RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/CTE/M/38 
20 December 2004 
 
 (04-5591) 
Committee on Trade and Environment  
 
  
REPORT OF THE MEETING HELD ON 14 OCTOBER 2004 
 
Note by the Secretariat
 
 
 
1. The Committee on Trade and Environment (CTE Regular) met on 14 October 2004 under the 
Chairmanship of Ambassador Naéla Gabr (Egypt).  The following agenda proposed in 
WTO/AIR/2371, dated 2 September 2004, was adopted: 
I. PARAGRAPH 32................................................................................................................... ...1 
A. PARAGRAPH  32(I)  (MARKET  ACCESS) ...............................................................................1  
B. PARAGRAPH 32(II) (TRIPS) .................................................................................................12  
C. PARAGRAPH 32(III) (LAB ELLING).....................................................................................14  
D. ITEM 4 OF THE CTE WORK PROGRAMME ......................................................................14  
II. PARAGRAPH 33................................................................................................................... .15 
III. PARAGRAPH 51................................................................................................................... .17 
IV. ADOPTION OF THE 2004 ANNUAL REPORT ................................................................19  
V. OTHER BUSINESS................................................................................................................1 9 
 
I. PARAGRAPH 32 
A. PARAGRAPH  32(I)  (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 restricti ons and distortions would benefit trade, the 
environment and development.  
2. The representative of the European Communities
 (EC) introduced a paper submitted by his 
delegation (WT/CTE/W/239, dated 12 October 20 04), entitled "Addressing the Concerns of 
Developing Countries on the Effects of Environmen tal Measures on Market Access".  He explained 
that the paper had been prepared to respon d to a submission from India (WT/CTE/W/207, 
dated 21 May 2002) on "The Effects of Environmental Measures on Market Access, especially in 
Relation to Developing Countries, in Particular the Least-developed Among Them".  It had also been 
prepared as a result of the EC's experience in thei r regular contact with trading partners on issues 
regarding market access, and the way the EC envir onmental regulatory systems were constructed.  He 
noted that the EC regularly received requests from other Members to discuss the various EC Directives and their implementation under the EC's environmental regulatory regime, and these were 
issues high on the agenda of the CTE and the Committ ee on Technical Barriers to Trade (TBT).  The 
EC paper had been prepared to fa cilitate a Paragraph 32 (i) exchange  based on practical experience.  WT/CTE/M/38 
Page 2  
 
3. The EC representative believed that the mandate under Paragraph 32(i) was a key trade and 
environment issue.  All Members had a shared respon sibility to protect the environment, and not only 
from an environmental point of view, but also from the point of view of development, if environment 
was not to become a constraint to development.  He  was aware of the concerns expressed at times by 
developing countries on the way the environment wa s protected, and considered it critical that the 
protection of the environment and development be  mutually supportive.  He shared the view 
expressed in India's paper that WTO Members should try to develop and apply standards in such a 
way that potential adverse effects on market access for developing countries were minimized, while 
achieving the policy objectives.  He noted the different opinions with regard to the substance of 
environmental requirements, and stated that it was no t his delegation's intentio n to address this.  The 
EC believed that rather than havi ng general philosophical discussions, it would be more fruitful to 
hold practical discussions with concrete elements  relating to the process of the development and 
implementation of environmental legislation.   
4. He said that in order to reconcile environmen t and development, there was a need to build 
confidence among Members, starting with a discussion on process.  This EC paper explained what was being done by the EC with respect to the proc ess of the development and implementation of their 
new legislation in terms of transparency and cons ultation.  The EC had recently adopted a better 
regulation package to improve their practices on  impact assessment and minimum standards for 
consultations on new environmental requirements.  More extended impact assessments were carried 
out by the European Commission before the adoptio n of draft regulations.  These assessments also 
covered the potential impact on development outside the European Union (EU).  Consultations were open to all stakeholders, public or private, within  the EU or from outside.  A single access point had 
been established to facilitate the consultations, an d the results of these consultations were made 
public.  He gave the example of the EC draft regulation on the Registration, Evaluation and 
Authorization of Chemicals (REACH), and said that six thousand contributions had been received 
from the various stakeholders.  He highlighted that the EC legislative process, though at times 
complicated, could be perceived as a concurrence replacing twenty-five individual national markets 
by a unified market of more than four hundred a nd fifty million consumers.  He believed that it was 
the most extensive harmonization process in the world. 
5. With respect to the implementation of new envi ronmental requirements, he said that the EC 
and its member States had made efforts to provide  concrete information to  exporters from third 
countries and, in particular, from developing countries, to increase their awareness of new legislation and to improve their market opportunities.  Regarding timeframes, a concern highlighted in India's paper, he stressed that the EC's practice often we nt beyond the period of sixty days as recommended 
by the TBT Committee.  In the case of the Dir ectives on Waste from Electrical and Electronic 
Equipments (WEEE) and Restriction of the Use of Certain Hazardous Substances (RoHs), there was a 
delay of thirty and forty months between their publication and entering into force. 
6. Concerning trade-related technical assistance, he recalled that the EC had made a submission 
in September 2003, and provided examples of assistance relating to the compliance with new 
environmental requirements.  He stressed the need for better coordination among donors as well as the 
importance of beneficiary countries, when developing their techni cal assistance and capacity building 
programmes within the competent framework, to make requests in the field of trade and environment, 
and, more specifically, on the compliance with new environmental legislation.  He believed that the 
CTE had a role to play in terms of experience sharing in this area, aiming at improving practices.  He recalled that the EC had been developing bilate ral cooperation programmes with a number of 
Members, and believed that these could be helpful in enhancing supportiveness between trade and 
environment.  He encouraged further cooperation in  the framework of multilateral initiatives, such as 
those of UNEP and UNCTAD. 
7. The representative of the EC concluded by inviting other Members to comment on the EC 
paper, in particular, with respect to the procedures established to take into account concerns of other  WT/CTE/M/38 
 Page 3 
 
 
Members in the regulatory process.  He also invited Members to reflect on what the CTE could do to 
increase awareness and, in the long run, to arrive at an optimal best practice in this area.   
8. The representative of Canada  found the EC paper useful, and appreciated the EC's notification 
on the REACH under the TBT Agreement.  He believed that consultations, notifications and 
transparency were important principles to be followed  in the regulatory process, so as to maximize the 
ability of trading partners, and, particularly developi ng countries, to adjust to new requirements.  As 
noted in the EC paper, it was critical to enhance sy nergies with the private sector, if the relationship 
between environmental requirements and market acces s were to be fully understood and improved.  
He noted the increase over the last years in supply chain management requirements and non-
governmental organization (NGO) voluntary certifica tion schemes.  Governments often had little or 
no control over their development and their final sh ape.  However, in many cases, compliance with 
such schemes became de facto  requirements for market access.  For this, he encouraged the relevant 
private bodies to comply with the TBT Code of Good Practice for the Preparation, Adoption and 
Application of Standards, since in formation exchange and best practi ces were critical.  He was aware 
of the various initiatives undertaken to address th e issue of voluntary requirements, and gave the 
example of the International Social and Environmental Accr editation and Labelling Alliance 
(ISEAL), which had developed a code of good practice on the development of social and 
environmental standards.  He welcomed UNCTAD's efforts to establish a C onsultative Task Force on 
this subject, and believed that this initiative would help coordinating efforts internationally, given the 
many players involved in the development of environmental requirements which could affect 
producers in many countries. 
9. He found that India's paper had provided useful ideas on how Members could attempt to 
minimize the adverse impacts on trade of developing countries resulting from new environmental 
requirements.  He suggested that the CTE could co nsider the various ideas and recommendations in 
the Indian and EC papers to move forward its discussion on environmental requirements and market 
access. 
10. The representative of India  thanked the EC for sharing their experience in their regulatory 
reform process.  He found that the EC paper covered the first part of Paragraph 32(i).  He agreed that 
trade and environmental policies could, and should , be mutually supportive in order to achieve the 
objective of sustainable development.  He believe d that improvement in market access for products 
from developing countries was an important el ement for meeting the objective of sustainable 
development, and that the answer to the concerns of  reduced market access was to enable exporters to 
meet the requirements in the market.  He noted that the EC paper had made a quotation from the CTE Report to the Fifth Session of the WTO Ministerial Conference in Cancun, stating that "the answer to 
concerns about reduced market access is not to weaken such standards but rather to enable exporters to meet them".   He pointed out that, with respect  to the process of the development of environmental 
standards, the Report had also stated th at "... in line with Rio Principle11
1, environmental standards, 
objectives and priorities needed to reflect the par ticular environmental and developmental context to 
which they applied and that standards applied by some countries could be inappropriate and of 
unwarranted economic and social cost to others, pa rticularly developing countries.  Small and medium 
sized enterprises (SMEs) were especially vulnerable in this regard".  Furthermore, the Report had 
called for an appropriate balance between safeguarding market access and protecting the environment.  
He said that there was a need to examine how in  meeting regulatory objectives, importing countries 
could design environmental measures in a manner co nsistent with WTO rules, and taking into account 
the capabilities of developing countries. 
                                                      
