WORLD TRADE  
ORGANIZATION  TN/TE/W/59 
8 July 2005 
 (05-3021) 
Committee on Trade and Environment  
Special Session Original:   English 
 
 
 
ENVIRONMENTAL GOODS FOR DEVELOPMENT 
 
Submission by Brazil  
 
Paragraph 31 (iii)  
  
 The following communication, dated 7 July 2005,  is being circulated at the request of the 
Delegation of Brazil
. 
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I. SUMMARY 
1. This paper aims to make a contribution to the discussions on environmental goods through the 
perspective of development as envisaged in the Doha Ministerial Declaration.  It is proposed that a 
meaningful outcome of those discussions should take fully into account the particular concerns and 
interests of the developing countries by including, as pa rt of the package, the principles of special and 
differential treatment and of less than full reciprocity in reduction commitments. 
II. BACKGROUND AND GENERAL GUIDELINES 
2. One of the hallmarks of the Doha Ministerial Conference is the unprecedented commitment of 
WTO Members to make multilateral trade rules and tr ade liberalization supportive of the development 
process.  Also noteworthy is the commitment undertak en to seek to achieve environmental objectives 
while pursuing trade liberalization and addressing devel opment concerns.  In this context, it is in the 
interest of all Members that liberalization in  the trade of environmental goods should offer 
opportunities for developing countries to increase expor ts of such goods where they have competitive 
advantages.   
3. Paragraph 6 of the DMD states that “the ai ms of upholding and safeguarding an open and 
non-discriminatory multilateral trading system, and ac ting for the protection of the environment (...) 
can and must be mutually supportive”.  It is al so helpful to remember that paragraph 51 draws 
attention to the fact that both the Committee on Trade and Development (CTD) and the Committee on 
Trade and Environment (CTE) should act “to identif y and debate developmen tal and environmental 
aspects of the negotiations”. 
4. Furthermore, the CTESS is instructed to fo cus on development in the context of the 
negotiations mandated in pa ragraph 31 (iii) of the DMD. For mo st developing countries, development 
would be best addressed in the field of environmen tal goods if the outcome of the negotiations lead 
mainly to:  (a) improved market access for products that have low impact on the environment and/or 
that are derived from or that incorporate cleaner technologies; and (b) the use of technologies adapted 
to the needs of developing countries. TN/TE/W/59 
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 5. This approach aims at addressing the imbala nces currently existing in the market of 
environmental goods, which has privileged the de finition based, by and large, on “end-of-pipe” 
technologies and products.  According to UNCTAD studies, developed countries hold 90% of the 
so-called “traditional” market of environmenta l goods.  Negotiations focused mainly on this 
“traditional” view, as proposed by some Members,  would not take into account the development 
aspects of the DMD. 
6. While modalities are not part of the scope of negotiations in the CTESS, it is reasonable to 
conclude that Members, in fulfilling the mandate (“the reduction or, as appropriate, elimination of 
tariff and non-tariff barriers to environmental goods  and services”), will ensure that the negotiations 
will duly take into account the principles of speci al and differential treatment and less than full 
reciprocity in the reduction commitments. 
7. Additionally, negotiations under paragraph 31 (iii) should cons ider:  (a) the reduction or 
elimination of unjustified trade restrictions;  and (b) the provision of technical assistance and capacity building to developing countries. 
III. DEVELOPMENT OPPORTUNITIES FOR DEVELOPING COUNTRIES 
8. The exports of most developing countries consis t, by and large, of natural resource-based 
products.  Most of them are endowed with plenty of  natural resources that include formidable stocks 
of biodiversity, water, landscape and soil.  Moreove r, the indigenous and local communities of these 
countries are rich in traditional knowledge.  Parado xically, many of these local populations have to 
endure dreadful famine, poverty, illness and othe r environmental setbacks.  Environmental 
preservation under these conditions is hardly sustainable.  
9. An adequate definition of environmental goods may constitute a relevant response to 
overcome this paradox, by allowing mutually suppor tive outcomes and a triple win situation, i.e., 
trade promotion, environmental improvement and p overty alleviation.  Improved market access for 
products that have low environmental impact an d/or are derived from or incorporate cleaner 
technologies contributes to poverty alleviation throu gh income generation and job creation for local 
populations. This structural move has a multiple developmental effect throughout the respective 
society. 
10. Hence, it is proposed that the definition of environmental goods should cover products, such 
as natural fibres and colorants and other non-timbe r forest products, renewable energy, including 
ethanol and biodiesel.  A FAO study for the Convention on Biological Diversity, using a loose concept of sustainable use product, indicates that such products would enjoy a market of around 
US$ 19 billion.  Albeit inaccurate and requiring furthe r refinement, it shows that further liberalization 
in the trade of these products would certain ly have positive developmental effects. 
11. Improved market access for products derived from or that incorporate cleaner technologies, 
such as “flexi fuel” engines and vehicles could also  encourage the use of environmentally efficient 
products and be supportive of the developmental concerns of the developing countries, as those 
vehicles are driven by a fuel obtained from the processing of natural resources available in the 
developing countries.  
IV. ELEMENTS FOR THE DEFINITION OF ENVIRONMENTAL GOODS 
12. Based on the criteria and objectives described in  the previous sections, Brazil would like to 
propose the following approach to the discussions on the definition of environmental goods, with a 
view to translating the development objective of the DMD in practical terms.  TN/TE/W/59 
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 13. In order to achieve a balanced outcome in th e negotiations, any definition of environmental 
goods should include products in which developing countries have special interest.  Therefore, Brazil 
proposes to adopt the UNCTAD approach on “environmentally preferable products” as a basis to develop a definition of environmental goods that  encompasses the development dimension.  
UNCTAD has been studying this matte r for a long time and has devoted considerable efforts in the 
support of negotiations on the matter, as well as in ass isting to find technical solutions to this issue. 
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