WORLD TRADE  
ORGANIZATION  RESTICTED 
WT/CTE/M/52 
6 September 2011 
 (11-4334) 
Committee on Trade and Environment  
  
 
REPORT OF THE MEETING HELD ON 6 JULY 2011 
 
Note by the Secretariat 
 
The Committee on Trade and Environment (CTE Regular) met on 6 July 2011, chaired by 
Ambassador Hiswani Harun (Malaysia).  Th e Committee adopted the agenda, WTO/AIR/3769,  issued 
on 14 June 2011.  
_______________ 
 
REPORT OF THE MEETING H ELD ON 6 JULY 2011 .................................................................. 1  
I.  PARAGRAPH 32 .................................................................................................................. .... 2 
A.  PARAGRAPH 32(I) ON ENVIRONMENTAL REQUIREMENTS AND MARKET ACCESS  ..................... 2  
1.  First part of Paragraph 32(i) on "Environmental Requirements and 
Market Access" ............................................................................................................ 2  
2.  Second part of Paragraph 32(i) on "Sectoral Analysis" .......................................... 3  
B.  PARAGRAPH 32(II) ON "TRIPS" .................................................................................................. 4  
C.  PARAGRAPH 32(III) ON "LABELLING REQUIREMENTS FOR ENVIRONMENTAL 
PURPOSES " ............................................................................................................................. ...... 4 
D.  OTHER ITEMS ON THE CTE  AGENDA  .......................................................................................... 5  
1.  Item 1 ........................................................................................................................ .... 5 
(a)  Presentation by the United Nations Framework Convention on 
Climate Change................................................................................................. 5  
(b)  Matrix on Trade-Related Measures Pu rsuant to Selected Multilateral 
Environmental Agreements .............................................................................. 8  
2.  Item 3(a) ..................................................................................................................... ... 9 
3.  Item 4 ........................................................................................................................ .. 18 
II.  PARAGRAPH 33 .................................................................................................................. .. 18 
III. PARAGRAPH 51 .................................................................................................................. .. 18 
IV.  OTHER BUSINESS ................................................................................................................  18 
V.  DATE OF NEXT MEETING ................................................................................................ 23  WT/CTE/M/52 
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  I. PARAGRAPH 32 
A. P
ARAGRAPH 32(I) ON 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 re duction of trade restrictions and distortions 
would benefit trade, the en vironment and development." 
1. First part of Paragraph 32(i) on "Envir onmental Requirements and Market Access" 
1. The Chair reminded Members that since the Information Meeting on Product Carbon 
Footprint and Labelling Schemes, held on 17 February 20101, several delegations had shared their 
national experiences in relation to the development of national carbon footprint schemes in the regular 
meeting of the CTE.2  The Chair reiterated the invitation for Me mbers to share with the CTE:  (i) their 
experience in developing new national carbon footprin t schemes;  and (ii) the experiences of their 
producers and exporters, in complying with such schemes.   
2. The representative of Argentina noted that th e CTE needed to assess the consequences of 
environmental measures on market access, particularly for developing country Members.  He 
expressed concern over the proliferation of different carbon footprint calculation methodologies, 
differing scopes, the lack of transpar ency, the cost of certification and the lack of standards criteria for 
the life-cycle analysis.  He noted that carbon footpr int schemes could also apply to raw materials, 
agro-food products and foodstuffs, which were the main export sectors of developing country 
Members.  He also pointed out that the certificati on process was costly and difficult to comply with, 
especially for small and medium-sized enterprises (S MEs) in developing country Members, as they 
were lacking national certification bodies and needed to resort to foreign certifying bodies. Moreover, 
he expressed his opposition to climat e change initiatives that supporte d local or domestic buying, food 
miles, etc.  Current studies showed that buying locally did not necessarily reduce the carbon footprint 
of products.  Instead, these schemes were harmful to producer countries that were geographically 
distant from major markets and were inconsistent w ith rules governing the multilateral trading system.  
3. The representative of Argentina proposed to set  up guidelines to ensure that labelling did not 
become a barrier to international trade.  Any methodology for calculating carbon footprint would need 
to be transparent and developed in internati onal standardization bodies that included the full 
participation of developing countries.  The de velopment of such methodology should involve all 
stakeholders involved, including governmental authorities of devel oping country Members, as well as 
non-governmental bodies.  Moreover, technology tr ansfer and capacity-building should take place. 
4. The representative of Chile supported Argen tina's intervention and shared the national 
experience in relation to carbon footprint measuremen ts.  ProChile, the office of exports promotion, 
conducted a study called "Carbon Footprint: a Tool fo r the Improvement of Climatic Competitiveness 
of Chilean Exports".3  The aim of this study was to determine the carbon footprint of certain 
processed foodstuffs.  The food products included were  pork, turkey, chicken meat, cheese, olive oil 
and tinned peaches.  Five union associations were se lected for the purposes of this study;  and the 
British methodological procedure PAS 2050 (2008 vers ion) was used to measure the life cycle carbon 
footprint of the products.   The initial results show ed that the carbon footprint for animal foodstuffs 
was higher than that of vegetable products.  Th is was due to greenhouse gas (GHG) emissions being 
concentrated in production, and the transportation of foodstuffs and in the management of waste.  This 
                                                      
