WT/CTE/23  
 
6 December 2016  
(16-6661) Page: 1/9 
    
 
 
REPORT (201 6) OF THE COMMITTEE O N TRADE AND ENVIRONM ENT 
 
 
1. In 2016, under the Chairmanship of the Ambassador of Chile, Mr. Héctor Casanueva, the 
Committee on Trade and Environment in Regular Session (CTE) held two formal meetings, one  on 
30 June1 and one on 14  (afternoon)  and 15 November2, and one informal meeting on 
14 November, morning.  
2. The work of the CTE was organized in accordance with the mandate established by the 
Doha Ministerial  Declaration, Paragraphs 32, 33 and 51.3 Discussions took place mainly on 
environmental requirements and market access issues under Paragraph 32(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 whic h the elimination or 
reduction of trade restrictions and distortions would benefit trade, the environment and 
development").  Other item s addressed by the CTE were item 14 and item 4.5  
3. No discussion took place under Paragraph 32(ii) (relevant provisions o f the 
TRIPS  Agreement); Paragraph 32(iii) (labelling requirements for environmental purposes); 
Paragraph 33 (technical assistance, capacity building and environmental reviews); and 
Paragraph  51 (developmental and environmental aspects of the negotiations).    
1  PARAGRAPH 32  
1.1  Paragraph 32(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 restr ictions and distortions would benefit 
trade, the environment and development."  
 
1.1.1   Forestry  
4. At the June meeting, Canada  briefed delegations on its forest and forest product governance 
and regulations, which are founded on sustainable forestry management prin ciples. Canada  
explained that these laws and regulations ensured that produc ts originating from Canada were 
from sustainable and legal sources and third -party sustainable forest management standards 
provided assurances that companies operating in Canada do  so legally, sustainably and in 
                                                
1 Available through WT/CTE/M/61 , "Report of the Meeting held on 30 June 2016 ", Note b y the 
Secretariat.  
2 To be circulated through WT/CTE/M/62, "Report of the Meeting held on 14 -15 November 2016",  Note 
by the Secretariat.  
3 The CTE Work Programme and the parts of the Doha Development Agenda that are relevant to the 
work of the CTE Regular  are included in Annexes 1 and 2 respectively.  
4 Item 1 of the CTE Work Programme reads: "The relationship between the provisions of the multilateral 
trading system and trade measures for environmental purposes, including those pursuant to multilateral 
environmental agreements."  
5 Item 4  of the CTE Work Programme reads: "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 s ignificant trade effects."  WT/CTE/ 23 
 
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  compliance with world -recognized standard's for sustainable forest management. Additionally,  the 
Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act  
enforced the Convention on Inter national Trade in Endangered Species of Wild Fauna and Flora 
(CITES) in Canada and controlled imports of non -CITES species that had been obtained illegally, 
which consequentially made it unlawful to import forest products that had been obtained . 
5. Some deleg ations noted  the challenge to ensure that the rights of indigenous peoples whose 
livelihoods were attached to the forest would go hand -in-hand with sustainable forest 
management. Several delegations inquired about  Canada's and other Members' technical 
assistance programmes related to forest sustainability. One delegation expressed interest in the 
impact of Canada' s sustainable forestry measures on imports from developing countries , while 
another delegation requested additional information on  the challenges faced by developing 
countries and least-developed countries  in overcoming illegal logging and associated trade issues.  
6. Several delegations noted that Members' presentations should be limited to the mandate of 
the CTE and should address the effects of envi ronmental measures on market access, in particular 
of developing countries. One delegation stated that Canada 's presentation fit into previous 
CTE discussions on illegal logging and asked the WTO Secretariat to prepare  a summary of such 
discussions.  Howeve r, several other delegations were oppos ed to such a Secretariat  report.    
7. In addition to domestic experiences, delegations were also briefed by the International 
Tropical Timber Organization (ITTO) , via videoconference,  on its recent activities related to forest 
law enforcement and cooperation with CITES.  Two specific programmes  were mentioned : the 
Thematic Programme on Forest Law Enforcement, Governance and Tr ade; and the 
ITTO-CITES  Programme. Several  delegations expressed satisfaction with the implementat ion of 
ITTO's programmes. One delegation expressed concern about the effect of  illegal logging on forest 
degradation, biodiversity and erosion of governance and revenues.   
1.1.2   Organic Agricultural Certification  
8. At the June meeting , Ecuador  presented on  the pro cess and challenges related to organic 
agricultural certification for small and medium -sized enterprises  (SMEs). Some of the p roblems 
faced by small -holder Ecuadorian farmers included: administrative costs, a complex and long 
certification process, and the  lack of harmonization between different certification schemes . 
Ecuador supported preferential tariff treatment for organic products as a means to incentivize 
production, promote sustainable consumption and contribute to global environmental protection. 
One delegation welcomed Ecuador's efforts in promoting organic production and noted that 
certification posed non -tariff barriers to small producers, who in addition faced high costs and a 
lack of profitability in some cases.  
1.1.3   Fossil Fuel Subsidy Reform  
9. At the  June and November meeting s, New Zealand , on behalf of the Friends of Fossil -Fuel 
Subsidy Reform ,6 presented on recent developments , includin g: the presentation of the Fossil -Fuel 
Subsidy Reform Communiqué at the United Nations Framework Convention on Clim ate Change 
Conference of the Parties (CoP) 21 in Paris and CoP 22 in Marrake sh; the inclusion of fossil fuel 
subsidy reform in Nationally Determined Contributions (NDCs); and the reaffirmation in the 
Addis  Ababa Agenda and Sustainable Development Goal 12 of the commitment to rationalize 
inefficient fossil  fuel subsidies . 
10. Several  delegations acknowledged  the importance  of fossil fuel subsidy reform, shared their 
experience  in this area, and supported continued discussions of the topic in the  CTE. Several  other 
delegations highlighted that fossil fuel subsidy reforms had no linkage to the WTO, and were of the 
view that the WTO was not the appropriate venue to discuss such matters .  
                                                
