WORLD TRADE  
ORGANIZATION  TN/TE/W/79 
15 April 2011 
 (11-1923) 
Committee on Trade and Environment 
Special Session Original:   English 
 
 
 
WTO NEGOTIATIONS ON ENVIRONMENTAL GOODS AND SERVICES:  ADDRESSING 
THE DEVELOPMENT DIMENSION FOR A "TRIPLE-WIN" OUTCOME 
 
Communication from China and India  
 
  The following communication, dated 13 April 2011, from the delegations of China and India is being circulated to the Committee on Trade and Environment in Special Session. 
 
_______________ 
 
1. Doha Mandate 
1. The proponents of this paper begin by recapitulating some of the basic elements of the Doha 
Ministerial Declaration (DMD) that have a beari ng on the discussions on Environmental Goods and 
Services: 
 Paragraph 31(iii) calls for negotiations on "t he reduction or, as appropriate, elimination 
of tariff and non-tariff barriers (NTBs) to  environmental goods and services (EGS)."  
 Paragraph 32 states that particular attention is  to be given to the effect of environmental 
measures on market access of developing and least-developed country Members. This paragraph also emphasizes upon the need to ha ve a "triple-win" outcome by specifically 
recording that the elimination or reduction of trade restrictions and distortions shall benefit trade, environment and development . (emphasis added)  
 Paragraph 38 underscores technical cooperati on and capacity building as core elements 
of the development dimension of the multilateral trading system.  
 Paragraph 44 reaffirms the provisions for speci al and differential treatment as an integral 
part of the WTO Agreements. 
 Paragraph 50 emphasizes that the Work Programme shall take fully into account the 
principle of special and differential treatme nt for developing and least-developed country 
Members.   
 2. The Hong Kong Ministerial Declaration reiterates the "central importance of the development 
dimension in every aspect of the Doha Work Programme."  
2. Negotiations on Proposals at EGS Negotiations  
3. In the on-going negotiations however, the focu s on the development dimension has been 
highly limited. The thrust of the discussions has been primarily on trade in goods, or what is referred 
to as the "List" approach.
1 The main problems in the List Appr oach are its sole focus on trade in 
                                                      
1 JOB(07)/54;  TN/TE/W/57; TN/TE/W/57Corr. 1; TN/TE/W/56; TN/TE/W/52; TN/TE/W/50; 
TN/TE/W/49; TN/TE/W/49/Rev.1; TN/TE/W/49/Rev.2 ; TN/TE/W/48; TN/TE/W/47; TN/TE/W/47/Add.1;  TN/TE/W/79 
Page 2  
 
  goods, its silence on environmental services, and the fact that the lists of goods proposed have pre-
dominantly been goods with multiple non-environmenta l uses. India had proposed an alternative in 
the form of the "Project Approach".
2 Argentina merged elements of the Project and List approaches 
with its proposal for an "Integrated Approach"3, which was further developed in a joint submission 
with India.4 Brazil's Request and Offer methodology5 is the other proposal on the table.  
4. There has however not been much headway on th e approaches being negotiated. It is the view 
of the proponents of this paper that without a common understanding on the objectives and modalities 
of negotiations, any further discussions would not be very fruitful. The purpose of this paper is to 
highlight the underlying principles of the Doha Declaration and emphasize the elements of the 
development dimension  which would need to be woven as an integral component of the negotiations. 
The proponents also believe that principles that focus on a win for development along with a win for 
trade and a win for environment will in themselv es ensure clarity in the approaches that can be 
adopted in the EGS discussions. 
5. The development dimension in the EGS discussions  was sought to be given central focus in a 
recent submission on "special and differential treatment" (S&DT) by Brazil and Argentina.6 This 
communication is in furtherance to that submissi on, and seeks to elaborate on some of the other 
elements of the development dimension,  in addition to the S&DT elements. 
3. Development Dimension in the EGS Discussions 
6. Addressing the development dimension would re quire ensuring access to and availability of 
environmentally sound technology (EST) in order to address developmental needs of developing and 
least-developed country Members. As pointed out in the United Nations Social and Economic Survey 
in 2009, developing countries need financia l resources, technological know-how and capacity 
building in order to adhere to a path of  environmentally sustainable development. 
7. In the context of the EGS discussions, the thr ee main elements to address the development 
dimension can be categorized as follows:  
(a) Mechanisms to ensure the development and tr ansfer of environmentally sound technology 
(EST);  
(b) A financial mechanism to ensure access to  and development of EST, investments in 
environmental projects and capacity devel opment for production of environmental goods; 
and 
(c) Special and Differential Treatment for devel oping and least-developed country Members. 
 
