RESTRICTED  
  
WT/CTE/M/54  
 
15 March 2013  
(13-1400)  Page: 1/19  
Committee on Trade and Environment   
 
 REPORT OF THE MEETING HELD ON 13 NOVEMBER 2012 
 
NOTE BY THE SECRETARIAT1 
The Committee on Trade and Environment (CTE Re gular) met on 13 November 2012, chaired by 
Ambassador Krisda Piampongsant (Thailand).  The Committee adopted the agenda, WTO/AIR/4031, issued on 22 October 2012.  The latest list of documents of the Committee was 
circulated on 4 November 2011 in document WT/CTE/INF/5/Rev.10.  The report of the last formal 
CTE meeting held on 14 November 2011 is contained in WT/CTE/M/53, dated 27 January 2012.   
 
_______________ 
 
Contents 
 
 
 
1   PARAGR APH 32 ........................................................................................................... 3
 
1.1   Paragraph 32(i) on Environmenta l Requirements and Market A ccess ................................. 3  
1.1.1   First part of Paragraph 32(i) on "Envi ronmental Requirements and Market Access" ........... 3  
1.1.1.1   Cap-and-trade emissions tr ading scheme - Repub lic of Korea ..................................... 3  
1.1.1.2   CO 2 Tax - No rway ................................................................................................ 4  
1.1.1.3   Discussion ........................................................................................................... 4  
1.1.2   Second part of Paragraph 32(i) on "S ectoral Analysis" ("win-wi n-win" situations) ............. 7  
1.1.2.1   Fisheries ........................................................................................................... .. 7 
1.1.2.2   Othe r statements ................................................................................................ 11 
1.2   Paragraph 32(ii) on TRIPS ......................................................................................... 12 
1.3   Paragraph 32(iii) on Labelling ..................................................................................... 12 
1.4   Other Items on the CTE Agenda .................................................................................. 12 
1.4.1   Item 4 on Transparency .......................................................................................... 12 
2   PARAGR APH 33 ......................................................................................................... 12  
2.1   First part of Paragraph 33 on "Tec hnical Assistance and Capacity Building" ....................... 12 
2.2   Second part of Paragraph 33 on "Environmental Reviews at the National Level" ................. 13 
3   PARAGR APH 51 ......................................................................................................... 13  
4   OTHER BU SINESS ...................................................................................................... 13  
                                               
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/54 
 
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  4.1   Asia-Pacific Economic C ooperation (APEC)  Discu ssions ................................................... 13 
4.2   Workshop on Environmen tal Technology Dissemina tion .................................................. 17 
4.3   OECD Update on Trade and Environment Activities ........................................................ 18 
5   DATE OF NE XT MEETING ........................................................................................... 19  
 
 WT/CTE/M/54 
 
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  1  PARAGRAPH 32  
1.1  Paragraph 32(i) on Environmen tal Requirements and Market Access 
"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." 
1.1.1  First part of Paragraph 32(i) on "Env ironmental Requirements and Market Access" 
1.1.1.1  Cap-and-trade emissions tr ading scheme - Republic of Korea 
1.1.  The representative of the Republic of Korea informed the CTE on a presidential decree 
implementing a national cap-and-trade emissi ons trading scheme (ETS) and adopted by the 
Korean Cabinet on 13 November 2012.  The ETS, scheduled to be fully operational from 2015 
onwards, would be one of the measures contri buting to achieving the greenhouse gas (GHG) 
emission reduction target of 30% from projected levels by 2020, established by the "low carbon 
green growth strategy" in 2009 as a follow up to the 2008 "low carbon green growth policy". 
1.2.  The representative further explained that the Korean ETS would rely on a 5-year national 
allocation plan defining the total volume of emission permits as well as the complying sectors and types of business covered during the period.  The first phase would last from 2015 to 2017, 
followed by a second period from 2018 to 20 20.  Industries, building and waste companies 
emitting at least 125,000 CO
2 tonnes per year, or single factories generating annually at least 
25,000 CO 2 tonnes, would have to comply with the scheme, as well as entities participating 
voluntarily.  The ETS was expected to cover around 460 entities involved in large-scale electricity 
generation, manufacturing and transportation, and amounting to over 60% of total CO 2 emissions. 
1.3.  The proportion of auctioned emission allowances would increase in the mid- to long-term, in 
order to minimize the burden on industries and ea se the adoption of the scheme, but also ensuring 
a cost-effective GHG reduction in line with the polluter pays principle in the long term.  In 
particular, the whole set of emission permits would be allocated for free during the first phase, while the share of free allocation would be redu ced to 97% of the emission allowances in the 
second phase, and to an unspecified percentage lower than 90% thereafter.   
1.4.  The allocation of free permits to liable en tities would be based on annual emissions over the 
past three years multiplied by an allocation percentage.  Liable entities would have to purchase units in the market if they exceed their annual allocation.  Early CO
2 reduction results would be 
credited up to 3% of the total emissions volume in the form of additional allowances within the 
first phase.  Emission permits could be banked to the next implementation year within the same phase, or the first year of the next phase upon approval by the competent authority.  Additional 
allocation, adjustment and cancellation of emission permits could be implemented in cases of 
changes in the national allocation plan.  
1.5.  It was further indicated that compliance enti ties would be required to report, on an annual 
basis to the official specialized verification institutions, their actual emissions for each 
implementation year.  The data would then be  evaluated and certified by the Ministry of 
Environment.  Failing to provide information on emitted carbon units would result in a penalty equal to three times the average market price of the allowance permit for the compliance year.  An 
emission trading market authority could be establ ished, after the review of the applications of 
qualified institutions by the President's Committee on Green Growth, to ensure fair pricing and safe trading.   
1.6.  In order to stabilize the emissions trad ing market, the competent authority could, upon 
review by the national allocation committee,  set minimum and maximum emission permit 
possession limits, as well as a ceiling and floor price.  In addition, financial support could be 
granted to entities installing GHG mitigation facilities in order to protect their competitiveness after 
the adoption of the ETS.  Financial measures could also be put in place to develop GHG reduction and renewable energy technologies. WT/CTE/M/54 
 
