RESTRICTED  
  
WT/CTE/M/57  
 
30 September 2014  
(14-5424)  Page: 1/15  
Committee on Trade and Environment   
 
 REPORT OF THE MEETING HELD ON 30 JUNE 2014 
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Regular) met on 30 June 2014, chaired by 
Ambassador Päivi Kairamo (Finland). The Committee adopted the Airgram, WTO/AIR/4307, 
issued on 27 May 2014. The latest list of documents of the Committee was circulated on 3 May 2013 in document WT/CTE/INF/5/Rev.11 . The Report of the last CTE meeting, held on 
16 October 2013, is contained in WT/CTE/M/56 , dated 31 January 2014. 
_______________ 
 
Contents 
 
1   PARAGRAPH  32 OF THE DOHA MINISTERIAL  DECLARATION  ......................................................................  3 
1.1   PARAGRAPH  32(I) ON MARKET ACCESS AND ENVIRONMENTAL  REQUIREMENTS  ...........................................................  3 
1.1.1   First Part of Paragraph  32(i): "The Effect of Environmental  Measures  on Market Access, especially  in 
relation to Developing  Countries,  in particular   the Least‐Developed  among them" ......................................  3 
1.1.1.1   ISO 14067 Technical  Specification  Related to Greenhouse  Gas Footprint  of Products and ISO Draft 
International  Standard 14046 Related to Water Footprint  ............................................................................................  3 
1.1.2   Second Part of Paragraph  32(i): "Those Situations  in Which the Elimination  or Reduction  of Trade 
Restrictions  and Distortions  Would Benefit Trade, the Environment  and Development"  ...............................  4 
1.1.2.1   Illegal Logging ............................................................................................................................... ....................  4 
1.1.2.1.1   European  Union's Forest Law Enforcement  Governance  and Trade (FLEGT) Action Plan .........................  4 
1.1.2.1.2   Australia's  Illegal Logging Prohibition  Act 2012 and Amendment  Regulation  2013 ..................................  5 
1.1.2.1.3   Indonesia's  Timber Legality Assurance  System (SVLK) ..............................................................................  6 
1.1.2.1.4   Ghana's Timber Legality Program and FLEGT‐VPA ....................................................................................  6 
1.1.2.1.5   Switzerland's  experience  ...........................................................................................................................  6 
1.1.2.1.6   United States' Lacey Act and regional trade agreements  ..........................................................................  7 
1.1.2.1.7   China's experience  ............................................................................................................................... ..... 7 
1.1.2.1.8   Canada's experience  ............................................................................................................................... ... 7 
1.1.2.1.9   Other comments  ............................................................................................................................... ........ 7 
1.1.2.2   Fossil Fuel Subsidy Reform ...............................................................................................................................  8 
1.2   PARAGRAPH  32(III) ON "LABELLING  REQUIREMENTS  FOR ENVIRONMENTAL  PURPOSES " ..................................................  9 
1.2.1   Briefing by the Organization  for Economic  Cooperation  and Development  (OECD) .............................  9 
2   OTHER ITEMS ON THE CTE AGENDA .......................................................................................................  11 
2.1   ITEM 1 OF THE CTE WORK PROGRAMME  ............................................................................................................  11 
3   OTHER BUSINESS  ............................................................................................................................... .... 11 
3.1   DAVOS ENVIRONMENTAL  GOODS INITIATIVE ........................................................................................................  11 
3.2   APEC ENVIRONMENTAL  GOODS LIST .................................................................................................................  11 
3.3   BRIEFING BY THE UNITED NATIONS CONFERENCE  ON TRADE AND DEVELOPMENT  (UNCTAD)  .......................................  12 
3.4   BRIEFING BY THE UNITED NATIONS ENVIRONMENT  PROGRAMME  (UNEP) ................................................................  12 
                                               
1 This document has been prepared under the Secret ariat's own responsibility and is without prejudice 
to the positions of Members or their rights and obligations under the WTO. WT/CTE/M/57 
 
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  3.5   BRIEFING BY THE CONVENTION  ON INTERNATIONAL  TRADE IN ENDANGERED  SPECIES OF WILD FAUNA AND FLORA (CITES) 13 
4   DATE OF NEXT MEETING  ........................................................................................................................  13 
 