                                                                                                                                                                     
TN/TE/W/46; TN/TE/W/44; TN/ TE/W/44/Corr.1; TN/TE/W/38; TN/TE/W/34; TN/TE/W/19;  
TN/TE/W/19/Corr.1; TN/TE/W/8;  TN/TE/W/6, TN/TE/W75. 
2 TN/TE/W/67; TN/TE/W/60; TN/TE/W/54; TN/TE/W/51. 
3 TN/TE/W/62. 
4 JOB(07)/77. 
5 JOB/(07)/146. 
6 TN/TE/W/76.  TN/TE/W/79 
 Page 3 
 
 
  4. Technology Development and Transfer 
8. Effective development and transfer of EST would require concrete commitments from 
Members to ensure such development and transfer in an effective manner. Specific commitments and 
work programmes would need to be evolved wh ich focus on obligations from developed country 
Members to ensure transfer of technology, incl uding ensuring financing commitments to enable 
access to technologies protected by Intellectual Property Rights (IPRs) and those that are not (this 
aspect is discussed in greater detail below in the section on Financial Mechanism).  
9. Adequate commitments are also required in orde r to ensure that IPRs in themselves do not 
become a barrier for transfer of technology. In this  regard, provisions need to be evolved in order to 
ensure that private sector players within a Member 's jurisdiction do not abuse their proprietary hold 
over technology to deny access, and also that the terms of access are reasonable. To give effect to this 
commitment especially in the context of cr itical EST required by a WTO Member, innovative 
mechanisms would need to be conceptualized to allow for compulsory licensing for export of such 
technology to another Member.  The Doha Declara tion on Public Health could provide the basis of 
one such innovative mechanism. 
10. Cooperative research and development of EST, sharing of IPRs from such development, 
enhancing capacities of developing and least-devel oped country Members to develop and implement 
such technology, and ensuring effective transfer and implementation of such technology, are also 
objectives that need to be clearly made operational within the EGS framework. 
11. An important aspect to highlight in this rega rd is that "Transfer of Technology" comprises 
flows of know-how , experience  and equipment  to different stakeholders such as governments, private 
sector entities, financial institutions, non- governmental organizations (NGOs) and 
research/educational institutions.7 Since know-how is a critical component of technology, technical 
assistance and capacity building for recipients of t echnology transfer are also elements that would 
need to be addressed as part of the component  on technology development and transfer.  
12. In view of the fact that most ESTs are in th e hands of private entities, innovative ways in 
which effective implementation of transfer of tec hnology can occur would need to be explored and 
implemented. In this regard, ideas from, and li nkages with, the Climate Technology Centre and 
Network (CTC&N) which is being conceptualized  under the United Nations Framework Convention 
on Climate Change could also be explored as one of the means to implement commitments for 
technology transfer. 
5. Financial Mechanism 
13. Technology development and transfer and a sound funding mechanism are closely linked 
since such development and transfer will require  adequate financial support. The commitment of 
financial resources to ensure access to EST in orde r to enable developing and least-developed country 
Members to implement measures to promote developm ent in an environmentally sound manner, is an 
inherent component of the devel opment dimension. Increased public and private investment in EST 
development and transfer and in environmental projects along with the means to achieve this are 
critical components which will need to be addressed.  
                                                      
7 This is a definition in the context of transfer of clean technology as a means to mitigate the impact of 
climate change, used by the Inter-governmental Panel on Climate Change: Methodological and Technological 
Issues in Technology Transfer  (2000), (Part 1.4). The elements of the definition would be applicable in the 
context of transfer of any complex technologies. TN/TE/W/79 
Page 4  
 
  14. Several studies have borne out that EST, whether or not protected by IPRs, typically comes 
with a high price tag which makes access to it pr ohibitive. A sound financial mechanism is therefore 
of key importance in ensuring transfer and effective implementation of EST.  
15. To achieve the financial aspect of the development dimension, Members should consider 
creation of a Trade and Environment Fund with objectives, such as:  
(a) Facilitating transfer of ESTs at reasonable prices by funding the incremental costs of 
sourcing both proprietary and non-proprietary EST th rough licensing and other 
mechanisms; 
(b) Providing grants to developing country Me mbers that intend to import specific ESTs; 
(c) Financing the cost of change of production practices in existing manufacturing facilities in 
developing countries by a dopting and implementing EST; 
(d) Financing of R&D activities, including joint research, development and demonstration;  
(e) Financing appropriate environmental technical assistance and capacity building 
programmes; 
(f) Establishment of technology transfer center s/exchanges/mech anisms in consultation and 
cooperation with the relevant MEA Secretariats.  
 
6. Special and Differential Treatment 
16. As highlighted in the introductory part of this  submission, S&DT elements would need to be 
integral to any discussion on EGS. This would i nvolve providing differential and more favourable 
treatment to developing country and least-devel oped country Members and take into account their 
special development, financial and trade needs. The guidelines and principles for addressing special 
and differential treatment as part of the EGS nego tiations have been identified in Argentina and 
Brazil's submission
8, and this submission seeks to elaborate and supplement some of the elements 
highlighted in that submission. 
17. Effective implementation of S&DT would re quire less than full reciprocity in any 
commitments made by developing and least-developed country Members including in the forms of a 
lower preference margin and exclusions for certain number of items. Any elimination of tariffs should 
be commensurate with the level of economic development, national objectives and needs of 
developing country Members. Ade quate transition periods should also be built in for allowing phased 
implementation of obligations for developi ng and least-developed country Members. 
18. A mechanism would need to be evolved wh ereby the Committee on Trade and Environment 
(CTE) would need to be notified about the technol ogy transfer and technical/financial assistance 
programmes being implemented by developed c ountry Members. Implementation by developing 
country and least-developed country Members of their commitments under the EGS framework 
should be linked to the effective technology transfer and aid/assistance to them. 
__________ 
 
 
                                                      
8 TN/TE/W/76.