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  1.1.1.2  CO 2 Tax - Norway 
1.7.  The representative of Norway shared information on a national CO 2 tax on offshore 
operations on the Norwegian continental shelf. She recalled that the tax on CO 2 emissions from 
the offshore petroleum industry, introduced in 199 1, had been key in providing the industry with 
incentives to develop technology, increase energy efficiency and reduce CO 2 emissions.  In 
addition to the CO 2 tax, carbon emissions from petroleum activity were covered by the 
European Emissions Trading Scheme (EU-ETS).  
1.8.  The representative explained that in the 2013 budget, the Government proposed to increase 
the CO 2 tax on offshore petroleum activities from 0.49 to 0.96 Norwegian Krona (NOK) per 
standard cubic meter gas from 2013.2  While the Norwegian oil and gas industries had to buy all 
CO2 emission allowances on the EU-ETS market until 2012, they would be subject, from 2013 
onwards, to common allocation rules applied in the EU-ETS.  Thus, part of the CO 2 reduction 
obligation would be covered by free allowances, offsetting the increase in the CO 2 tax rate.3  This 
level of CO 2 tax, together with the cost of the EU-ETS allowances, constituted a reasonable total 
carbon cost for the offshore petroleum activity, and ensured that emissions from offshore 
petroleum activities on the Norwegian continental shelf would remain among the lowest.   
1.9.  The increase in the CO 2 tax was estimated to result in approximately USD 350 million gross 
revenue increase, including the State direct financial interest on the Norwegian continental shelf.  
After deduction from the petroleum tax, the net revenue increase of the rise in the CO 2 tax was 
estimated to be approximately USD 60 million.  Acco rding to estimates, the implementation of the 
CO2 tax resulted in a reduction of 5 million tonnes CO 2-equivalent annually.  In comparison, 
Norway's total emissions were about 50 million tonnes of CO 2 emissions equivalent annually.  
1.1.1.3  Discussion 1.10.  The representative of Australia recalled that the Australian Government had introduced a 
carbon price scheme on 1 July 2012.4  His delegation welcomed other Members' sharing of 
information and supported the wide adoption of emissions trading schemes, including in the Asia-Pacific region. 
1.11.  The representative of Argentina stressed that under Paragraph 32(i) Korea and Norway 
should explain how their schemes would contribute  to sustainable development and avoid possible 
adverse effects on the market access of developing country exports.  It was his delegation's view that the WTO did not have a mandate to negotiate climate change related matters, given that 
climate change negotiations were already ta king place in the United Nations Framework 
Convention on Climate Change (UNFCCC).   
1.12.  The representative of the European Union (EU) welcomed the implementation of domestic 
ETS initiatives and considered that the development of the Korean ETS had provided an early 
mover advantage that should encourage similar developments in the region.  In his delegation's view, the EU-ETS and other domestic ETS' were co re elements of an international carbon market, 
because mandatory cap and trade systems were cost-effective instruments to reduce 
GHG emissions.  Moreover, putting a price on ca rbon was essential to encourage the development 
of the new green economy.   
1.13.  The representative of Cuba reminded the Committee that previous debates in CTE meetings 
had focused on Members' presentations of experien ces in applying product carbon footprinting and 
labelling schemes.  She informed the CTE on the negative vote within the International Organization for Standardization (ISO) on the draft ISO 14067 standard on carbon footprint of 
products.  In her delegation's view, this showed risks of barriers to trade for export products, as 
well as problems of implementation particular ly with regard to developing countries.   
1.14.  The representative of India reiterated the concerns of developing countries on the draft ISO 
standard.  His delegation considered that the standard-setting process had failed to provide for 
transparency and participation of stakeholders, raising concerns on inclusiveness and openness.  
                                               
2 Corresponding to USD 60 or NOK 410 per tonne CO 2.   
3 Further information on Norway's CO 2 tax on offshore operations can be found at www.government.no . 
4 See paragraphs 53-55 of the Report of the CTE Meeting held on 14 November 2011: WT/CTE/M/53. WT/CTE/M/54 
 
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  Adverse effects of the standard on small and medium-sized enterprises (SMEs) in developing 
countries needed to be addressed, since developing countries may face high burdens with regard to conformity assessment procedures.  He criticiz ed the methodology used to estimate effects on 
the environment, that had only focused on global warming, while products' adverse effects on 
other aspects such as resource depletion, soil, water and air pollution, or human health and safety, 
had not been taken into account.  Lastly, the methodology was based on a flawed, assumption-based lifecycle analysis.  In his delegation's view, the carbon footprinting standard being 
developed in the ISO could constitute a disguised restriction to international trade.   
1.15.  The representative of Egypt shared the concerns raised by Argentina that the presentations 
by Korea and Norway did not address the effects of environmental measures on market access for 
developing countries.  His delegation also endors ed the concerns expressed by Cuba and India on 
the potential risk of using the carbon footprinting ISO standard as a disguised restriction to 
international trade.   
1.16.  The representative of South Africa shared the views of Argentina, Cuba, India and Egypt.  
Her delegation was concerned that the proliferation of schemes tended to impose burdensome and 
costly requirements on developing countries, directly impeding and adversely affecting their export interests and access to critical markets, and ther efore the objectives of economic development and 
poverty alleviation. She further requested Korea and Norway to share information on how and 
whether impact assessments were conducted. 
1.17.  The representative of the Bolivarian Repub lic of Venezuela echoed the statements made by 
Argentina, India, Cuba, Egypt and South Africa.  In particular, he noted that the draft 
ISO standard was being developed when current climate change discussions were yet to yield 
concrete results.  In his delegation's view, such measures were difficult to implement and could lead to unnecessary trade barriers and obstacles to developing countries' development.  He further 
criticized ISO's use of a restricted product life-cycle analysis in the calculation of CO
2 emissions 
that failed to take into account pre- and post-product cycle stages.   
1.18.  The representative also explained that his delegation was currently monitoring various 
processes negotiated in other international forums with potential trade effects, similar to the 
carbon footprint.  In particular, he hoped that the on-going process in the Maritime Environment Protection Committee of the International Maritime Organization (IMO) on the introduction of market-based measures aimed at mitigating GHGs  emitted by global fleets would be discussed in 
upcoming CTE meetings.  It was his delegation's view that the proposals on the table were neither 
in line with current climate change discussion s, nor with various provisions of existing 
WTO Agreements.  
1.19.  The representative of the Kingdom of Saudi Arabia echoed Argentina's view that the 
UNFCCC was the appropriate forum to di scuss climate change, and not the WTO. 
1.20.  The representative of Colombia encouraged the kind of presentations made by Korea and 
Norway as a way to share information and enhance transparency.  He shared the concerns raised 
by previous delegations over the lack of progress made in the carbon footprint standard developed 
in the ISO.  His delegation highlighted the importance of multilateral discussions in order to avoid a proliferation of unilateral measures that could result in unnecessary restrictions to trade, notably 
for developing countries. 
1.21.  The representative of Indonesia welcomed  Korea's regulation providing strong commitment 
to support green growth initiatives.  He explai ned that Indonesia was also committed to reducing 
carbon emissions by 6% in total by 2020 and by an  additional 15% owing to international support.  
In his delegation's view, environmental measures had to be transparent, non-discriminatory and based on scientific justification, so as to avoid disguised protectionism or unnecessary barriers to 
imports from developing countries.  In addition, the participation of developing countries in the 
development process of environmental measures ha d to be further encouraged, while ensuring the 
dissemination and transfer of environmentally sound technologies, appropriate technical assistance and enhanced cooperation for implementation.  Additional market access for developing countries 
could also mitigate the negative effects of environmental measures. WT/CTE/M/54 
 