1 See Report of the Information Meeting, WT/CTE/M/49/Add.1. 
2 See Report of the Meeting of the CTE held on 29 September 2010, WT/CTE/M/50. 
3 See http://rc.prochile.gob.cl/sites/rc.prochile.c l/files/documentos/documento_06_30_11105902.pdf    WT/CTE/M/52 
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  report showed low levels of CO 2 emissions in the transportation ph ase of all products, independent of 
the final destination.  This was explained by the efficiency of maritime transportation as compared to 
land and air transportation.  Fi nally, the study recommended measures to mitigate the emissions.  
5. The representative of India supported the concerns raised by Argentina and Chile.   He noted 
that there was no scientific basis to calculate em issions, in particular t hose generated during the 
production process.  Depending upon the manufacturing process, the technology used, the scale of 
manpower and the source of energy, the CO 2 generated during the production of the product would 
vary within the farm, from farm to farm and, ev idently, from country to country.  He also drew 
Members' attention to the fact that claims of e nvironmental friendliness should be taken with caution.  
For instance, studies showed that the carbon lost fro m deforestation was much greater than the carbon 
saved from some of the agricultural pro ducts cultivated on deforested land.   
6. The representative of the Kingdom of Saudi Arabia was concerned with the proliferation of 
carbon footprint standards and carbon labelling sch emes, which could be used as disguised 
restrictions to trade.  The requirements containe d in these schemes would be especially burdensome 
for developing country Members and impede their access to important export markets.   The Kingdom 
of Saudi Arabia was concerned w ith the assessment of carbon footprin ts on a life-cycle basis, as it 
would raise questions related to processes and pr oduction methods, and therefore serious issues under 
WTO rules.  Any environmental standard, including voluntary carbon footprinting schemes, needed to be consistent with relevant WTO rules, including the Agreement on Technical Barriers to Trade (TBT 
Agreement). 
2. Second part of Paragraph 32(i) on "Sectoral Analysis" 
7. The Chair recalled that several sectors (agriculture, energy, forestry and fisheries) had been 
discussed in the past under the item on ''win-win-wi n'' situations, in which the elimination or 
reduction of trade restrictions and distortions would benefit trade, the environment and development.  
She noted that while agriculture and fisheries were being debate d in the negotiating groups on 
agriculture and rules, forestry and energy  had not been discussed in the CTE for the past eight years.  
The environmental issues related to these sectors were however being discussed in a number of other 
international fora.  She asked delegations whether these sectors should again be the subject of future 
CTE discussions. 
8. The representative of the United States suggested that new ideas for work on this agenda item 
should be put forward by WTO Me mbers through written submissions. 
9. The representative of Nigeria wondered whether the WTO Secretariat could prepare a 
background document on the sectors identified by the Chair to help Members provide further insight 
and deepen the discussions. 
10. The representative of Australia noted that her delegation often attended meetings concerning 
forestry and forestry management practices, whic h included initiatives by the United States and the 
European Union, and on sustainable timber and trac ing sustainable timber, in which Malaysia was 
involved.  She noted that these discussions usua lly took place at the United Nations Economic 
Commission for Europe, and suggested to have a re presentative from that foru m to share information 
with the CTE.  
11. The representative of the European Union in dicated that the background note would 
essentially be on forestry and energy, and simply a reader's guide to the CTE activities.   WT/CTE/M/52 
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  12. The representative of China suggest ed that the Chair hold informal consultations to determine 
whether Members would prefer to first have a discussion on energy and forestry, or to receive the 
Secretariat's background paper in order to then facilitate Members' deliberation on this issue. 
13. The representative of India supported China's s uggestion but requested further information on 
what exactly would be discussed in the CTE. 
14. The representative of Nigeria noted that th e WTO Secretariat usually indicated that a 
document had been prepared under the Secretariat' s own responsibility and without prejudice to the 
positions of Members.  The document would help enlighten and deepen discussion. 
15. The Chair took note of the views and suggestions put forth and indicated her intention to 
organize consultations.   
B. PARAGRAPH 32(II) ON "TRIPS" 
The relevant provisions of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights. 
16. No statements from delegations were fo rthcoming under this agenda item.  
C. PARAGRAPH 32(III) ON "LABELLING REQUIREMENTS FOR ENVIRONMENTAL PURPOSES " 
17. The Chair reminded delegations that at th e February 2010 meeting of the CTE, the 
representative of the European Union had proposed to look into the market opportunities that eco-
labelling schemes could generate and identify the specifics of how producers and exporters could 
actually seize these opportunities.  Through past m eetings, several Members (Chile, Singapore, and 
Chinese Taipei) had shared their domestic experien ces with the CTE.  She noted that several other 
Members had put in place domestic eco-labelling schem es and that it was very important for Members 
to be informed of these practices and their poten tial impact on trade.  Therefore, she renewed the 
invitation to Members to share their experiences:  (i) on environment-rela ted labelling schemes in 
different products and sectors, and (ii) on how  producers were meeting the requirements of 
environment-related labelling schemes in order to a ccess export markets.  The Chair noted Thailand's 
intention to share their experience on eco-la belling in an upcoming meeting of the CTE. 
18. The representative of the Kingdom of Saudi Ar abia noted that labelling requirements for 
environmental objectives needed to be consistent with the TBT Agreement, rather than used for 
protectionist purposes.  WTO Members needed to c onsider alternative solutions to labelling that 
would achieve the same environmental objectives while being less trade restrictive. 
19. The representative of Argentina shared the Kingdom of Saudi Arabia's concerns. At the 
international level, there were multiple initiatives and standards for eco-labelling that posed problems 
in terms of compliance and transparency, particular ly to exporters and SMEs in developing country 
Members.  The representative of Argentina ma de the following points.  First, eco-labelling 
requirements needed to be avoided to prevent barr iers to market access, since it was costly and 
difficult for developing country Members to comply with them.  The drafting and implementation of 
environmental standards had to follow good prac tices as per Annex 3 or the TBT Agreement.  
Likewise, WTO Members needed to fulfil their obligation to notify any new technical regulations.  
Second, the proliferation of private environmental standards had become a de facto  requirement to 
access markets even though they were voluntary.  Third, the proliferation of eco-labels had led 
consumers to confusion.  Fourth, to comply with eco-labels, producers need ed to carry out various 
audits depending on the markets they were targe ting, which led to higher costs for producers.    WT/CTE/M/52 
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  20. Argentina recommended the following actions:  (i) the international harmonization of 
eco-labelling requirements by recognised internationa l bodies to avoid the proliferation of different 
eco-labelling schemes;  (ii) all Members, particular ly developing country Members, should have the 
possibility to participate fully in drafting standards,  and flexibility in the application of eco-labelling 
schemes should be ensured;  (iii) to  be consistent with WTO rules, arbitrariness should be avoided and 
eco-labelling schemes should have scientific grounds and be truly beneficial to the environment;  and 
(iv) standards should be drafted in a transparent and inclusive fashion thro ugh consultations with all 
stakeholders, including those who were directly invo lved, those that would potentially be affected, 
and should reflect developing country Members' special needs and capacity. 
21. The representative of the European Union point ed out that labelling requirements were based 
on demand from consumers for produc ts that relied on more sustainable production patterns.  The 
European Union suggested that the Secretariat pr epare a factual report on the national experiences 
related to eco-labelling that had been presented in the CTE.  While there had been information notes 
prepared by the Secretariat on international initiativ es, there were none on domestic experiences.    
22. The Chair  noted that the Secretariat would prepare a paper on this topic summarizing the 
information made available to the CTE. 
23. The Committee took note of the statements made.  
D. OTHER ITEMS ON THE CTE  AGENDA  
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."  
(a) Presentation by the United Nations Framework Convention on Climate Change 
24. The representative of the United Nati ons Framework Convention on Climate 
Change (UNFCCC) provided the CTE with an overview of the current status of the negotiations under 
the UNFCCC process.  He started by highlighting that  the outcome of the climate change conference 
at Cancún in December 2010 had been a major step forward.  The Cancún Agreements put in place a 
solid framework for action on climate change.  They  were built upon the structure of the Bali Action 
Plan, addressing its pillars, namely the shared visi on, adaptation, mitigation, finance and technology, 
and capacity-building.  Parties to the Convention r ecognised that deep cuts in global GHG emissions 
were required to keep the increase in global aver age temperature below 2°C above pre-industrial 
levels, which would be reviewed periodically, along  with the progress towards achieving this goal.  
The first reviews would start in 2013 and would conclude by 2015.   
25. The Cancún Agreements included a number of institutions and processes to address the issue 
of adaptation.  The Cancún Adaptation Framework was established to enhance action on adaptation, 
encompassing the following activities:  planning, prioritising and implementing adaptation actions 
projects and programmes;  preparing impact vulnera bility and adaptation assess ments;  strengthening 
institutional capacities;  enhancing climate-re lated disaster risk-reduction strategies;  and 
strengthening data and information systems as well as  education and public awareness.  Furthermore, 
an Adaptation Committee would promote the cohe rent implementation of  enhanced action on 
adaptation through support, guidance and recommendations  to Parties.  The Cancún Agreements also 
established a work programme to address loss and damage associated with climate change impacts, and launched a process to enable least-develope d countries (LDCs) to formulate and implement WT/CTE/M/52 
Page 6  
 
  national adaptation plans as a means of identifyi ng medium- and long-term adaptation needs, and 
developing and implementing strategies to address those needs.   
26. Under the Cancún Agreements, emission reduc tion pledges that were put forward by 
industrialised nations in 2010 were made official.  Industrialised nations also committed to setting up 
low carbon development plans or strategies.  A dditionally, a number of developing countries 
officialised their nationally appropriate mitiga tion actions (NAMAs) which sought a deviation from 
business-as-usual emissions by 2020, with  financial and technological support. 
27.   A major achievement of the Conference w as the establishment of the new Green Climate 
Fund, as an operating entity of the financial mech anism of the Convention, and a Standing Committee 
to assist with the improvement of coherence and coordination in the delivery of climate-change 
finance.  The design of this fund was to be carri ed out by a Transitional Committee that would present 
its recommendations to the Conference of the Par ties (COP) of the UNFCCC for adoption at Durban. 
28.   A Technology Mechanism had also been established in Cancún to support innovation and 
development of new technologies and give priority to the diffusion, deployment and transfer of 
technologies.  Parties developed a plan and had been  working hard to make it operational in 2012.  
This mechanism consisted of two parts, a Technology Executive Committee, and a Climate 
Technology Centre and Network.  The Committee w ould provide an overview of technological needs, 
analyse policy and technical issues and recommend rela ted actions in the context of climate change.  
The Centre and Network would mobilize expertise and resources from public and private sectors to 
assist developing countries to implement technolog y-related policies, programmes and projects.   
29. A Forum on the impact of implementation of response measures to mitigate climate change 
was also launched in Cancún.  The forum was lik ely to address trade-related impacts in developing 
countries and identify ways to address such potential impacts.  The last sessions in Bonn raised 
questions on how emission reduction commitments by developed countries would be taken forward in 
the context of the emerging climate change regi me. Governments realized that the link between 
mitigation under the Conventi on and under the Kyoto Protocol  required high-level political 
intervention to advance and reach a global solution. 
30. Parties were working hard on implementing the Cancún Agreement to get significant results 
in Durban.  For instance,  at the last UNFCCC session, Parties drafted a decision on the governance, 
composition and specific role of the Adaptation Co mmittee.  Regarding the Technology Mechanism, 
Parties made progress defining the elements of gov ernance of the Climate Technology Centre and 
Network and its terms of referenc e, and the procedure for call for proposals and the criteria to select 
the host of the Centre and Network.  They also  elaborated on the roles and functions of the 
Transitional Committee of the Green Climate Fund.  
31.   Additionally, during the last sessions, and for th e first time, a special event on the effects of 
implementing mitigation measures took place.  Th e discussions covered issues such as economic 
transition, diversification and tr ade-related issues, and would continue for future sessions.  Some 
Parties raised the issue of trade in on-going discussions, specifically under discussions on Shared 
Vision under the Ad Hoc Working Group on Long-term Comparative Action.  One of the main concerns revolved around the importance of an open international economic system.  All trade issues 
presented at the informal consultations in June  were included in a "Note by the Facilitator".
4 
32.   The representative of the UNFCCC pointed out that a number of issues under the UNFCCC 
were relevant to the WTO and vice versa, includi ng private standards, carbon markets, subsidies, 
                                                      