 
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 WT/CTE/M/57 
 
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  1  PARAGRAPH 32 OF THE DOHA MINISTERIAL DECLARATION 
1.1  Paragraph 32(i) on Market A ccess and Environmental Requirements 
1.1.1  First Part of Paragraph 32(i): "The Effect of Environmental Measures on Market 
Access, especially in relation to De veloping Countries, in particular  
the Least-Developed among them" 
1.1.1.1  ISO 14067 Technical Specificatio n Related to Greenhouse Gas Footprint of 
Products and ISO Draft International St andard 14046 Related to Water Footprint 
1.1.  The representative of the International Or ganization for Standardization (ISO) provided an 
update on the ISO 14067 technical specification related to the requirements and guidelines for 
quantification and communication of greenhouse ga s footprint of products, published in June 2013. 
An ad-hoc group was established at the plenary meeting of the ISO Technical Committee on 
Environmental Management (ISO/TC 207), held in Panama City in May 2014, to analyse trade 
impacts associated with the application of ISO 14067. According to a survey conducted in 72 countries and presented at the plenary, both developed and developing ISO member countries 
were familiar with ISO 14067, with 32% of IS O member countries having already adopted the 
technical specification and 30% expressed willingness for adoption within the next year or two, following national consultations. The survey further confirmed that thus far no ISO member 
country had transposed ISO 14067 into national le gislation. The survey also revealed that the 
technical specification had generated a medium to high level of interest in the market. 
1.2.  The ISO representative also shared some updated information regarding ISO draft 
international standard (DIS) 14046 related to the principles, requirements and guidelines for 
assessing and reporting the water footprint of products, processes and organizations. Following a 
first public enquiry the draft document was the subject of substantial technical changes and subsequently re-submitted to a second inquiry. At the plenary meeting of the ISO Technical 
Committee on Environmental Management and under ISO's new rules of publication, the expert 
working group on ISO/DIS 14046 agreed to publicat ion without going through a formal vote. The 
final ISO 14046 document was expected by August 2014.  
1.3.  The representative of Egypt invited the ISO representative to further clarify the effects of 
ISO 14067 and ISO/DIS 14046 on market access, in particular the potential impact on developing 
countries' exports. 
1.4.  The representative of ISO referred to th e survey on ISO 14067, which showed that many 
developing ISO member countries having adopted the technical specification perceived it as a 
useful tool and positive for export promotion. Al though the survey results showed no evidence to 
support the concern over negative market access impacts, a more detailed analysis of the current 
situation was required and anticipated for completion towards year-end. ISO was committed to 
review both ISO 14067 and ISO/DIS 14046 within a three-year period to assess the necessity for revision. 
1.5.  The representative of New Zealand support ed ISO's ongoing work in achieving harmonized 
water and carbon footprinting methodologies. Her delegation was of the view that harmonization 
through internationally agreed standards and methodologies could reduce compliance costs and facilitate consumer recognition and trust of related labels, provided footprinting methodologies 
were effective, well designed, based on sound scien ce and able to take situational factors into 
account. 
1.6.  The representative of the European Union (EU) reiterated her delegation's support to the 
ISO work on water and carbon footprinting. While supporting the use of awareness-raising tools in 
the context of water resources management, such as footprinting, certification schemes and communication campaigns to provide water users with incentives to make sustainable choices, the 
EU was of the view that these tools lacked self-sufficiency on which to base policy making. 
1.7.  The representative of China considered th at the lack of support to publish ISO 14067 as a 
standard raised concerns as to whether the technical specification could be used as a trade barrier 
against developing economies and undermine their firms' competitiveness. In his view, should WT/CTE/M/57 
 
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  carbon labelling and accreditation be applied unive rsally, the costs faced by companies, especially 
small and medium sized enterprises (SMEs) in developing countries, could increase. While his delegation remained open for further discussions on the impact of carbon footprinting on developing countries' market access, at this stage, China did not support ISO 14067 to be related 
in any case to WTO rules and disciplines. 
1.8.  The representative of the Kingdom of Saud i Arabia endorsed the statements of Egypt and 
China. His delegation held the view that the a ssessment of carbon footprint on a lifecycle basis 
raised concerns similar to those related to proce sses and production methods and could be used as 
restrictions on trade from developing countries. 
1.9.  The ISO representative stressed that the development process of any standard within 
ISO was based on the principles of openness, tran sparency and consensus and fully abided by the 
principles of the WTO. Although ISO 14067 had not b een published as an international standard, it 
was a document built on a certain level of consensus. 
1.10.  The representative of Canada expressed support for the development of ISO standards and 
technical specifications based on scientifically grounded methodologies and consistent with the 
WTO Agreement on Technical Barriers to Trade (T BT). His delegation was interested to know 
whether the calculation of relative water scarcity in the geographic area of product production was 
incorporated into the ISO/DIS 14046 methodology in order to provide a scientifically valid and 
meaningful measurement. His delegation furthe r expressed concerns about the inclusion of 
evapotranspiration of trees as part of the draft water footprint methodology, which did not seem to 
be based on scientific knowledge and failed to  take into consideration each country's 
particularities, since evapotranspiration of trees was not anthropogenic and neither companies nor 
governments had control over it. 
1.1.2  Second Part of Paragraph 32(i): "Those Situations in Which the Elimination or 
Reduction of Trade Restrictions and Distor tions Would Benefit Trade, the Environment 
and Development" 
1.1.2.1  Illegal Logging 
1.1.2.1.1  European Union's Forest Law Enforcement Governance and Trade (FLEGT) 
Action Plan  
1.11.  The representative of the European Union presented their Forest Law Enforcement 
Governance and Trade (FLEGT) Action Plan aimed at levelling the playing field among illegal and 
legitimate logging operators, by countering the competitive advantage gained by those not abiding 
by national rules. The FLEGT Action Plan relied on the EU Timber Regulation and the development 
of FLEGT Voluntary Partnership Agreements (F LEGT VPAs) with timber producing countries. 
The EU Timber Regulation established three ke y obligations: (i) due diligence to ensure the 
legitimacy of timber products put on the market by  EU operators; (ii) prohibition on placement to 
the EU market illegally harvested timber or timber products derived from such timber; and (iii) a 
traceability obligation applied within the EU to operators or companies trading after the first 
placing on the market. FLEGT VPAs were bila teral agreements between the EU and timber 
exporting countries outside the EU, under which th e timber-producing country established systems 
to verify that its timber exports to the EU were  legal. In return, the EU accepted only licensed 
imports from that partner country. The definition of illegally harvested timber was based on the 
national legislation of the partner country. Timber originating from countries with whom the EU signed a FLEGT VPA and exported with the Conv ention on International Trade in Endangered 
Species of Wild Fauna and Flora (CITES) permits were also considered de facto  legal. As of 
July 2014, six VPAs had been concluded
2 and nine more countries were in negotiation3 with 
the EU. A number of countries in South East Asia and Latin America were also in discussion and 
exchanging information. Besides the FLEGT Acti on Plan and the EU Timber Regulation, both 
expected to be reviewed in 2015 through consultati ons held within and outside the EU, the EU was 
engaged in other forms of cooperation mechanisms with other countries, such as Australia, Brazil, 
                                               
