WT/CTE/25  
 
10 December 2018  
 
(18-7787) Page: 1/8 
   
 
 
REPORT (201 8) OF THE COMMITTEE O N TRADE AND ENVIRONM ENT 
 
1.1.  In 2018, the Committee on Trade and Environment in Regular Session (CTE) held two formal 
meetings, one  on 28  June1 under the Chairmanship of the Ambassador of Indonesia, 
Ms. Sondang  Anggraini , and one on 30 November2 under the Chairmanship of the Permanent 
Representative of Hong Kong, China, Ms. Irene Young .  
1.2.  The work of the CTE was organized in accordance with the man date 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 which the elimination or 
reduction of trade restrictions and distortions would benefit trade, the environment and 
development"). Other items addresse d by the CTE were item 14 and item 45.  
1.3.  No discussion took place under Paragraph 32(ii) (relevant provisions of the TRIPS  Agreement); 
Paragraph 32(iii) (labelling requirements for environmental purposes); Paragraph 33 (technical 
assistance, capacity buildi ng and environmental reviews); and Paragraph  51 (developmental and 
environmental aspects of the negotiations).  
2  PARAGRAPH 32  
2.1  Paragraph 32(i)  
"The effect of environmental measures on market access, especially in relation to developing 
countries, in particu lar the least -developed among them, and those situations in which the 
elimination or reduction of trade restrictions and distortions would benefit trade, the 
environment and development."  
 
2.1.1   Fossil Fuel Subsidies Reform  
2.1.  At the June meeting, New Zealand  briefed participants on the  Ministerial Statement  by 
12 developed and developing Members  at the Eleventh Session of the WTO Ministerial Conference 
(MC11)  in December 2017.6 In the Statement, as well as during a preceding side -event, signatories 
recogniz ed the importance of the WTO as a forum to advance discussions to phase out inefficient 
fossil fuel subsidies while acknowledging that reform needed to consider the specific needs and 
                                                
1 Available through WT/CTE/M/65 , "Report of the Meeting held on 28 June 2018 ", Note by the Secretariat.  
2 To be circulated through WT/CTE/M/66 , "Rep ort of the Meeting held on 30  November 2018 ", 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 R egular 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 multilater al 
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 significant trade effects."  
6 Chile; Costa Rica; I celand; Liechtenstein; Mexico; t he Republic of Moldova; New Zealand; Norway; 
Samoa; Switzerland; the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu; and Uruguay . WT/CTE/25  
 
