WORLD TRADE  
ORGANIZATION  TN/TE/W/55 
5 July 2005 
 
 (05-2931) 
Committee on Trade and Environment 
Special Session Original:   Spanish 
 
 
 
COMMUNICATION FROM THE REPUBLIC OF CUBA 
 
Environmental Goods  
 
Paragraph 31(iii)  
  
I. INTRODUCTION 
1. Cuba is presenting this paper as a contributio n to the discussions on environmental goods in 
the Committee on Trade and Environment in Special Session (CTESS).
1 
2. The CTE negotiations on environmental goods a nd services can have a positive impact for the 
international community generally and the devel oping countries in particular as long as their 
outcomes effectively further sustainable developm ent goals and the Johannesburg Summit objectives. 
3. The report by the Chairperson of the CTESS (T N/TE/11) to the TNC conveyed the perception 
that "Paragraph 31(iii) emerged as the most likel y candidate [part of the mandate] for tangible 
progress by the Hong Kong Ministerial Conference" and "as a potential outcome for the Conference, 
delegations could prepare a list of environmental goods".  To Cuba's mind, the discussions as to the 
way in which to fulfil this mandate have failed to produce the requisite consensus of all the Members 
and have been marked by uncertainty among the deve loping countries as to the actual benefits that 
may derive from these negotiations.  It would therefor e be premature to prejudge the outcome of these 
discussions at the conference. 
4. The fact that most of these goods have a dual end-use, which makes it impossible to ascertain 
a priori whether the use to which they are put is indeed environmental, and the difficulties associated 
with determining the codes that would be assigne d to such goods in the Harmonized System for 
statistical differentiation purposes, are among th e factors impeding progress in these negotiations. 
5. The following positions and considerations ar e being advanced in the conviction that a 
successful outcome and hence benefit in terms of  mutual supportiveness of trade and sustainable 
development – the pillars of the Doha mandate in  this area – will depend on how genuinely useful 
these negotiations prove to be for the developing countries and on the transparency with which they 
are conducted. 
                                                      
1This paper is without prejudice to Cuba's final position as these negotiations proceed. TN/TE/W/55 
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 II. OUTSTANDING NEGOTIATING ISSUES 
6. Many of the questions under discussion remain to be answered before a consensus solution 
can be reached in the negotiations.  The following, inter alia , should be addressed: 
• The problem of the definition of environmen tal goods, or of the reference criteria for 
validating the inclusion of such goods in a potential list; 
• the inadequacy of the proposed APEC and OECD lists as a basis for generating a list; 
• the lack of clarity as to how such goods  will be negotiated in the NAMA Group and 
the various other possible forums; 
• the failure of some proposals
2 to provide sufficient in centive for the developing 
countries, in that no provision is made for effective special and differential treatment 
or any alternative capable of moving the negotiations forward; 
• the insufficient linkage between the e nvironmental goods and the environmental 
services negotiations. 
7. The fact that there is no multila terally agreed definition of environmental goods is giving rise 
to reservations associated with the lack of assu rance that the end-use of the goods really is 
environmental protection and sustainable developmen t, and yet no objective evaluation of the impact 
of this kind of negotiations on our economies can be carried out. 
8. Likewise, the proposal to use both the APEC and the OECD lists as references for preparing a 
potential multilateral list has demonstrated that bot h fail to serve the interests of the developing 
countries in that they basically benefit developed country export products and services. 
9. Furthermore, the lack of clarity as to how such  goods will be negotiated in the NAMA Group, 
and in particular how to apply the S&D principle,  is a disincentive to progress in this Committee's 
work. 
10. Another issue that yet remains to be resolv ed is how to address the problem of non-tariff 
barriers on such goods, particularly goods requiring certification and eco-labelling which 
fundamentally affect market access for the developing countries. 
11. A number of developed countries have tabled alternative proposals based on the negotiation 
of lists providing for distinct treatment of goods on which tariffs could be  reduced and brought down 
to zero, or variants of "living lists" that incorpor ate goods as gradually agreed or as they emerge as a 
result of developments in the environment industry.  Neither option is really viable for the developing 
countries – the first because it fails to accommodate  S&D and the national policy interests of our 
countries, and the second because these economies do not possess the technological adjustment 
capacities that would allow them eventually  to benefit from a list of this kind. 
12. The provision of environmental services is closel y linked to trade in related goods.  However, 
this has not been taken into account by the vari ous negotiating forums, whereas proper consideration 
                                                      
