their sovereignty and the need for them to support lower emitting countries 
in their sustainable development efforts.  
 
5. Polluter Pays  – those who pollute or cause environmental damage should bear the costs 
of pollution prevent ion and control costs, costs of the measures to deal with pollutant 
emissions and the costs of environmental liability.   
 
6. Transparency  – TREMs that have major implications on world trade should be subject to 
more intensive discussions with WTO Members prio r to adoption of the measures is required.  
 
7. Non-discrimination should remain a cornerstone . It is reflected in Article I and III of 
GATT as well as the chapeau to Article XX GATT.  Trade policy measures for environmental 
purposes should not constitute a means of arbitrary or unjustifiable discrimination or a 
disguised restriction on international trade. Unilateral actions to deal with environmental 
challenges outside the jurisdiction  of the importing country should be avoided.  
 
8. Access to and Transfer of Technology  – emphasizes the importance and necessity of 
providing developing countries with access to environmentally sound technologies and 
facilitating the transfer of these technol ogies on favourable term, as well as an enabling 
environment for access to and transfer of technology. It recognizes that technology plays a 
critical role in helping developing countries address environmental challenges effectively.  
 
9. Technical Assistance and Capacity Building  – Developing countries will require support 
in implementing TREMs. Capacity building, technical assistance, and financial support to 
developing countries can help them effectively participate in and benefit from these 
measures.  
 
10. Environmental Integrity and Effectiveness  –TREMs should clearly have an 
environmental impact, be designed to effectively reduce GHG and contribute overall to 
climate objectives. In addition, unintended consequences, in particular for developing 
countries, shou ld be avoided, monitored and mitigated.  
 
11. Environmental Impact Assessment  – For measures with a major global trade impact, 
the ex -ante environmental impact should be estimated, including the impact of major 
drafting changes during the development of the mea sure. Measures that do not have impact 
should expire or be modified.  
 
12. Responsible Business Conduct.  Companies, in particular large transnational companies 
(TNCs) that have a large trade and carbon footprint should be held responsible for climate 
action. T REMs could consider their compliance with climate commitments.  
 
3.2  Engaging on issues of interest to developing countries  
3.2.1   Multilateral Discussions  
3.8.  Any environmental tariff and non -tariff barriers must be subject to multilateral discussions and 
agreement and n ot unilateral, arbitrary, or discriminatory environment measures.  WT/GC/W/894 • WT/CTE/W/255 • G/C/W/830 • IP/C/W/703 • G/AG/W/239  
 
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  3.2.2   Developing country interests and challenges  
3.9.  The CTE must engage on issues of importance to developing countries.  Environmental policies 
are evolving rapidly, particularly in the developed wo rld and environmental requirements are 
increasing at a rapid pace. The emerging environmental policies and environmental requirements 
can, and increasingly will, affect developing countries ' market access significantly.   
3.10.  Compared to developed countries, de veloping countries are more vulnerable to the adverse 
effects of environmental measures on market access and competitiveness and there are various 
reasons as to why:  
(i) Firstly, lack of infrastructural and monitoring facilities, limited technology choices, 
inadequate access to (and relatively more expensive) environmentally friendly raw 
materials and information.  
(ii) Secondly, small, and medium enterprises (SMEs) face more formidable compliance costs 
and there is an increasing emergence of environmental standards of export interest to 
them,  
(iii) Thirdly, developing country enterprises lack the skill and technology required for 
exploiting the trading opportunities generated by environmental measures,  
(iv) Fourthly, developing country exports are more vulnerable to market acce ss barriers due 
to their scale and sectoral composition. A connected problem is the diseconomies of 
scale due to small domestic markets, and  
(v) Finally, while developed markets are more amenable to harmonization efforts, 
developing countries have widely diff ering environmental standards in accordance with 
their national priorities, rendering harmonization  both difficult and inadvisable as 
compared to mutual recognition and equivalence. These issues require attention.  
 