6 The Friends of Fossil Fuel Subsidy Reform is a group of non -G20 countries that support the reform of 
inefficient fossil fuel subsidies. The Friends group (New Zealand, Costa  Rica, Denmark, Ethiopia, Finland, 
Norway, Sweden and Switzerland) was formed in June 2010 to support G20 and APEC leaders' commitments to 
phase out inefficient fossil fuel subsidies.  WT/CTE/ 23 
 
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  1.1.4   Other topics  
11. At the June meeting, the United Nations Conference on Trade and De velopment (UNCTAD)  
presented  on its recent report "Trading into Sustainable Development: Trade, Market Access, and 
the Sustainable Development Goals (SDGs)". Among the key findings were that developing 
countries' share in world trade and exports of environ mental goods w as increasing , and that non -
tariff measures were a key policy interface between the SDGs and international trade. The 
European Union  and Chile shared briefly their experience with integrating sustainable development 
and trade policy. Some del egations were interested to continue discussing this relationship in the 
CTE. One delegation expressed concern with the impact of rapid increases in certification 
requirements  on SMEs.   
12. The Organization for Economic Co -operation and Development (OECD)  presented  on its 
2014 working paper on the stringency of environmental regulations and trade in environmental 
goods. Among its key conclusions were that ambitious environmental policies affected how 
countries specialized and that well -designed, stringent envi ronmental policies increased trade in 
environmental goods.  
13. At the November  meeting, the Food and Agriculture Organization of the United Nations 
(FAO)  presented on the recent 2016  State of World Fisheries  and Aquaculture (SOFIA)  report. The 
representative h ighlighted the important role of fish in food security and provided some 
information on fish trade.  Several delegations showed interest in the report's findings and , in 
accordance with SDG 14.6, some delegations stressed the need to prohibit certain forms  of 
fisheries subsidies which contributed to overcapacity and overfishing, and to eliminate subsidies 
that contributed to illegal, unregulated and unreported (IUU) fishing.  
14. The International Organization for Standardization (ISO)  updated delegations on 
ISO/TS 14067:2013 on  "Greenhouse gases - Carbon footprint of products - Requirements and 
guidelines for  quantification and co mmunication ", and on the multi -party group created by 
Technical Committee  207 to examine the issue of barriers to trade and standards used in 
legislation.  The group was expected to issue its report by the end of 2017.  
2  OTHER ITEMS ON THE CTE'S W ORK PROGRAMME (IT EMS 1, 2, 3(A), 4, 5 , 7, 9, 
AND 10)7 
2.1  Item 1  
"The relationship between the provisions of the multilateral trading system and trad e 
measures for environmental purposes, including those pursuant to multilateral 
environmental agreements."  
2.1.1   United Nations Framework Convention on Climate Change (UNFCCC)  
15. At the June meeting , the United Nations Framework Convention on Climate Change 
(UNFCCC ) briefed delegations on the main features of the Paris Agreement adopted at CoP 21. 
Some delegations noted that the Paris Agreement was a historic landmark in climate action 
cooperation. Some delegations noted that UNFCCC provisions were applicable to the  
Paris Agreement and that obligations continued to differentiate on the basis of development. One 
delegation also noted that many concepts and modalities under the Paris Agreement still needed to 
be defined.  
16. At the June and November meetings , Singapore , Mexico,  China , Brazil  and Chile presented 
their respective Intended Nationally Determined Contribution  (INDCs) and related national 
strategies. One delegation stated that the CTE could play a constructive role in ensuring coherence 
between climate action an d WTO rules. Another  delegation noted that developing Members were in 
a different position as compared to developed Members in addressing climate change and 
highlighted the need to cooperate  internationally.  At the June meeting,  Chinese Taipei  presented 
on its renewable energy policy and projects and highlighted the growth in its exports of renewable 
                                                