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  1.22.  The representative of Costa Rica supporte d the information shared by Korea and Norway.  
She informed the CTE on Costa Rica's international commitment to become a carbon low economy.  
Costa Rica had been working on a series of poli cies to promote innovation and attract foreign 
direct investment (FDI) in renewable energies, as well as the development of an internal domestic 
carbon market.   
1.23.  The representative of Mexico echoed concerns on the ISO draft standard as a potential trade 
barrier, particularly with regard to exports from developing countries.  In her delegation's view, 
the product life-cycle methodology considered by the ISO draft standard lacked a number of 
important components, while the underlying analysis used failed to take into account the potential impacts of product development on, inter alia , the earth or air. 
1.24.  While recognizing that environmental measures could in some cases facilitate technology 
dissemination, the representative of the Kingdom of Saudi Arabia considered that they could 
constitute barriers to trade and limit the availability of key technologies, particularly those that 
required a large number of components sourced from different countries.  In addition, such 
environmental measures could also cause unnecessary delays in technologies becoming 
commercially unattractive or unattainable for users, and should therefore be eliminated to facilitate the dissemination of technologies.  In his delegation's view, capacity building to address 
the lack of infrastructure, transport and distribution networks at the national level, on one hand, 
and information sharing to raise national and international public awareness regarding the environmental benefit of key technologies, on the other, were essential to ensure market access and encourage technology dissemination.   
1.25.  The representative of Chile recognised  that the presentations by Norway and Korea 
enhanced transparency and contributed to the instit utional credibility of the CTE.  Nevertheless, his 
delegation was concerned with the development of national legislations to remedy global 
multilateral problems that could signal a lack of progress in finding a global solution at the 
multilateral level.   
1.26.  The representative of the Philippines welc omed both presentations and requested Korea to 
keep the CTE informed of further developments.  In particular, he inquired about the trade and 
development aspects of the Korean ETS.  Although this was a national legislation covering national 
jurisdictions and no extra-territorial or trade implications were assumed to occur, he asked whether Korea considered imposing, in case of carbon leakage, measures at the border that would 
impact trade. The representative explained that  the Philippines was making attempts towards a 
new commitment to reduce emissions, but his dele gation shared the view that negotiations and 
commitments on carbon emissions were to be dealt with under the UNFCCC, not the CTE.   
1.27.  The representative of Argentina echoed concerns raised on the development of the ISO 
carbon footprinting standard. 
1.28.  The representative of Pakistan highlighted the importance of enhancing access to 
environmentally friendly technologies, including for the development of alternative sources of 
energy.  It was her delegation's view that participation of developing countries in the standard-setting process of environment-related standards, and institutional collaboration between developed and developing countries to promote innovation, were important.  Ultimately the real 
triple-win for the environment, development and trade would rely on bringing down the costs of 
environment-friendly technologies to a level wher e their adoption would be the only option.   
1.29.  The representative of the United States supported the presentations provided by Korea and 
Norway.  The CTE had an interest and important ro le in discussing climate change measures being 
taken or contemplated by governments or organisations such as the ISO.  She recalled a presentation provided by the ISO at a workshop  organised by the WTO Secretariat on carbon 
footprinting and labelling, and suggested inviting  an ISO representative to brief the CTE on the 
state-of-play of the standard currently under deve lopment.  Her delegation was of the view that 
the CTE work programme was extremely broad and discussion on GHG reduction measures, including their interaction with the global trading regime and WTO rules, could fall under several 
different agenda items.   WT/CTE/M/54 
 
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  1.30.  The representative of Canada welcomed the presentations of Korea and Norway.  It was his 
delegation's view that discussions in the CTE sh ould focus and address the potential impact of 
national measures on trade.  He supported the suggestion to invite an ISO representative to address the CTE, and highlighted the importance  of engaging constructively in multilateral 
processes.   
1.31.  The representative of Norway clarified that the CO
2 tax was a domestic initiative aimed at 
reducing carbon emissions.  She further explained that Norway was working continuously on issues 
such as soil degradation and water, and that th e avoidance of any unnecessary barriers to trade 
remained a priority.  Her delegation was open to  discuss trade-related aspects of climate change 
measures in the CTE, including discussions on the ISO standard. 
1.32.  The representative of Korea confirmed that the Korean ETS was a domestic measure 
targeted at domestic companies and entities and aimed at reducing GHGs emissions and moving 
the Korean economy towards green growth.  Accord ing to impact assessment studies, the scheme 
neither burdened nor harmed trade of domestic co mpanies.  Therefore, his delegation encouraged 
other Members to follow this ex ample with a view to harmonizin g the economic environment.   
1.33.  The representative of Cuba considered that  the invitation of the ISO to the CTE should not 
only focus on the carbon footprinting standard pr oject, as other debates and decisions taking place 
in the ISO could also be of interest to the CTE.   
1.34.  Following upon Colombia's statement, the representative of the Dominican Republic stressed 
the need to foster common decisions at the international level.  However, in her delegation's view, 
one important issue was the lack of involvemen t of developing countries in the development 
process of standards.  This issue, along with pr oduct life-cycle aspects and methodologies, could 
be addressed and discussed during the ISO presentation.   
1.35.  The Chair noted that an ISO representative would be invited to the next meeting to provide 
a presentation covering issues raised by Members.   1.1.2  Second part of Paragraph 32(i) on "S ectoral Analysis" ("win-win-win" situations) 
1.1.2.1  Fisheries 
1.36.  The representative of the European Unio n (EU) presented a paper entitled "Combating 
illegal, unreported and unregulated (IUU) fishing: Establishment of an EU system to prevent, deter 
and eliminate IUU fishing".5  He explained that the EU had introduced a transparent and non-
discriminatory system applied to EU member Stat es and third country fishing vessels under any 
flag in all maritime waters in order to prevent, deter and eliminate processed and unprocessed 
marine fishery products derived from illegal fishing activity and destined to be traded to or from 
the European Union (including re-import to the European Union).  IUU fishing activities worldwide 
amounted approximately to €10 billion annually.  
1.37.  The EU system relied on two basic princi ples: (i) a catch certification system as an 
operational tool applying to all marine fisheries products, including processed products, traded 
with the EU;  and (ii) the application of appropriate and relevant national and international laws 
and regulations related to fisheries as well as international conservation and management measures, such as the Food and Agriculture Organization's (FAO) port state measures.  The catch certificate system ensured that certified catches, validated by appropriate flag status authorities, 
were made in accordance with the applicable national or international laws as well as management 
and conservation measures.   
1.38.  He further noted that the overall objectives of the EU system were to combat illegal fishing 
activities, correct the level playing field for fi shermen and traders, and improve the management 
and control of flag states over their vessels.  The European Union aimed to help sustainable management of fisheries, improve cooperation in the fight against IUU fishing, enhance traceability 
of fisheries products, and improve welfare and livelihood of fishing communities and local 
fishermen.  That was why, prior to the entry into force of the EU system, a set of seminars had 
                                               
5 The submission was circulated in document JOB/TE/27 on 29 October 2012. WT/CTE/M/54 
 
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  been held with third countries and an assessment study on the impact of the regulation on 
developing countries had been carried out.  In addition, since 2010 the European Union had continuously been working with third countries in bilateral meetings or international forums such as the Association of Southeast Asian Nations (ASEAN) and FAO.  Besides a programme to 
facilitate and improve national/regional fisheries management action plans or policies of third 
countries, technical assistance programmes, running from 2010 to 2012, were also introduced to support developing countries in their implementation of the regulation.   
1.39.  The representative of Egypt indicated that while the EU system applied to vessels in national 
waters and high sea, issues related to the manage ment of fishing in high sea were already covered 
by the United Nations Convention on the Law of the Sea (UNCLOS).  His delegation was concerned 
that the implementation and verification procedure of the IUU regulation could be trade-restrictive 
for exporting developing countries, not only in relation to the complexity of the procedures, 
information required and related financial implications, but also with regard to the implementation process which would need to take into consideration the technical difficulties of exporting 
developing countries.  His delegation was therefore of the view that there was a need to analyse 
the financial cost of implementation of the system, including logistical and security issues with regard to monitoring activities of fishing vessels.   
1.40.  The representative noted that any regulation  had to be in line with principles, rules and 
regulations of the WTO, particularly in relation to the application of sanctions.  In particular, he was interested to know whether possible sanctions, including compliance standards, referred to membership in international treaties or to the FAO's 1993 compliance agreement.  Given that 
Egypt was not a member to all treaties, he co nsidered that new standards included in the 
EU regulation to measure the degree of compliance could be perceived as indirect pressure to join specific international treaties and negatively affect the access of developing countries' fisheries 
products to the EU market.  Finally, the representative asked the European Union to shed light on 
the risk assessment that had been carried out an d on the compatibility of the regulation with 
Article 2.1 of the Agreement on Technical Barriers to Trade (TBT). 
1.41.  The representative of Mexico expressed concerns over the potential impact of the 
EU regulation on trade in fisheries products.  In his delegation's view, Members should refrain from 
resorting to unilateral measures to address IUU fishing, as it was an issue that should be dealt with in the appropriate multilateral forum, such  as the FAO and regional fisheries management 
organizations.  In fact, he noted that unilateral regulations had been established without first 
submitting such measures to the relevant forums.  Further, as this type of fishing activity was concentrated in certain regions of the world, his delegation considered that such measures should 
not be generalized.   
1.42.  The representative further highlighted the lack of consensus, even in the FAO, on the 
definition of "illegal, unreported and unregulated" fishing activities.  He therefore requested 
whether the EU regulation considered, as IUU fishing only activities that were simultaneously 
illegal, unreported and unregulated or whether it covered any fishing activities which met one of these three presuppositions.  His delegation was of the view that such regulations should not 
proliferate and should first require analysis from the point of view of a potential trade barrier.  
That was the reason why the issue should be brought before the TBT Committee.  Further, he 
noted that observations made by certain Mexican stakeholders had not been taken into account in the final EU regulation.   
1.43.  The representative of Morocco informed that the fisheries sector represented 50% of total 
exports in the Moroccan trade balance and more than 50% of food exports, worth USD 600 million 
annually.  His delegation endorsed the European Union's measure to combat illegal fishing, and 
asked for complete information on its implementation that could have practical repercussions in 
terms of sanctions against flag states of fishing vessels.        
1.44.  The representative of New Zealand supported  the European Union's initiative to tackle the 
problem of IUU fishing and its efforts to reach out to its bilateral partners to ensure smooth 
implementation of the regulation.  Her delegation  was eager to provide input to the forthcoming 
IUU regulation review process and encouraged other states engaged in fisheries trade with the European Union to do the same.  She noted that it was important that such market measures met 
common principles and criteria, such as transparency, non-discrimination and consistency with 
WTO principles, rights and obligations.  However, the lack of coordination or harmonization of WT/CTE/M/54 
 