2 The six signatory countries are Ca meroun, the Central African Republic, Ghana, Indonesia, Liberia and 
the Congo. 
3 The nine countries in negotiation are Côte d'Iv oire, the Congo, Gabon, Guyana, Honduras, Laos, 
Malaysia, Thailand and Viet Nam. WT/CTE/M/57 
 
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  China and the United States. Recent regional trade agreements (RTAs) to which the EU was a 
party with Central America, and Colombia and Peru, also included provisions on cooperation to tackle illegal logging and promote trade in legally harvested timber.  
1.12.  The representative of Norway undersco red the need for cooperation between timber-
consuming and producing countries to ensure a win-win-win outcome. As a member of the 
European Economic Area (EEA), Norway would im plement the EU Timber Regulation as national 
law once approved by EEA members. Norway also participated in complementary actions to 
support the creation of incentives to legally harvest timber in developing countries. Engaging in a 
FLEGT VPA was required or strongly recommended  under specific bilateral partnerships with 
countries participating in the United Nations Reducing Emissions from Deforestation and Forest Degradation (UN-REDD) programme in order to have access to REDD+ finance.  
1.13.  The representative of the Plurinational St ate of Bolivia enquired whether countries with a 
national system for accreditation, but without a FLEGT VPA, could export timber and timber 
products to the EU. Her delegation was also interested to know whether a cost-benefit analysis for 
developing countries to sign a VPA had been under taken. It was also unclear whether a VPA would 
have to be re-negotiated each time the national le gislation on timber exploitation changed. In her 
delegation's view, developing countries would need to have sufficient political space so that they 
could, in a sovereign way, manage their own natural resources in compliance with their 
development goals and within the fram ework of shared responsibilities. 
1.14.  The representative of the European Union explained that, under the EU Timber Regulation, 
countries continued to export timber to the EU but European importers were now required to 
demonstrate the legality of imported timber. National certification constituted one of the methods 
to provide information about timber legality. However, unlike national certification schemes, a FLEGT-VPA recognized de facto  the legality of any timber harvested in the country signatory to the 
VPA. The EU and its member States provided partner countries with support to mitigate the 
additional costs incurred in implementing the VPA at  the national level, such as the establishment 
of traceability schemes or platforms for increased transparency. The  structure of FLEGT-VPAs also 
allowed partner countries to easily accommodate national regulatory changes, by referring to the 
relevant national legislation in the VPA annex. Any change in national legislation would only entail a modification of the annex, without requirin g a full ratification process of the VPA.  
1.15.  The representative of Nigeria was interested to know whether these bilateral VPAs would be 
translated into multilateral initiatives. 1.16.  The representative of the European Union noted that the possibility to move to a multilateral 
approach had been raised on a few occasions. His delegation remained open for discussion on 
that issue.  
1.17.  The representative of Papua New Guinea enquired as to the possibility to negotiate a 
VPA between the EU and countries from the South Pacific region, given the challenges faced by 
Papua New Guinea in combatting illegal logging activities.  
1.18.  The representative of the European Union confirmed that any country interested in 
negotiating a VPA could get in contact. Papua New Guinea had already expressed interest and 
initiated discussions with the EU.  
1.1.2.1.2  Australia's Illegal Loggi ng Prohibition Act 2012 and Amendment 
Regulation 2013 
1.19.  The representative of Australia provided  an update of the steps undertaken by the 
Australian Government to address the global problem of illegal logging.4 The Illegal Logging 
Prohibition Act 2012 had come into effect in November 2012. Following consultations with industry representatives and trading partners, the Illega l Logging Prohibition Amendment Regulation 2013 
was adopted. The regulation, which had been notified to the TBT Committee
5, was set to come into 
effect in November 2014. The requirements estab lished under the regulation were, to the extent 
                                               
4 WT/CTE/M/53 
5 G/TBT/N/AUS/96 WT/CTE/M/57 
 
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  possible, aligned with the EU’s Timber Regulation and the United States’ Lacey Act. In particular, 
the regulation would require Australian importers of regulated timber and timber products and 
domestic processors to have a complying due diligence system in place to reduce the risk of illegally logged timber entering the Australian mark et. Australia intended to undertake a range of 
outreach activities in order to raise awareness and promote compliance. Negotiations with key 
trading partners were also undertaken to develop country-specific guidelines to assist operators importing regulated timber into Australia to better understand the regulatory framework. 
1.20.  The representative of Chile enquired about any new developments regarding Australia's TBT 
notification of the Illegal Logging Prohibition Amendment Regulation 2013.   
1.21.  The representative of Australia explaine d that the Illegal Logging Prohibition Act 2012 and 
Illegal Logging Prohibition Amendment Regulation 2013 had been developed through an open and 
transparent process and were fully consistent with Australia's international obligations. 
Her delegation was open to foll ow up bilaterally with Chile.   
1.1.2.1.3  Indonesia's Timber Le gality Assurance System (SVLK) 
1.22.  The representative of Indonesia presented their forest management certification system, 
known as the Timber Legality Assurance System (SVLK), developed by the Indonesian 
Government through multi-stakeholders consultations, as a complement to domestic law 
enforcement. SVLK aimed at zeroing cases of illegal logging by maintaining a sustainable industry 
based on the principles of governance, representa tiveness and credibility. Under SVLK, only forest 
concessionaries in possession of a sustainable forest management (SFM) certificate, granted by a national accreditation body, were allowed to operat e. Compliance costs were difficult to quantify 
and ranged from 2,500 to 80,000 USD, depending on the concessions size, accessibility, and 
distance to the market as well as the industry an d forest owners' capacity to comply with all their 
legal obligations. More recently, Indonesia ratified a FLEGT VPA with the EU, ensuring that 
Indonesian timber products exported to the EU were legal and originated from sustainable forest 
management. The joint implementing committee was scheduled to meet in September 2014 to agree on the VPA launch. Indonesia was also in the process of signing a country-specific guideline 
to Australia's Illegal Logging Prohibition Amendment Regulation 2013. In parallel to these 
initiatives, Indonesia was currently developing a regulation to ensure the legality of imported timber to Indonesia.  
1.23.  The representative of Nigeria enquired as to how conflicting legislation and jurisdiction 
between federal, state and local governments had been dealt with. 1.24.  The representative of Indonesia explained th at consultations with relevant ministries, held 
in 2003, had led to the harmonization of differences in sectoral legislation. Local and district 
regulations had also been adjusted to the central government regulation following challenging 
discussions between central and local governments, and the customary law communities.  
1.1.2.1.4  Ghana's Timber Legality Program and FLEGT-VPA 
1.25.  The representative of Ghana reported on the Timber Legality Program establishing growth 
limits, selective harvesting and felling cycles, annual allowable cuts, and banning logging in 
designated areas of particular ecological interest. Ghana was the first country to conclude a FLEGT-VPA with the EU in 2008. Following adoption in 2009, the national tracking system was 
improved and protocols were developed to monitor and report legal compliance. 
Implementation costs associated with improving the tracking system under the FLEGT-VPA and developing the structure to issue legality licenses were estimated at 12 million USD, excluding the 
operating costs of the system itself.  
1.1.2.1.5  Switzerland's experience 1.26.  The representative of Switzerland noted that the risk of illegal timber harvesting was 
deemed negligible in Switzerland. Swiss forest legislation required forests to be managed in 
accordance with the principles of sustainable fo rest management and for the establishment of a 
system of nationwide supervision and control. In  addition, market transparency was enhanced by 
requiring operators to provide consumers with information on the origin of timber products and the WT/CTE/M/57 
 