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  conditions of developing Members to minimize any adverse impacts on their d evelopment. The 
discussions on reform could include, inter alia, enhancing transparency and reporting to enable the 
evaluation  of the trade and resource effects of fossil fuel subsidies. At the November meeting, New 
Zealand  recalled the efforts from the Mi nisterial Statement signatories to move discussions forward 
on Fossil Fuel Subsidy Reform (FFSR) , noting  that further work would be undertaken  in 2019. 
Switzerland  briefed delegations on a side event on FFSR organized  by the Friends of FFSR at the 
2018 WTO Public Forum .7 
2.2.  Several delegations acknowledged the importance of FFSR, recognized the role of the WTO to 
assess the trade effects of fossil fuel subsidies, and shared their experience and particular needs in 
the area. Some other delegations noted that th e FFSR was a voluntary G20 initiative and that the 
WTO was not the appropriate venue to discuss it.  One delegation further considered that efforts 
should be focused on trade -distortive subsidies within the WTO's sphere of competence with a major 
impact on greenhouse gas (GHG) emissions , including  agricultur al subsidies . Another delegation 
considered that focus in the CTE should be accorded to environmental measures and market access, 
while the mandate for negotiations was to address fisheries subsidies and the mutual supportiveness 
between Multilateral Environmental Agreements (MEAs) and WTO Agreements.  One delegation also 
informed delegations that it would be sharing its experience on envir onmental requirements and 
spill-over market access effects  at a futu re meeting.  
2.3.  The Organization for Economic Cooperation and Development (OECD)  updated delegations on 
recent activities and studies regarding support measures for fossil fuels , including the  
2017 OECD  Companion Report , which  tracked progress in the reform o f support for fossil fuels  and 
OECD's role as chair of the G20 peer review process on  inefficient fossil fuel subsidies. 
UN Environment (UNEP)  briefed delegations on SDG 12, including work on the SDG  
indicator  12.c.1. As a custodian of the indicator, UNEP  had developed a methodology to measure 
fossil fuel subsidies and was responsible for collecting data on this to evaluate global and national 
progress.   
2.1.2   Ocean Economy  
2.4.  At the June meeting, Norway  presented its  national strategy for ensuring sustainable growth 
in ocean industries , including the adoption of two reports: the White Paper to the Parliament on the 
place of the oceans in Norway's foreign and development policy; and the Strategy on sustainable 
growth of Norway' s ocean -based industries. The oceans represented huge economic potential that 
was yet to be fully realised. However, there were serious environmental challenges  that had to be 
addressed , including, inter alia: marine pollution and plastics, climate change and unsustainable 
fishing. Norway also noted the importance of  concluding the WTO fisheries subsidies negotiations to 
building a sustainable ocean economy.  At the November meeting, Norway  briefed participants on its 
side-event on Blue Economy and Green Trade  in the context of the 2018  WTO Public Forum , as well 
as on a high-level panel for a sustainable ocean economy led by the Norwegian Prime Minister in 
New York in September  2018.   
2.5.  Several delegations underscored the role of oceans in boosting economic growth, employment 
and innovation  and in addressing global concerns such as world food security, climate change and 
the provision of energy and natural resources.  Furthermore, they noted the  need for strengthening 
international cooperation towards ocean sustainability , shared related expe rience s and  welcomed  
future  discussions in the CTE on how to promote sustainable development in the oceans. Some 
delegations also welcomed the successful conclusion of the first Global Conference on the 
Sustainable Blue E conomy , which was held  in Nairobi, Kenya in November 2018.  
2.6.  UNEP  referred to the Trade -related Plan  of Action , jointly prepared with the United Nations 
Conference on Trade and Development ( UNCTAD ) and the Food and Agriculture Organization of the 
United Nations ( FAO). The Plan provide d a roadmap to support countries in design ing trade -related 
policies for healthy oceans.  
2.7.  At the November meeting, the FAO presented the key findings of the 2018 State of World 
Fisheries and Aquaculture (SOFIA) report . According to FAO, the sector continued to show worrying 
trends concerning the sustainability of fish stocks, although the global picture masked some signs 
of recovery in some areas. Aquaculture continued to grow faster than other food sectors and was 
                                                