4 Available on the website of the UNFCCC at 
http://unfccc.int/files/me etings/ad_hoc_working_grou ps/lca/application/pdf/shar ed_vision_17 0611_11.30.pdf    WT/CTE/M/52 
 Page 7 
 
 
  intellectual property rights (IPRs) and technology tran sfer.  Trade was addressed by the Convention in 
Article 3.5.  Furthermore, at COP-13, it was ag reed to encourage Parties "to avoid trade and 
intellectual property rights policies, or lack thereof, restricting transfer of technology".5  I t  w a s  
important to distinguish between legitimate trade an d legitimate climate concer ns.  Trade was able to 
make important and positive contributio ns to the fight against climate change.  For instance, it helped 
promote technology transfer, diffusion and deployment, as well as green growth.  It was also 
important to consider the possibilities for mutual supportiveness between trade and environment rules, 
and how institutional co-operation could help foster mutual supportiveness.  
33. The representative of the UNFCCC concluded by no ting that Parties were continuing to work 
hard on the road to Durban.  The next formal  negotiating sessions of the Ad Hoc Working Groups 
would take place at the beginning of October in Pa nama.  In addition, othe r smaller meetings and 
workshops would take place throughout the remainder of the year.   These meetings and negotiations 
were important to maintain the momentum gathered from Cancún.  
34. The representative of India noted that the re presentative of the UNFCCC had mentioned the 
2°C goal but pointed out that a leaked report suggest ed that current emissions targets would raise the 
global temperature by 3°C above pre- industrial levels.  He asked if there was any agreement on the 
global picking of emissions and requested informa tion on any agreement regarding the base year for 
emission reductions and on how such  emissions would be measured.   Furthermore, given that many 
industrial countries had committed funds to the Green  Fund, India inquired as to how this Fund would 
be generated.  He then requested information on the progress of monitoring and verification and on 
technology transfer.  Finally, he requested inform ation on institutional mechanisms and concrete 
action plans for technology transfer. 
35. The representative of the UNFCCC clarified th at the Parties to the Convention agreed, 
through the Cancún Agreements, to have a global goal of 2°C and that there was no reference to 
picking of emissions.  They had also agreed to have a review of this goal and to assess whether it should rather be 1.5°C.  He also clarified that  a base year for emission reductions had not been 
established.  Industrialised countries had officia lised their mitigation commitments and developing 
countries had put forward their NAMAs.  Therefore,  each country had its own base year.  Regarding 
the Green Climate Fund, the source of funds was not yet part of the discussion.  On monitoring, there was no set mechanism in place, but discussions on Measuring, Reporting and Verifying would continue throughout the year.  The rules of accoun ting under the Kyoto Protocol were part of the 
discussions under the Ad Hoc Working Group.  Part ies were still discussing the design, operation and 
structure of the Technology Mechanism established at Cancún.  Implementation was made by other 
agencies, such as the Global Environment Fund (GEF) and by Parties themselves, but not by the UNFCCC.  Parties were now discussing how the Technology Executive Committee would function:  it was scheduled to have its first meeting in July 2011.    
36. The representative of Kenya pointed out that technology was mostly in the hands of the 
private sector, which posed some challenges.  It was unclear how the private sector would become 
involved in technology transfer. 
37. The representative of Singapore noted that th e measures adopted by the UNFCCC to address 
climate challenge had implications for the inte rnational economy and for all segments of national 
economies.  Therefore, the delegate requested furt her insight on the trade proposals that would be 
discussed in the next negotiating rounds in Panama an d Durban.  Considering that the Kyoto Protocol 
was going to expire in 2012, the delegate asked for the status of current discussions in this regard. 
                                                      
5 Annex I to decision 3/CP.13 WT/CTE/M/52 
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  38. The representative of the UNFCCC explained that th e Parties envisaged the role of the private 
sector in the call for proposals to host the Climat e Technology Centre and Network.  Parties had 
discussed the inclusion of the private sector within  the Technology Mechanism.  Regarding trade, 
Parties raised the issue of trade under the discussions  on Shared Vision.  Most of the trade-related 
proposals referred to Article 3.5 of the UNFCCC.  In Panama, the discussions would continue in the 
form of informal groups under the Shared Vision discussions.  The represen tative of the UNFCCC 
further noted that the discussions on the Kyoto Protocol were following a faster pace since the meeting at Bangkok in April 2011.  Parties realized  that the links between mitigation under the Kyoto 
Protocol and mitigation under the UNFCCC had to be recognized.  This was not an easy discussion, but Parties were talking to each other in a constructive manner.  
39. The representative of India asked for clarification on whether there would be one treaty 
replacing the Kyoto Protocol, or two.  
40. The representative of the UNFCCC clarified that it was the first commitment period that was 
due to expire in 2012 and not the Kyoto Protocol it self.  Therefore, part of the discussion was on how 
to avoid the gap between the first and second comm itment periods.  Whether there would be a second 
treaty was difficult to predict and was up to Par ties.  Right now, Parties were building upon the 
Cancún Agreements, and were discussing the sec ond commitment period of the Kyoto Protocol.  
Additionally, there were discussions under the Conve ntion that included mitigation and had a close 
link to the mitigation discussions under the Kyoto Protocol.  
41. The representative of Nigeria asked whether th ere were any assessments of mechanisms such 
as the Clean Development Mechan ism (CDM), the Global Environment Facility and any other 
bilateral or multilateral efforts that were geared towards assisting the most vulnerable countries to 
cope with climate change challenges.    
42. The representative of the UNFCCC explained that their website contained a wealth of 
information on the CDM, including statistics on the regional distribution of projects, types of on-
going projects and the available methodologies.  Regarding funding, figures were provided in the 
reports of the Adaptation Fund Board, which we re usually presented on a yearly basis to the 
subsidiary body on implementation (under the Conventi on).  He further noted that in 2010, a project 
called NEEDS (National Economic, Environment and Development Study) for Climate Change was 
carried out to assess the national economic and development needs of a few countries.  Furthermore, under the Cancún Agreements, National Adapta tion Programmes of Action (NAPAs) were 
established with a focus on LDCs and were the subject of a discussion in the sessions of the 
subsidiary bodies in June 2011.   
(b) Matrix on Trade-Related Measures Pursuant  to Selected Multilateral Environmental 
Agreements 
43. The Chair noted that the WTO Secretaria t had updated the "Matrix on Trade-Related 
Measures Pursuant to Selected Multilate ral Environmental Agreements (MEAs)"6.      
44. The representative of the WTO Secretariat explained that the Matrix provided some 
background information on selected MEAs and trade -related measures pursuant thereto.  Since the 
first version had been prepared in 2000, the Secr etariat had been updating this document on a regular 
basis on its own responsibility and in consultation w ith secretariats of the re spective MEAs.   This 
document included updated information and a number of  new decisions adopted since the last version 
of the Matrix in 2007.  Examples of such newly adopted decisions included decisions of:  the Basel 
Convention on the Control of Transboundary M ovements of Hazardous Wastes and their Disposal 
                                                      