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  type of wood used. These measures were designed in a least trade-restrictive manner and avoided 
the creation of barriers to trade and other transaction costs. As an important supplier of wood and wood products to the EU, operators in Switzerlan d supplying the EU market were also subject to 
the EU Timber Regulation. In this bilateral and multilateral context, it was beneficial to seek 
synergies and maintain an open dialogue with trading partners to ensure illegal logging legislations 
did not create unnecessary barriers to trade. Her delegation considered the CTE to be the right place for such information sharing.  
1.1.2.1.6  United States' Lacey Ac t and regional trade agreements  
1.27.  The representative of the United States of America presented the multi-faceted approach 
adopted by the United States to combat illegal logging and associated trade and to promote trade 
in legal wood products. Under the Lacey Act, trade in wood products manufactured from illegally 
harvested and traded timber was prohibited, with the imposition of penalties on illegal traders. 
Formal bilateral dialogues with key trading partners, such as China and Indonesia, were in place. The United States was also active in various international and regional forestry bodies, such as the 
Food and Agriculture Organization (FAO) of the United Nations (UN), CITES, the International 
Tropical Timber Organization (ITTO), the UN Fo rum on Forests, and the Asia-Pacific Economic 
Cooperation (APEC) Experts Group on Illegal Loggi ng and Associated Trade. RTAs concluded by 
the United States constituted another approach to establish commitments and engage in capacity-
building activities. In particular, the United States was cooperating with Peru to carry out an extensive work program designed to assist Peru in implementing obligations under the US-Peru RTA annex on forest sector governance. The United States was currently negotiating to establish 
strong disciplines in the fight against illegal logging and associated trade under the Trans-Pacific 
Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (T-TIP). The United States supported and participated in public-private sector partnerships, underscoring the importance of 
research and development of new technologies to enhance forest monitoring.  
1.1.2.1.7  China's experience  1.28.  The representative of China referred to a series of forestry management laws and 
regulations, including a forest certification system , under implementation to ensure the legitimacy 
of logging, transporting, processing and trading process of timber and timber products. A joint 
work mechanism between governments, industries, research bodies and enterprises had also been established. China recently published a guide directed at Chinese timber-related enterprises 
operating abroad, which underscored the importance of observing host country laws and 
regulations, and related international laws. Outreach activities to promote the guide's implementation had been undertaken in the Russian Federation, Indonesia, Papua New Guinea, 
and Guyana. China had also signed bilateral memoranda of understanding with Australia, the EU, 
Indonesia, Japan, and the United States, and participated in APEC cooperation activities. Similarly China was exploring the possibility of establishing mutual recognition of legal certifications, 
especially with other developing countries and timber-producing countries, so as to ensure the 
legality of the timber source in trade. 
1.1.2.1.8  Canada's experience  1.29.  The representative of Canada explained that  the risk to export illegal timber and timber 
products originating from Canada was negligible thanks to rigorous and effective legislative 
supervision. Canada supported a risk-based appr oach in which consistent enforcement efforts 
focused on imports from regions with a demonstrable risk. Canada's official development 
assistance supported capacity building and governance in forest policy and administrative 
management in a number of developing countries, such as Cameroun. All forms of international 
dialogue working towards combatting illegally harvested and traded forest products were 
encouraged. In this context, Canada welcomed the opportunity to cooperate with Australia to 
design a country-specific guideline to facilitate the implementation of Australia's Illegal Logging Prohibition Amendment Regulation 2013.  
1.1.2.1.9  Other comments 
1.30.  The representative of New Zealand no ted that New Zealand was a small market for 
potentially illegally logged timber imports. Rather than a regulatory approach, New Zealand had WT/CTE/M/57 
 