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  market measures, currently in place and under development, created a risk of multiple 
requirements, duplicating importers' and expo rters' efforts and systems and potentially 
undermining the schemes and their objectives.  Therefore, her delegation recommended the use of the principle of equivalence.  She noted that while the EU regulation came close with regard to the 
catch certificate, no provision for processing certif icates (Annex IV) were available.  In her view, a 
risk-based approach should underpin traceabili ty and certification systems, including their 
implementation at the border, so that IUU products could be treated in a similar way to 
IUU vessels under the FAO Agreement on Port State Measures to Prevent, Deter and Eliminate 
Illegal, Unreported and Unregulated Fishing, wher eby the degree and extent of inspections at the 
border and the degree of traceability were prop ortional to the risks posed and the value of the 
fishery.  High value products from countries or fisheries considered as high risk would therefore 
warrant greater attention than low value products from well managed fisheries. 
1.45.  The representative of Argentina commented that the CTE was not the appropriate forum for 
discussions on sectoral issues.  With respect to the European Union's paper, his delegation was of 
the view that it would have been preferable to assess first the measure with respect to the 
potential relationship between the triple "win" situations and the prohibition of fisheries subsidies.  Such discussion would have to take place in the Negotiating Group on Rules. 
1.46.  The representative of Canada informed th at his Government had been working closely with 
the European Union during the adoption of the re gulation and a record of decisions regarding the 
certification of Canadian exports had been signed between them.  He further noted the importance of ensuring that the design and implementation of measures were based on risk assessment.  
1.47.  The representative of Japan informed th at Japan and the European Union had signed and 
issued a joint statement to combat IUU fishing activities.  His delegation endorsed the importance 
of further cooperation in strengthening the maritime resources management system through 
concrete measures based on the joint statemen t and in forums such as regional fisheries 
management organisations. 
1.48.  The representative of Australia supported efforts towards more sustainable management of 
fisheries, reduced capacity of fishing fleets, strengthened compliance with fishery rules and 
regulations, and improved sustainability of fishin g resources.  He explained that at the national 
management level, Australia already applied a st ringent management regime to vessels operating 
under its flag and encouraged open and free trade in sustainable, environmentally responsible and 
legally caught seafood products.  Risk-based fisheries monitoring and compliance regimes had 
been developed and implemented by both Federal and State Government to ensure integrity of 
fisheries management arrangements.  In addition, Australia was considering strengthening existing 
fisheries management and conservation arrangements, and pursuing the development and 
adoption of new international measures to combat IUU fishing.  His delegation therefore urged all Members to fully implement key international instruments to ensure that their vessels did not act 
in contravention of their international obligations.   
1.49.  The representative of Angola highlighted that African countries, without protection 
measures, had been facing constant violation of territorial waters and piracy of aquatic resources.  
IUU fishing represented therefore a barrier to  proper fisheries management damaging the 
environment and giving rise to real economic loss and notable negative social impacts in the 
medium- and long-term on poverty alleviation and f ood security.  His delegation was of the view 
that given African countries' limited institutional and human resources capacity to ensure the 
necessary certification of fishery products, such certification schemes constituted a non-tariff 
barrier and would not effectively deal with the problem.  In particular, he enquired about incursions on the high seas and the effects that this might have on IUU fishing, taken into account 
the fact that means to address IUU fishing on the high seas were often costly and difficult to 
implement, particularly for developing countries.  His delegation suggested inviting representatives of the FAO to engage in a more thorough discussion. 
1.50.  The representative of Norway acknowledged that IUU fishing was a huge challenge with 
clear environmental relevance.  That is why No rway had made substantial efforts to implement 
agreements and other measures to control and restrict IUU fishing, including port State control between neighbouring countries in the Atlantic and North Sea.   WT/CTE/M/54 
 
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  1.51.  The representative of Switzerland shared similar targets and goals to combat IUU fishing 
and supported the European Union's efforts to secure fish stocks for future generations.   
1.52.  The representative of the Kingdom of Saudi Arabia considered that holding sectoral 
discussions under this agenda item should be avoi ded, because of the complexity of the matter for 
each sector and the interplay of relevant negotiations.  This was particularly the case for the 
energy sector.  
1.53.  The representative of the United States  endorsed the combatting of IUU fishing and 
considered it relevant for discussion in the CTE.  Her delegation was interested to know whether 
the European Union was considering modifying th e scope of its regulation based on a species-
specific or country-specific risk-based approach, and moving towards electronic reporting.    
1.54.  The representative of Indonesia explained that the Indonesian economic ecosystem zone 
had suffered annual losses from IUU activities.  Therefore, combatting IUU fishing domestically, 
regionally and internationally was of prior importance.  Yet, his delegation was of the view that any regulation combatting IUU fishing should uphold the principles of transparency, non-discrimination, 
and not be more trade restrictive than necessary, while carefully taking the development 
dimension into consideration.   
1.55.  The representative of South Africa echoed  the systemic issue concerning sectoral-based 
discussion in the CTE.   
1.56.  The representative of the Philippines said that his delegation was supportive of the global 
initiative to combat IUU fishing as far as fisheries subsidies were concerned, in particular 
WTO rules negotiations.  Any initiative addressing global environmental issues should impose 
least-trade restrictive measures necessary to achieve their desired objective.  As economy and 
trade were affected by this kind of measure, he  stressed the importance of technical assistance, 
which the European Union had offered to affected countries.   
1.57.  The representative of the European Union, clarified that countries, including EU member 
States, were expected to be responsible for their vessels and fisheries stocks and comply with their 
obligations under international law related to fisheries management and vessels.  His delegation 
was therefore of the view that the EU IUU Regulation was not a technical barrier to trade.  The 
European Commission would submit a report on the implementation of the IUU Regulation to its member States and the European Parliament by the end of 2013.   
1.58.  Further, the representative stressed that the EU system did not depart from existing rules in 
terms of traceability and illegal fishing activities in high sea.  For instance, the provisions on 
transhipment in high sea of the EU system were  based on the specific rules provided by the 
International Commission for the Conservation of Atlantic Tunas (ICCAT).
6  He also referred to the 
2001 FAO's international plan of action to combat illegal fishing activities which defined clearly the 
terms "illegal", "unreported", and "unregulated".   
1.59.  The representative of the European Unio n recalled that regional fisheries management 
organisations under the "Kobe process" were looking at ways to harmonize their electronic 
reporting systems.  The European Union was involved in this process and keen on learning how to develop and use this in their own regulation.  
1.60.  Finally, the representative confirmed that  documentation schemes for trading of fisheries 
products, such as the most developed one at present under ICCAT, were automatically accepted as 
equivalent to the catch certification in the EU system.  Overall, the European Union was a net importer of fisheries, but remained committed to combat illegal trade and to correct the level 
playing field in line with FAO recommendations and long-standing international policies.  
1.61.  The representative of the Organization for Economic Cooperation and Development (OECD) 
informed on recent developments in the OECD Committee on Fisheries, which had launched work 
on green growth and fisheries.  Starting with an analytical framework focusing on economic 
aspects, an overarching clarification of the concept of green growth for the development, 
                                               
