WORLD TRADE  
ORGANIZATION   
WT/CTE/18 
21 November 2011  
 
(11-6059) 
  
  
 
REPORT (2011) OF THE COMMIT TEE ON TRADE AND ENVIRONMENT 
 
 
1. The Committee on Trade and Environment in Regular Session (CTE) met three times 
in 2011 under the Chairmanship of Ambassa dor Hiswani Harun (Malaysia) on 27 June 2011 
(informal meeting), 6 July 2011 (formal meeting)
1 and 14 November 2011 (formal and 
informal meetings).  
2. The work of the CTE was organized in acco rdance with the mandate established in the 
Doha Ministerial Declaration, Paragraphs 32, 33 and 51.  Under Paragraph 32, discussions took place 
on environmental requirements and market a ccess issues (Paragraph 32(i)) and on labelling 
requirements for environmental purposes (Paragra ph 32(iii)).  Other items on the CTE Agenda 
discussed were item 12 and item 3(a)3.  In addition, at its July 2011 meeting, the Secretary-General of 
the 2012 United Nations Conference on Sustainabl e Development (UNCSD) briefed the CTE on the 
current developments in the Rio+20 process.  No discussion took place under Paragraph 32(ii) 
(relevant provisions of the TRIPS Agreement), Pa ragraph 33 (technical assistance, capacity building 
and environmental reviews) and Paragraph 51 (developmental and environmental aspects of the 
negotiations).   
I. PARAGRAPH 32 
A. PARAGRAPH 32(I) (ENVIRONMENTAL REQUIREMENTS AND MARKET ACCESS ) 
The effect of environmental measures on market access, especially in relation to developing 
countries, in particular the least-developed am ong them, and those situations in which the 
elimination or reduction of trade restric tions and distortions w ould benefit trade, the 
environment and development.  
3. In 2011, CTE discussions under Paragraph 32(i) ga ve particular attention to carbon footprint 
measurements and schemes.  Some Members raised concerns in relation to the following issues:  the 
proliferation of different carbon footprint calcula tion methodologies and the lack of harmonization;  
the compliance with certification processes and relate d costs, especially for small and medium-sized 
enterprises in developing country Members;  the l ack of stakeholder and developing country input in 
the development of such standards;  climate ch ange initiatives supporting buy-local campaigns;  the 
lack of a scientific basis to calculate emissions;  th e proliferation of private standards;  the adverse 
trade effects created by such sch emes;  the lack of standard criteria and the assessment of carbon 
footprints on a life-cycle basis;  as well as th e consistency of such schemes with WTO rules.  
Moreover, the need to ensure more  transparency in the development of such schemes and to improve 
financial resources to support developing countries' pa rticipation were highlighted by some Members.   
                                                      
1 "Report of the Meeting held on 6 July 20 11", Note by the Secretariat, WT/CTE/M/52, 
6 September 2011. 
2 Item 1 reads: "The relationship between the prov isions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral environmental agreements." 
3 Item 3(a) reads: "The relationship between the provisions of the multilateral trading system and 
charges and taxes for environmental purposes." WT/CTE/18 
Page 2  
 
  4. In the context of the discussions on carbon footprint, some Members shared information on 
national developments:  Chile presented a study ca lled "Carbon Footprint: a Tool for the Improvement 
of Climate Competitiveness of Chilean Exports"
4, that was to determine the carbon footprint of a 
number of processed foodstuffs;  and the European Union informed the CTE on the development of 
methodologies for life-cycle assessment.5  Moreover, New Zealand provi ded updated information on 
recent advances in the development of interna tional carbon footprinting standards, and the 
ITC provided a presentation of its work in the field of carbon standards.  
5. Also under this agenda item, Australia shar ed its national experience on illegal logging by 
presenting its draft "Illegal Logging Prohibition Legi slation", for introduction to Parliament by 
end-2011.6  Information was provided on the objectives of the draft legislation, including the 
promotion of trade in legally logged products, defo restation reduction and the promotion of forest 
governance. Some Members, including New Zeala nd, the United States and the European Union, 
supported the prohibition of illegal logging and informed the Committee of similar national 
initiatives. Other Members questioned whether such prohibition would hamper trade and affect small 
exporters of timber. 
6. UNEP presented its recent activities related to green economy.7 
7. Following a proposal by the Kingdom of Saudi  Arabia at the informal meeting on 
14 November 2011, the CTE will discuss the organizat ion of a workshop on technology dissemination 
with relevant organizations' and Members' experts to be held at a next meeting of the CTE. 
B. PARAGRAPH 32(III) (LABELLING FOR ENVIRONMENTAL PURPOSES ) 
8. In 2011, some Members raised concerns w ith respect to the following issues:  the 
proliferation of private environmental standards;  increased consumer confusion;   the proliferation of 
eco-labelling schemes;  compliance costs for pr oducers;  the importance of international 
harmonization;  the participation of developing country Members;  and the need for capacity building 
for the implementation of eco-labelling schemes.  In addition, Canada updated the CTE on recent 
national developments in sustainable forest manage ment certification and highlighted the potential for 
trade restrictions where policies did not have internationally agreed criteria as their basis.8   
9. At the July meeting, the representative of  the European Union suggested that the 
WTO Secretariat prepare a factual paper on nationa l experiences related to eco-labelling as presented 
by Members in the CTE.  The non-paper was circ ulated to Members on 4 November 2011 and will be 
revised to reflect Members' comments.   
                                                      