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  opted for the promotion of voluntary industry initiatives. Her delegation recalled the importance to 
ensure that any policy regime or initiative designed to address illegal logging had to comply with international trade obligations and not be applied in a manner that would constitute a means of arbitrary discrimination or a disguised restriction on trade.  
1.31.  The representative of Nigeria underscored the need for capacity building to improve the 
enforcement of laws and regulations aimed at combatting illegal logging, and to raise awareness 
about its associated impacts. In particular, it was necessary to determine clearly who had the right 
to harvest the forest and how effectively those rights could be enforced. The release of publicly 
available information regarding government decisi ons on the issue was also needed to improve 
transparency and accountability. Ultimately, incentives had to be developed to ensure legal logging was more affordable and easily accessible, and the benefits derived from violating the law did not 
outweigh the cost of non-compliance. 
1.32.  The representative of Mexico highlighted her delegation's interest in the measures related to 
traceability (tracing and tracking) of timber products adopted by a number of WTO Members. The 
approach, adopted by Mexico, was centred on cooperation and the establishment of information 
exchange networks while at the same time combatin g trade in illegally sourced products in Mexico.  
1.1.2.2  Fossil Fuel Subsidy Reform 
1.33.  The representative of New Zealand reported on the key results of a roundtable on fossil fuel 
subsidy reform hosted by the Friends of Fossil Fuel Subsidy Reform (namely Costa Rica, Denmark, 
Ethiopia, Finland, New Zealand, Norway, Sweden and Switzerland), the United States and the World Bank in the margins of the 2014 World Bank and International Monetary Fund (IMF) Spring 
meetings. Both APEC and G-20 peer review processes were voluntary and flexible by allowing the 
volunteering country to determine the scope and composition of the reviewing team, as well as publication of the findings. Efforts to assess and reform fossil fuel subsidies were also discussed 
drawing on the recent experiences of the Dominican Republic, Finland, Indonesia and Mexico. 
While there was no single way of undertaking fossil fuel subsidy reform, the roundtable highlighted a number of common elements associated with successful reform efforts: (i)  a firm understanding 
of the root causes of subsidies and their negative outcomes, as well as the domestic political, 
social and economic context; (ii) coordinated communication and awareness about the negative effects of subsidies, especially with respect to thei r regressive nature benefiting the rich more than 
the poor; (iii)  adherence to clear timelines; and (i v) gradual pace of reform as opposed to rapid 
price increases.  
1.34.  The representative of the European Union reaffirmed their commitment to continue efforts 
to get the G-20 peer review process underway, by being ready to join as a reviewer, encouraging 
broad participation and preferably involving an established partner such as the International 
Energy Agency (IEA). Her delegation stressed that  discussions on fossil fuel subsidies reform fell 
within the CTE's broad scope and contributed to a better understanding of the trade and 
environment relationship.  
1.35.  The representative of the Kingdom of Saudi Arabia noted that the peer review was a 
voluntary process taking place under the G-20, without any linkages to the WTO. His delegation 
was of the view that the CTE was not the appropriate venue to discuss those reforms. 
1.36.  The representative of Qatar endorsed the statement made by the Kingdom of Saudi Arabia.  
1.37.  The representative of Norway was of the view that the mandate of the CTE was broad 
enough to share this type of useful information. 
1.38.  The representative of Canada explained that Canada was taking steps to improve tax 
system neutrality in its resource sector, to support its commitment undertaken as a G-20 member. 
His delegation stressed that discussing this issue within the CTE's broad mandate did not, in any 
way, seek to influence the rights and obligations of WTO Members. 
1.39.  The representative of Chile noted that alth ough there was no direct formal link with the 
WTO, fossil fuel subsidy reform would, in the long run, likely affect international markets and 
ultimately be related to the WTO's work. WT/CTE/M/57 
 
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  1.40.  While taking note of the information provid ed, the representative of the Bolivarian Republic 
of Venezuela echoed the concerns raised by the Kingdom of Saudi Arabia and Qatar.  
1.41.  The representative of South Africa noted that these types of ad-hoc presentations were 
purely informative, without prejudging or pre- empting current negotiations and work in other 
relevant multilateral fora.  
1.42.  The representative of Nigeria supported th e sharing of information and wondered how this 
type of presentation would feed into the work of the CTE.  
1.43.  The representative of New Zealand agreed with the EU and Canada that the mandate of the 
CTE was broad enough to discuss this issue.  New Zealand recognised that international reform 
efforts were at a relatively early stage of building political awareness, but a better understanding of the full range of fossil fuel support measures  to production and consumption and their policy 
objectives was necessary in order to determine which measure could have an efficient or 
environmentally harmful effect. Although New Zealan d did not plan any specific follow-up at this 
point, her delegation continued to be willing to  bring updates forward for transparency purposes 
and to hear views from other WTO Members on the benefits of reforming inefficient fossil 
fuel subsidies. 
1.2  Paragraph 32(iii) on "Labelling requ irements for environmental purposes" 
1.2.1  Briefing by the Organization for Economic Cooperation and Development (OECD) 
1.44.  The representative of the Organization for Economic Cooperation and Development (OECD) 
provided an update on their on-going project on  environmental labelling and information schemes. 
Results from the analysis of a comprehensive characterisation of more than 500 different labelling 
schemes confirmed both the diversity and unequal  growth of the different types of schemes 
identified. Although single-issue environmental seal s remained the most important type of labelling 
scheme on the market, new types of schemes had em erged in recent years, such as quantitative 
reports and voluntary sustainability standards. The analysis also reflected an increasing difficulty in 
distinguishing between purely private sector and purely non-profit initiatives, with the emergence of various hybrid and partnership schemes. 
1.45.  The next step of the project involved anal ysing the implications of the multiplication of 
environmental labelling schemes with respect to  environmental effectiveness and international 
trade. The term 'greenwashing' re ferred to a situation in which a product with poor environmental 
quality promoted a misleading environmental message either through a self-made claim or 
through an inappropriate third party audited labe lling scheme. At the other end of the spectrum, 
'greenbashing' referred to a situation in which an  environmental labelling scheme wrongly assigned 
a low environmental score to a genuinely strong performing environmental product. This could 
happen when the scheme either strongly focused on the distance to market or was otherwise 
inappropriate for particular countries. Yet another related situation occurred when particular labelling schemes would systematically favour do mestic over international producers. Given the 
difficulties to empirically isolate the different fa ctors at play for specific schemes, a theoretical 
model would be used to infer insights.  
1.46.  Another part of the project involved the review on environmental policies and guidelines 
regulating the use of environmental labelling and claims, in particular self-made environmental 
claims (type 2 ISO 14020 series) in the private sector. The analysis of 11 OECD member countries 
highlighted the lack of harmonization of these regulations between countries. Producers working 
internationally could face a situation where a self-reported claim would be valid in one country, 
and invalid in another. The review further noted an increasing number of prosecution cases of 
flagrantly misleading environmental claims that ultimately were removed from the marketplace. 
However, it was unclear whether this was the result of more effective monitoring systems or of an 
increasing number of green claims being made in the market. 
1.47.  The representative of Egypt considered the multiplication of labelling schemes to be a 
problem, especially for developing countries. In this context, his delegation was interested to learn 
more about the effects for developing country exports. His delegation also enquired on whether 
OECD work was focused purely on EU countries and multinationals.  WT/CTE/M/57 
 