6 For further information see http://www.iccat.int/en/ . WT/CTE/M/54 
 
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  management, and interaction of fisheries and aq uaculture, was developed.  Green growth in 
fisheries would address, inter alia,  governance, energy use including tax exemptions, bycatch and 
discards, and ecosystem-based management, stakeholder participation and indicators along the value chain, while green growth in aquaculture wo uld cover aspects relating to governance, energy 
inputs such as feed composition, food feed relations, drugs or vaccines, interaction with the 
environment such as discharges, escapees, genetic interactions, and stakeholder participation indicators along the value chain.   
1.62.  The OECD representative also indicated th at the Committee on Fisheries was finalizing a 
handbook on fisheries management that would be published in April 2013.  The handbook would provide an economic policy overview of important areas for fisheries managers, including the use of economic instruments, and the economics of, fisheries management.   
1.1.2.2  Other statements 
1.63.  The representative of the United Nations Environment Programme (UNEP) presented 
activities relevant to the work of the CTE.  Sh e recalled that the Rio+20 Conference in June 2012 
had encouraged countries to implement green economy policies, while emphasising the need to 
take into account national circumstances and priorities.  Rio+20 had also provided some guiding principles for the development of green economy policies, including consistency with international 
laws and trade rules, avoiding conditionalities, and enhancing social inclusiveness and welfare.  
The Rio+20 outcome document recognised that the efforts of developing countries to implement 
green economy policies should be supported through technical and technological assistance.  The following four areas of UNEP's work aimed to implement these Rio+20 calls.   
1.64.  First, UNEP explained they were offering co untry-tailored advisory services on ways to move 
towards a low carbon green economy that was resource-efficient and socially inclusive.  Based on country demand, UNEP was currently working in 26 countries around the world in Africa, Asia, 
Latin America, Eastern Europe and the Middle East.  UNEP's green economy advisory services 
entailed policy advice, technical assistance, capacity building for fostering multi-stakeholder dialogue, consultation on green economy, delivering comprehensive green economy assessments, 
identifying opportunities and options, and assisting countries in creating indicators and 
measurement frameworks.   
1.65.  The second area related to UNEP providin g research and policy analysis for investing in 
green sectors and for greening environmentally unfriendly sectors with key partners.  Recent 
research focused on themes such as green economy indicators, creation of employment through 
green economy measures, fiscal reform and the link between poverty alleviation and green economy.   
1.66.  Third, she pointed out that the Partners hip for Action on Green Economy (PAGE) was a 
multi-year partnership initiative with the ILO and other agencies to significantly scale-up activities aimed at supporting countries in their transition to green economy, in terms of policy dialogue, 
capacity building and country advisory services.   
1.67.  Fourth, UNEP had finalised an EU funded project on green economy and trade opportunities.  
In partnership with the International Trade Centre (ITC) and the International Centre for Trade and Sustainable Development (ICTSD), three policy and technical dialogues with government 
delegates, private sector, academics and civil society were held in Africa and Latin America in 
2012.  Detailed reports, as well as a series of nine briefing papers on green economy and trade prepared for the workshop, were published.   
1.68.  UNEP was in the process of preparing a report to look at concrete trade opportunities arising 
from the transition to a green economy in six economic sectors (i.e. agriculture, fisheries, forestry, manufacturing, renewable energy and tourism).  The report was aimed at setting out the main 
trends, drivers, requirements and enabling co nditions that would create and shape trade 
opportunities including for example investments in green sectors, certification schemes, government regulation and support measures.  Th e content of the report had been discussed at 
three regional workshops and was undergoing peer review by sector-specific experts. WT/CTE/M/54 
 
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  1.69.  The representative of the United Nation s Conference on Trade and Development (UNCTAD) 
noted that a large untapped potential existed for developing countries and economies in transition 
to strengthen the capacity and competitiveness of  green sectors to enhance their exports of green 
goods and services in world markets.  Principal a pproaches towards this goal included the creation 
of an enabling business environment and the tr ade liberalization of environmental goods and 
services to enhance trade and investment opportun ities.  To respond to emerging country demand 
for technical assistance in this area, UNCTAD was initiating capacity building projects in the form of 
national green economy reviews, where the particip ation of national stakeholders was an integral 
part.   
1.70.  With technical support from UNCTAD, green sectors for production and export would be 
identified through its green products based meth odology.  For selected sectors, UNCTAD would 
design new policies and improved regulatory as well as institutional frameworks, and make better 
use of cooperative mechanisms, domestically and at the international level.  UNCTAD was in discussion with various countries requesting technical assistance and expressing interest in 
national green economy reviews.  As national green economy reviews were demand driven, he 
invited delegations potentially interested to contact UNCTAD for further assistance. 
1.2  Paragraph 32(ii) on TRIPS 
"The relevant provisions of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights." 
1.71.  The representative of Egypt stressed the im portance of intellectual property rights and the 
need for further work on this topic in the CTE.  He informed that a related proposal was being 
prepared by his delegation in collaboration with  other like-minded Members, and would be shared 
in the near future.  
1.3  Paragraph 32(iii) on Labelling 
"Labelling for Environmental Purposes" 
1.72.  No statements from delegations were made under this agenda item.  1.4  Other Items on the CTE Agenda 
1.4.1  Item 4 on Transparency 
"The provisions of the multilateral trading syst em with respect to the transparency of trade 
measures used for environmental purposes and environmental measures and requirements which have significant trade effects." 
1.73.  The representative of the WTO Secretariat dr ew Members' attention to the publication of the 
Environmental Database (EDB) of 2009.7  While previous EDBs were circulated in text format, EDB 
2009 was being circulated in two parts:  a text document containing a brief analysis of the 
environment-related notifications and trade policy reviews for 2009;  and an electronic table, 
providing the underlying data used for the analysis in order to facilitate the usage of the EDB. 
2  PARAGRAPH 33  
"We recognize the importance of technical assi stance and capacity building in the field of 
trade and environment to developing countries, in particular the least-developed among them.  We also encourage that expertise and experience be shared with Members wishing to perform environmental reviews at the national level." 
2.1  First part of Paragraph 33 on "Techni cal Assistance and Capacity Building"  
2.1.  The WTO Secretariat provided a short pr esentation on trade and environment technical 
assistance activities undertaken in 2012.  The Secretariat organized two national workshops on 
                                               