3.2.3   Capacity Building and Technical Assistanc e 
3.11.  Measures like capacity building, technical assistance and technology transfer should be 
strengthened and need to be fit for purpose. There are several areas where technical and capacity 
building assistance can help developing countries, for instance, in bu ilding and maintaining systems 
for environmental monitoring. However, technical and capacity building assistance must be 
accompanied by the requisite technology transfer as the promotion of an equitable and inclusive 
transition to a low carbon economy will  require transfer of technology to developing countries to 
build capacity for resilient economies and to help developing countries and LDCs meet their economic 
development and environmental protection needs. This will, in our view, require a waiver of a 
number of provisions of the TRIPS.  
3.2.4   Adaptation objectives and green Financing  
3.12.  While TREMs focus mainly on mitigation objectives, there is a need to discuss the interlinkage 
between trade and adaptation objectives and how trade could be a tool to advance clima te 
adaptation in developing countries. Further discussions should include how trade could contribute in 
mobilizing  climate finance, including adaptation finance. Developing countries need predictable, 
adequate, and accessible climate finance to achieve mit igation and adaptation objectives. 
Developing countries lack the funds to cope with adaptation needs, yet it is developing countries 
that are paying the price. Therefore, there is a need to provide adaptation finance and ensure that 
50% of climate finance goes to adaptation objectives, as discussed in relevant international fora.  
4  IMPROVED FUNCTIONING OF THE CTE  
4.1.  To improve the functioning of the CTE to ensure it is better able to meet its mandate and work 
programme, we propose the following:  
• The need to hol d thematic discussions, back -to-back with CTE meetings, to focus on issues 
of importance to the African group and developing countries as stated below.  
• Ensuring cross cutting trade and environment dialogue amongst all WTO affected 
committees. A need for be tter coordination and alignment within and between the WTO 
Committees  WT/GC/W/894 • WT/CTE/W/255 • G/C/W/830 • IP/C/W/703 • G/AG/W/239  
 
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  • Collaboration with other environmentally focused and mandated international organizations , 
particularly with regards to issues as per CTE mandate.  
• Focused discussions on the effect of en vironmental 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 e nvironment and development. This may include sharing experience to 
address issues related to the intersection of intellectual property rights and environmental 
concerns.  
• Focused discussions on environmental requirements and market access. The CTE needs to 
examine and develop ideas on how to prevent "green protectionism" and promote "win -win-
win" situations in relation to environmental requirements and market access especially for 
developing and LDC members.  
• Non-mandated issues - TESSD, plastics, fossil fuel s, circular economy - should be moved 
lower down the agenda under AOB or experience sharing items.  
• Balanced Member driven discussions that consider the interests of all Members. WTO 
seminars and discussions on the environment under the CTE must be balanced , including a 
balanced agenda and balanced views based on institutions and panelists invited to address 
the issues.  
• Secretariat papers or opinion pieces should – (i) remain those of the Secretariat and should 
clearly be stated as such; and (ii) should ref lect the reality on the ground and not conflate 
issues nor recategorize  measures in ways not so understood by the Membership.  
 
5  CONCLUSION  
5.1.  Trade and environment linkages present both opportunities and challenges for developing 
countries. These linkages coul d present opportunities for growth and development which can be 
realized if appropriate and multilaterally agreed strategies and policies are put in place. While we 
recognize  that climate change is now widely recognized  not only as the most important 
environmental problem, but also a major development issue, we also recognize  that there are 
growing attempts to undermine the rules and principles that underpin the WTO and the balance 
reached in relation to issues of environmental policies.  
5.2.  If the WTO is to p lay a supportive role in addressing the climate change challenge, it can only 
do so if trade responses are multilaterally agreed and are underpinned by the principle of CBDR. 
This also means that measures to protect the environment should be WTO consistent , not be applied 
arbitrarily nor used as disguised protectionism. For trade and environmental policies to be mutually 
supportive, the necessary balance needs to be struck between ensuring that environmental policies 
are not trade protectionist, and that WT O trade rules do not unduly limit developing country policy 
space for promoting socio -economic development.  
5.3.  Developed countries as the major polluters, must take on the primary responsibility in 
addressing climate change, and this includes providing the n ecessary financial and technological 
support to developing countries to enable adaptation and mitigation. Countries can only mitigate 
after necessary adaptation; therefore, adequate adaptation financing must be provided.  
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