7  See Annex 1, the original CTE work programme which includes these items.  WT/CTE/ 23 
 
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  energy technologies and at the November meeting, the delegation  briefed the CTE on its policies 
related to climate change.  
17. At the June meeting, the Republic of  Korea  presented a proposal submitted jointly with 
Canada and Costa Rica on "Deepening the understanding of the relationship between the climate 
change and trade regimes ”. The proposal contemplated further discussions on trade and climate 
change in the CTE  and other appropriate WTO bodies. Several delegations expressed support for 
the proposal and reiterated the importance of enhanced understanding of the links between trade 
and climate change. However, several other delegations requested clarification on t he proposal 
and expressed some concerns, including that the discussions in the CTE should not focus on one 
issue to the detriment of others within the CTE mandate and with an impact on the market access 
for developing Members. Some delegations also objecte d to the proposal as they were of the view 
that climate change issues  could only be discussed in the UNFCCC.  
18. At an informal meeting held on 14 November 2016  and at the formal meeting on 
15 November 2016, the CTE continued its discussions concerning the pro posal. T he 
Republic  of Korea  informed delegations that  Mexico and Chinese Taipei had joined the proposal as 
co-sponsors, and briefed the CTE on their consultations with interested delegations since the 
June meeting. The co -sponsors indicated that they were  flexible regarding the format of the 
discussions on the relationship between trade and climate change. Several delegations reiterated 
previously raised concerns and objections  while several others showed support for a debate on 
trade and climate change to  take place either in a formal or informal meeting of the CTE.  
2.1.2   Convention on International Trade in Endangered Species of Wild Fauna and Flora 
(CITES)  
19. At the November meeting, the Convention on International Trade in Endangered Species of 
Wild Fauna and Fl ora (CITES)  briefed delegations  on CoP 17  held in Johannesburg  in 
October  2016. The main developments included the listing of 500 additional species under 
Appendixes I and II; the adoption of critical decisions to improve the sustainability, legality and 
traceability of trade  in wildlife ; and the initiation of decisive steps to combat illegal trade in wildlife . 
20. The European Union (EU)  present ed the EU Action Plan against Wildlife Trafficking , adopted 
in February 2016, which set a roadmap for the EU strategy  against wildlife trafficking until 2020 . 
The goals of the Action Plan were to:  (i) put wildlife trafficking higher on the political agenda of the 
EU and its member States; (ii) turn commitments into concrete deliverables; and (iii) to reinforce 
EU action against wildlife trafficking in the EU and globally.   
21. The United States (US)  update d the CTE  on the work of its Presidential Task Force on 
Wildlife Trafficking , which included representation and participation from a wide range of 
US government agencies.  The Task Force prepared the  US National Strategy for Combating 
Wildlife Trafficking , issued in February 2014, which included  the following key priorities: 
(i) strengthening enforcement; (ii) reducing demand for illegal taken  and traded wildlife; and 
(iii) expanding international cooperation and commitment . In the latter category, the National 
Strategy specifically called on the United States to use  existing and future US free trade 
agreements (FTAs), environmental cooperation mechanisms and other trade -relate d initiatives to 
help curb wildlife trafficking and strengthen environmental protection . The United States provided 
examples of how it was implementing the National Strategy, including through numerous  trade 
capacity building projects with FTA  partners . 
2.1.3   Convention on Biological Diversity (CBD)  
22. At the November meeting, Mexico  presen ted on the preparation of C oP 13 of the Conve ntion 
on Biological Diversity (CBD) that  was scheduled to take place in Cancun, Mexico from 4 to 
17 December 2016 . In this context, Me xico noted that CBD was the most important multilateral 
instrument to promote biodiversity and equal distribution of benefits from the use of genetic 
resources and indicated that the theme of CoP 13 was “Integrating Biodiversity for Well-being” .  WT/CTE/ 23 
 