2 The proposals tabled by the United States (TN/TE/W/38), the EU (TN/TE/W/47), Canada 
(JOB (04)/98 and TN/TE/W/50) and New Zealand (TN/TE/W/46 and 49) are not clear as to how to deliver on the objectives laid down in paragraphs 6 and 51 of the Doha Ministerial Declaration, relating to the achievement 
of sustainable development goals.  TN/TE/W/55 
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 of the issue might well stimulate the developing countries to participate in both types of negotiation, 
which ultimately fall within one and the same mandate. 
III. NATIONAL EFFORTS IN THE CONTEXT OF THE NEGOTIATIONS 
13. The questions underlying the discussions notw ithstanding, Cuba is in the process of 
considering which products it might suggest for inclus ion in the negotiations.  To that end, national 
institutions, working with support from UNCTAD, have carried out assessments of environmental 
goods and services and have met with producers and exporters to discuss their interests. 
14. Despite these positive endeavours, a group of pr oducts of national interest are still under 
assessment for potential inclusion in the negotiatio ns.  Among them are some products relating to 
renewable energy or energy efficiency technol ogy and natural products, such as bio products.  
15. In any event, we can say a priori that we are net importers of most environmental goods and 
services presented in the discussions, and the nati onal interest in these negotiations is directly 
associated with the building-up and development of  domestic production capacity and the provision of 
such goods and services as may further the country's sustainable development. 
16. However, the uncertainties and unresolved problem s that continue to plague the discussions 
have made it impossible to move ahea d with more concrete proposals.  
IV. INITIATIVES THAT ACCOMMODATE DEVELOPING COUNTRY CONCERNS 
AND INTERESTS IN THE NEGOTIATIONS 
17. The possibility of negotiating proposals making h eadway in the CTESS is directly related to 
the extent to which such proposals accommodate the interests of the majority of developing country 
Members.  For this to occur, it will be necessary to ensure that the outcomes of these negotiations 
fulfil the specific mandate of "enhancing the mutu al supportiveness of trade and environment", as set 
forth in paragraph 31. 
18. Under the "list approach" on which we have been working to date, China's proposal of 
developing a core list and another list requiring lesser  reduction commitments for products of interest 
to the developing countries is the only proposal  so far to emphasize the need to make specific 
provision for special and differential treatment in  these negotiations.  The complementary list would 
allow the developing countries to undertake less onerous commitments, their status as net importers of such goods giving them greater flexibility to  face reduced tariff revenue from such goods and 
enabling them to make adjustments to their domestic economies on the basis of the reductions. 
19. Another proposal that seeks to address the mandate while looking at the specificities and 
needs of the developing countries is that outlined by India in its recent paper (TN/TE/51) putting 
forward an alternative approach based on an envir onmental project rather than a list.  This new 
approach resolves many of the existing problems and c onsiders elements that ha ve not been taken into 
account so far.  This includes  responding to th e dual-use issue, establishing the linkage between 
environmental goods and environmental services, making specific provision for S&D in the negotiations, and accommodating the national cond itions and needs of developing countries. 
V. POINTS TO BE ADDRESSED IN ORDER TO MOVE THE NEGOTIATIONS 
FORWARD 
20. The linkage between the definitions and lists of environmental goods, on the one hand, and 
the negotiating modalities, on the other, should be c onsidered under a systemic  and parallel approach, 
for this is what will determine the outcome, positive or otherwise, of the negotiations.  TN/TE/W/55 
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 21. Yet the uncertainty stemming from the lack of  negotiating modalities is a disincentive to 
developing a list, which, moreover, according to the reference criteria or definitions examined to date, 
will fail to deliver genuine benef its for the developing countries. 
22. There is a set of goods, such as organic products, which in many cases are part of a 
developing country's traditional agricultural exports but which pose difficulties when it comes to 
considering process and production methods (PPM s).  How will the TBT Committee address the 
issue?  How should the joint evaluation of both ne gotiating forums be considered?  Is now possibly 
not the time to work on the non-tariff barriers on these products affecting market access for the 
developing countries?  What would be the appropriate forum to do so? 
23. Developing country participation in the envi ronmental goods negotiations might increase if 
the linkage with services were taken into account  and if the developing countries were offered 
concrete S&D options.  The search for formulas of  interest to our countries because of the assurance 
of sustainable development they provide should be  based on actions that ensure the transfer of 
technology and know-how under diffe rentiated terms and conditions, so as to comply with the 
principle of responsibilities that are common but diffe rentiated according to each country's level of 
development. 
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