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  1.48.  The representative of Canada underscored the importance and usefulness of such objective 
and evidence-based analysis on this increasing ly important topic in the trade and environment 
debate. Canada would continue working constructively on this and other projects through the appropriate OECD working bodies. 
1.49.  The representative of New Zealand noted that although non-discriminatory and transparent 
environmental labelling schemes could enhance and facilitate trade, third country importers found 
it both technically difficult and costly to comply with the confusing range of "one size fits all" 
initiatives. New Zealand remained interested in identifying best practices in encouraging greater 
transparency and non-discrimination in the development and operation of environmental labelling schemes. In this regard, OECD work was viewed as a valuable contribution. 
1.50.  The representative of Mexico recognised that the use of environmental labelling schemes 
had increased on the part of governments as well as civil society and industry. Mexico had 
developed a code of best practice in relation  to the TBT Agreement, in order to prevent 
discrimination between countries and the creation of unnecessary or unjustified obstacles to 
international trade.  
1.51.  The representative of Switzerland shared Mexico's view that environmental schemes should 
not create any unnecessary barriers to trade. His delegation underscored the relevance of the 
OECD work to the CTE which showed how market access to environmental labelled goods could be 
increased, thus contributing to the needs of developed and developing countries.  
1.52.  The representative of China explained th at China had achieved tremendous progress over 
the past ten years through its Environmental Labelling Program. China had signed cooperation 
agreements in environment labelling with eigh t countries and regions, including Australia, 
G e r m a n y ,  J a p a n ,  t h e  R e p u b l i c  o f  K o r e a ,  N e w Zealand and Thailand. Common environmental 
labelling standards agreements have also been negotiated with Germany, Japan and the Republic 
of Korea. In addition, China had established technical relations with international organizations 
such as the UN Environment Programme (UNEP), UN Development Programme (UNDP) and ISO. 
1.53.  The representative of the Kingdom of Saudi Arabia echoed the concerns raised by Mexico 
and Switzerland. While questioning the effectivene ss of environmental labelling, his delegation was 
concerned that mandatory labelling requirements could result in the creation of undue restrictions on trade, especially for developing countries.   
1.54.  The representative of South Africa supported the concerns raised by Egypt. In her view, 
voluntary environmental labelling and information schemes were de facto  mandatory due to their 
potential to compromise and severely constrain market export opportunities for SMEs, particularly from developing and least developed countries. Her delegation enquired on the effectiveness of 
such schemes from a cost-benefit analysis perspective. Her delegation was further interested to 
know to what extent these schemes were based on sound scientific principles, provided for flexibility, promoted innovation and were more tr ade-restrictive than required and discriminatory 
with respect to trading partners.  
1.55.  The representative of the Plurinational State of Bolivia echoed the concerns voiced by Egypt, 
the Kingdom of Saudi Arabia and South Africa with respect to the impact of environmental labelling 
schemes on market access of developing countries and SMEs. 
1.56.  The representative of OECD noted that in  recent years the most recognised international 
sustainability standards sought to be more country-s pecific and sensitive to conditions, in an effort 
to reduce potential trade impacts. The OECD remained committed to provide the most 
comprehensive overview of the issue by consid ering developed and emerging economies. Other 
international fora, such as the UN Forum on Sustainability Standards or the Committee on Sustainability Assessment, were also working on the multiplication of environmental labelling 
schemes.  WT/CTE/M/57 
 