1 Rio Principle 11 reads as follows: "States shall enact effective environmental legislation. 
Environmental standards, management objectives and priorities should reflect the environmental and 
developmental context to which they apply.  Standards applied by some countries may be inappropriate and of 
unwarranted economic and social cost to other countries, in particular developing countries." WT/CTE/M/38 
Page 4  
 
11. Referring to the EC paper, he sought clar ification from the EC on the upstream and 
downstream transparency in their consultative mech anism, how developing countries had been using 
this mechanism, and whether the EC or its member States had taken positive outreach measures to 
enable developing countries and LDCs using such mechanisms.  He invited the EC to further 
elaborate on how its regulatory system took into  account the concerns of developing countries, 
particularly in the context of the extended regulato ry impact assessment.  He appreciated the EC's 
views on the role of equivalence, and sought clar ification on whether the reference in paragraph 6 on 
"identifying potential bridges between our respective legislation"  included issues relating to eco-
alliance. 
12. He believed that with a view to minimizing an y negative effects of environmental measures 
on market access of products from developing co untries and least developed countries (LDCs), the 
CTE could address the following issues:  (i) on the preparation of environmental measures and how 
these took into account the special financial and trade needs of developing countries;  (ii) on whether 
environmental measures were based on science, e quity, openness and transparency, and whether they 
were compatible with the non-discriminatory nature of the multilateral trading system;  (iii) on the implementation of environmental measures, a point wh ich had been stressed by China at the previous 
meeting and referred to in the EC paper, namely, the provision of a longer timeframe for compliance, 
technical assistance and capacity building for co mpliance and technology tr ansfer at preferential 
terms;  and (iv) the role of eco-alliance and impr oved market access for environmentally friendly 
products.  He found what had been highlighted in paragraph 6 of the EC paper corresponded to his 
points.  To address the point made by the EC with respect to what the CTE could do, he believed experience sharing could be a useful complement in  the Committee's debate under Paragraph 32(i), in 
particular, information and ideas in terms of iden tifying examples of sector specific environmental 
requirements which had an impact on exports of developing countries.  He noted the relevant work by 
UNCTAD, and believed that it would be useful to obtain an update on such work. 
13. The representative of Mexico
 welcomed the points made in paragraph 6 of the EC's paper.  
He noted that the paper provided information on the implementation of the EC's regulatory practices, not only for environmental measures but also for other technical regulations.  Some of the information 
provided in this document related to the wo rk of the TBT and SPS Agreements, and, more 
specifically, Article 15.2 of the TBT Agreement,  which obliged Members to provide information on 
the implementation and administration of that Agreem ent.  He invited other Members to provide such 
information to the CTE as it related to the mandate of Paragraph 32(i) and coul d facilitate the debate.  
The CTE could also make use of the existing information submitted by Members under the TBT 
Agreement or the Trade Policy Review Mechanism on how they implemented their transparency 
obligations in the context of the development of technical regulations.  He noted the approach as 
indicated in the EC paper to assist exporters from developing countries to comply with environmental 
measures without weakening the requirements.  He found that approach insufficient, since it was an 
obligation under Article 12 of the TBT Agreement and Article 10 of the SPS Agreement to take into 
account the special needs of developing countries in the preparation of regulations.  He agreed with 
India that it was important to identify the needs of  developing countries before, and not after, the 
adoption of a technical regulation.  
14. He found the extended and preliminary impact assessment mentioned in paragraph 10 of the 
EC paper an important aspect, and sought clarification from the EC on its methodology, the extent to which it took into account the needs of developing countries, and whether there was a mechanism in 
the EC to analyze the impact of environmental re quirements, and, in particular, the impact on 
developing countries.  Referring to Section B on "minimum standards of consultation", he sought 
further information from the EC on the transparency standards applied by the private sector for the 
preparation of voluntary standards as well as the consultation procedures at the local and municipal 
levels, since many environmental measures with trade impacts were prepared at these levels.  On the 
REACH Directive, he appreciated the early notificat ion made by the EC under Article 2.9.1 of the  WT/CTE/M/38 
 Page 5 
 
 
TBT Agreement.  He asked if there were procedures in the EC to ensure that such early notice would 
be provided in all cases, and no t just on an ad hoc basis.   
15. The representative of Venezuela  shared the spirit expressed in India's paper, since his country 
had been affected by environmental requirements wh ich obstructed trade, and he gave the example of 
the shrimp and tuna cases.  He agreed that envi ronment, trade and developm ent should be mutually 
supportive.  Referring to the EC 's paper, he sought clarification on how the EC's consultation 
procedures were publicized, and how the consulta tions were conducted with exporters in third 
countries.  Regarding technical assistance and cap acity building, he recognized the importance of such 
activities and the cooperation between UNCTAD and other inte rnational organizations.  
16. The representative of the United States  found that environmental protection measures were an 
important part of domestic policy, and agreed that  environmental policies an d trade policies could be, 
and should be, mutually supportive.  She welcomed the EC's efforts to improve their regulatory 
practices, including increased transparency, particularly in the case of REACH.  She observed that 
while the EC were increasing their efforts to address the concerns regarding their environmental 
regulations, such concerns, both from developed and developing countries, remained prominent.  She 
noted that a significant proportion of US concerns regarding access to the EU market involved EC's environmental regulations.  These included concerns over the lack of transparency and over-reaching 
requirements, when other effective less trade restrict ive measures existed.  Given the prominence of 
concerns amongst US exporters, she could imagine the burden faced by developing country exporters.  
For that, she appreciated EC's efforts, and hoped that the EC would continue to improve their 
transparency procedures and to take into acc ount the concerns of developing countries when 
developing EC regulations.  
17. The representative of Thailand
 recalled that the objective of Paragraph 32(i) was to discuss 
the effects of environmental measures on market access.  She welcomed the EC's information as well 
as their initiatives to improve regulatory practice, since this concerned EU's market access.  Referring 
to the EC's prior consultation procedure, she was im pressed with the number of contributions made in 
the context of the Internet consultation on REACH.  She sought clarification on the extent to which 
the contributions had been taken into account, and how developing countries had been able to 
influence the development of this Directive.  On impact assessment, she noted that the EC had also 
carried out the assessment on developing countries.  She sought information on the process of such 
assessment and how its results were used in the policy making process. 
18. The representative of Australia  found the EC's information useful in both the CTE and the 
TBT Committees.  He invited other Members to prov ide similar information to contribute to an 
exchange of national experience.  Referring to the th ird paragraph of the EC's paper, which stated that 
"some developing countries are concerned that environmental requirements in developed countries 
may reduce market access", he believed that it was not only developing countries which had such 
concerns, but also some developed countries, such as Australia.  In the same paragraph, a sentence of the CTE Report to the Cancun Ministerial Conference  had been quoted, saying that "the answer to 
concerns about reduced market access is not to weaken such standards but rather to enable exporters 
to meet them".  He reminded delegations that it was only a sentence quoted from the Cancun Report.  
The Report also said that environmental standards,  objectives and priorities needed to reflect the 
particular environmental and develo pmental context to which they applied, and that standards applied 
by some countries could be inappropriate and of unwarranted economic and social cost to others, particularly developing countries.  That was why Au stralia had always paid attention to ensure that 
environmental measures were designed in the leas t trade restrictive manner, consistent with WTO 
rules and based on sound science.  Regarding the EC's consultative procedures, he sought further 
clarification on the following:  how had non-EC member States managed to use the consultation 
process to influence the outcome of new EC environmental regulations?  How accessible was the EC 
information mechanism?  How often had it been used by the developing countries?  How successful WT/CTE/M/38 
Page 6  
 