7 WT/CTE/EDB/9 and Add.1, circulated on 6 November 2012. WT/CTE/M/54 
 
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  trade and environment in Angola and Paraguay.  A regional workshop for the Caribbean, organized 
in collaboration with the Inter-American Develo pment Bank and initially scheduled for 2012, would 
be held at the beginning of January 2013 in Jamaica.  A regional activity initially scheduled in December 2012 and a regional workshop for Central and Eastern Europe, Central Asia and 
Caucasus (CEECAC) would also take place in 2013.  In addition, the Trade and Environment 
Division (TED) delivered the modules on trade and environment during the WTO Regional Trade 
Policy Courses organized by the Institute for Training and Technical Co-operation (ITTC) in 
Colombia for Latin American countries, Istanbul for the CEECAC Caucasus region, India for the 
Asian-Pacific region, and Kuwait for the Middle East region.   
2.2.  Another event undertaken by the TED was the organization of the first advanced course on 
trade and environment held from 16 to 27 April 2012 at the WTO headquarters with 
26 government officials from developing countries, least-developed countries and economies in 
transition.  The main objective of the course was the consolidation of knowledge on the issues being discussed in the context of the WTO with a view to facilitating the participation of 
government officials from capitals in the wo rk of WTO Committees and negotiating groups.  
Experts from the WTO Secretariat as well as other international and non-governmental organizations contributed to the course.   
2.3.  The representative of Angola thanked the Secretariat for the organization of a national 
workshop in Angola.  However, he expressed, on  behalf of the African Group, his disappointment 
that a regional workshop for the African Group as a whole (for both English and French speaking Africa) could not be organized.  
2.2  Second part of Paragraph 33 on "Envir onmental Reviews at the National Level"  
2.4.  There were no statements from delegations under this paragraph.  3  PARAGRAPH 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." 
3.1.  There were no statements from delegations under this paragraph.  4  OTHER BUSINESS 4.1  Asia-Pacific Economic Coop eration (APEC) Discussions   
4.1.  The representative of the Russian Federation reported on the Asia-Pacific Economic 
Cooperation (APEC) annual leaders meeting held in Vladivostok in September 2012, during which 
APEC members agreed on a list of environmental goods to be liberalized among APEC economies 
by 2015, taking into account the economic circumstances of each APEC economy and without 
prejudice to their positions in the WTO.8  Through these tariff cuts, APEC members would promote 
green growth and the protection of  the environment as well as exert a significant impact on trade 
and job creation in the region, without introducing protectionist measures and in a manner 
consistent with international trade obligations.   
4.2.  The representative of Australia explained that the APEC negotiations process began in 
Honolulu in 2011, when APEC leaders had committed to reduce tariffs of 5% or less on undefined 
environmental goods by 2015.  APEC Ministers and officials were instructed to work on a list of 
environmental goods able to contribute directly and positively to green growth and sustainable development objectives.  Discussions to develop an APEC list of environmental goods had been 
conducted in APEC's Committee on Trade and Inve stment "Friends of the Chair group" on trade 
and environmental goods, which Australia had been asked to lead.   
                                               
8 APEC members include Australia; Brunei Darussala m; Canada; Chile; China; Hong Kong, China; 
Indonesia; Japan; Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Philippines; Russian Federation; Singapore; Chinese Taipei; Thailand; United States and Viet Nam. WT/CTE/M/54 
 
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  4.3.  Product nominations had been made at the HS-2002, 2007 and 2012 6 digit level with 
"ex outs" where appropriate to indicate more precisely the particular environmental product to which the liberalization should apply at the 8- and/or 10-digit level in national tariff schedules.  The total universe of products considered had comprised around 350 tariff lines nominated by 
16 APEC economies.  The universe of products had been divided into two shorter, more 
prospective, lists of goods and a longer residual list with more work required.  There was movement between the two lists as support for various products had increased or decreased 
through the discussions.   
4.4.  Discussions during the APEC Meeting resulted in the endorsement and agreement on a list of 
54 environmental goods, including core environm ental goods and technologies, although some 
further work would be required by APEC economies to implement the agreed list within domestic 
tariff schedules by the end of 2015.  In his dele gation's view, the APEC Agreement demonstrated 
that a major group of developed and developing economies had been able to work together to 
open up trade, despite the global economic downturn and protectionist pressures.  The tariff 
reduction on these products would make a strong  contribution to trade liberalization and green 
growth, while addressing serious environmental issu es by increasing trade flows in environmental 
technologies.   
4.5.  The representative of Korea welcomed the APEC Agreement on tariff reduction of 
environmental goods as one way to contribute to the dissemination or transfer of environmental 
technologies.  He suggested that Members could resume discussion on environmental goods liberalization in the near future by building on the substantial progress achieved with the 
APEC Agreement.  His delegation was therefore open to practical and specific suggestions on how 
to bring the APEC Agreement into the WTO context. 
4.6.  The representative of Canada welcomed th e APEC Agreement, which had demonstrated that 
an outcome was possible in this area, and expected  to conclude its implementation in 2013.  His 
delegation also appreciated the transparency prov ided by the Russian Federation and Australia on 
the APEC process. 
4.7.  While acknowledging differences between  APEC and the WTO, the representative of 
New Zealand considered that the APEC decision had been a positive demonstration of political will 
to take forward liberalization in the area of environmental goods.  In her view, APEC members had been able to achieve a timely and pragmatic outcome by committing at a high level to apply pre-
agreed tariff treatment, and using a "defining by doing approach" to the listing of environmental 
goods.  Her delegation welcomed interest in the list from non-APEC members and believed lessons from the APEC process could usefully inform discussion on environmental goods and services 
under the mandate of the Doha Development Agenda (DDA). 
4.8.  The representative of Japan supported th e APEC Agreement on environmental goods, which 
would create a good momentum to global trade liberalization. 
4.9.  The representative of the Plurinational St ate of Bolivia pointed out that the discussion on 
environmental goods was part of the CTE in Special Session (CTESS) mandate and not the CTE.  
He further noted that APEC and the WTO were different forums in terms of negotiating equilibrium and balance of power, making the transposition of the APEC list to the WTO impossible.  In 
particular, his delegation considered that not only was the environmental nature of these goods 
subject to debate, but that these goods were essentially produced by developed countries, implying greatest efforts in terms of tariff reduct ion for developing countries.  In his delegation's 
view, developed countries should be the main contributors to solving the environmental crisis, as 
broadly acknowledged by the international community in various international treaties and at the Rio+20 meeting in 2012.  Therefore, his delegation was of the view that in order to achieve an 
ambitious result contributing to sustainable deve lopment, the work of the CTESS should not be 
based on a list of environmental goods but on an alternative approach in which the transfer of environmentally friendly technologies to developing countries should become the centre of negotiations and include measures and commitments adapted to the level of development of each 
economy. 
4.10.  The representative of Switzerland welc omed the development in the APEC process on 
environmental goods, although work still had to be done, especially on ex-outs.  He considered the WT/CTE/M/54 
 