6 WT/CTE/W/160/Rev.5, TN/TE/S/5/Rev.3, circulated on 15 June 2011.   WT/CTE/M/52 
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  (Basel Convention) made at COP-9 in Bali in 2008;  the Convention on Biological Diversity made at 
COP-10 in October 2010;  and the UNFCCC and the Ky oto Protocol following the Cancún meeting in 
December 2010.  One major development in MEAs which had taken place since the last revision was 
the adoption in 2010 of the Nagoya Protocol on Acce ss to Genetic Resources and a Fair and Equitable 
Sharing of Benefits Arising from their Utilisation, reflected as a separate item in the revised version of 
the MEA matrix. 
45. The representative of Argentina reminded the CTE that the issue of trade-related measures in 
MEAs was directly related to the negotiati ons taking place in the Committee on Trade and 
Environment in Special Session (CTESS).  Regarding the section on UNFCCC of the Matrix, he noted that UNFCCC Decision 1/CP.16 adopted at CO P-16 included the parameters and objectives that 
were to be continually under di scussion in 2011 in order to reach a legally binding agreement during 
COP-17 in Durban, in compliance with the mandate of the Bali Action Plan.     
46. The representative of Australia supported Argentina' s statement in noting that this was also an 
area of discussion in the CTESS pursuant to paragr aph 31 of the Doha Development Agenda (DDA). 
47. The representative of the United States mentioned that in the Secretariat's paper the scope of 
these measures, identified as trade measures, was br oader than the narrow measures referred to as 
"specific trade obligations" in the paragraph 31(i) mandate.  
48. The representative of India noted that the docum ent was more relevant to the work of the 
CTESS than the CTE.   
49. The Committee took note of the statements made.  
2. Item 3(a) 
"The relationship between the provisions of  the multilateral trading system and charges and 
taxes for environmental purposes." 
 
50. The representative of Singapore introduced  a communication entitled "Promoting Mutual 
Supportiveness between Trade and Climate Change Mitigation Actions: Carbon-Related Border Tax 
Adjustments".7  He noted that the issue of trade would be discussed in the context of the UNFCCC 
negotiations in Panama and Durban in October and December respectively.  As trade proposals might 
interface with WTO rules, it was u seful to be aware of trade discussions at the UNFCCC.  The need to 
be aware of, and to ensure, the mutual supportive ness between trade and environmental measures had 
set the context for Singapore's paper.  He noted  that the paper was not about changing WTO or 
UNFCCC rules, nor about bringing UN negotiations into the WTO.  The UNF CCC was the competent 
body to deal with a legally binding agreement on c limate change.  Neither was the paper an initiative 
to advocate the drafting of rules on BTAs.  The fi rst objective of the paper was to raise awareness 
among trade experts in the CTE on the use of carbon BTAs as an example of trade-related proposals 
tabled at UNFCCC negotiations.  Proposals that d ealt with trade rule-making should further be 
addressed in the WTO. 
51. The second objective of the paper was to facilita te dialogue in the WTO in order to promote 
the mutual supportiveness between trade rules and clim ate measures and to ensure that trade-related 
climate initiatives were consistent with WTO rules and did not raise barriers to trade.  Apart from 
carbon taxes and carbon BTAs, the issues raised in th e paper were also applicable to other trade 
measures adopted by Members in response to clim ate change.  For instance, certain Members had 
adopted energy labelling programmes and minimum e fficiency performance standards.  In Singapore's 
                                                      
7 WT/CTE/W/248, circulated on 30 March 2011 . WT/CTE/M/52 
Page 10  
 
  view, such measures needed to be consistent with  WTO rules.  A Secretariat paper, as proposed by 
Singapore, could also be discussed under item 2 of  the CTE Agenda on "the relationship between 
environmental policies relevant to trade and envir onmental measures with significant trade effects and 
the provisions of the multilateral trading system".   
52. Singapore highlighted three recommendations with in the first report to the WTO Ministerial 
Conference in 1996
8 as they were crucial in the context of  current climate change negotiations:  
(i) multilateral solutions at the level of the UNFCCC were the most effective way for governments to 
tackle environmental problems of a global nature;  (ii) improved market access opportunities and the 
preservation of a rules-based multilateral trading sy stem was essential to support countries, and in 
particular developing countries, in their efforts to promote sustainable development;  and (iii) policy 
coordination at the national level played an importa nt role in ensuring that WTO Members respected 
their commitments and legal obligations.  Singapore st ressed that climate change had the potential to 
impact all segments of national economies and re quired a global solution, and that the UNFCCC was 
the competent body to forge a global agreement as it c overed all four pillars of the Bali Action Plan.   
53. Trade and trade openness, including for climat e-friendly goods and services, were important 
for economic development and econom ic development was essential for adopting measures to combat 
climate change.  Measures undertaken at the UNFCCC, in turn, should not undermine WTO's delicate balance of rights and obligations.  Singapore shared  Members', and in particular developing country 
Members', consensus against the use of trade restri ctions.  As enshrined in paragraph 90 of the 
Cancún Agreement and Article 3.5 of the UNFCCC, tr ade restrictions were not and would never be 
the answer to climate problems.  All Members had the responsibility to respect their WTO obligations 
in maintaining a supportive, open and rules-based in ternational trading system.  Paragraph 90 of the 
Cancún Agreements
9 was an acknowledgment by COP-16 that a future agreement on climate change 
had to fit within a supportive a nd open international economic system .  Singapore stressed that open 
markets were an accessory to achieve climate obj ectives.  Trade restrictions were a "lose-lose" 
proposition that would neither assi st economic development, nor achieve climate objectives.   
54. Singapore reiterated that key decisions relating to  the four pillars of the Bali Action Plan had 
to be taken at the UNFCCC, while proposals having trade implications should be addressed at the 
WTO.  He referred to the Marrakech Decision on Tr ade and Environment that had pointed out that no 
policy contradiction should exist between the rul es-based multilateral trading system, environmental 
protection and sustainable development.  The de legate of Singapore reminded Members that the 
objective of the paper was to raise awareness and true dialogue in order to ensure that trade measures 
adopted to address climate change did not contradict WTO rules.   
55. The representative of China shared Singapore's con cern on resorting to trade restrictions to 
combat climate change.  China understood that the main thrust of the paper was to increase legal 
certainty in the WTO on the use of carbon BTAs.  China disagreed however on a number of issues.  First, carbon BTAs were not consistent with WTO ru les, especially not with GATT Articles I and III.  
Moreover, carbon BTAs could not be justifie d under GATT Article XX as they were trade 
protectionist measures by nature that should be opposed by WTO Members.  Second, China supported 
the WTO Director-General's opinion that the right approach on the relationship between trade and climate change was to first seal a multilateral climate deal and then discuss how multilateral trade rules could be adjusted.  Third, the WTO-Unite d Nations Environment Program (UNEP) Report on 
                                                      
8 WT/CTE/1. 
9 Paragraph 90 of Decision 1/CP.16 reads: " Reaffirms  that the Parties should cooperate to promote a 
supportive and open international economic system that would lead to sustainable economic growth and 
development in all Parties, particularly developing co untry Parties, thus enabling them better to address the 
problems of climate change; measures taken to combat climate change, including unilateral ones, should not 
constitute a means of arbitrary or unjustifiable discrimi nation or a disguised restriction on international trade".  WT/CTE/M/52 
 Page 11 
 
