WORLD TRADE  
ORGANIZATION  TN/TE/16 
26 July 2006 
 (06-3612) 
Committee on Trade and Environment 
Special Session  
 
 
REPORT BY THE CHAIRMAN OF THE SPECIAL SESSION OF 
THE COMMITTEE ON TRADE AND ENVIRONMENT 
TO THE TRADE NEGOTIATIONS COMMITTEE1 
 
 
1. Since my last report to the TNC in April 2006, the Committee on Trade and Environment in 
Special Session (CTESS) has held a formal meeting on 6-7 July and two informal technical discussions under Paragraph 31(iii) on 10-12 May and 12- 13 June.  This report provides an update of 
the discussions in the Committee under each  item of the mandate in Paragraph  31 of the Doha 
Declaration.   
I. STATUS OF WORK 
A. P
ARAGRAPH  31( I)  
2. At the 6-7 July meeting, the CTESS considered  a proposal by a Member  which suggested an 
outcome under Paragraph 31(i) in the form of a ministerial decision on trade and environment.  This submission proposed, inter alia , to establish core principles to gove rn the relationship between MEAs 
and WTO rules, and also set out procedures to guide WTO bodies and dispute settlement panels in 
their consideration of environmental issues.   
3. Since the early stages of the negotiations, Member s have held different views on the scope of 
Paragraph 31(i) and on the most appropriate wa y of addressing this mandate.  Some delegations 
consider that the mandate provides an opportunity  to further clarify and improve the relationship 
between WTO and MEA rules with a view to preventi ng conflicts from arising.   Other delegations are 
of the view that the WTO-MEA relationship has been  working well.  These delegations consider that 
the sharing of national experiences in the negotiati on and implementation of specific trade obligations 
in MEAs undertaken by some Members could provide a basis for taking the discussions forward under Paragraph 31(i).  The proposal introduced at the last meeting gave rise to a restatement of 
Members' positions on these issues.   
4. A number of delegations raised questions as to  whether the proposal was within the scope of 
the mandate, which they noted was circumscribed to  the relationship between existing WTO rules and 
specific trade obligations set out in MEAs.  Other questions were raised regarding various aspects of 
the draft decision, and several delegations noted that  they wished to study in more detail the legal 
implications of such a proposal in light of ru les and procedures under existing WTO agreements.   
5. This recent submission has contributed to rev italize discussions after a relatively long period 
of inactivity in the Committee on this part of the mandate.  Members must continue working towards 
a result that will fulfil the mandate and enhance mu tual supportiveness of trade and the environment, 
as called for in Paragraph 31.  In this regard, I w ould encourage delegations to be more forthcoming 
and specific on what they think may constitute an acceptable outcome in these negotiations.   
                                                     