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  APEC environmental goods list an importan t signal for green economy and sustainable 
development, showing how trade could contribute to  the protection of the environment.  Given the 
importance of further liberalizing environmental goods and services to ensure their competitiveness with respect to their polluting substitutes, his delegation was prepared to find 
solutions in this area, including in the WTO. 
4.11.  The representative of Costa Rica explained how Costa Rica was able to turn economic 
development and environmental protection into a mutually supportive relationship.  Her 
Government had made tremendous efforts to integrate its environmental and economic policies 
within its sustainable economic growth developmen t strategy in order to promote economic growth 
whilst protecting natural resources.  For instance, a legal framework on conservation recognised the importance of environmental services and FD I.  The Government of Costa Rica had also 
worked with the private sector and academia to consolidate a cluster of clean energies through 
innovation and investment, and made great effort s to promote sustainable tourism.  Tremendous 
results had been visible after three decades of 4% economic growth rate, such as the increase in 
forest cover from 21% in 1986 to 52% in 2012.  Her delegation considered that trade liberalization 
in environmental goods represented a key element to protect the environment and achieve sustainable development. She therefore acknow ledged the very important role of APEC in 
promoting green growth. 
4.12.  The representative of Hong Kong, China welcomed APEC's successful outcome with regard 
to the list of environmental goods and supported any initiative that would contribute to further 
trade liberalization in environmental goods and services. 
4.13.  The representative of India noted that it was difficult to agree on a list approach in the 
absence of an agreed definition of  environmental goods.  His delegation considered that since most 
of the products in the APEC list had multiple end-uses, they could be diverted for non-
environmental purposes and would therefore not solve the objective of protecting the 
environment.  He further recalled that India supported an integrated approach to liberalize all goods and services for designated environmental projects. 
4.14.  The representative of the Bolivarian Repub lic of Venezuela considered that the APEC process 
could not be successfully transposed to the WTO,  because the parameters used by APEC and the 
CTESS were different.  In particular, he noted th at the APEC process was purely based on market 
access, while negotiations under Paragraph 31(iii) of the DDA not only dealt with tariff 
negotiations, but also non-tariff barriers (NTBs).  In addition, his delegation was of the view that 
the APEC list did not necessarily reflect the inte rest of WTO Members given that APEC membership 
was different to that of the WTO.  He was particul arly interested to know which of the 54 products 
on the list were of interest to APEC developing country members.  His delegation would follow the 
use of the environmental goods list and the implemen tation of the APEC decision very closely.   
4.15.  The representatives of Malaysia and Singapore considered the APEC outcome as a positive 
development and welcomed further progress in this area, including through continued information 
sharing. 
4.16.  The representative of Cuba acknowledged th e information provided, but pointed out that the 
results should, under no circumstances, be transf erred to the WTO.  Her delegation objected to 
accepting an imposed list of environmental goods without a concerted definition of such products.  
4.17.  The representative of South Africa welcomed the APEC initiative, which contributed directly 
and positively to sustainable development objectives amongst APEC members and laid the 
groundwork for further work on this issue, although much further technical work had yet to be 
done to refine the list into greater product specificity.  She recalled that the APEC list was non-binding, voluntary, best endeavour and without penalties for non-compliance.  While stressing that 
the issue was being discussed in the context of th e CTESS and not the CTE, her delegation urged 
caution in attributing the details of such an exercise to the WTO, because the processes in APEC and WTO were different.  First, the APEC  group was characterised by open regionalism 
amongst a set of members, which was distinct and separate from the WTO.  Second, the WTO was 
a rules-based organization whereas the fundamental principle of APEC was voluntarism comprising 
non-binding commitments.  In her delegation's view, any environmental negotiations within the WTO should consider sustainable development go als and special and differential treatment for WT/CTE/M/54 
 
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  developing country Members.  Otherwise, libera lization of environmental goods would be a one-
way exercise preventing developing country Members benefitting from appropriate flexibilities and technology transfer in order to support local industrial development and job creation in line with the triple "win" scenario.  Her delegation was of the view that all suggested approaches on the 
table in the CTESS should be equally and fully assessed to give effect to the mandate without 
favouring one approach over another. 
4.18.  The representative of Brazil understood that the briefing on recent developments in 
APEC was done for information purposes only.  Her delegation expressed concern with using the 
APEC outcome to resume discussions on environmental goods liberalization in the WTO, as suggested by Korea.   
4.19.  The representative of Colombia acknowle dged the importance of the APEC Agreement and 
their intention to closely follow its implementation.  His delegation considered that the agreement 
could possibly be used to inform the work carried out within the CTESS. 
4.20.  The representative of the United States co nsidered the APEC Agreement to be a significant 
outcome from both trade liberalization and environmental perspectives.  Indeed, the tariff 
reduction on these 54 items would not only benefit all 21 APEC economies equally, but also other WTO Members by having to pay lesser tariffs on certain goods needed to fulfil environmental 
objectives.  Her delegation welcomed further work on trade liberalization of environmental goods 
and services.  
4.21.  The representative of the European Union vi ewed the APEC initiative as a significant step 
forward by being the first internationally agreed list of environmental goods among economies 
with different levels of development.  He was, th erefore, open to exchange with APEC colleagues 
and other interested Members on the implications of this outcome.  His delegation recalled that the European Union, who advocated a high level of liberalization of environmental goods and services 
including non-tariff barriers, submitted 312 goods to be included in the list of environmental goods 
discussed in the CTESS and supported the continuati on of technical work in this respect.   
4.22.  The representative of Norway appreciated the transparency provided by the presentations 
from the Russian Federation and Australia.  She considered the APEC Agreement as very useful 
and encouraging.  Her delegation was eager to follow the process of implementation as well as its effect in the future in order to determin e how APEC work could feed into the WTO. 
4.23.  While pointing to the remaining challenges  with the implementation of the APEC list, the 
representative of Chile reiterated Chile's deep commitment to the negotiations on environmental 
goods liberalization in the WTO and beyond. 
4.24.  The representative of Mexico welcomed AP EC's recent achievement which had to be studied 
very carefully and could be used as a refere nce point for the negotiations in the CTESS. 
4.25.  The representative of Chinese Taipei endorsed the outcome of APEC negotiations, which 
showed real and positive momentum for future discussions.  Her delegation suggested continuing 
sharing further information for transparency purposes. 
4.26.  The representative of Argentina was of the view that agreements reached in other forums, 
such as the APEC framework, could not be transf erred directly to the WTO negotiations.  While 
stressing that no definition and criteria had yet been agreed to negotiate under Paragraph 31(iii) 
of the DDA, his delegation noted that the APEC  list included goods with multiple end-uses 
(including environmental), preventing the list from becoming a benchmark for the work of the CTESS. 
4.27.  The representative of the Kingdom of Saudi Arabia noted that the appropriate forum for 
discussions on environmental goods was the CTESS and not the CTE.  He further noted that the 
scope of the APEC Agreement differed from  the mandate of the CTE and the WTO. 
4.28.  The representative of El Salvador appr eciated the transparency exercise provided by 
Australia and the Russian Federation.  While her delegation agreed with the importance of green 
growth and welcomed further efforts made in reaching this objective, it was unclear how such WT/CTE/M/54 
 
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  information could contribute substantively to the mandate of the CTE, given that the liberalization 
of environmental goods and services was not part of the CTE's work but the CTESS.   
4.29.  While acknowledging the information provided by Australia and the Russian Federation, the 
representative of the Dominican Republic under lined the importance of following up on the 
implementation, and receiving further information on this process.  In particular, her delegation 
was interested in learning more on the criteria used to streamline a list of 350 products down to 54 environmental goods.  She noted that although  the issue of definition remained an open 
question for many WTO Members, it was for the CTESS to determine the criteria and approaches 
to be taken into account in the negotiations. 
4.30.  The representative of the Philippines consider ed that reporting on the APEC list was done on 
the basis of transparency and for information purposes.   
4.31.  While acknowledging the leading roles of Au stralia and the Russian Federation on trade and 
environment issues in APEC, the representative  of China recalled that China had actively 
participated and contributed to discussions that could help address environmental problems on 
different international occasions.  His delegation therefore welcomed APEC's achievement, but 
stressed that a lot of work still had to be done before its final implementation in 2015.   
4.32.  The representative of Pakistan considered th at in this period of pre-empting protectionism, 
trade liberalization achievement by a group of Members in another forum was a positive signal and 
should not be undermined.  In her delegation's view, the implementation phase of the APEC list 
could provide lessons that could be learned from.  
4.33.  The representative of Australia confirmed th at the briefing was provided as a transparency 
exercise to share this positive development with non-APEC members.  His delegation noted that 
the discussion had been very useful to unveil th e thinking on environmental goods and services 
negotiations within the WTO. 
4.2  Workshop on Environmental Technology Dissemination 
4.34.  A Workshop on Environmental Technology Dissemination was held on 12 November 2013, 
back-to-back with the CTE meeting.   The Worksh op explored the main trends and developments 
of environmental technologies and highlighted th e economic, technological and policy factors that 
can either promote or hamper the diffusion of en vironmental technology.  After a general session 
that provided an overview of environmental te chnology dissemination, the Workshop focused on 
three more specific environmental technologies: carbon capture and storage (CCS) technologies, 
low emission technologies, and waste management and water treatment technologies.   
4.35.  Experts' presentations explored the centra l role of environmental technology in improving 
and achieving sustainable development, as well as of international trade and investment as key 
factors to technology dissemination, offering perspectives from Members, international institutions 
and the private sector. Members engaged with panellists on several points including, inter alia , the 
importance of the absorptive capacity in developing countries;  the role of intellectual property 
rights for the generation, dissemination and transfer of technology;  the methods to identify export 
opportunities for developing countries in the global environmental technologies market; the importance of a coherent government policy framework to ensure diffusion of technology; and the importance of well-designed regulatory measures to promote innovation and market development. 
4.36.  The representative of the Kingdom of Saudi Arabia reminded Members that it was his 
delegation in a meeting of the CTE in November 2010 who had first raised the issue of technology 
dissemination and requested holding a workshop.9  His delegation then proceeded with the 
submission in January 2012 of a proposed outline for a workshop on technology dissemination and 
CCS.10  Following a series of informal CTE meetings and consultations, the workshop had only been 
held on 12 November 2012.  The final workshop agenda did not cover all issues and speakers 
suggested by the Kingdom of Saudi Arabia and other developing country Members.  It was his 
delegation's view that the workshop had failed to  provide developing country Member perspectives 
                                               