 
  Trade and Climate Change published in June 200910 already reviewed existing studies and it was 
unnecessary to undertake repetitive work.  Moreover,  in China's view, the WTO-UNEP Report had 
been misinterpreted to the extent that the WTO supported carbon BTAs.      
56. The representative of the Kingdom of Saudi Arabia  supported international efforts to combat 
climate change.  Climate change issues should be dealt with by the UNFCCC, and not in the WTO, as 
their organization had the mandate a nd relevant expertise.  Climate ch ange was an environmental, not 
a trade, issue.  The Kingdom of Saudi Arabia recalle d that environmental issues had been included in 
the DDA in a very limited manner.  Therefore, the CTE should not disregard the clear confines of the Ministerial mandate by engaging in a broa d-ranging discussion on climate change.   
57. The Kingdom of Saudi Arabia did not agree to reassess the legitimacy of border measures and 
WTO rules in the CTE.  The CTE had to take a clear position against the use of protectionist border 
measures in mitigating climate change.  Any discussi on of this issue in the CTE could be used to 
justify the imposition of border measures, which would disadvantage developing country Members.  
Discussions on border measures should not take place in the CTE and climate change-related 
discussions in the WTO should be strictly limited by the trade mandate of the WTO.            
58. The representative of Mauritius agreed with  the observations made by Singapore on 
uncertainties surrounding the issue of carbon BTAs.  Mauritius was of the view that such trade 
policies to address climate change had to be applie d in a WTO-consistent manner, in accordance with 
relevant principles, such as, inter alia , non-discrimination, the adoption of least-trade restrictive 
measures, transparency and adequate notification,  as well as special consideration given to small 
developing country Members.  Carbon BTAs should not be used as protectionist tools and Members 
should not resort to any form of unilateral measures since their application could have an impact on 
small economies.  Moreover, the adoption of trade r estrictive measures intended to offset differences 
in costs arising from diff erences in environmental regulations should also be avoided, since their 
application could lead to trade distortion and in crease protectionist tendencies.  Mauritius supported 
further discussion of these issues and the development of a set of multilaterally agreed guidelines to 
pre-empt the abuse of carbon BTAs.    
59. The representative of India supported many of the views brought forward by Singapore, but 
had a number of concerns similar to those identifie d by China and the Kingdom of Saudi Arabia.  In 
relation to paragraph 1 of Singapore's paper, he e xpressed his support to the mutual supportiveness of 
the multilateral trading system and environmental protection towards the promotion of sustainable 
development as a fundamental objective of the WT O.  The representative of India noted that 
paragraphs 2 and 3 of Singapore's paper related to the negotiations on  the liberalization of trade in 
environmental goods and services (EGS).  He asked Si ngapore to clarify the reasons for bringing this 
subject for discussion in the CTE, since it was a subject that was handled by the CTESS.   
60. Turning to paragraph 4, the representative of Indi a shared Singapore's view that the subject of 
climate change required a global solution, but was opposed to discussing the issue within the WTO.  
The WTO provided an institutional framework for the conduct of trade relations and dealt with trade 
and the administration of trade agreements.  Even though Singapore had indicated that it did not intend to bring UNFCCC negotiations into the WTO, th e delegate of India requested further light be 
shed on the reasons for bringing the subject for discussi on in the CTE.  Moreover, he indicated that he 
shared Singapore's rejection of the use of unilatera l trade measures and restrictions to fight climate 
change.  Unilateral trade measures adopted in a protectionist manner were prohibited under WTO 
rules, the UNFCCC and th e Kyoto Convention.  
                                                      
10 Report available at http://www.wto.org/english/res_e/publi cations_e/trade_climate_change_e.htm   WT/CTE/M/52 
Page 12  
 
  61. The representative of India noted that unilate ral trade measures would have five main 
consequences: (i) unilateral trade measures imposed restrictions on imports and were likely to be 
viewed as protectionist measures;  (ii) effort s to address climate change through unilateral trade 
measures would lead to "tit for tat" trade restric tions and legal retaliation in the WTO framework by 
affected countries and this would be difficult fo r the WTO dispute settlement mechanism to handle;  
(iii) WTO-inconsistent trade measures would reduce development prospects for developing countries 
and be counterproductive from an environmental point  of view;  (iv) unilateral trade restrictions 
would lead to a change in trade patterns a nd no significant reductions of emissions would be 
achieved;  and (v) such actions would not encourag e other countries to adopt environmental policies, 
but only encourage retaliatory actions.  As rightly  pointed out by Singapore, climate change was a 
global problem that requested a global solution and concerted efforts.  Discussions on border 
measures to fight climate change distracted atten tion from the need to fight global warming and to 
conclude a treaty on climate change.  A climate accord  would help to do away with the need to offset 
competitive advantage as countries would perceive themselves as contri buting to a common goal.                      
62. In relation to paragraph 5 of Singapore's paper, the representative of India pointed out that 
WTO rules provided many flexibilities for Members to  adopt environmental policies as long as this 
was done in a non-protectionist manner.  He  mentioned for instance GATT Article XX, 
GATS Article XIV, TRIPS Article 27 as well as the TBT and the Sanitary and Phytosanitary Measures (SPS) Agreements.  He asked for clarificat ion on two main points: (i) Singapore's statement 
that WTO Members might choose to use carbon BTAs in order to address competitiveness and 
leakage concerns; and (ii) the reason for requesting the Secretariat to prepare a compilation of existing 
studies on the role that such measures could play  in addressing competitiveness and leakage concerns 
(paragraph 9 of the paper).  Risks of carbon l eakage and competitivene ss loss were largely 
exaggerated, if not totally unfounded.  There was little empirical evidence on companies relocating to 
take advantage of lax pollution c ontrols.  A host of studies found that environmental regulations did 
not have any significant effect on plant location, investment, market share or overall cost.   
63. Turning to paragraph 6, the representative of  India acknowledged that good reasons had been 
given in the paper for not adopting carbon BTAs, in cluding the challenge of identifying the energy or 
carbon content embedded in traded products.  Exam ples, such as Kenyan flowers and New Zealand 
lamb showed how difficult the emissions accoun ting process was. The implementation of such a 
scheme could lead to products being considered "un like" on the basis of the emissions released during 
the production process.  It would be hard to ar gue, on the basis of processes and production methods 
(PPMs), that goods be considered "unlike" in order to justify differential treatment.  This aspect was 
specifically complex if the final goods possessed iden tical physical characteristics and the same end 
use, irrespective of the manner by which they had been manufactured.  Moreover, the customs 
officers would also classify the goods at the borde r irrespective of the manner through which they had 
been produced.                                  
64. Referring to paragraph 7 of Si ngapore's proposal, the representative of India asked for the 
reasons for bringing discussions taking place in the UNFCCC into the WTO, within a forum like the 
CTE.  In his view, it was not the WTO's mandate to address the issue of whether language on BTAs proposed at the UNFCCC was consistent with Article 3.5 of the UNFCCC or even with WTO rules.  
He wondered how it would be possible to ensure that  the text on trade in a future global agreement on 
climate change be consistent with UNFCCC and WTO rules.   
65. With regard to paragraph 8, the representa tive of India noted that GATT Article II.2(a) 
authorized Members to impose a charge or tax equiva lent to a domestic tax.  A tax on imports that 
was physically incorporated into the product was also  adjustable at the border, as had been shown in 
the GATT case 
US-Superfund .  It had been argued however that taxes on goods like energy oil 
consumed in the process, but not physically incorpor ated, would not be adjustable at the border since 
Article II.2(a) referred to "[articles] from whic h the imported product [had] been manufactured or  WT/CTE/M/52 
 Page 13 
 