 
 1 This report is submitted on the Chairman's own responsibility.   TN/TE/16 
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B. P
ARAGRAPH  31( II) 
6. Members discussed at the 6-7 July meeting a new submission under Paragraph 31(ii), which 
proposed to make information exchange between WTO and MEA secretariats a formal, institutionalized feature of WTO work, and which al so set out general conditions to facilitate the 
granting of observer status to MEAs in the CTE, as well as in other WTO committees.   
7. With regard to information exchange between WTO and MEA secretariats, a number of 
concrete elements have been put forward since the beginning of the negotiations to improve or 
complement existing practices and cooperation mechan isms.  Members should study these elements in 
further detail with a view to finding common ground on this aspect of the mandate.  As some delegations have pointed out in the past, this seems to be a relatively straightforward area of the work 
where Members could make tangible progress.   
8. Suggestions have also been put forward rega rding the granting of observer status to MEA 
secretariats in relevant WTO committees.  References  have been made in previous discussions to the 
overall situation on observer status in the General Co uncil.  At the same time, some delegations have 
suggested indicative questions or criteria that coul d guide WTO committees in their consideration of 
requests for observer status from MEAs.  It w as suggested that these could supplement existing 
criteria for the granting of observer status to international intergovernmental organizations.
2  These 
are some of the issues that will need to be fu rther discussed in order for the Committee to make 
headway with this part of the mandate.   
C. PARAGRAPH  31( III) 
9. Since my last report to the TNC, the Comm ittee completed the technical discussions under 
Paragraph 31(iii) that were held from April to June, and also consid ered a number of new submissions 
at its meeting of 6-7 July.   
10. In the context of the technical discussions, Me mbers have engaged in an examination of the 
wide range of products put forward as environmen tal goods.  This process has allowed for a more 
focused debate on the potential environmental and developmental benefits of  these products.  While 
delegations are still divided on the most a ppropriate way of fulf illing the mandate under 
Paragraph 31(iii), these discussions have nonethele ss highlighted the practical issues related to 
product coverage that will require further attention by Members.  For instance, the discussions have 
revealed that a majority of the products proposed have dual or multiple uses.  In this connection, 
several questions were raised with regard to cl assification under the Harmonized System and the use 
of ex outs to identify goods that may qualify as environmental for the purpose of the negotiations.   
11. A number of developing country Members continue d to emphasize the need to also consider 
alternative approaches to address the mandate.  Some  further explanation was provided at the July  
meeting on the environmental project approach, b ased on a further submission on the subject.  Other 
proposals, such as the integrated approach, remain on the table.  New ideas were also put forward by 
developing country Members on criteria that could guide discussions on product coverage for 
environmental goods.  In the coming months, delega tions will have to address the various issues 
raised with respect to these di fferent approaches and proposals.   
12. Following the technical discussions, two of the proponents have tabled revised lists of 
environmental goods.  Other proponent s have also stated that they were currently in the process of 
revising their lists in light of the comments they had received during the technical discussions.  While 
the proponents' efforts were welcomed by several  delegations, many reite rated their concerns 
regarding the designation of multiple use product s as environmental goods.  Delegations must 
                                                      
2 WT/L/161.    TN/TE/16 
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continue to engage constructively in  the examination of the products put forward.  At the same time, 
Members need to discuss further the technical issues  raised with respect to the products, including  
those related to classification.   
13. It should be noted that a group of Members has tabled a proposal setting out modalities for 
environmental goods liberalization.  Another Me mber has submitted a proposal focusing on how 
special and differential treatment can be implemente d in the context of Paragraph 31(iii) negotiations.  
Some Members have expressed the view that they c onsidered the issue of modalities to be contingent 
upon a determination of product covera ge.  In this context, some delegations have drawn linkages 
with the work of other negotiating groups.  The CTE SS must strive to advance in concert on all issues 
that are brought before it by Members, especially gi ven the time constraints that the Committee faces 
to complete its work.   
14. Some Members have also referred in the course of Paragraph 31(iii) discussions to the issues 
of non-tariff barriers, transfer of technology and th e linkage of environmental goods to services.  
Members will need to revert to these issues in due course on the basis of concrete proposals.   
15. Despite the gaps between Members'  positions, I am encouraged by the fact that all delegations 
seem determined to reach a balanced  outcome that is faithful to th e mandate in Paragraph 31(iii) and 
that can deliver triple-win opportunities for trade, th e environment and development.  However, at this 
stage of the negotiations, there is still a great deal of work to be done to reach convergence on how to 
achieve that result.  To this end, delegations w ill have to pursue the dialogue in a constructive and 
pragmatic manner in an effort to narrow down existing differences.   
II. CONCLUDING REMARKS    
16. Overall, I would say that the negotiations in  the CTESS have become more concrete and 
substantive since the Hong Kong Ministerial Conf erence.  A number of new proposals have been 
tabled that have greatly enriched our discussions under all three items of Pa ragraph 31.  However, 
delegations would need to work fu rther on each of the items when th e negotiations resume so as to 
achieve a positive outcome to the mandate. 
 
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