WORLD TRADE  
ORGANIZATION  TN/TE/18 
18 July 2008 
 (08-3496) 
Committee on Trade and Environment 
Special Session  
 
 
COMMITTEE ON TRADE AND ENVIRONMENT IN SPECIAL SESSION  
 
Report by the Chairman, Ambassador Manuel A.J. Teehankee  
to the Trade Negotiations Committee1 
 
 
1. Since the last report to the Trade Negotiations Committee in July 20072, the Committee on 
Trade and Environment in Special Session (CTESS) h as held several formal and informal meetings 
where it has considered proposals by Members on the different parts of the mandate;  a series of informal consultations have also been undert aken during this period on the way forward under 
Paragraph 31 of the Doha Ministerial Declaration.   
2. This report takes stock of the work recently carried out and identifies areas where more 
discussions will be needed to fulfil the mandate.  It also provides timelines for the continuation of 
work in the coming months.  At this advanced stage of the negotiations, rapid progress will be 
required on all parts of the mandate in order for th e CTESS to deliver in time with other areas of the 
single undertaking.   
A. P
ARAGRAPH  31( I)3 
3. In recent discussions under Paragraph 31(i), Me mbers have exchanged views on the ideas put 
forward in the proposals for an outcome4, without prejudice to the nature or format of the final 
outcome.  These discussions were aimed at identif ying areas where convergence could be found and 
exploring where there might be scope to accommodate concerns raised with respect to some of the 
suggestions on the table.   
4. A number of proposals focused on how discussions in CTESS pertaining to specific trade 
obligations (STOs) in multilatera l environmental agreements (MEA s) could be captured in the 
outcome.  In the course of these discussions, Member s identified certain provisions in MEAs that 
could qualify as "STOs".  Some delegations have  noted that given the wide variety of STOs, 
illustrative examples drawn from the ma in MEAs discussed in the Committee5 could be provided on 
                                                      
1 The report is submitted on the Chairman's own respons ibility and is without prejudice to the position 
of Members.   
2 TN/TE/17.   
3 The mandate in Paragraph 31(i) calls for negotiations on:  "the relationship between existing WTO 
rules and specific trade obligations set out in MEAs."  The mandate also states that "the negotiations shall be 
limited in scope to the applicability of such existing WTO rules as among parties to the  MEA in question.  The negotiations shall not prejudice the WTO rights of any Member that is not a party to the MEA in question."   
4 TN/TE/W/68 (European Communities);  TN/TE/W/72 /Rev.1 (Argentina, Australia);  Job(08)/33 
(Norway);  Job(08)/38 (African Group).   
5 Convention on International Trade in Endangered  Species of Wild Fauna and Flora (CITES);  
Montreal Protocol on Substances that Deplete the Ozone Layer;  Basel Convention on the Transboundary 
Movements of Hazardous Wastes and th eir Disposal;  Cartagena Protocol on Biosafety to the Convention on 
Biological Diversity;  Rotterdam Convention on the Prio r Informed Consent Proced ure for Certain Hazardous 
Chemicals and Pesticides in International Trade;  Stockholm Convention on Persistent Organic Pollutants.   TN/TE/18 
Page 2  
 