 
  produced in whole or in part", and not "with the help of which" the product had been produced.  He 
asked why environmental taxes and BTAs would be  discussed in the CTE and the issues on which 
clarity would be required.  He was of the view that the discussion on BT As at this point in time would 
be quite divisive and not helpful. 
66. Finally, the representative of India indicated th at he did not share the views put forward in 
paragraph 9 of Singapore's paper.  He did not consider it useful that the Secretariat once again prepare 
a compilation of studies on this topic.  He referre d to Chapter IV of the WTO-UNEP Report on Trade 
and Climate Change, which discussed the main i ssues under debate.  Moreover, discussions on the 
Report had triggered varying opinions.  In view of the combined efforts made towards a global treaty 
on climate change, any further discussion of this subject would not be useful at this point in time.      
67. The representative of New Zealand agreed with the point made by Singapore in its paper on 
the mutual supportiveness of trade and environment objectives and the contribution that trade could 
make to the promotion of sustainable developmen t.  Trade policy and the WTO could contribute to 
these twin goals through the liberalization of EGS. Ne w Zealand pointed out that trade, environmental 
and climate benefits would also accrue from refo rm and the removal of environmentally harmful 
subsidies, and it needed to be assured that me asures designed to address trade or environmental 
objectives did not constitute disguised restrictions on tr ade, nor result in arbitrary discrimination.     
68. The representative noted that carbon BTAs would be difficult to design or to effectively 
enforce in a manner that was WTO-consistent and th at could achieve stated environmental objectives.  
There was a risk that the imposition of BTAs might prompt retaliatory trade measures or affect international trade flows and economic development.   Other more effective options or instruments 
than BTAs could be available.   Nevertheless, carbon BTAs had been considered by some as a 
potential response measure to address competitivene ss and carbon leakage concerns associated with 
exports from countries that did not take on any in ternational GHG emissions reduction obligations.  
She was of the view that carbon BTAs had been cons idered as a tool to distinguish between countries 
that either did or did not take action to mitigate em issions, rather than to distinguish between differing 
carbon policy responses, as suggested in Singapore's paper. 
69. New Zealand agreed that the availability of goo d information and analysis of the pros and 
cons of carbon BTAs would enable and fac ilitate constructive discussion on BTAs.  The 
WTO-UNEP Report on Trade and Climate Change had al ready provided a very good analysis of this 
issue.  New Zealand welcomed Singapore's suggesti on that the Secretariat prepare a literature review 
on the role that BTAs could play in addr essing competitiveness and leakage concerns, while 
minimising economic and trade impacts. 
70. The representative of Australia noted that polic ies addressing trade and climate change could 
and should be mutually supportive, both in terms of  their development and implementation.  First, 
Australia reaffirmed the importance of the balan ce contained in Article 3.5 of the UNFCCC and the 
WTO Ministerial Declaration on Trade and Environm ent of April 1994.  Second, trade policy could 
make a positive contribution to addressing climate change.  The institutional arrangements and rules 
of the multilateral trading system were able to accommodate legitimate environmental concerns.   
71. Australia agreed with the main rationales of  Singapore's paper and endorsed the need for 
dialogue, coordination and awareness-raising amongst tr ade officials.  Australia supported Singapore's 
proposal for an open preliminary dialogue.  Some of  the items suggested for discussion however, such 
as the application of carbon BTAs in a WTO-consis tent manner, went further than this and could 
preempt outcomes.  Therefore, Australia suggest ed focusing on the first question outlined by 
Singapore in its paper.  Australia endorsed the request  made to the Secretariat for a literature review 
on the role that carbon BTAs could play in addr essing competitiveness and leakage concerns.  The 
representative of Australia stressed that such discussion should proceed on the clear understanding WT/CTE/M/52 
Page 14  
 
  that UNFCCC was the competent body to deal with a nd forge a legally binding agreement on climate 
change.  
72. The representative of Argentina supported the st atements made by the delegations of China, 
India and the Kingdom of Saudi Arabia.  He noted that the CTE was not the right forum to discuss 
Singapore's proposal for the following reasons:   (i) the use of carbon BTAs was an issue discussed in 
the UNFCCC and the CTE should not prejudge any of the discussions under way in that forum;  
(ii) it was not clear whether carbon BTAs were allowed under WTO rules;  (iii) carbon BTAs would be incompatible with WTO rules as they would le ad to discrimination in relation to processes and 
methods of production not related to the product itsel f, and would consequently apply different rights 
to two similar products from different countries, and this would go against the MFN principle;  
(iv) Argentina did not understand the final objectiv e behind Singapore's request of a compilation of 
studies as the majority of the studies already carried  out predominantly reflected the interests of 
developed countries, legitimising their use of carbon BTAs against exportations from developing 
countries;  and (v) the issues introduced in Singapore' s paper were not within the scope of the CTE's 
mandate but rather it was the CTESS that had th e mandate to look at these issues.  Argentina 
considered that it was premature to highlight the benefits of liberalizing EGS until an agreement was 
found on the focus and modalities in the CTESS.  Argentina was of the view that it would not be appropriate to request the Secretariat to provide a compilation of studies at this point in time, as the nature and basis of the work within the mandate of the CTE had not yet been clarified.         
73. The representative of Chile agreed with Singapore that the WTO had an important role to play 
in climate change challenges through the liberalizatio n of EGS.  Chile, in collaboration with Mexico, 
had submitted a paper to the CTESS on a comb ined approach for environmental goods.11  S e v e r a l  
studies on the potential negative effect of trade on GHG emissions had been published since the 2010 
presentation in the CTE of the WTO-UNEP Report on Trade and Climate Change.  Chile was of the view that trade also had positive effects on the e nvironment.  The liberalization of trade in EGS 
should lead to an increased use of environmenta l technologies and lower costs for environmental 
protection.  For Chile, it was important to en courage further studies on the interaction between 
international trade, transport and the environment.   Trade liberalization had helped to increase 
revenue, and the availability of technologies at lowe r costs.  The effects of international trade and 
transportation did not have a unique negative dir ection, but also opened opportunities.  Further 
analysis should be done on the impact of price increase in the transport sector on exporters due to 
mitigation measures, with particular regard to export ers distant from their destination markets.      
74. The representative of Chile rai sed the following questions:  (i) whether Singapore could 
elaborate further on the idea of developing multilatera l guidelines, as indicated in paragraph 9;  and 
(ii) as most of the initiatives in this area ste mmed from the private sector, Chile asked how Singapore 
envisaged implementation and whether they were c onsidering private sector involvement.  Chile was 
of the view that a compilation of studies could be a first good step to further the WTO's contribution 
in this area.     
75. The representative of Brazil raised a number of c oncerns.  First, there was no consensus in the 
WTO on the compatibility of carbon BTAs with WTO ru les.  Therefore, Members should be cautious 
and not assume that carbon BTAs were necessarily an  instrument available to address carbon leakage.  
Second, in view of the complexity of this matter, an analysis in abstract terms could not lead to any sound conclusion.  And third, contrary to Singa pore's paper, carbon BTAs and carbon taxes had not 
been neglected by the WTO but had been subject of many activities, including the 
WTO-UNEP Report on Trade and Climate Change, and the participation of Pascal Lamy in the High-
Level Round Table at a seminar on "Climate Cha nge, Trade and Competitiveness: Issues for the 
WTO" in 2010.  With regard to Singapore's reque st to the Secretariat to compile information on 
                                                      