7 A report on the event  was circulated in JOB/TE/53.  WT/CTE/25  
 
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  expected to continue to contribute to the gr owth in fish production, consumption and trade.  Some 
delegations took the floor to indicate  the importance of successfully concluding the WTO fisheries 
subsidies negotiations.  
2.1.3   Palm Oil  
2.8.  At the June meeting, Indonesia  made a presentation on Indonesia's appro ach to the 
management of sustainable palm oil. Indonesia noted the misconception s linking  the reduction in 
forest and peat areas  to an expansion  of palm oil plantation , as well as regarding the carbon stock  
potential of palm oil when compared to alternativ e crops . Indonesia shared  several measures 
adopted to sustainably increase productivity of palm oil plantation s, including by revamping the 
Indonesian Sustainable Palm Oil system. Indonesia was the largest producer of Certi fied Sustainable 
Palm Oil  based o n the Roundtabl e on Sustainable Palm Oil  scheme.  Indonesia also stressed the 
importance of palm oil plantation and exports for its economy, which provided for the livelihood of 
17 million Indonesians . 
2.9.  Malaysia  shared its experience as well on efforts to ensure sustainable management of palm 
oil, including its commitment to maintaining at least 50% of the total land area in Malaysia as forest 
cover . Palm oil was the nation's most valuable agricultural crop, contributing significant export 
earnings annually and providing job opportunities to millions . Malaysian palm oil industry  had 
implemented  a series of  measures to improve environmental performance and  was committed to 
producing palm oil in accordance with sustainable principles and criteria  under the Malay sian 
Sustainable Palm Oil  standard . The standard  would be implemented on a mandatory basis from 
31 December 2019 . 
2.10.   Several delegations took the floor to express support  for initiatives that contributed to the 
sustainable production of palm o il and recognized the importance of the palm oil sector , in particular 
for smallholders,  as a source of growth and e mployment, while noting concerns regarding related 
environmental degradation. One delegation noted that producers required support to produc e in the 
most sustainable way and called for co -operation between producing and consuming Members.  
2.1.4   Pollution control measures from a sustainable development goals ( SDGs) 
perspective  in China  
2.11.   At the November meeting, China  presented on its national policies  to combat pollution and to 
implement environment -related SDGs. Environment p rotection was a significant component of 
sustainable development in China. National policies had evolved  from an initial focus on industrial 
pollution control to a comprehensive and integrated approach. China's current national plan included, 
for the first time, the establishment of an environmental protection tax law, and several mandatory 
and voluntary mea sures aimed at improvement of eco -environmental quality by 2020.  
3  OTHER ITEMS ON THE CTE'S W ORK PROGRAMME (IT EMS 1, 2, 3(A), 4, 5 , 7, 9, AND  10) 
3.1  Item 1  
"The relationship between the provisions of the multilateral trading system and trade 
measures for enviro nmental purposes, including those pursuant to multilateral 
environmental agreements."  
3.1.1   United Nations Framework Convention on Climate Change (UNFCCC)  
3.1.  At the June meeting, the UNFCCC  updated delegations on the May negotiating session in Bonn, 
which included  the Talanoa Dialogue, a facilitative dialogue to take stock of collective efforts towards 
the long -term goal of the Paris Agreement. A synthesis report of the Dialogue would be prepared 
and another Talanoa Dialogue was scheduled for the 24th Conference of the Parties ( CoP24 ) in 
Katowice, Poland, in December 2018.  UNFCCC also noted that while good progress  had been made  
in negotiating the  Paris Agreement Work Programme , an additional negotiating session had been 
scheduled for September in Bangkok to facilita te the preparation of the CoP24 package .  
3.2.  Australia  presented  on Australia's climate change circumstances and policies , noting that 
despite strong population growth, emissions per capita had decreased overall due to changes in the WT/CTE/25  
 
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  economy . Australia provided information on a host of domestic policies and noted that it would 
develop a long -term emissions reduction strategy as called for under the Paris Agreement . 
3.3.  Several delegations welcomed the presentation of Nationally Determined Contribu tions in the 
CTE, in particular their trade -related elements. Some other delegations reiterated their reservations 
to climate change issues being addressed in the CTE and considered the UNFCCC to be the 
appropriate forum.  
3.4.  Chinese Taipei  briefed delegations  on a non -paper  for information only , contained  in document 
JOB/TE/49, which present ed a trade framework to liberalize trade in green energy goods and 
services  in support of the implementation of the Paris Agreement . Referring to the close link between 
the Paris Agreement and trade, Chinese Taipei suggested that the scope  of the framework should 
be focused on the reduction of carbon emissions, the inclusion  of relevant services , as well as  other 
elements such as  government procurement and technology transfe r. The non -paper from Chinese 
Taipei was not a proposal for negotiations and both the non -paper and the presentation  by Chinese 
Taipei  were delivered without prejudice to positions in the relevant negotiations, including the 
Environmental Goods Agreement ( EGA). 
3.5.  Several delegations took the floor to support the view that trade and trade policies could make  
a significant contribution to sustainable development and to the implementation of the 
Paris Agreement. A number of delegations emphasized that efforts sh ould be focused on the EGA. 
Several  other delegations believed the issue  should not be discussed in the CTE as the issues under 
the Paris Agreement were delicate and outside the WTO mandate as well as no parallel negotiations 
should take place outside of t he UNFCCC.  
3.1.2   MEAs dealing with chemicals and wastes (the Basel, Rotterdam and Stockholm 
(BRS) Conventions)  
3.6.  At the November meeting, the Secretariat of the Basel, Rotterdam and Stockholm (BRS) 
Conventions  (UNEP) briefed the CTE on the preparation for , and main subjects  of, the 
2019 Conferences of Parties . These included, inter alia, the listing of several chemicals and wastes 
(including plastics) under the conventions as well as the adoption of compliance mechanisms.  
3.7.  The European Union (EU)  presented on th e EU plastics strategy adopted in January 2018. As 
part of the broader EU Circular Economy Action Plan, the strategy included a number of 
recommendations for member states and industries based on four pillars: i) improve economics and 
quality of plastics r ecycling; ii) curb plastic waste and littering; iii) drive investments and innovation 
towards circular solutions; and iv) harness global action. The European Union also provided 
information on developments regarding its proposed directive to address single -use plastics and 
fishing gear. The directive was expected to be adopted in early 2019. Many delegations welcomed 
the exercise in transparency and several delegations shared their own perspectives and initiatives 
to address plastic waste and promote the circular economy. Also, the Organization for Economic 
Cooperation and Development (OECD)  briefed delegations on its work on trade and the circular 
economy.  
3.2  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. " 
3.8.  At the June and November meeting s, the WTO Secretariat  introduced the 2016  and 2017  
Environmental Database (EDB)8 updates, respectivel y, highlighting the key trends in measures 
notified. At the November meeting, t he Secretariat presented the new EDB web -based application , 
developed in response to requests by Members  to improve the database  user interface. Several 
delegat ions expressed their appreciation for the database and welcomed the migration to a web -
based application. The amount of work involved in updating the database was recognized and the 
Secretariat  was encouraged  to continue updating the database.  One delegation a sked about potential 
technical assistance on how to best use the database, while another queried about future use of the 
                                                