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  2  OTHER ITEMS ON THE CTE AGENDA 
2.1  Item 1 of the CTE Work Programme 
"The relationship between the provisions of  the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral environmental 
agreements." 
2.1.  Following requests by several delegations, the CTE received an informal presentation by the 
WTO Secretariat on "Environment-related Case Law under GATT Article XX". 
3  OTHER BUSINESS 
3.1  Davos Environmental Goods Initiative 3.1.  The representative of Canada reported on  the environmental goods initiative announced by 
14 WTO Members in the margins of the World Economic Forum in Davos in January 2014.6 
Following the announcement of the commitment to achieve global free trade in environmental 
goods, participating members were engaged in internal and domestic consultations, as appropriate. The official launch of the negotiations was set for 8 July 2014. Participating members 
were committed to the principle of transparency and would keep WTO Members apprised of 
progress as the negotiations moved forward.  
3.2.  The representative of China reaffirmed Chin a's consistent support for the liberalization of 
environmental goods. China had been actively and constructively involved in the consultation 
process that led to the adoption of the APEC environmental goods list. China's participation in the Davos environmental goods initiative was viewed as an opportunity to provide impetus to the ongoing WTO Doha negotiations and help strength en the multilateral trading system. The future 
negotiations had to accommodate the concerns of participants with different development levels 
and avoid the misuse of the environmental concept that would otherwise reduce these negotiations into non-agricultural market access negotiations. China was willing to work closely with other 
participants through friendly and constructive negotiation in order to harvest a balanced and 
meaningful outcome towards win-win-win situations. The representative indicated that China was in favour of regular updates on the initiative for transparency purposes.  
3.3.  The representative of Ecuador underscored the need to extend the results of the Davos 
Initiative on a most-favoured nation (MFN) basis in order to strengthen the multilateral trading 
system, using precedents such as the Information Technology Agreement. Ecuador recognised that 
GATT Article XXIV allowed for plurilateral agreements, but those required specific procedures. 
3.4.  The representative of Peru considered that  any multilateral or plurilateral result should 
include all products of interest to developing countries, such as organic products, in order to 
ensure a positive impact on the environment, tr ade and poverty alleviation. Peru would therefore 
support a plurilateral process so long as its scope covered environmental goods of interest to 
developing countries.  
3.5.  The representative of Canada explained th at the scope of the agreement would be clarified 
during the negotiations. Any agreement concluded would be implemented once a critical mass of 
participating members was reached, and would be done on a MFN basis. His delegation was strongly convinced that these efforts would add impetus to the multilateral trading system by 
further liberalizing trade. 
3.2  APEC Environmental Goods List 
3.6.  The representative of China reported on th e last meeting of the APEC Ministers Responsible 
for Trade in May 2014, who released a stand-alone statement on strengthening the multilateral 
trading system, appealing to maintain APEC's leadership in environmental goods trade, and 
                                               
6 The following WTO Members are participating in th e environmental goods initiative: Australia; Canada; 
China; Costa Rica; Chinese Taipei; the EU; Hong Kong, China; Japan; the Republic of Korea; New Zealand; 
Norway; Switzerland, Singapor e; and the United States.  WT/CTE/M/57 
 
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  reaffirming their commitment to implement the APEC  environmental goods list by the end of 2015. 
APEC leaders also directed Ministers to expl ore opportunities in the WTO to build on the 
APEC environmental goods commitment. In this co ntext, the Davos Initiative was welcomed as a 
significant move toward building on APEC's commitments. 
3.3  Briefing by the United Nations Conf erence on Trade and Development (UNCTAD) 
3.7.  The representative of the United Nation s Conference on Trade and Development (UNCTAD) 
reported on the activities of the UN Forum on Sust ainability Standards (UNFSS), a joint initiative of 
FAO, the International Trade Center (ITC), UN CTAD, UNEP, and the United Nations Industrial 
Development Organization (UNIDO). Following the completion of the launch phase in 2013, UNFSS projected publication in 2014 of a flagship report fo cusing on the specific role of governments and 
government regulation in supporting the implemen tation of private standards and the achievement 
of their sustainable development objectives. Policy  dialogue constituted another priority with the 
establishment of two working groups on impact assessment and related data requirements, and on 
enhancing the inter-operability, including harmonization and equivalence, among private 
sustainability standards. UNFSS was also collaborating with national platforms on private 
sustainability standards in China, India and Thailand, the Association of South East Asian Nations (ASEAN) working group on horticultural and food  product standards, the International Cocoa 
Organization, as well as the International Rubber Study Group and the Association of Natural 
Rubber Producing Countries.  
3.4  Briefing by the United Nati ons Environment Programme (UNEP) 
3.8.  The representative of the United Nation s Environment Programme (UNEP) reported on the 
first United Nations Environment Assembly (UNEA) held in Nairobi in June 2014, with over 
1,200 participants and 160 delegations. Sixt een decisions and resolutions encouraging 
international action on major environmental issues ranging from air pollution and illegal trade in 
wildlife to plastic debris in the oceans, chemicals and waste, were adopted. The high-level segment 
focused on Sustainable Development Goals (SDGs) and the post-2015 Development Agenda, including the promotion of sustainable consumption and production patterns, as well as actions to 
counter illegal trade in wildlife. A Symposium on Financing a Green Economy was held to provide a 
platform for raising awareness and discussing among policy-makers and financial actors the 
financing required to green the economy. UNEP’s publication entitled "South-South Trade in Renewable Energy: A Trade Flow Analysis of Selected Environmental Goods" was also launched 
at UNEA. The report highlighted the importance of trade in environmental goods between 
developing countries, which was likely to accelerate  in coming years, offering developing countries 
new opportunities to drive a green economy transition. 
3.9.  The UNEP representative also provided an update on the first Partnership for Action on Green 
Economy (PAGE) Conference held in Dubai in March 2014, with more than 700 participants from government, private and non-governmental sectors. The initiative of the International Labour 
Organization (ILO), UNEP, UNIDO, the United Nations Institute for Training and Research 
(UNITAR), and UNDP provided a voluntary and demand-driven mechanism to support countries in developing and implementing inclusive green economy strategies. A high-level session on green economy and trade was also organized as part of UNEP’s Green Economy and Trade Opportunities 
Project whose objective was to assist developing countries in identifying and seizing trade 
opportunities arising from the transition to a green economy. UNEP continued to develop knowledge on products on trade and green economy for the upcoming publication, in collaboration 
with the International Institute for Sustainable Development (IISD) and the support of Canada, 
Germany and New Zealand, of a handbook for po licy makers on the economic and legal inter-
linkages between trade, the environment and green economy.  
3.10.  The representative of China was interested to learn more about UNEP's work on trade and 
environment, including any relevant research on the impact of environmental measures on market 
access of developing countries. 
3.11.  The representative of UNEP explained that UNEP had contributed to conceptual work on 
market access issues a number of years ago. More recently, the analysis, on a case-by-case basis, 
of market access impacts of environmental measur es formed an essential part of the approach 
adopted by UNEP's Green Economy and Trade Opportunities project . WT/CTE/M/57 
 