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  2.1.4   MEAs deal ing with chemicals and wastes (the Basel, Rotterdam and Stockholm 
(BRS) Conventions)  
23. At the November meeting, the Basel, Rotterdam and Stockholm (BRS) Conventions  briefed 
the CTE on the outcome of the 2015 m eetings of the conferences of the parties to the 
BRS conventions and introduced the preparation of the 2017 m eetings of the conferences of the 
parties to the BRS conventions. In addition, the BRS Conventions presented on its work  regarding 
the management and recycling of  e-waste.  
24. The United Nations Indu strial Development Organization (UNIDO)  presented on its work 
regarding the sustainable management of e -waste, the main barriers to proper e -waste 
management, in particular for developing countries .  
25. Chile presented its Framework Law for Waste M anagement , Extended Producer 
Responsibility and Promotion of Recycling  from June 2016. The main objectives of the framework 
law were to: contribute to SDG 12 by substantially reducing waste generation; incorporate 
producer responsibility for waste management; and pro mote the value of residues and the 
formalization of the recycling sector.  
26. Canada  presented its Chemical Management Plan and its contribution towards meeting the 
goal set at the 2002 World Summit on Sustainable Development to achieve sound management of 
chemicals and waste by 2020. Canada explained that the Plan consisted of domestic measures 
underpinned by the 1999  Canadian Environmental Protection Act and was supported by Canada's 
engagement under international agreements (the BRS  Conventions), regional a nd bilateral 
cooperation (e.g. OECD and the United States), and global policy frameworks (Strategic Approach 
to International Chemicals Management).  
27. Chinese Taipei  briefed delegations on its recycling programme, launched in 1997, aimed at 
implementing the concept of a circular economy. The programme focused on raising public 
awareness regarding the provision and importance of recycling services. It also rewarded 
enterprises, non -governmental organizations and entrepreneurs for successful projects.  
2.2  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. " 
28. At the November meeting, the WTO Secretar iat introduced the  2013 Environmental 
Database  (EDB), circulated in May 2016, highlighting key trends in measures notified. Several 
delegations expressed their appreciation for the tool and the efforts made to compile the 
information for the database. Some  delegations suggested that to facilitate dissemination and ease 
of use the database could be improved with a web -based interface. The Secretariat noted that it 
was already exploring such improvements  subject to the availability of resources.  
3  OTHER BUSINES S 
3.1  Environmental Provisions in Regional Trade Agreements (RTAs)  
29. At the June meeting, several delegations presented their experience with the negotiation 
and implementation of environmental provisions in Regional Trade Agreements (RTAs). The 
European Union  noted that the rationale for including environmental provisions in RTAs was rooted 
in the recognition that environmental policies were an integral part of sustainable development. 
Examples of relevant provisions included provisions that recall ed United Nati ons and other 
international instruments , addressed  domestic environmental laws , signalled agreement to 
facilitate trade and investment in environmental and climate -friendly products , and set good 
practices for environmental policy -making . New Zealand  prese nted its approach to environmental 
provisions in RTAs. These provisions aimed to: (i) demonstrat e the commitment of the Parties to  
 