8 The EDB can be consulted through the WTO webpage: www.wto.org/edb .  WT/CTE/25  
 
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  database for WTO -related work.  The Secretariat noted that it would be able to provide training under 
WTO technical assistance activitie s and that the database had multiple uses, including improving 
transparency and understanding on trade -related environmental measures.  
4  OTHER BUSINESS  
4.1  Environmental Goods Agreement (EGA) Negotiations  
4.1.  At the June  and November  meetings , Australia  updated del egations on the negotiations towards 
an EGA launched in July 2014. Although EGA Members ha d not been able to reach a full conclusion 
at their meeting in December 2016, EGA Members had had the opportunity to reflect on their core 
priorities and sensitivitie s, as well as  on the increasing importance of delivering a final outcome. 
Several delegations underscored the importance of the EGA and expressed support for the timely 
resumption of negotiations  once circumstances were appropriate . One delegation  consider ed the 
presentation as information sharing and did not support addressing the issue  in the CTE since the 
initiative was outside the scope of the  Committee .  
4.2  Briefing on New Zealand's Trade for All Agenda  
4.2.  At the November meeting, New Zealand  briefed delegations on recent policy developments, in 
particular the Trade for All Agenda . Noting that it would provide a detailed presentation in a future 
Committee meeting, New Zealand informed the CTE that public consultations had concluded for a 
progr essive and inclusive trade agenda that would integrate environmental, gender, indigenous 
communities and small and medium enterprise issues. Several delegations welcomed the briefing 
and noted similarities in their own trade agendas.  
4.3  Briefing on the WTO Se cretariat's report on "Mainstreaming trade to attain the 
Sustainable Development Goals (SDGs)"  
4.3.  At the June meeting, the WTO Secretariat  briefed delegations on its 2018 report on 
"Mainstreaming trade to attain the SDGs", which looked at how engaging in inte rnational trade could 
help Members gain access to new markets and new investments, there by boosting growth, raising 
living standards and promoting sustainable development. Several delegations welcomed the  report 
and WTO Secretariat's efforts to assess  the policy links between trade and the achievement of SDGs .  
The Secretariat noted that it would find an appropriate moment next year to provide delegations 
with a more detailed briefing on the publication.  
4.4  Briefing on the WTO -UNEP "Leadership Dialogue: Makin g Trade Work for the 
Environment, Prosperity and Resilience"  
4.4.  At the November meeting, the WTO Secretariat  and UNEP  briefed delegations on their joint 
event held during the 2018 WTO Public Forum entitled "High-level Leadership Dialogue: Making 
Trade Work fo r the Environment, Prosperity and Resilience" . The institutions also presented key 
findings of the accompanying joint publication, as well as highlights from the sustainability exhibition 
hosted during the event. Several delegations welcomed these efforts and encouraged the institutions 
to continue their cooperation to bring stakeholders together and raise awareness about the links 
between trade and the environment.  
4.5  Briefings by observer organizations  
4.5.  At the June and November meetings, the OECD  briefed delegations on its work on trade and 
environment, including: a publication on "Assessing the Implementation of Environmental Provisions 
in RTAs"; and work on the develop ment of  a set of quantitative policy indicators on trade and 
environment  that would enable policy -oriented analytical work and would provide  a technical basis 
for discussions on associated issues.  The OECD also informed delegations on potential work to be 
included in its 2019 -2020 plan. At the June meeting , Chile shared information on the results of the 
"OECD -Chile Workshop on RTAs and Environment".  
4.6.  At the June meeting, the International Maritime Organization (IMO ) briefed delegations on its 
work on reducing GHG emissions and pollution from international shipping. Recent development s 
included the adoption in April 2018 of its Initi al Strategy on reduction of GHG  emissions from ships  WT/CTE/25  
 