11 JOB/TE/16.   WT/CTE/M/52 
 Page 15 
 
 
  carbon BTAs, Brazil reiterated that the WTO-UNEP Report on Trade and Climate Change constituted 
a good reference for further research.  Finally, Br azil questioned whether any benefits would accrue 
for the multilateral trading system from a form al debate on these issues in the CTE.   
76. The representative of the Republic of Korea shared  the view that there was a risk that carbon 
BTAs were not implemented in a WTO-consistent manner.  As the consistency of those measures 
with WTO rules depended on the implementation a nd design of the relevant scheme, they were 
concerned that there was only a fine line between legitimate actions to mitigate climate change and 
disguised protectionism.  Unilateral measures ta ken without legitimacy and proportionality were 
likely to trigger a vicious circle of retaliatory measures that would threaten the multilateral trading 
system.  They were open to discuss ways to pr omote the mutual supportiveness between trade and 
environment, including the issue of carbon BTAs, in  the CTE.  The Republic of Korea was of the 
view that a Secretariat's compilation of existing r esearch on the topic would help focus discussions in 
the CTE.  They also considered that these issu es could be discussed under the CTE mandate.    
77. The representative of the United States noted that Singapore's submission contained some 
interesting elements, including the proposal for a compilation of existing studies by the 
WTO Secretariat.  The United States asked how Singapore envisioned that this compilation could 
inform a CTE discussion on the topic,  in the event that Members agreed  to pursue work in this area. 
78. The representative of South Africa supported the view that trade and environment needed to 
be mutually supportive to promote sustainable de velopment.  South Africa was however unsure how 
Singapore's request for a compilation would take th e CTE's work forward.  Moreover, awareness on 
the UNFCCC trade-related discussions had already been  raised by means of publications by the WTO 
and UNEP, as well as by UNFCCC presentations in th e CTE.  In addition, coordination and dialogue 
between trade and climate officials was already taki ng place in the context of existing organisational 
structures and mandates. 
79. Turning to paragraph 2 of Singapore's proposal, the representative of South Africa noted that 
the liberalization of EGS would only promote sustai nable development if there were some flexibility 
foreseen for developing countries and their economic  development strategies.  South Africa also 
considered that trade-led development benefits through the liberalization of EGS would depend on 
progress made in negotiations in the context of th e CTESS, including in relation to the approach and 
modalities that would be adopted.  Regarding paragr aph 3, a more in-depth discussion on the hybrid 
approach in the CTESS would need to take place in  order to fully understand implications for all 
Members.  
80. Concerning paragraph 4, the representative of  South Africa was of the view that the 
liberalization of climate-friendly goods, services and technologies could only form part of the solution 
to address climate change.  Since climate change was a global issue, EGS liberalization should not 
promote the interests of only a few countries.  In  addition, market distortions and special and 
differential treatment for developing countries needed to be taken into account.  Also, if Parties were 
to adopt trade restrictions to combat climate ch ange, the benefits of EGS liberalization and trade 
openness would be negated.  South Africa, lik e Singapore and other delegations, opposed the 
protectionist use of trade measures.  With respect to  paragraphs 5 and 6, South Africa agreed that the 
issues raised by Singapore were complex and mer ited further discussion in an appropriate forum.  
South Africa was of the view that it was dangerous to suggest that WTO rules would endorse certain 
climate-related unilateral action by Members.  
81. For South Africa, the UNFCCC was the relevant  body to forge a legally-binding global 
agreement on climate change.  South Africa was looking forward to hosting the next session of the Conference of the Parties of the UNFCCC and the 7
th Conference of the Parties serving as a Meeting 
of the Parties to the Kyoto Protocol, taki ng place in Durban between 29 November and WT/CTE/M/52 
Page 16  
 
  9 December 2011.  Finally, she questioned the purpose of a compilation on carbon BTAs within the 
context of the CTE and recalled that Members had ca utioned against an exercise that could prejudge 
the WTO's legality of certain unilateral measures.   
82. The representative of Canada shared Singapor e's view on the mutual supportiveness of trade, 
environment and climate change mitigation and support ed the introduction of this issue in the CTE.  
Canada believed that trade could make a positiv e contribution to addressing climate change and 
encouraged the further liberalization of environmen tal goods.  Canada reiterate d that climate change 
should be dealt with by experts in the UNFCCC.  In this regard, Canada considered Singapore's 
recommendation for further work on trade and climat e change in the CTE as interesting.  The 
representative of Canada asked Singapore how it envi saged that the CTE further the work already 
done in the WTO-UNEP Report on Trade and Climate Change.   
83. The representative of Japan noted that the WTO had refrained from the discussions in order to 
avoid prejudging the outcome of the on-going negotiations in the context of the UNFCCC.  In his 
view, this needed to continue.  However, Singa pore's proposal to focus on enhanced dialogue and 
coordination between trade and climate officials wa s welcomed and Japan was open to continue the 
discussion based on Singapore's proposal. 
84. The representative of Barbados considered th at it was important to distinguish between 
legitimate trade and legitimate climate concerns wh en looking at trade-related responses to climate 
change.  Trade specific rule-making was to be consid ered in a WTO context to ensure:  (i) Member's 
ability to meet their obligations under both the UNFC CC and the WTO;  and (ii) institutions' ability to 
fulfil their respective responsibilities and mandates.  This would contribute to the objective of 
sustainable development and mutual suppor tiveness between trade and environment. 
85. The representative of Switzerland agreed that climate change had to be discussed in the 
UNFCCC.  The trade relevance of certain clim ate measures could however not be ignored and 
Switzerland had not yet come to a final conclusion on whether BTAs were WTO-compatible or not.  
Therefore, Switzerland welcomed the idea of a paper by the Secretariat compiling the existing studies 
on carbon BTAs, and suggested that the study go beyond examining carbon leakage to also address 
the contribution of these measures on carbon emission reduction.    
86. The representative of the European  Union agreed with Singapore that climate change was the 
most important global sustainability challenge that th e world faced today and that there was a need to 
create mutual supportiveness between trade and clim ate change.  He was however concerned that a 
number of Members contested the CTE's mandate to discuss these issues.  In his view, there was 
nothing in the CTE's agenda or in the DDA mand ate that would prevent such a discussion.  The 
European Union was satisfied with the work of the Secretariat on trade and climate change, in 
particular the WTO-UNEP Report on Trade and Climate Change.  They were of the view that existing 
WTO rules provided comprehensive and clear guidance to address BTAs, and the WTO-UNEP Report already addressed carbon BTAs.  The representa tive indicated that his delegation remained to 
be convinced that a compilation of existing litera ture would constitute a meaningful addition to 
already existing reports.        
87. The representative of Indonesia observed that  carbon BTAs could potentially be used as 
disguised protectionism, impeding the flow of products across countries.  Indonesia shared the view 
expressed by other speakers that unilateral trade me asures would not constitute a solution to climate 
change, putting developing countries at a disadvantag e.  Moreover, the question of whether climate 
change should be discussed in the CTE seemed pr emature so long as the UNFCCC did not reach an 
agreement on the reduction of global emissions.  I ndonesia reiterated that the CTE would not be the 
right forum to discuss this issue.    WT/CTE/M/52 
 Page 17 
 
 
  88. The representative of Zimbabwe noted that some of the issues raised in Singapore's proposal 
needed first to be discussed in Durban.  Zimbabwe agreed with South Africa and Indonesia on the 
needs of developing countries' as they were lagging behind in adaptation and mitigation technologies.  
Even with relevant support, bridging the gap would still take a long time.    
89. The representative of Malaysia agreed with Si ngapore that there were linkages between the 
WTO and discussion on border taxes in the UNFCCC.  As the issues of trade, liberalization of EGS 
and green economy would be discussed at Rio+20, Ma laysia considered that the WTO should remain 
inclusive and well informed about discussions on trad e-related aspects of the environment that were 
on-going outside the ambit of the WTO.  Malaysia  welcomed Singapore's suggestion on a dialogue 
between trade and environment officials, and w as of the view that the UNFCCC should continue 
sharing information on climate change negotiations.  Malaysia asked Singapore for clarification on 
how discussions should proceed within the CTE, in particular with respect to the trade proposals 
introduced in the UNFCCC context.   
90. The representative of India further asked for clar ification on paragraph 7 of Singapore's paper 
and the reasons why trade text discussed in the UNF CCC needed to be looked at by the WTO.  He 
pointed out that a number of other MEAs, such as the Basel Convention, included trade provisions.  In 
his view, Members always have had the possibility  to make use of the WTO dispute settlement 
mechanism.  He sought clarification from Singapor e as to how the rejection of unilateral trade 
restrictions, as discussed in the UNFCCC cont ext, would affect WTO trade rules.    
91. The representative of Singapore noted that it was important for Members that the 
CTE continue to be aware of discussions at the UNFCCC in order to contribute within the 
WTO's competence and to ensure that trade propo sals made in the UNFCCC were consistent with 
WTO rights and obligations.  Singapore's paper was fundamentally about awareness-raising of trade-
related discussions at the UNFCCC and dialogue fa cilitation, and the discussions that took place at 
this CTE meeting in fact elicited such dialogue.  The international community was engaged in two 
concurrent objectives and distinct multilateral effort s:  (i) enhancing economic welfare by liberalising 
world trade;  and (ii) slowing global climate cha nge by reducing GHG emissions.  The separation of 
these two processes, as well as respective competenci es had to be respected.  At the same time, 
mutual supportiveness and consistency had to be ensu red.  Dialogue was required to examine ways to 
ensure a good outcome for climate change while r especting rights and obligations of WTO Members. 
Singapore shared the views expressed by many delegations that the WTO-UNEP Report had contributed to awareness-raising in this regard.  As this process was evolving, there was a need to be 
continuously informed on potential implications on WTO rights and obligations.  
92. Singapore noted that it was clear that an open a nd rules-based multilateral trading system was 
necessary to address climate objectives.  A future gl obal agreement on climate change had to be based 
on principles and provisions of the UNFCCC, and not drafted in a way that would conflict with WTO 
rules.  Therefore, any future agre ement on climate change needed to be  situated in the context of the 
supportive and open international ec onomic system in order to be consistent with the UNFCCC and 
the WTO.  Singapore added that, although the paper ha d been discussed in the context of item 3(a), it 
would also fit under item 2 of the CTE mandate a nd under item 6 on market access, as open markets, 
including to climate-friendly goods, would help ach ieve climate objectives.  Its purpose was not to 
bring DDA discussions into the CTE. 
93. The Chair encouraged the delegation of Singapor e to liaise with delegations that raised 
concerns and questions on their pa per and offered her assistance to explore ways to further the debate 
in the CTE on the issues raised.   WT/CTE/M/52 
Page 18  
 