had the EC's technical cooperation programmes been  to improve EC market access for developing 
countries?      
19. He reiterated that when Members sought to promote positive environmen tal effects or prevent 
negative environmental effects, they should do so through policies which would not create new non-
tariff trade barriers.  Members should always be seeking to reduce trade barriers and ensure that 
environmental measures were not implemented incons istently with the objectives and rules of the 
multilateral trading system.  This could thus contribute to economic growth and sustainable 
development.  He recalled that such a link between market access and sustainable development had 
been made in paragraph 6 of India's paper.  He ag reed that sustainable development was not just about 
environmental protection.  Trade could contribute to  poverty alleviation, and developing countries' 
export earnings could be used to enhance the protection of the environment.  He found the proposals 
made in part IV of India's paper interesting, and endorsed proposal (b) on the need for environmental 
measures to be based on sound science, transparency and equity. 
20. The representative of Switzerland
 welcomed the EC's information addressing the concerns 
raised by developing countries.  She agreed that trade and environment policies needed to be mutually 
supportive.  She recalled that Members had been enc ouraged to share experiences with respect to the 
potential effects of environmental measures on ma rket access for developing countries.  Such 
information could also include positive impacts, such as in the context of technology transfer and 
financial or technical assistan ce which were equally importan t to developing countries.   
21. She highlighted the experience of Switzerland with regard to market access via organic 
commodity chains for cotton.2  For several years, Switzerland's development cooperation had worked 
on fair-trade and organic supply chains with the id ea of developing niche markets into mass markets, 
thereby enabling market access for commodities fr om LDCs.  This programme on organic cotton for 
West African countries covered the promotion of su stainable technologies for the local industry as 
well as activities in the organic certification.  It was a public-private development partnership 
involving various actors, including the private sector, which organized the supply chain and the purchase agreements, as well as NGOs, which had expe rience in developing countries.  It prepared the 
conditions for organic certification which could be accepted in the EC and Switzerland through the 
transfer of technology.  The benef its for producers participating in this programme could be two-fold, 
namely, monetary and non-monetary, thus leading to a high impact with regard to poverty alleviation.  
Monetary benefits could be obtained from the bio premium or fair trade premium which were around 
20 per cent higher than the normal price, and non-m onetary benefits from tech nology transfer, such as 
occupational health and safety, long-term increase of soil fertility, access to education programmes, 
diversification of crop rotation, access to micro credits and equipment, exchange of experiences 
within producers' associations and access for female farmers to organically certified plots.  In the last few years, organic cotton had reached a market shar e of 2.4 per cent of the total Swiss cotton import, 
and was expected to double to 5 per cent by 2007.  This project had gained increasing international awareness, and could be applied to other co tton producing countries, or other sectors. 
22. The representative of Argentina
 found the EC paper useful and relevant to developing 
countries' concerns.  He shared the view highlighte d in paragraph two on the need to strike a balance 
between trade, environment and de velopment, although he  found that, in reality, it was a complex 
issue.  He noted the increase of environmental requir ements over the last years, and their impact on 
developing country exports.  In order to compete, exporters had to anticipate the market requirements, 
which implied a great effort on the part of exporters from developing countries.  For that, any attempts 
made by regulatory bodies in e xport markets, as in the case of the EC, to provide information, 
technical assistance and to increase transparency we re welcome.  He believed that Paragraph 32(i) did 
not rest simply in a discussion on regulatory practices in the abstract, but should also include making 
reference to specific cases.  Reference should be made not only to the elimination or reduction of 
                                                      
2 The statement was circulated in document WT/CTE/W/240, 21 October 2004.   WT/CTE/M/38 
 Page 7 
 
 
trade barriers, but also to the protection of the environment and development.  He sought from the EC 
specific cases where developing countries had be en able to benefit from the EC's improved 
consultation process and technical assistance program mes to gain market access.  He noted that in 
footnote four of the EC's paper,  reference had been made to the work of UNCTAD and the case 
studies in Bangladesh, Cambodia, China, Philippi nes, Thailand and Vietnam.  He proposed that 
UNCTAD be invited to make a presentation in a future meeting on the outcome of the six case 
studies, and believed that it would provide the CTE with the background for a discussion based on 
real experience of developing country exporters.  
23. The representative of Colombia  found the EC's improved mechanism useful for exporters 
who had to meet the environmental regulations in the EC, its member States, as well as the standards in the private sector.  She asked how the EC consu ltation process worked with regard to developing 
country exporters.  She believed that consultations  with developing countries should take place before 
the elaboration of the requirements.  Like India, Colombia was interested in the issue of equivalence, 
and she sought further information from the EC on the recognition as equivalent of environmental 
standards in developing countries.  She found that  environmental measures in developed countries 
had, in many cases, become barriers to trade fo r products from developing countries, and gave the 
example of Colombian flowers and tropical fruits exported to the EU market.  As pointed out in 
paragraph four of India's paper, environmental re quirements covered a broad spectrum of measures, 
including charges and taxes for environmental pu rposes, eco-labelling and other environmental 
standards and technical regulations.  These could have an adverse impact on trade for developing 
countries due to implementation costs, technical limit ations, institutional and fi nancial constraints, in 
particular in the case of SMEs.  Moreover, agricultu ral products produced in traditional ways usually 
lacked the certification mechanism which was re cognized by importing countries.  She looked 
forward to further work in the TBT Committee on the issue of equivalence, and in the CTE on the 
proposals listed in paragraph 16 of India's paper. 
24. The representative of Chile
 welcomed the spirit shown in the EC paper in terms of good 
regulatory practices and technical assistance, and sh ared many of the views expressed by Canada and 
Mexico on that paper.  He supported the view that the discussion should be based on concrete 
examples, and not just on good faith as described in the EC paper.  As with some other delegations, he 
would like to be informed of the results of the b ilateral dialogue between the EC, its member States 
and other WTO Members in concrete cases.  He gave the example of the REACH and the 6,400 
contributions received, and asked the EC how those concerns had been taken into account in practice, and how these had led to any changes in the REACH Di rective.  He raised concerns on what had been 
mentioned in paragraph two of the EC's paper, regarding environmental me asures which were not 
based on international consensus, since those measures affected world trade.  Referring to the Swiss 
statement, he said that although Chile did not have a trade interest in organic cotton, he was interested 
in obtaining further information on the Swiss programme, and hoped that the programme was 
consistent with the WTO provisions on non-discrimination, when non-organic like products were 
involved. 
25. The representative of Cuba
 supported the proposals made in India's paper.  She believed that 
environmental requirements should be applied in such a way that they would create as few trade 
barriers to developing countries as possible.  With regard to the EC's comment on assisting 
developing countries in complying with environmen tal measures without lowering the level of the 
requirements, she agreed with Mexico that there was a need to take into account the situation of 
developing countries before developing the requireme nts.  The requirements should not be based on 
non-product related processes and production methods, and should not constitute unnecessary 
obstacles to trade.  She sought information on how the comments made on the REACH had been 
studied by the EC, and whether amendments had been made accordingly.  She also sought further 
information on the impact of the EC's transparency  system aiming at reducing trade barriers, since 
environmental requirements were costly for developing countries and could block their exports to the 
EU market. WT/CTE/M/38 
Page 8  
 