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  and the mandatory reduction in the sulphur content of fuel oil used by ships , to come into force in 
2020. Several delegations welcomed the briefing and t he recent developments at IMO. Some 
delegations emphasized the importance of taking into consideration the potential impacts of the new 
measures and strategies on Members, in particular developing and small island economies.  
4.7.  At the November meeting, the Convention on International Trade in Endangered Species of 
Wild Fauna and Flora ( CITES ) presented on the latest meeting of its Standing Committee, including 
recommendations to suspend commercial trade in certain listed species from several parties. CITES 
also briefed delegations on preparations for its upcoming Conference of the Parties in 2019.  
 
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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 f or environmental purposes, including those pursuant to multilateral 
environmental agreements.  
Item 2:  The relationship between environmental policies relevant to trade and environmental 
measures with significant trade effects and the provisions of the mult ilateral trading 
system.  
Item 3(a):  The relationship between the provisions of the multilateral trading system and 
charges and taxes for environmental purposes.  
Item 3(b):  The relationship between the provisions of the multilateral trading system and 
requirements for environmental purposes relating to products, including standards 
and technical regulations, packaging, labelling and recycling.  
Item 4:  The provisions of the multilateral trading system with respect to the transparency of 
trade measures used fo r environmental purposes and environmental 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 a greements.  
Item 6:  The effect of environmental measures on market access, especially in relation to 
developing countries, in particular to the least developed among them, and 
environmental benefits of removing trade restrictions and distortions.  
Item 7:  The issue of exports of domestically prohibited goods.  
Item 8:  The relevant provisions of the 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 bodies in respect of appropriate arrangements for relations 
with intergovernmental and non -governmental organizations referred to in Article  V 
of the WTO.  
 
 
 
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  ANNEX 2: PARTS OF TH E DOHA MINISTERIAL DECLARAT ION THAT RELATE TO THE W ORK 
OF THE CTE REGULAR  
 
32.  We instruct the Committee on Trade and Environment, in pursuing work on all items on its 
agenda within its current terms of reference, to give particular attention to:  
 
(i) the effec t of environmental measures on market access, especially in relation to 
developing countries, in particular the least -developed among them, and those situations in 
which the elimination or reduction of trade restrictions and distortions would benefit trade , 
the environment and development;  
 
(ii) the relevant provisions of the Agreement on Trade -Related Aspects of Intellectual 
Property Rights; and  
 
(iii) labelling requirements for environmental purposes.  
 
Work on these issues should include the identificatio n of any need to clarify relevant WTO rules. The 
Committee shall report to the Fifth Session of the Ministerial Conference, and make 
recommendations, where appropriate, with respect to future action, including the desirability of 
negotiations. The outcome of this work as well as the negotiations carried out under paragraph  31(i) 
and (ii) shall be compatible with the open and non -discriminatory nature of the multilateral trading 
system, shall not add to or diminish the rights and obligations of members under  existing WTO 
agreements, in particular 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 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 wi shing to perform environmental 
reviews at the national level. A report shall be prepared on these activities for the Fifth Session.  
 
51.  The Committee on Trade and Development and the Committee on Trade and Environment shall, 
within their respective manda tes, each act as a forum to identify and debate developmental and 
environmental aspects of the negotiations, in order to help achieve the objective of having 
sustainable development appropriately reflected.  
 
 
 
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