4 See "Report of the Meeting held on 6 July 2011", WT/CTE/M/52, 6 September 2011 at para. 4 and 
http://rc.prochile.gob.cl/sites/rc.prochile.c l/files/documentos/documento_06_30_11105902.pdf  
5 See the report of the CTE meeting held on 14 November 2011, to be circulated through 
WT/CTE/M/53. 
6 See the report of the CTE meeting held on 14 November 2011, to be circulated through 
WT/CTE/M/53. 
7 See the report of the CTE meeting held on 14 November 2011, to be circulated through 
WT/CTE/M/53. 
8 See the report of the CTE meeting held on 14 November 2011, to be circulated through 
WT/CTE/M/53.  WT/CTE/18 
 Page 3 
 
 
  C. OTHER PARAGRAPH 32 ITEMS  
1. Item 1 
"The relationship between the provisions of the multilateral trading system and trade 
measures for environmental purposes, including those pursuant to multilateral environmental 
agreements." 
 
10. In 2011, the CTE received several brie fings from representatives of Multilateral 
Environmental Agreements (MEAs).  At the July  meeting of the CTE, a representative of the 
United Nations Framework Convention on Climate Change (UNFCCC) provided an overview of the 
current status of negotiations under the UNFCCC pr ocess, highlighting major achievements of the 
climate change conference at Cancún in December 2010.  Light was shed on issues related to current 
discussions on the Kyoto Protocol and mechanisms established at Cancún, such as the Green Climate 
Fund and the Technology Mechanism.  In this context, Members raised a number of questions, including on emissions targets, technology transfer and the involvement of the private sector, the future of the Kyoto Protocol, as well as assistance pr ovided to most vulnerable countries to cope with 
challenges of climate change. Moreover, a briefing note prepared by the Secretariat of the UNFCCC 
was circulated ahead of the November meeting of  the CTE concerning  the sessions of the Ad hoc 
Working Groups under the UNFCCC held in Panama  in October 2011, and the preparations for 
Durban.  
11. At the November meeting of the CTE, the Secretariat of the Convention on Biological 
Diversity (CBD) briefed the CTE on its latest activi ties to implement pertinent decisions of the tenth 
meeting of the Conference of the Parties to the Convention, including a short presentation of the 
Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits 
Arising from their Utilization.
9 
12. Also under this agenda item, th e WTO Secretariat introduced the revision of the "Matrix on 
Trade-related Measures Pursuant to Selected Multilateral Environmental Agreements (MEAs)".10   
2. Item 3(a) 
"The relationship between the provisions of  the multilateral trading system and charges and 
taxes for environmental purposes." 
 
13. Singapore introduced a communication entitled "Promoting Mutual Supportiveness between 
Trade and Climate Change Mitigation Actions :  Carbon-Related Border Tax Adjustments"11. 
Singapore clarified that the objective of the communi cation was to facilitate dialogue to promote the 
mutual supportiveness between trade rules and climat e measures, while ensuring the consistency of 
climate initiatives with WTO rules.   Some Members were supportive of a dialogue on this issue under 
the CTE, while some other Members expressed concerns on the appropriateness of the CTE as a forum to discuss climate change-related issues.  Serious reservations on the use of carbon-related 
border tax adjustments to address climate change concerns were also expressed. 
                                                      
9 See the report of the CTE meeting held on 14 November 2011, to be circulated through 
WT/CTE/M/53. 
10 "Matrix on Trade-Related Measures Pursuant to Selected Multilateral Environmental Agreements", 
Note by the Secretariat, WT/CTE/W/160/Rev.5, TN/TE/S/5/Rev.3, circulated on 15 June 2011. 
11 "Promoting Mutual Supportiveness between Trade and Climate Change Mitigation Actions: Carbon-
Related Border Tax Adjustments", Communication from Singapore, WT/CTE/W/248, circulated on 
30 March 2011. WT/CTE/18 
Page 4  
 
  14. Also under this agenda item, at the November  meeting, Australia shared information on 
Australia's Clean Energy Future  Package and its economy-wide price on carbon of $A23 per tonne of 
carbon dioxide equivalent from 1 July 2012.  It was indicated that the Clean Energy Future Package intended to generate opportunities to reduce gree nhouse gas emissions, promote the development and 
use of renewable energy, improve energy effici ency and encourage carbon storage in the farming 
sector.
12   
3. Item 4 
"The provisions of the multilateral trading syst em with respect to the transparency of trade 
measures used for environmental purposes and environmental measures and requirements 
which have significant trade effects." 
 
15. The WTO Secretariat drew the CTE's attenti on to its current work on modernising the 
WTO Environmental Database to fac ilitate its use and consultation. 
II. OTHER BUSINESS 
16. The Secretary-General of the 2012 United Nations Conference on Sustainable Development 
made a presentation on Rio+20 preparations, the me aning of a transition to green economy and the 
important role of trade.  Members ra ised a number of questions regarding, inter alia , the lack of a 
green economy definition;  the linkages between gr een economy and sustainable development;  as 
well as technology transfer and financial mechanisms with respect to the needs of developing country 
Members.    
17. At the November meeting, Norway presented a white paper prepared by the Norwegian 
Ministry of Foreign Affairs entitled "Towards gr eener development: A cohe rent environmental and 
development policy" and which examined the envir onmental and development policy instruments that 
promote green development strategies. 
__________  
 
                                                      
12 See the report of the CTE meeting held on 14 November 2011, to be circulated through 
WT/CTE/M/53.