an indicative basis, without necessarily having a strict definition of the term "STO".  Certain features 
of STOs considered by some delegations as key to enhancing mutual supportiveness between trade 
and environment were also highlighted, though it w as noted in this regard that prescriptive language 
should be avoided in the outcome.   
5. The sharing of national experiences regardi ng the negotiation and implementation of STOs 
set out in MEAs provided some useful insights into  the role of internal processes and national level 
coordination in fostering mutual supportiveness between STOs and WTO rules.  Many Members 
consider that the importance of national coordinatio n between trade and environment experts, and the 
value of national experience-sharing to enhance th e mutually supportive relationship of trade and 
environment should form an integral part of an y outcome under Paragraph 31(i).  It was further 
suggested that Members could continue to share their experiences relating to the negotiation and 
implementation of STOs in MEAs and their national coordination processes as part of the work programme of the CTE in Regular Session.   
6. One particular proposal addressed the issue of  technical assistance and capacity-building 
to assist Members in implementing STOs in MEAs in a WTO-compliant manner.  This proposal 
should be further examined in conjunction with  other suggestions rela ting to the development 
dimension of Trade and Environment negotiations, also bearing in mind Paragraph 33 of the Doha 
Ministerial Declaration. 
7. There was also a discussion in the Committee re lating to proposals by some delegations to 
consider certain "principles" that could govern th e WTO-MEA relationship, such as no subordination.  
While Members recognize that enhancing mutual supportiveness between trade and environment is a 
key objective of the mandate, reservations were ma de by many delegations regarding the suggestion 
to reflect these proposals in the outcome, on the basis that this would go beyond the mandate of 
Paragraph 31(i).   
8. Furthermore, the Committee had before it a proposal to address dispute settlement procedures 
that could apply to trade measures taken pursuant to an MEA;  one particular idea put forward relates 
to the use of MEA expertise in WTO disputes.  Several delegations consider the proposal to be 
outside the scope of the mandate in Paragraph 31(i);   the view was also expressed that such proposals 
could alter the balance of rights and obligations under existing agreem ents, including under the DSU.  
This is an area where further clarification would be needed to assess whether and how any of these 
ideas could be reflected in an outcome.   
9. Regarding the introductory part of the outcome , some delegations suggested to reflect the 
mandate contained in Paragraphs 31(i) and 32 of the Doha Ministerial Declaration;  other proposals 
which also draw upon other parts of the DDA to gi ve context to the mandate will require further 
discussion among Members.  As several delegations obser ved, this part will to some extent be shaped 
by the substance of the outcome.  The importa nce of reflecting the trade, environment and 
development triple-win dimension of the mandate  was also emphasized in this context.   
10. In summary, significant work h as been undertaken in this area which delegations must now 
seek to build upon.  Following the detailed examina tion of proposals carried out so far, text-based 
negotiations should begin in September on the basis of Members' proposals.  Further consultations 
will be held on specific elements covered in the pr oposals with a view to producing a draft text by 
end-October.    TN/TE/18 
 Page 3 
 
 
B. PARAGRAPH  31( II)6 
11. Discussions under Paragraph 31(ii) have progressed significantly based on new submissions 
by Members that consolidated work already un dertaken on the issues covered in the mandate.7  In the 
course of the discussions, Members have considered elements drawn from Members' proposals that could be included in an outc ome under Paragraph 31(ii).   
12. Several of these elements have garnered broa d support from the membership.  For instance, 
with respect to information exchange, concrete s uggestions were put forwar d regarding information 
exchange sessions with MEAs to be held by the CTE;  document exchange;  and future collaboration 
in the context of technical assistance and capacity-bu ilding activities.  As regards the issue of observer 
status, the Committee considered some criter ia that could guide WTO committees in their 
consideration of requests for observer status by MEAs.   
13. There are still some outstanding issues that w ill require further consultations.  One issue 
relates to the proposal that as part of the out come under Paragraph 31(ii), observer status be 
automatically granted to a number of MEAs w ho have taken part in the work of the CTE.
8   
14. Building on progress made in the negotiations so  far, the Group should proceed in September 
with text-based negotiations on the basis of the elem ents drawn from Members' proposals.  Following 
a similar timeframe as for Paragraph 31(i) negotiations , further consultations will be held with a view 
to producing a draft text by end-October.   
C. PARAGRAPH  31( III) 9 
15. Further work has been undertaken on this part  of the mandate based on a number of proposals 
submitted by Members over the past year.10  For instance, the proponents of the list approach 
submitted a "potential convergence set" of environm ental goods;  two of the proponents also put 
forward a list of goods selected on the basis of thei r "climate-friendliness".  In an attempt to address 
some of the concerns raised by developing country  Members, some delegations also submitted ideas 
for an "integrated approach";  a request and offer approach;  and a possible combination of key elements from the main proposals and positions discussed  in CTESS, with a particular focus on the 
environment and development dimens ions.  At this stage of the negotiations, all proposals on how to 
respond to the mandate remain on the table.   
16. In the early part of 2008, work under Paragraph 31(iii) proceeded on parallel tracks.  On the 
one hand, work continued on the issue of coverage with a view to determining the universe of goods 
that could be considered to fulfil the mandate.  Using environmental categories
11 on which there was 
convergence, a number of delegations began to identi fy, on an indicative basis, environmental goods 
                                                      