9 A summary of the workshop will be circ ulated in document WT/CTE/M/54/Add.1. 
10 The submission was circulated in JOB/TE/25 of 11 January 2012. WT/CTE/M/54 
 
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  by limiting in-depth discussions with the inclusion of several technologies. His delegation would 
continue working with Members in order to have a focused discussion and increase information sharing on national experiences and capacity building.   
4.37.  The representative of the Plurinational State of Bolivia suggested inviting speakers for future 
workshops from developing and developed country Members, as well as from the private sector 
and civil society. 
4.38.  The representative of Argentina was of the view that the programme of the workshop failed 
to take into account concerns of developing country Members by moving away from transfer of 
technology to issues related to dissemination an d market.  Transfer of technology remained of 
great interest for developing countries as regulations on intellectual property rights affecting clean technologies would have a direct impact on the access and transfer of these technologies to 
developing countries.  In his view, intellectual property should not only promote innovation, but 
also enhance access to new technologies for developing countries and decrease the current technology gap.  His delegation also said that the workshop should have addressed the issue of 
climate change adaptation.  
4.39.  The representative of India echoed the concerns raised about the workshop and the 
unbalanced final composition of speakers.   
4.40.  The representative of South Africa noted that the original architecture and scope of the 
workshop had been substantially changed and wide ned.  In her view, the final workshop agenda 
had failed to include developing countries' interests and perspectives on specific technology themes, including intellectual property rights constraints with respect to technology transfer.   
4.41.  The representative of the European Union viewed the workshop as a useful and successful 
event from both developed and developing country Members perspectives.   
4.42.  The representative of China regretted that certain issues, such as pollution management 
and biodiversity protection technologies had not been added to the agenda.   4.43.  The representative of Pakistan suggested holding another workshop or a series of 
workshops, focusing more on the developing co untry Members perspective, including experiences 
and challenges.   
4.44.  The representative of Mexico considered the event to be very useful and balanced.   
4.45.  The representative of the Bolivarian Repu blic of Venezuela considered the morning session 
of the workshop to be extremely interesting.  His delegation hoped that future workshops would 
rely on a balanced list of speakers from developed and developing countries as well as from the 
public and private sectors.  Referring to Egypt's planned contribution to Paragraph 32(ii) on intellectual property rights, he suggested identify ing topics such as transfer of technology, that 
could be part of the CTE work programme for 2013. 
4.46.  The representative of Australia found the workshop to be very interesting and useful, and 
hoped that additional workshops on these topics could be organized in the future.   
4.47.  Although the representative of the United States would have welcomed more speakers from 
the private sector, her delegation considered that different perspectives had been covered by the 
workshop, and that lessons could be learned from this process for future workshop agendas.   
4.48.  The representative of Norway hoped that more information exchanges, seminars or 
workshops reflecting developing country Member s perspectives would be held in the future. 
4.3  OECD Update on Trade and Environment Activities   4.49.  A representative of the OECD provided a presentation on the organization's recent trade and 
environment activities.  In October 2012, the OECD released a report on illegal trade in 
environmentally sensitive goods, namely wildlife, illegal, unreported and unregulated (IUU) fishing, 
timber, controlled chemicals (ozone depleting substances) and hazardous waste.  The study WT/CTE/M/54 
 
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  showed that illegal trade was driven by profit able opportunities, cost deregulation, and excess 
demand.  The report estimated that the total value of illegal trade in environmentally sensitive goods ranged from USD 30 to 70 billion per year.  
4.50.  The study further found that the economic, environmental and social impacts of illegal trade 
could be wide-ranging, with risks of disruption of whole economies and ecosystems leading to 
additional indirect spillover effects.  For instance, the estimated economic impact, in terms of government revenue loss, appeared to be the largest for illegal trade of IUU fishing (USD 10 to 
23.5 billion per year) and timber (USD 5 billion loss per year), while poaching and illegal trade in 
wildlife animals and plants affected local economies and tourism.  In terms of environmental impacts, illegal timber was known to cause deforestation, forest carbon emission, carbon storage loss and increased vulnerability to pests and diseases, and illegal trade in ozone depleting 
substances was associated with increased UV radiation damages to ecosystem and loss in 
productivity.   
4.51.  The report highlighted the difficulty in empirically measuring the global scope of illegal 
trade.  Such assessment was done by analys ing the discrepancies between customs data 
(i.e. trade volumes and values data) and licensing data (i.e. permits) from importers and exporters.  The study reviewed six internationa l licensing schemes, such as the Convention on 
International Trade in Endangered Species of Wild Fauna and Flora (CITES), the Basel Convention 
on the Control of Transboundary Movements of Hazardous Wastes and their Disposal, the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, or the Montreal Protocol on Substances that Deplete the 
Ozone Layer, as well as a regional system on  fisheries and a European scheme.  The report 
concluded that all of these schemes had been partially successful, but improvements could be 
achieved thanks to a more systematic assessment of the schemes' ability to stop illegal trade, 
information sharing across schemes, and independent verification of licenses.  Further elaboration 
of the HS codes system and increased taxonomy, along with increased dialogues across international institutions, could help identifying best practices in terms of data gathering and 
quality.  The report reviewed the economic incentives that could complement traditional command 
and control approaches at the national level, and came to the conclusion that all national measures required an institutional framework with good governance and law enforcement, as well as a coordinated domestic environment and coordination between importers and exporters.   
4.52.  The representative of the OECD also briefed the CTE on other on-going activities on trade 
and environment such as an updated review of  environmental provisions in regional trade 
agreements (RTAs) for 2012; the trade implications of domestic incentive measures for renewable 
energy with a particular focus on Europe; government support for fossil fuels in OECD countries;  
and international approaches to address environmentally harmful subsidies.  Forthcoming activities for 2013-2014 included trade implications of domestic incentive measures for selected 
environmental goods;  the effect of environmental regulations on comparative advantage in 
environmental goods and services;  government support for fossil fuels in selected non-OECD countries;  and coping with a proliferation of ec o-labels and environmental information schemes.   
5  DATE OF NEXT MEETING 
5.1.  The Chair informed that the next meeting of the CTE was expected to be held during the first 
half of 2013. 
 
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