26. The representative of Egypt
 noted that the EC's paper was of  special interest  to developing 
countries.  He supported Argentina and Chile on the need to hold discussions on the basis of concrete 
examples.  However, he felt that the right place fo r such discussions rested in the TBT Committee, 
and was cautious about the possible duplication of work, unless the CTE were to focus on possible 
added value.  Referring to paragraph twenty-three of  the EC's paper, he agreed with the EC that 
technical assistance should be demand-driven.  At the same time, he believed that this should not 
prevent the EC or other donor countries acquiring certain technology for the implementation of a 
specific regulation, to have an outreach policy to inform relevant exporting developing countries 
about the possible technical assistance on such tec hnology.  As stressed by India, it was important to 
tackle both technical assistance and the concerns of developing countries during the consultation and implementation phases of a regulation.  Since many  developing countries did not have the capacity to 
make their concerns known during the consultation phase, technical assistance in the implementation 
phase was important in order to comply with the requirements. 
27. The representative of Ecuador
 noted that the EC's paper dealt with market access, which was 
an important subject for developing countries.  Sh e agreed with paragraph two of that paper, which 
suggested that environment and development were mutu ally supportive, and that the protection of the 
environment was a common responsibility.  She shared the view expressed by Argentina on 
sustainable development, and believed that with gr eater development, there were more chances to 
protect the environment.  She noted that although there was an international consensus to promote 
sustainable development, there were the problems with its implementation.  She supported the 
proposals made in India's paper as well as the sugges tion to hold discussions based on concrete cases.  
She believed that it would assist the CTE to better understand how prior consultations could assist exporters, in particular those from developing countries, handle new environmental requirements.  
She highlighted the problems faced by her country in the export of flowers and seeds, and found it 
useful to study those cases.  She made reference to the UNCTAD studies in this respect. 
28. The representative of Japan
 welcomed the approach of na tional experience sharing which 
would enable Members to be aware of existing programmes and how issues might be addressed.  Like those in the US and Australia, Japanese export ers also had concerns regarding the EC's new 
environment-related regulations.  He appreciated the EC's efforts to respond to the concerns raised by 
both developed and developing countries, and hope d that the EC would continue such efforts.   
29. The representative of China
 found experience sharing useful, and welcomed the EC's 
initiatives aiming at addressing developing coun tries' concerns when developing environmental 
regulations.  While she appreciated the EC's efforts in terms of transparency and prior consultations, 
she found these practices inadequate.  She shared the view that developing countries' needs should be 
taken into consideration before the development of  a regulation, and urged that more specific and 
effective solutions to those needs be provided.  She noted that various EC Directives, such as the 
REACH, were PPM-related, with which developing coun tries exporters, and, in particular SMEs, had 
difficulties in complying.  She believed that more effo rts should be made, not only at the policy level, 
but also at the practical level, such as in terms of  transfer of technology and investment.  She found 
that Paragraph 32(i) was of great significance to developing countries, and supported the proposal 
made by Argentina requesting UNCTAD to brief the CTE on its relevant work.  She invited other 
developing country Members, especially those w ho had participated in relevant workshops and 
projects, to share their experiences in the CTE to facilitate discussions.  A s ector-by-sector approach 
could be adopted, whereby developing countries coul d point out their difficulties and problems in the 
various sectors.  The CTE could discuss these problems and seek ways in which the WTO could 
contribute to assist solving those problems.   
30. The representative of Benin  associated himself with the statements made on the problems 
faced by developing countries, and, in particular, th e least developed among them.  He noted the need 
to protect the environment, and the increased effort s to combat poverty.  However, he believed that 
progress could not be made if developing countr ies' trade income was fu rther deteriorated.  The  WT/CTE/M/38 
 Page 9 
 
 
deterioration in market access for developing countries exports had had a negative impact on these 
countries, and the non-diversified economies of LDCs  were particularly at risk.  He welcomed the 
EC's technical assistance programme, and invited other developed countries to do the same.  He 
suggested that technical assistance could be target ed in the fields of envi ronmental services where 
developing countries had the potential to develop trade, and environmental measures which could 
have repercussions on exports from developing countries.  Assistance could also be provided in the 
areas of labelling and certification, traditional know ledge, market access of agricultural goods and 
environmentally friendly products.  He agreed with I ndia that concerns of developing countries should 
be taken into account in advance of the development of a regulation.  He was interested in the Swiss 
organic cotton programme, and sought further information on it. 
31. The representative of Malaysia  recalled that the work under Paragraph 32(i) concerned 
environmental measures which could have an impact on market access.  She noted that the onerous 
requirements and the compliance cost of environmental measures could be a burden for many 
developing countries.  She gave the example of the REACH, and recalled that the Association of 
Southeast Asian Nations (ASEAN) had registered their relevant concerns at the June 2004 TBT meeting, and had sought, as special and differenti al treatment, the possibility of obtaining a longer 
time period for compliance.  She noted that the issue of a longer timeframe was also raised in India's 
paper.  She shared the question raised by previous speakers on whether the EC's new transparency and 
consultation procedures had led to a reduction of trade barriers, and had provided solutions to the 
market access concerns raised, par ticularly those from developing countries.  She sought clarification 
from the EC on how they carried out their impact assessments, and whether they scrutinized trade impacts outside the EU, in particular, on developing countries' exports. 
32. The representative of Singapore
 noted that many Members had highlighted the onerous nature 
of the REACH Directive.  He welcomed the consultations and transparency mechanisms that the EC 
had put in place to address the concerns of deve loping countries.  He found that it was a necessary 
condition in order for exporters to register their concerns, and for the EC to take the concerns into consideration.  However, he shared the view of other delegations that this was not sufficient.  
Attention had to be paid to both the preparatio n and the implementation stages of environmental 
requirements.   
33. He believed that there was no question about  the nexus between trade liberalization, 
environmental protection and sustainable development.  However, for developmental and 
environmental benefits to be realized, there ne eded to be effective market access for exports, 
particularly from developing countries.  He recalle d that the 1996 CTE Report to the First Ministerial 
Conference had emph asized the importance of market access opportunities for deve loping countries to 
obtain the resources necessary to implement ad equate development and environmental policies 
determined at the national level.  It had also em phasized the need for diversified economies and the 
provision of income-generating activities for the poor, and had highlighted the removal of trade 
restrictions and distortions, such as high tariffs, tariff escalation, export restrictions and subsidies, 
which had potential negative effects on trade and the environment. 
34. The representative of Morocco
 welcomed what had been stated in paragraph six of the EC 
paper on experience sharing to improve transparency and on the efforts to prepare environmental 
measures taking into consideration developing country concerns.  He highlighted the importance of 
developing countries' participation in the envir onmental standards-setting process, including the 
standards developed in international bodies, so that the negative trade impact could be mitigated.  Cooperation with UNCTAD was important in this regard. 
35. The representative of Brazil
 hoped that the EC's paper could assist the CTE to move forward 
its work on Paragraph 32(i), and said that he wo uld share that paper with the private sector.  He 
agreed that in order to seek effective solutions to the growing concerns with respect to environmental measures on market access, more had to be done than  had been described in the EC's paper in terms of WT/CTE/M/38 
Page 10  
 