6 The mandate in Paragraph 31(ii) calls for negotiations on:  "procedures for regular information 
exchange between MEA Secretariats and the relevant WTO committees, and the criteria for the granting of 
observer status."   
7 TN/TE/W/70 (United States) and TN/ TE/W/71 (Canada and New Zealand).   
8 TN/TE/W/66 (European Communities).   
9 The mandate in Paragraph 31(iii) calls for negotia tions on:  "the reduction or, as appropriate, 
elimination of tariff and non-tariff barriers to environmental goods and services."   
10 Job(07)/54 (Canada, European  Communities, Japan, Korea, Ne w Zealand, Norway, Switzerland, 
United States and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu);  Job(07)/193/Rev.1 
(United States and European Communities);  Job(07)/77  (India and Argentina);  Job(07)/146 (Brazil);  
TN/TE/W/73 (Cuba).   
11 Air Pollution Control;  Renewable Energy;  Waste Management;  Environmental Technologies 
(for conservation, monitoring, analysis and assessment);  and all Others.  These categories were derived from 
the different proposals on the table.   TN/TE/18 
Page 4  
 
of interest to them, without prejudice to the ultimat e approach taken by Memb ers to fulfil the mandate 
in Paragraph 31(iii), or to their position as to wh ich goods would ultimately fall within the mandate.  
On the other hand, work also continued on the issu e of modalities to clarify delegations' views on how 
negotiations should be framed given the approach es that have been proposed.  This discussion 
covered development aspects of the mandate, including S&D treatmen t, and how these aspects could 
be taken into account in an outcome.   
17. The importance of the environmental pillar of the negotiation was emphasized by many 
delegations, who consider that th e final result under Paragraph 31(iii)  should be credible both from an 
environmental and sustainable development point of view.  The aim is to achieve an environmentally 
meaningful and multilateral outcome pursuant to the mandate.   
18. In my recent consultations, all delegations seemed to acknowledge that some guidance was 
needed for the continuation of the work under Para graph 31(iii), in order for the Committee to finalize 
a result and fulfil the mandate in time with othe r parts of the single undertaking.  Based on my 
exchanges with delegations, it seems that there is support for a work plan on the way forward that will 
identify relevant environmental goods and address cr oss-cutting issues, including those of particular 
importance to developing countries.   
19. The Committee will therefore proceed on the b asis of the following work plan as the way 
forward under Paragraph 31(iii).    
20. A first phase  of consultations and submissions in Se ptember will allow Members to identify 
and discuss the universe of environmental goods th at may be relevant to the Paragraph 31(iii) 
mandate.  This first phase of work is without prej udice to the proposals currently on the table with 
respect to the approach;  it is also without prejudi ce to the treatment that Members may agree to grant 
to individual environmental goods, or to the final shape of the outcome. 
21. By 10 September
, Members are invited to submit to the Secretariat:   
• environmental goods of interest to them id entified across as many categories as possible;  
and/or  
• environmental goods identified in any requests/ offers they would have made to other 
Members.   
 
22. A format will be provided to facilitate the process of submission of environmental goods and 
requests/offers.  In this format, Members will be invited to specify:  HS codes and ex outs;  the 
environmental rationale or benefit of the goods;  the environmental category under which the goods 
may fall;  potential tariff treatment, including any pro posals on special and differential treatment;  and 
any non-tariff barriers encountered by particular  environmental goods which Members would like to 
see addressed.   
23. In addition to the submission of environmen tal goods through the format, Members may also 
during this first phase come forward with concre te proposals or ideas on cross-cutting issues, such 
as technical assistance, capacity-building or transfer of technology.   
24. Contributions relating to any clarification of ex isting approaches should also be made at this 
stage to enable further discussions.   
25. The next CTESS meeting is scheduled on 15-17 September .  Before and during this meeting, 
the Chair will convene informal consultations focussi ng on the five categories.  For the purpose of 
these consultations, the Secretariat will circulate a compilation of the information put forward by 
Members in their submissions.  Moreover, in the l ead-up to the September meeting, delegations are  TN/TE/18 
 Page 5 
 
 
encouraged to engage in informal consultations  among themselves.  With regard to requests and 
offers, such consultations could also be he ld on a bilateral or plurilateral basis.   
26. Hopefully, at the end of this initial phase, Members will have a clear understanding of the 
universe of environmental goods, as well as other aspects of the work that the CTESS needs to tackle.   
27. The consultations held based on submissions made in September will enable Members to 
move to a second phase  in October.   
28. By 8-9 October , Members may, as appropriate, update the submission of environmental goods 
of interest and/or requests and offers made in th e initial phase;  as well as indicate new environmental 
goods of interest or put forward further offers. 
29. At the CTESS meeting on 15-17 October , extensive consultations and discussions will be 
held in order to review what is on the table.  To ensure transparency, delegations will have before 
them an updated compilation.  This meeting will also  provide Members with an opportunity to have 
focused discussions on cross-cutting issues.   
30. At the October meeting, Members will consider the way forward for the remainder of the 
negotiations, including definitive steps to achieve a credible outcome. 
 
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