JOB/TE/64  
 
10 July 2020 
(20-4755) Page: 1/2 
Committee on Trade and Environment  Original: English  
 
STATEMENT OF NEW ZEA LAND ON BEHALF OF TH E SIGNATORIES TO THE  STATEMENT ON 
FOSSIL FUEL SUBSIDY REFORM AT MC11  
Regular Session of the Committee on Trade and Environment (CTE) of 3 July 2020  
 
This document is circulated at the request  of New Zealand . 
 
1. As explained at previous meetings of this Committee, a group of 12 developing and developed 
Members from many regions launched a Joint Statement on Fossil Fuel Subsidy Reform at the 
eleventh WTO Ministerial Conference.  
2. In this statement the signatories confirmed their intention to seek the rationalisation and 
phase out of inefficient fossil fuel subsidies that encourage wasteful consumption, while recognising 
that reform needs to take into account the specific needs and conditions of developi ng countries and 
to minimize the possible adverse impacts on their development in a way that protects poor and 
affected communities.  
3. We also recognized the importance of the WTO as a forum to advance discussions to achieve 
ambitious and effective discipli nes, including through enhanced transparency and reporting to enable 
the evaluation of the trade and resource effects of fossil fuel subsidies programmes.  
4. Since December 2017, we have organised information sharing events to raise awareness of 
the scale an d impacts of fossil fuel subsidies, advances in methodology such as for national reporting 
on SDG 12(c) and the opportunities that reform presents. We note that a wealth of information on 
reporting on SDG12(c) is now available at the SDG 12 Hub.1 Moreover,  we would highlight a recent 
report by IISD "Exploring the Trade Impacts of Fossil Fuel Subsidies " setting out the multiple 
pathways through which fossil fuel subsidies can affect competitiveness and trade at various stages 
of fossil fuel product value cha ins.2 As this report notes the trade impacts of fossil fuel subsidies are 
likely very important in markets for crude fossil fuels, transformed energy products, as well as 
non-energy but energy -intensive products, which are enormous and often highly competi tive. 
Markets for substitute products, such as those related to renewable energy, can also be significantly 
affected.  
5. Prior to the Covid outbreak, New Zealand and other signatories were actively engaging with 
WTO Members to renew the MC11 statement for del ivery at MC12. Our proposed approach included 
making explicit what we see as the key next step: sharing information and experiences at the WTO, 
to develop a supportive international setting for addressing these subsidies and to assist domestic 
reform.  
6. Unfortunately, due to the challenges of Covid -19 here and in capitals, outreach was paused, 
for example, a seminar on that was due to be held in the week of the March CTE was cancelled. We 
were, however, pleased to speak on FFSR at a webinar organised by IISD  on 28 May on Trade and 
Climate after Covid -19 which is available to view online.3 As we explained at this webinar, the sharing 
of information and experience is even more important following the Covid pandemic. Countries are 
launching stimulus packages of unprecedented size to assist the economic recovery. Governments 
are investing in infrastructure, supporting private investment, and considering tax policies to assist 
 
1 https://www.oneplanetnetwork.org/platform -sustainable -development -goal-12. 
2 https://www.iisd.org/library/exploring -trade-impacts -fossil-fuel-subsidies . 
3 https://youtu.be/HD7CdTw5GtU . JOB/TE/64  
 
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  all those affected by the economic consequences of the pandemic. This – combined with low  global 
oil prices  – presents a window of opportunity for reform. Sharing information and experience will let 
us learn from what others might be successfully doing. We plan further events in the Fall focused on 
Fossil Fuel Subsidy Reform as part of a Green  COVID -19 Recovery.  
7. We look forward to further engagement, in the Fall, with Members who might be interested to  
join as signatories . 
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