information exchange and technical assistance.  In particular, he believed that certain environmental 
measures might constitute unfair impediments to leg itimate international trade flows, and should be 
reduced or eliminated.  He understood that the TBT and SPS Agreements were the appropriate 
instruments to address those matters.  The CTE shoul d consider the effects of environmental measures 
on market access, and could look into situations wher eby the elimination or reduction of trade barriers 
could benefit trade, the environment and development.   
36. The representative of Kenya
 welcomed the EC's efforts to improve transparency in order to 
accommodate developing countries' concerns.  She appreciated what had been stated in paragraph 
four of India's paper, and encouraged the CTE to advance discussions on the adverse effects of 
environmental measures on market access and competitiveness.  She noted that in Kenya, concerns had been raised on the export of flowers to the EU market, and, currently, work was being done to 
identify other sectors and the specific environmental requirements which impacted export 
performance.  She associated herself with the comments made by Benin. 
37. The representative of Cote d'Ivoire
 believed that the most important element of the discussion 
under Paragraph 32(i) was how to ensure that environmental measures did not become unnecessary trade barriers, particularly for developing countries.   He recalled that the EC had made a point on how 
best to reconcile the protection of  environment, the facilitation of tr ade and development, and sought 
information from the EC on any specific approaches an d measures in this respect, other than by means 
of transparency and impact assessments. 
38. The representative of South Africa
 recalled that following the World Summit on Sustainable 
Development held in Johannesburg, the Swiss govern ment, together with Austria, had established a 
cleaner production centre in her country.  She belie ved that, as a developing country, this was the way 
to go forward for South Africa, since with this bus iness-oriented project, technology, knowledge and 
information were being transferred, and the concept of clean production was focussed upon.  She 
appreciated the contribution of these two governments and the work of UNIDO in this regard. 
39. The representative of the European Communities  welcomed the comments made on the EC's 
paper, and explained that the paper attempted to look at process issues, which the EC believed to be important.  However, it would not replace the debate on substantive issues.  The paper focussed on the 
concerns of developing countries and the role of  developed countries with a view to facilitating a 
focussed debate on problems of developing countries.  It provided information on the EC process, but 
did not attempt to claim that everything had been  perfect.  The EC was open to criticism, and would 
try to improve further.  The main objective of th e paper was to disseminate information, to share 
experience and best practices aimed at improving existing practices.  He invited other developed 
countries, as well as developing countries, to come  forward with similar info rmation to contribute to 
the debate.   
40. He noted that the questions raised on the EC paper included issues concerning equivalence, 
positive measures and te chnical assistance, and also the method ology used in the impact assessment 
and the way to make use of the minimum standards of consultation.  His delegation would provide a 
preliminary response, and would come back with further information at future meetings.  He invited 
other Members to reflect on the comments made on the EC's paper with a view to identifying 
elements for more focussed debates in the CTE aimed at taking the Committee's work forward.  He 
highlighted the need to ensure coherence with th e work of other international organizations, and 
pointed out that reference had been made in the EC 's paper to the relevant work in the OECD and 
UNEP, and to the studies and workshops carried ou t by UNCTAD, financed by the UK and other EC 
member States.  He agreed that what was important was the reality, and said that it was the reason 
why the information provided in the EC paper was based on practical elements, including detailed 
information, such as that on web sites, which could be useful for exporters from developing countries.  WT/CTE/M/38 
 Page 11 
 
 
41. The EC representative said that it was the EC's intention to hold a debate on the market access 
effects of the EC's environmental measures, and, in particular, the effects on developing countries, 
and on how to facilitate access to information and to  comply with such measures.  However, it was 
not the EC's intention to have a debate on the comp atibility of those measures with WTO rules.  He 
noted that many questions had been raised on the consultative process of the REACH and how 
comments were taken into account.  He explained th at it was a long process, which would continue 
over the next two years.  He recalled that the proc ess had started off when the European Commission 
had identified an environmental problem regardi ng the circulation of a number of dangerous 
substances within the EC.  Since the existing legisl ation on chemicals had been developed a long time 
ago, the EC had decided to take action.  Before acting, the EC had carried out an extended impact 
assessment on the three pillars of sustainable development, namely, the economic, social and 
environmental impact.  In this context, it had also  looked into the impact on developing countries, 
and, in particular, on SMEs.  Subsequently, several options had been identified, followed by the 
preparation of a proposal.  Once the proposal had be en decided, the EC had made an early notification 
to the WTO under Article 2.9.1 of the TBT Agreement.   He noted that the early notification had been 
regarded as useful, and invited other developed countr ies to double their effort s to make notifications 
under the TBT Agreement.  Following the TBT notification, the EC had carried out an Internet 
consultation opened to all interested parties, includi ng those from governments and the private sector.  
Consequently, the coverage of the REACH had been  amended, with many of the products taken out 
from the registration list.  Therefor e, the consultation and comments made, and, in particular those by 
developing countries, had been taken into account  before the adoption of the final text.   
42. The final text had been adopted by the Commission and was discussed in the European 
Council and the European Parliament.  Both institutions had announced their intention to carry out an 
additional impact assessment.  This would be the first time in the EC that an additional impact 
assessment had been carried out when the text wa s discussed by the Council and Parliament.  He 
believed that since the proposal was needed to solv e a particular environmental concern, it could not 
be eliminated.  What could be done was to consider the possible improvement with respect to its 
quality, taking into account its impact on other Me mbers, and, in particular, developing country 
Members.  
43. Referring to India's comments on the importance of science-based criteria and international 
standards, he believed that those issues should be dealt with in the TBT and SPS Committees.  In this 
context, he informed the CTE that there would be an EC presentation on the REACH at the coming 
TBT meeting.  On the point raised by Egypt regard ing technical assistance during the implementation 
phase, he believed that the EC had been providing such  assistance.  He recalled that in the case of the 
WEEE and RoHs, the EC had established a number of regulatory dialogues, in particular with 
developing countries from Asia, since they were expor ters of electronic goods to the EU.  The aim of 
these dialogues was to provide these countries with information on the Directives and assistance to 
comply with the requirements.  During the dialogues, the EC had acknowledged that similar 
legislation was being developed in some of the coun tries.  Subsequently, attempts had been made to 
coordinate with the aim of obtaining results whic h were good for both the environment and trade. 
44. The representative of India  thanked the delegations who had supported the various elements 
in India's paper.  In terms of how the CTE could co nduct its work in the future, he observed that there 
was a general interest among Members in experience sharing.  Many had highlighted the need to look into specific sectors and environmental requirements regarding their impacts on trade of developing countries.  In this context, he supported the proposal for an UNCTAD presentation on the subject.  WT/CTE/M/38 
Page 12  
 
45. The representative of UNCTAD
, referring to the request ma de for a presentation on the 
UNCTAD country sector case studies, informed the CTE that the studies covered around twenty 
countries and four sectors, namely, footwear, elect ronics and electrical equipment, horticulture, and 
organic produce and other agricultural products of in terest, in particular, to Central America and the 
Caribbean.  There had been a series of sub-regional and national workshops, and certain preliminary 
results were available, but not all of the studies ha d been completed.  He said that the UNCTAD could 
make a submission and a presentation on the case studies to the CTE at a future meeting.  He agreed 
that there was a need to focus on concrete cases and practical approaches, and informed the CTE that 
UNCTAD had recently launched a Consultative Ta sk Force on Environmental Requirements and 
Market Access for Developing Countries.  The wo rk of the Task Force would cover not only 
mandatory requirements and government legislation, but also voluntary requirements.   He invited delegations to participate in the first session of the Task Force to be held on 5-6 November in Geneva.  
The debate could provide an opportunity to discu ss the findings of the UNCTAD case studies, to be 
followed by launching concrete  sectorial initiatives.   
46. The Chairperson
 found the debate positive, and believed that the CTE could profit from a 
focussed discussion concentrating on the main issues  identified.  So as to have a more structured 
discussion at the next meeting, she invited delegations to contribute by submitting information in 
writing on their experience of the effects of environmental measures on market access, as well as on 
actions taken to assist developing countries in this regard.  
47. The Committee took note  of the statements made. 
B. PARAGRAPH 32(II) (TRIPS ) 
 The relevant provisions of the Agreement on Trade-Related Aspects of Intellectual Property 
 Rights (TRIPS)   
48. The representative of the Convention on Biological Diversity  (CBD) recalled that at the CTE 
meeting on 21 June 2004, interest had been expres sed by a number of delegates in receiving further 
information on the note submitted by the Executiv e Secretary of the CBD on the Decisions of the 
Seventh Meeting of the Conference of the Parties to the CBD (COP-7) and the First Meeting of the 
Parties to the Cartagena Protocol on Biosafety (COP-MOP 1) of Relevance to the WTO 
(WT/CTE/W/235), and, in particular, on Decision VII/19 on access and benefit sharing (ABS) as 
related to genetic resources, as well as Decisions VII/29 on transfer of technology and technology 
cooperation.  He said that with regard to Decision VII/19, COP-7 had decided to launch a negotiation 
on an international regime on access to genetic reso urces and benefit sharing.  The terms of reference 
of the regime would not prejudge its legal nature, and a number of existing instruments, including the 
relevant elements of the WTO TRIPS Agreement,  would be considered for inclusion in that 
international regime.  The COP had decided to mandate the existing Ad-hoc Open-ended Working 
Group on ABS to elaborate and negotiate that regime.  The Working Group would meet in 
February 2005 in Bangkok and in March 2006 in Spai n, before the next meeting of COP to be held in 
May 2006 in Brazil (relevant details could be found at the web site www.biodiv.org).   
49. With regard to Decision VII/29, COP-7 had adopted a programme of work on technology 
transfer and technological and scie ntific cooperation with a view to promoting and facilitating the 
transfer of and access to technologies relevant to the conservation and the sustainable use of bio-
diversity in accordance with Articles 16–19 of the Convention.  Two activities in the programme were 
of particular relevance to the WTO.  First, Activ ity 3.1.2 called for the compilation and synthesis of 
information, and the preparation of guidance on fr ameworks that facilitate access to the adaptation of 
technology.  An expert group to be established in November 2004 would assist the CBD Secretariat in 
undertaking this task which had to be accomplished by the Eighth meeting of the COP in May 2006.  
He said that the preparation of the draft compilation and guidance for consideration by the expert 
group was under way, and this documentation would take into account, inter alia,  t he  wo rk  o f  the  WT/CTE/M/38 
 Page 13 
 