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  3.12.  Another representative of the United Nations Environment Programme (UNEP) presented 
the Green Growth Knowledge Platform (GGKP), an initiative jointly established prior to the 
UN Rio+20 Conference by the World Bank, OECD, UNEP and the Global Green Growth Institute. 
The GGKP aimed at (i) developing collaborative research committees in charge of identifying and 
addressing knowledge gaps in green growth theory  and practice; (ii) managing knowledge through 
a dedicated web platform; and (iii) sharing knowledge with practitioners and policymakers through social media and a series of events, conferences,  a n d  w o r k s h o p s .  T o  d a t e  f o u r  p i l o t  r e s e a r c h  
committees on fiscal instruments, trade and co mpetitiveness, indicators and metrics, and 
technology and innovation, had been established, resulting in the publication of over 25 studies. Underpinning the initiative was a robust partnership of over 30 partners, including UN agencies, key research institutes and non-governmental organisations active in the area.  
3.13.  The representative of the Plurinational Stat e of Bolivia recalled that as recognized in the 
Rio+20 outcome document "The Future We Want", there were different approaches, visions, 
models and tools available to each country, in accordance with its national circumstances and 
priorities, to achieve sustainable development.  
3.14.  The representative of Switzerland undersco red the importance of the role of the GGKP in 
collecting, processing and disseminating in-depth theoretical knowledge and practical experience 
necessary for interested stakeholders to build a solid knowledge base to facilitate the transition to 
a green economy. His delegation welcomed further discussion on such initiatives in the CTE. 
3.15.  The representative of the European Unio n supported further discussion on the issue in 
the CTE.  
3.16.  While welcoming the sharing of information and updates, the representative of the 
Kingdom of Saudi Arabia was of the view that further discussion was not needed. 
3.5  Briefing by the Convention on Intern ational Trade in Endangered Species of Wild 
Fauna and Flora (CITES) 
3.17.  The representative of the Convention on In ternational Trade in Endangered Species of Wild 
Fauna and Flora (CITES) reported on the second phase of a joint programme with ITTO which 
launched a study analysing trade volumes of all timber-species listed in CITES Appendices II 
and III. CITES was also engaged in discussions with FAO to develop a cooperative agreement related to forestry. Earlier this year, CITES ha d concluded a memorandum of understanding with 
ITC complementing the existing memorandum of und erstanding with UNCTAD. At the regional and 
national level, CITES was involved in consultations regarding the link between CITES and new 
domestic legislation designed to prevent illegally-sourced timber imports. Illegal trade in rosewood from Madagascar, Southeast Asia and Central America had received increased attention and 
parties to CITES were considering adopting a global approach to address the issue. CITES was also 
working closely with parties, FAO, the private sector and other non-State actors to help parties prepare for the implementation of trade controls on commercially valuable shark and ray species, 
included in CITES Appendix II at the 16
th meeting of the Conference of the Parties (COP).  
3.18.  The representative of the European Union welcomed further discussions on the issue in 
the CTE.  4  DATE OF NEXT MEETING 
4.1.  The next meeting of the Committee is scheduled to take place on 23 October 2014.  
 
_______________ 
 
 WT/CTE/M/57 
 
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  ANNEX 1:  ITEMS OF THE CTE WORK PROGRAMME 
Item 1: The relationship between the provisions of the multilateral trading system and 
trade measures for environmental purposes, including those pursuant to multilateral environmental agreements. 
Item 2: The relationship between environmental policies relevant to trade and 
environmental measures with 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 taxes 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 recycling. 
Item 4: The provisions of the multilateral trad ing 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 disput e settlement mechanisms in the multilateral 
trading system and those found in mu ltilateral environmental agreements. 
Item 6: The effect of environmental measures on market access, especially in relation to 
developing countries, in particular to the least developed among them, and environmental benefits of removing trade restrictions and distortions. 
Item 7: The issue of exports of domestically prohibited goods. 
Item 8: The relevant provisions of the Agreem ent on Trade-Related Aspects of Intellectual 
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-governmental organizations referred to in 
Article V of the WTO. 
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 WT/CTE/M/57 
 
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ANNEX 2: PARTS OF THE DOHA DEVELOPMENT AGENDA THAT RELATE TO THE WORK OF THE 
CTE REGULAR  
 
32.  We instruct the Committee on Trade and Environment, in pursuing work on all items on its 
agenda within its current terms of reference, to give particular attention to:  
(i) the effect of environmental measures on market access, especially in relation to 
developing countries, in particular the least-developed among them, and those situations in which the elimination or reduction of trade restrictions and distortions would benefit trade, the environment and development; 
 
(ii) the relevant provisions of the Agreemen t on Trade-Related Aspects of Intellectual 
Property Rights; and 
 
(iii) labelling requirements for environmental purposes. 
 
Work on these issues should include the identifica tion of any need to clarify relevant WTO rules. 
The Committee shall report to the Fifth Session of the Ministerial Conference, and make recommendations, where appropriate, with respect to future action, including the desirability of negotiations. The outcome of this work as well as the negotiations carried out under 
paragraph 31(i) and (ii) shall be compatible with  the open and non-discriminatory nature of the 
multilateral trading system, shall not add to or diminish the rights and obligations of members 
under existing WTO agreements, in particular th e Agreement on the Application of Sanitary and 
Phytosanitary Measures, nor alter the balance of these rights and obligations, and will take into 
account the needs of developing and least-developed countries.  
33.  We recognize the importance of technical assist ance and capacity building in the field of trade 
and environment to developing countries, in part icular 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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