 WT/CTE/ 23 
 
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  sustainable development; (ii) ensur e that each Party benefited from their comparative 
advantages; and (iii) provid e a mean s for Parties to engage on trade and environment issues.   
30. Chinese Taipei  provided details on the environmental chapter of its FTA with New Zealand 
and noted that environmental provisions in FTAs could both facilitate trade and support sustainable 
developme nt. Switzerland  indicated that the European Free Trade Association had systematically 
included a chapter on sustainable development in its FTAs . The Republic of Korea  noted it had 
concluded FTAs with 51 partners, of which nine had separate chapters dedicat ed to environmental 
issues. These environmental provisions covered dispute settlement procedures, cooperation, civil 
society engagement, sustainable use of biological diversity and traditional knowledge, and the 
sovereign right of Parties with respect to n atural resources and access to genetic resources.  
Chile explained that it had signed 25 trade agreements with 64 economies that included 
environmental provisions varying in form, content and depth. Recent developments included: the 
signature of the Trans -Pacific Partnership Agreement, which contained an environmental chapter; 
the inclusion of environmental matters in on -going negotiations with Uruguay; the development of 
several biannual environmental cooperation work programmes covering a wide range of iss ues; 
and the establishment of a coordination network among relevant institutions.     
31. At the November meeting,  Canada  indicated that,  in negotiating and implementing 
environmental provisions in FTAs, the key principle it followed was to promote mutual 
supportiveness between trade liberalization and environmental protection. Some of the core 
environmental provisions in its FTAs included commitments on: pursuing high levels of 
environmental protection; effectively enforcing environmental laws; and promoting p ublic 
participation, accountability and transparency. New Zealand  presented on the implementation of 
environmental provisions in its RTAs, providing concrete examples of bilateral cooperation under 
its agreement s.  
32. The WTO Secretariat  made a presentation  on environmental provisions in RTAs notified to 
the WTO  based on a WTO staff working paper published in August 2016 .  
3.2  Environmental Goods Agreement Negotiations   
33. At the June and November meeting s, Australia  updated delegations on the status of the 
Environme ntal Goods Agreement (EGA) negotiations launched in July 2014. In July 2016, 
G20 trade ministers had provided a solid boost to the negotiations when they agreed to aim to 
conclude the EGA by the end of 2016, a goal that had been reaffirmed a few months lat er by 
G20 leaders gathered in Hangzhou, China. Once concluded, the EGA would provide significant 
commercial benefits, boosting exports and providing cheaper access to environmentally beneficial 
technologies, while helping to overcome serious environmental challenges such as climate change. 
Some delegations did not support this initiative, which in their view could undermine efforts at the 
multilateral level.     
3.3  Briefings by observer organizations  
34. At the June and November meeting s, the United Nations Enviro nmental Programme (UNEP)  
briefed delegations on its work related to the implementation of the 2030 Agenda, including 
initiatives to promote synergies between trade and environment policies at national, regional and 
global levels. UNEP also presented the de cisions adopted at the second United Nations 
Environmental Assembly (UNEA -2), held in Nairobi in May 2016, and noted the landmark deal 
adopted under the Montreal Protocol in October 2016 to curb the use of hydrofluorocarbons . 
3.4  Other topics  
35. At the November m eeting,  Australia , briefed other deleg ations on the Workshop "The 
WTO and Agenda 2030" , which was  jointly organized by Mexico, Indonesia, the Republic of Korea, 
Turkey and Australia ( MIKTA ). The workshop, held on 12 October 2016, had provided an 
opportunit y to highlight key trade -related outcomes of the 2030 Agenda, including the SDGs, and 
to explore how the WTO could engage in the areas of financing and Aid for Trade, services, 
agriculture, and fisheries.  WT/CTE/ 23 
 
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  36. At the June meeting, the United States  stated that over the years, the CTE had provided an 
important international forum to discuss issues at the centre of trade and environment. As the 
WTO evolved and matured, the United States was interested in further energizing the work in the 
CTE. Some delegations expressed the view  that the CTE agenda should  not be changed . 
 
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 WT/CTE/ 23 
 
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  ANNEX 1:  ITEMS OF T HE CTE WORK PROGRAMM E 
Item 1:  The relationship between the provisions of the multilateral trading system and 
trade measures for environmental purposes, inclu ding 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 purpos es relating to products, including standards 
and technical regulations, packaging, labelling and recycling.  
Item 4:  The provisions of the multilateral trading system with respect to the transparency 
of trade measures used for environmental purposes and env ironmental measures 
and requirements which have significant trade effects.  
Item 5:  The relationship between the dispute settlement mechanisms in the multilateral 
trading system and those found in multilateral environmental agreements.  
Item 6:  The effect of  environmental measures on market access, especially in relation to 
developing countries, in particular to the least developed among them, and 
environmental benefits of removing trade restrictions and distortions.  
Item 7:  The issue of exports of domestical ly prohibited goods.  
Item 8:  The relevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights.  
Item 9:  The work programme envisaged in the Decision on Trade in Services and the 
Environment.  
Item 10:  Input to the relevant bo dies 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/ 23 
 
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ANNEX 2: PARTS OF TH E DOHA MINISTERIAL DECLARAT ION THAT RELATE TO THE W ORK 
OF TH E 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, especia lly in relation to 
developing countries, in particular the least -developed among them, and those situations 
in which the elimination or reduction of trade restrictions and distortions would benefit 
trade, the environment and development;  
 
(ii) the relevant  provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights; and  
 
(iii) labelling requirements for environmental purposes.  
 
Work on these issues should include the identification of any need to clarify relevant WTO rules. 
The Comm ittee 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 the Agreement  on the Application of Sanitary and 
Phytosanitary Measures, nor alter the balance of these rights and obligations, and will take into 
account the needs of developing and least -developed countries.  
 
33.  We recognize the importance of technical assistance a nd 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 nationa l 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 devel opmental 
and environmental aspects of the negotiations, in order to help achieve the objective of having 
sustainable development appropriately reflected.  
 
 
 
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