 
WTO TRIPS Council on the implementation of Paragraph 66.2 of the TRIPS Agreement as well as 
the work of the Working Group on Trade and Transfer of Technology.  Secondly, Activity 3.1.1 
called for the preparation of technical studies that  would further explore and analyse the role of 
intellectual property rights and technology transfer in the context of the CBD.  He said that invitations 
had been sent to UNCTAD and WIPO  for consultations with the CBD Secretariat at a technical level 
on the development of a framework for the preparatio n of the studies.  Other relevant organizations, 
including the WTO, would be invited to review the framework and to cooperate in this respect.  The 
CBD Secretariat would update the CTE on the ev olution of these activities in due course.  
50. The representative of Colombia  believed that the discussion under Paragraph 32(ii) should 
cover the question of how trade and intellectual prope rty (IP) had an impact on natural resources and 
related knowledge.  Supported by the representative of Cuba , she suggested that the Secretariat draw 
up an inventory of studies, and, in particular those by observers to the CTE, on the trade of goods and 
services derived from biodiversity under IP protection  and its positive and negative results in trade.  
This could have an input in the Committee about  the relationship between IP and biodiversity.  
51. The representative of Venezuela  sought clarification from th e representative of the CBD on 
what had been done in the CBD in terms of ensuring coherence between the WTO and the CBD, in particular, with respect to the WT O discussion on technology transfer. 
52. The representative of the European Communities
 found the work of the Open-ended Working 
Group on ABS interesting.  Referring to paragraph 14 of document WT/CTE/W/235, regarding the 
Decision on the biological diversity of dry and s ub-humid lands, he sought further information from 
the CBD on the point relating to market developmen t with a view to increasing the marketing of 
products derived from sustainable use and to deve loping conducive market relationships.  He was 
interested in those issues as they related to the discussion on environmental goods in the CTE Special 
Session.  Regarding agricultural biological diversity mentioned in paragraph 15, he sought 
clarification on how the relevant studies could enri ch the debate on the relationship between subsidies 
and the loss of biodiversity.  He noted that certain subsidies could be good for biodiversity, and biodiversity might be lost if such subsidies were to be stopped.  Finally, he sought further information 
on practical examples of technology transfer me ntioned in paragraph 20, since it was an issue 
frequently raised in the CTE and other WTO committees.   
53. The representative of Kenya
 associated himself with the comments made by the EC on 
paragraph 14 of WT/CTE/W/235, and believed that it was important to look at the biodiversity of dry 
lands.  He made reference to the work of the Un ited Nations Convention to Co mbat Desertification in 
this respect.  
54. The representative of the CBD  pointed to the relevant provisions in the CBD on technology 
transfer where references were made  to technology subject to patents and intellectual property rights.  
In such cases, it had been stated that access and tran sfer should be provided on terms consistent with 
the adequate and effective protection of intellectual property rights.  Moreover, appropriate legislative, administrative or policy measures were  taken by contracting parties in the transfer of 
technology in the area of genetic resources.  Referring to the point raised by Venezuela on the issue of 
coherence, he noted that the various studies and work programmes in the CBD took into account 
relevant WTO work.  These practices were part of  the CBD's efforts to further enhance coherence 
between the two organizations.  
55. The Committee took note
 of the statements made.  WT/CTE/M/38 
Page 14  
 
C. P
ARAGRAPH 32(III) (LABELLING ) 
 Labelling for Environmental Purposes 
56. The representative of the European Communities  drew Members' attention to an informal 
room document circulated by his delegation en titled "Trade as an Environmental Policy Tool?  
Environment as a Trade Policy Tool?" prepared by th e Global Eco-labelling Network (GEN).  He said 
that GEN was open to government, semi-governmental or private bodies that administered eco-labels, 
provided that these bodies followed the ISO rules on voluntary labelling.  He noted that the paper took 
up a number of issues which had been debated in the CTE, such as the question of PPMs, voluntary 
versus mandatory requirements, and the compatibility with WTO rules.  The paper provided a 
practical approach to the issues with respect to  eco-labelling, and focussed on possible ways to 
improve or create market access.  He found it necessary to push the CTE debate into the practical 
domain in order to exploit market opportunities which eco-labels might provide.  He invited other 
Members to reflect on that paper, so as to  reset the CTE debate under Paragraph 32(iii). 
57. The representative of Venezuela  believed that the GEN paper was TBT-related, and said that 
his delegation would consider the paper and comment on it. 
58. The representative of Canada  recalled that Canada's enviro nmental labelling scheme was one 
of the founding Members of the GEN, and agreed with the EC with respect to the practical approach 
of the Network.  He proposed that, at some point , a learning event could be held, which would engage 
experts in the field of eco-labelling, to enrich th e CTE's understanding of the reality in the market 
place of the various countries and products.   
59. The representative of Australia , responding to Canada's proposal, recalled that an event on 
labelling had been held in the TBT Committee in 2003, and was not convinced of the need to hold 
another such event. 
60. The representative of the European Communities  said that he was aware of the labelling event 
which had taken place in the TBT Committee.  Howeve r, he recalled that it had not been focused on 
eco-labelling, but on labelling in general, and in vited further debate on the Canadian proposal. 
61. The Committee took note  of the statements made.  
D. ITEM  4 OF THE  CTE  WORK  PROGRAMME   
62. The Chairperson  recalled that Item 4 of the Work Programme dealt with the transparency of 
trade measures used for environmental purposes, and drew the CTE's attention to a Secretariat note 
explaining the latest WTO Central Registry for No tifications (CRN) facility which would enable the 
search and retrieval of environment-related notific ations (WT/CTE/W/237, dated 31 August 2004).   
63. The representative of the Secretariat  (Document Systems Section of the Language, Services 
and Documentation Division) explained to the CTE the recent changes in "Documents on Line" and 
the new CRN search facility.  He gave a demons tration on the options of searching through the 
standard search interface and the new notification specific search interface.   
64. The representative of Egypt  noted that in document WT/CTE/W/237, reference had been 
made to the Environmental Database.  He found the Database useful, since it provided an overview of 
the environmental related notifications made unde r the different WTO Agreements.  He suggested 
that the Secretariat should con tinue to update the Database. 
65. The Committee took note  of the statements made.   WT/CTE/M/38 
 Page 15 
 
 
II. PARAGRAPH 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 enco urage that expertise and experience be 
shared with Members wishing to perform envi ronmental reviews at the national level.   
With regard to Environmental Reviews 
 
66. The representative of th e European Communities  drew the CTE's attention to a room 
document containing a summary of the state of play of the EC Sustainability Impact Assessment 
(SIA) of Trade Negotiations.  He said that the SIA took into account all the elements of the 
sustainability effect of trade agreements.  The obj ective was to ensure that  the EC trade policy was 
sustainable and contributed to its overall policy objectiv es.  It was not trade for the sake of trade, but 
trade as part of the objective to achieve sustaina ble development.  He pointed out that interested 
parties, including civil society, were invited regula rly to provide comments and to discuss the SIA and 
its findings.  With regard to the SIA of the WTO ne gotiations,  he said that a number of studies had 
been undertaken, with the most recent ones on market access, environmental services and competition.  The final reports had been made av ailable, and his authorities were preparing the 
reaction to the findings, which would include comm ents and possible actions to mitigate or prevent 
negative effects.   
67. Referring to the on-going sectoral SIA studies on agriculture, forestry and distribution 
services, he informed the CTE that parts of the mid-term reports were available, and the final reports 
would be released in early 2005.  These studies cove red case studies in Brazil, Ecuador, Ghana, India, 
Indonesia, Kenya, Malaysia, Mexico and Tanzania.  Concerning the sectoral SIA on agro-industry in 
West Africa, on tourism in the Caribbean and on fisheries in the Pacific, the inception reports which 
set out the scope of the studies were available, a nd the mid-term reports were to be delivered in 
October 2004.  Regarding the ongoing EU-ACP nego tiations, an overall preliminary sustainability 
and fact assessment had been conducted together with  some regional studies.  Moreover, there was the 
final report for the SIA on EU Gulf Corporation Co uncil negotiations.  He said that information on 
those studies could be obtained from the relevant web sites, and invited other Members to comment 
on the findings. 
68. The representative of Canada
 updated the CTE on the outcome of the Conference of the 
International Association of Impact Assessment held  in Canada in April 2004.  He said that the 
Association involved experts dealing with all type s of environmental assessment, and the Conference 
had been focussed on environmental assessment of  trade negotiations.  It had brought together 
representatives of governments, NGOs and academia from around 78 countries to share best practices, 
and to discuss challenges and issues related to the methodology, trade and environment analysis, and 
public consultation.  The main findings from the C onference had been that impact assessment of trade 
continued to evolve as a useful tool to better un derstand the effects of trade and to inform timely, 
strategic and coherent policy making.  Future work  should focus on improving the quality of the 
assessments, and assessments needed to focus more on shaping policy rather than just assessing policy 
outcomes.  Impact assessment of trade required st rong political commitment and partnerships with 
stakeholders.  Stakeholders' engagement should be  more proactive and directed towards meaningful 
engagement, and, in this respect, more workshops had been recommended.  Finally, collaboration and 
capacity building were essential elements for continue d success, and, in this respect, the sharing of 
experience in impact assessment for trade, and the work of the Association could play a role. 
With regard to Technical Assist ance and Capacity Building  
69. The representative of UNCTAD  informed the CTE that the UNCTAD secretariat and the 
National Institute of Metrology, St andardization and Industrial Qualit y of Brazil (Inmetro) had jointly WT/CTE/M/38 
Page 16  
 
held a pre-UNCTAD XI Workshop on Environmental Requirements and Market Access for 
Developing Countries in Brazil on 7-8 June 2004.  The outcome of the Workshop had been presented 
at the TBT Committee July 2004 meeting (G/TBT/G EN/9), and the final report had been issued as 
UN document UNCTAD/DITC/TED/2004/7.  The workshop had led to the launching of a 
Consultative Task Force on Environmental Re quirements and Market Access for Developing 
Countries.  The functions of the Task Force included:  to facilitate dialogue among stakeholders of 
specific sectors in the area of the preparation,  adoption and implementation of regulations and 
standards, in particular, their possible trade implications for developing countries;  to develop holistic 
and pro-active strategies in developing countries to respond to environmental requirements in key 
export markets;  to improve the dissemination of information on environmental requirements, 
including those from the private sector;  and to ho ld regular exchange amon g relevant international 
organizations, donors, private sector associations and the NGOs.  The first substantive meeting of the 
Consultative Task Force would be held in Geneva  on 5-6 November 2004, back to back with the TBT 
Committee meeting.  The work of the Task Force had benefited from  the sector specific country case 
studies undertaken as part of the UK DFID funded  project on capacity building for improved policy 
making and negotiation on key trade and environm ent issues.  Moreover, the Government of the 
Netherlands had provided funding to support studies on transparency in consultative processes on 
standard setting, and the facilitation of access to and flow of information on environmental 
requirements.   
70. He also provided information on the following  activities:  (i) a technical meeting held in 
Costa Rica on 17-18 August 2004 to discuss progress in the case studies on selected agricultural products in eight Central American countries, Cuba  and the Dominican Republic.  Further discussion 
on these studies would be held at a regional workshop later this year in Costa Ri ca;  (ii) a sub-regional 
workshop on environmental and food safety requirem ents, market access and export competitiveness 
for horticultural products held in Bangkok on 29 Sept ember to 1 October 2004.  It had been attended 
by experts from Bangladesh, Cambodia, China, th e Philippines, Thailand and Viet Nam, and the 
discussion had been facilitated by the case studies pr epared by national experts;  and (iii) a similar 
sub-regional workshop and a national training workshop for Bangladesh held in Dakar on 4-5 October 2004.  On 28-29 October 2004, UNCTAD, in cooperation with the Foundation for 
International Environmental Law and Development (FIELD), would hold a workshop on consultative 
processes and impact assessment related to the REACH.  Experts from the EC, developing countries 
and European industry would participate.  Finally , the third meeting of th e joint UNCTAD, FAO and 
IFOAM International Task Force on Harmonization and Equivalenc e in Organic Agriculture was 
scheduled to take place in Rome on 17-19 November 2004.  
71. The representative of UNEP
 informed the CTE of the recent activities of the 
UNEP/UNCTAD Joint Capacity Building Task Fo rce on Trade, Environment and Development 
(CBTF).  He said that a number of planned activities for the second phase of the CBTF, which had 
been launched in June 2004, would be focused on African countries.  Following a request made at a 
CBTF meeting in Cape Town in May 2003, a training workshop on integrated assessment of trade 
policies for African countries had been held on 19- 20 July at the UNEP headquarters in Nairobi.  The 
workshop had been attended by participants from the various regions of Africa, and had specifically 
targeted representatives from African research and tr aining institutions, since they were in the best 
position to conduct future training or to initiate assessments and cooperation with their respective 
governments.  He said that a sub-regional work shop on trade and environment for Portuguese-
speaking African countries, hosted by the Governme nt of Angola, would be held on 8-10 November 
in Rwanda.  In addition, a national training workshop on enhancing policy coordination for the 
implementation of MEAs containing trade-related measures had been held in Cambodia 
on 5-6 October.  This workshop had focussed on issues related to the Montreal Protocol, Basel 
Convention, CITES and the Biosafety Protocol.  It had been attended by representatives from the 
Ministries of Environment and Commerce, and had benefited from the presence of representatives 
from MEA Secretariats as well as a country case stu dy prepared by national consultants.  He thanked 
the EC and the US for their financial contributions to the CBTF Trust Fund.  WT/CTE/M/38 
 Page 17 
 
 
72. The representative from the Secretariat  informed the CTE of the Secretariat's technical 
assistance activities provided in 2004 and those planned for 2005.  She said that, as in the past years, 
these activities took the following forms.  First,  the regional workshops were designed to inform 
participants about WTO rules relevant to the envi ronment and the work of the CTE with a focus on 
specific concerns of the region.  These workshops also provided opportunities to increase the dialogue 
between trade and environment officials at the nati onal level, as well as to allow the sharing of 
experience among countries in the region.  At these workshops, relevant MEAs and inter-
governmental organizations were invited to contribute.  In 2004, three such workshops had been held.  
The workshop for Arab and Middle East countries held in Amman in February, where the views 
expressed by oil-producing Arab countries on  the MEA/WTO relationship and the proposals 
submitted by Qatar on environmental goods had been taken up.  For Asia Pacific countries, a workshop had been held in Hanoi in May, back to back with a workshop on the TBT Agreement.  It 
had focussed on the different aspects of the Doha mandate on environment, namely, the negotiations 
on the relationship between WTO rules and MEAs , environmental goods a nd services, and issues 
related to the environmental requirements and mark et access.  For sub-Saharan African countries, 
there would be a workshop held in Geneva on 15-16 Oc tober, back-to-back with the present meeting.   
73. Other types of technical assistance activities in  2004 included a module presented in the 
context of the negotiations on Market Access for Non-Agricultural Products (NAMA).  It had been 
delivered at NAMA workshops to inform capital-ba sed officials dealing with market access of the 
discussions on environmental goods which had taken place in the CTE in Special Session.  It had also 
intended to draw the attention of the particip ants to the challenges regarding the concept of 
environmental goods and modalities for the negotiations .  This type of activity had been held in Abu 
Dhabi in February, and in Barbados in May.  In 2004, national workshops had been held in Korea, in 
China (organized by the Chinese Ministry of Commer ce and the International Institute for Sustainable 
development), and in Argentina (organized by the Mi nistry of Industry and Commerce with the Inter-
American Development Bank and INTAL).  With resp ect to Geneva-based activ ities, she recalled that 
an event on environmental goods had been held on 11 October 2004.   
74. The Secretariat had also organized side-events in MEA meetings, such as for the Rotterdam 
Convention and the Basel Convention.  Moreover, the Secretariat had presented the WTO's work 
programme in the UNCTAD Sub-regional Workshop on Environmental Requirements and Market 
Access in Manila in February, and acted as a speaker in the UNEP capacity building event held in 
March.  Finally, the Secretariat had contributed to the WTO trade policy courses, which included the three regular courses in Geneva, and those held in Nairobi, Hong Kong and Tunisia for the regions.  
Concerning the activities for 2005, she said that the Secretariat was planning to organize side-events 
at the meetings of the Stockholm Convention CO P and the Cartagena Protocol on Biosafety.   
75. The Committee took note
 of the statements made. 
III. 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 sustai nable development appropriately reflected. 
76. The Chairperson  reported to the CTE on her meeting with the Chairman of the Committee on 
Trade and Development (CTD) to exchange informa tion on the work undertaken in their respective 
Committees pursuant to the mandate  in Paragraph 51.  The CTD Chair had informed her that the CTD 
had proceeded on the mandate by inviting the S ecretariat to report on the work of various 
negotiating groups with respect to the developmental aspects of the negotiations, and, so far, these had 
been in the areas of Agriculture, Services, Market  Access for Non-Agricultural Products and Dispute 
Settlement.  She had, in return, informed the CT D Chair that the CTE had heard briefings on the WT/CTE/M/38 
Page 18  
 
environmental aspects of the negotiations in  Agriculture, Services, Market Access for 
Non-Agricultural Products and Rules, and it had been  agreed that such reports could be updated, as 
appropriate, in light of any development in the nego tiations.  She had also mentioned that the EC had 
submitted a proposal to organize an event on sustainable development.  She had found this exchange 
with the CTD Chair useful, and both Chairs had felt that this practice should continue as the work on 
Paragraph 51 in the two Committees progressed.   
77. The representatives of Venezuela
, India , Chile , Colombia  and Brazil  thanked the Chairperson 
for her report on the meeting with the CTD Chair.  The representative of Venezuela  asked that the 
Chairperson continued to report to the Committee on any future meetings with the CTD Chair 
regarding Paragraph 51.   
78. With respect to the proposal by the EC, the Chairperson  recalled that at the informal 
consultation held on 7 October, there seemed to have been agreement among delegations for 
organizing an event on sustainable development within the framework of Paragraph 51.  There had 
also been broad support for this event to be mainly educational and informative, with no formal 
outcome or conclusions drawn.   
79. The representative of the European Communities  thanked the Chairperson for the 
consultations she had held to help move forward the proposal to hold an event on Paragraph 51.  He 
invited other delegations to further provide inputs with  regard to the event, a nd believed that the event 
could make a contribution to the mandate under Paragraph 51.   
80. The representative of India  highlighted that the programme for the event should reflect a 
balance by addressing Paragraph 51 in a holistic manner.  In his view, the event should not be 
formally linked to the work of the CTE, nor that of the CTD.  However, it would be useful for the 
Chairperson to remain in contact with the CTD Chair with respect to the preparation of the event.   
81. The representative of the United States  agreed with the way forward on the EC proposal as 
outlined by the Chairperson.  She supported India's point concerning the need for a balanced 
programme, and the fact that the event should not be formally linked to the work of the Committee.  
In her view, the event should be Member-driven, and should be open to members of all WTO groups.   
82. The representative of Chile  suggested that the Chairperson could consult with the Chairs of 
the CTD and the negotiating groups in order to obtain their advice on relevant issues that could be 
addressed in the event.   
83. The representative of Colombia  supported the proposal for an event, and recalled that she had 
provided some elements to the Secretariat, which co uld be addressed to ensure focused discussions at 
the event.   
84. The representative of Australia  found the consultations on the EC proposal useful, as these 
had enabled Members to reach a basic agreement on holding a learning event with no formal 
conclusions or outcomes.  His delegation had communicated preliminary views to the Secretariat, and 
had suggested inviting the World Bank, given their involvement on issues relevant to sustainable 
development.  He believed that it could be useful for the Chairperson to keep in contact with the CTD 
Chair.  Moreover, given the mandate in Paragrap h 51, the relationship between the CTE and other 
negotiating groups was important.  He shared the view that the event should be open to members of 
all WTO bodies.   
85. The representative of Brazil  shared the view that the event s hould not be linked to the work of 
any particular WTO Committee.  He noted that in pl anning this activity, there should be appropriate 
coordination with the CTD, since the two Committees shared the mandate in Paragraph 51.  The CTD had undertaken consultations on Paragraph 51, and th e idea of organizing an event had also been  WT/CTE/M/38 
 Page 19 
 
 
discussed in that context.  It would be important to  have a balanced programme for such an event that 
would include both the environmental and developmen tal aspects of the mandate in Paragraph 51.   
86. The representative of Venezuela  believed that the main objective of the event should be to 
assist Members to identify the environmental aspects referred to in Paragrap h 51.  The identification 
of such aspects remained one of the main diffic ulties Members had to overcome in order to make 
progress on the mandate.  In this context, Para graph 6 of the Doha Declaration should be given 
particular attention, given its link to Paragraph 51 and the objective of sustai nable development.  He 
agreed that the Chairs of the CTD and of the negotiating groups could provide some useful input with 
regard to the event.  
87. The representative of China  supported the approach suggested by the Chairperson.   
88. The Chairperson  invited delegations to further communicate their inputs regarding the 
organization and the programme of an event on Paragraph 51, including possible speakers.  Such 
inputs should be communicated to the Secretariat in writing before the end of 2004.  On the basis of 
these comments, the Secretariat would then prepare a draft programme for the event.   
89. The Committee took note  of the statements made. 
IV. ADOPTION OF THE 2004 ANNUAL REPORT  
90. The Committee adopted  its 2004 Report based on the draft as contained in WT/CTE/W/238 
with an additional paragraph reflecting the discussion of the present meeting and in light of comments 
made.3   
V. OTHER BUSINESS 
91. The Chairperson  drew Members' attention to a request  from the Organization of the Eastern 
Caribbean States (OECS)  for observer status in the Committee.  She recalled that the list of pending 
requests was contained in document WT/CTE /INF/6/Rev.1, dated 31 August 2004.  At 
the 4 October 2001 meeting, the CTE had agreed to postpone discussion of requests by 
inter-governmental organizations for observer status in the CTE pending discussions on 
observer status in the General Council.4  This applied to all pending requests, including the request 
from the OECS.   
92. The Chairperson  informed delegations that the next meeting would be held in February 20055.   
 
__________ 
 
                                                      
3 The final Report was circulated in document WT/CTE/11, dated 30 November 2004    
4 WT/CTE/M/28, paragraph 3.   
5 Subsequently scheduled for 22 February 2005