  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." 
 94. The representative of the WTO Secretaria t drew the CTE's attention to the WTO 
environmental database (EDB).  EDB-9 for the year  2009 would soon be ready for circulation in three 
languages.  She informed that the Secretariat wa s planning to modernise the WTO EDB following 
two tracks:  (i) in the short-term, for EDB 2010, the text part would be circulated to delegations in 
paper form, while the table part would be made av ailable online;  and (ii) in the long-term, an 
electronic environmental database would be prepared  to further promote and facilitate the use and 
consultation of different notifica tions and documents.  This would be done in parallel with other 
similar projects in the WTO Secretariat, such as in the context of TBT and SPS notifications.   
II. PARAGRAPH 33 
"We recognize the importance of technical assi stance and capacity building in the field of 
trade and environment to developing countries, in particular the least-developed among them.  
We also encourage that expertise and experience be shared with Members wishing to perform 
environmental reviews at the national level." 
95. There were no statements from de legations under this paragraph.  
III. PARAGRAPH 51  
"The Committee on Trade and Development and the Committee on Trade and Environment 
shall, within their respective mandates, each act as a forum to identify and debate 
developmental and environmental aspects of the negotiations, in order to help achieve the 
objective of having sustainable devel opment appropriately reflected." 
96. There were no statements from de legations under this paragraph.  
IV. OTHER BUSINESS 
97. His Excellency, Mr. Sha Zukang, Secretary- General of the 2012 United Nations Conference 
on Sustainable Development (UNCSD), presented on the Rio+20 themes and preparations.  He noted 
that the obstacles to implementing sustainable development had been daunting in the 20 years 
following the 1992 Rio Earth Summit.  Financial, food and fuel crises and the effects of climate 
change had made these obstacles even more appare nt.  The time had come to help sustainable 
development become a reality.   
98. The representative of the UNCSD began off w ith general information on Rio+20 and green 
economies.  He explained that the General As sembly Resolution identif ied three objectives for 
Rio+20:  (i) to secure renewed political commitmen t for sustainable development;  (ii) to assess 
progress to date and the remaining gaps in implem entation;  and (iii) to address new and emerging 
challenges.  There were two themes:  a green econom y in the context of sustainable development and 
poverty eradication and the institutional framewo rk for sustainable development.     
99. In the first two Preparatory Committee meeti ngs and the first informal Inter-sessional 
meeting, member States expressed concerns regardi ng green economies.  They wanted to know what 
a green economy looked like and what the implica tions for development prospects, trade and 
competitiveness in different countries were.  He expl ained that a green economy would need to build  WT/CTE/M/52 
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  from bottom up in each country and would depend  on national characteristics, endowments and 
priorities.  Countries would look at the UN system for guidance on the kind of policies they could adopt to move towards a green development path.  Therefore, at Rio+20 member States were likely to 
request a "menu of policy options" at different leve ls - national, regional and international - for a 
green economy.   
100. If the green economy was to be a useful con cept to member States, green economy would 
need to help them accelerate progress toward sustai nable development.  To build a green economy, it 
was necessary to identify more synergies than tr ade-offs between environment and development.  
Ideally, green economy would help build dynami c new growth sectors around green technologies, 
low-carbon energy and sustainable agriculture and fi sheries.  Many of the activities involved in 
building green economies would be relatively la bour-intensive.  A green economy would offer 
employment options, and open up  new export opportunities in green products and services.   
101. Transition to a green economy meant structural  changes, which would be challenging, in 
particular for countries relying on commodity e xports.  Naturally, these countries were concerned 
about adapting to a new situation.  They would need  to develop new industries, adjust to changes in 
market demands and in technologies,  and help their population adjust.  However, resilient and flexible 
economies would adapt successfully.  The scale and sp eed of the changes would be bigger and faster 
than in past technological revolutions.  Therefore,  international co-operation would be even more 
important to ease the transition for those whose jo bs and incomes might suffer.  Green economies 
were in everyone's best interest.  There was no c hoice if the world was going to raise living standards 
and advance human development on a finite plan et.  Therefore, the journey from Rio+20 was a 
common journey where countries would find new ways to cooperate in the international community.   
Countries had asked what international institutions, such as those relating to trade and development 
(including the UN system), could do to facilita te an equitable transition to a green economy. 
102. The representative of the UNCSD recalled the important contribution of trade to global 
economic growth over the past few decades.  Among other benefits, trade contributed to the biggest 
assault on poverty in human history.  Trade greased the wheels of the global economy:  it raised the 
welfare of both producers and consumers through hi gher wages and lower prices, and it facilitated the 
transfer of technology.  Much technology cro ssed borders embodied within machinery, in wind 
turbines, in solar panels, in biofuels and hybrid vehicles.  Without trade, these technologies would be 
more expensive and less accessible. 
103. The representative of the UNCSD raised the qu estion of how to ensure that trade would 
support a green economy.  Right now, one of the biggest concerns was that green economy did not 
become an additional impediment in trade rela tions, also known as green protectionism.  An open 
multilateral trading regime with enhanced market access for developing countries was crucial, both to 
accelerate their development and to ensure the sustaina bility of that development.  The costs of green 
technologies, like renewable energies, were dr iven down in no small measure by large scale 
production for global markets, for example, sola r photovoltaic panels and wind turbines.  Trade 
benefitted suppliers of green technol ogies with a larger market as well as buyers with lower prices.   
104. However, the process of economic development itself involved structural changes and this 
created concern.  Developing economies moved from agricultural dependence towards growing 
industrial capacity.  Then services became the predom inant sector at high levels of development.  
Some sectors grew, others shrank.  Jobs were created, jobs were lo st, but incomes and living standards 
rose sustainably with overall productivity.  In the same way, a green economy transition would 
involve changes, and these changes promote economic diversification.  This would yield sustainable 
improvement in well-being for all, now as well as in the future.  It was clear that an open and fair 
multilateral trading system was an integral part  of the international sustainable development 
architecture.  Discussions on how to promote a gr een economy needed to continue within that WT/CTE/M/52 
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  framework.  Only by addressing the concerns of  all countries would Rio+20 succeed in reaching 
agreement and produce a shared, actionable outcome.   
105. The representative of the UNCSD recalled th at in October 2010, the United Nations 
Department for Economic and Social Affairs (D ESA) and UNCTAD organized an ad hoc expert 
group meeting on the green economy in Geneva.  Th ey identified three fundamental steps towards a 
feasible transition for industrialised economies:  (i) the transfer of appropriate technology;  (ii) the 
leveraging of climate finance;  and (iii) the transition to more sustainable lifestyles, but not lower living standards.  From 8 to 10 November 2011,  another meeting focussing on "Green economy and 
Trade" would be organised by UNCTAD in collabor ation with DESA and UNEP.  The aim was to 
assist countries in gaining further clarity on these issues.   
106. The representative of the UNCSD hoped that  the international community, including the 
CTE, and other similar bodies, would consider ho w the international trading system could assist 
countries that choose to embark on a green economy path.  Beyond the principles already in place, it 
was necessary to think of the trade-related instru ments that would be designed and implemented.  
WTO rules did not provide sufficient clarity and there was no multilateral consensus on what 
constituted an acceptable practice, for example regard ing green subsidies.  Without guidance, it was 
likely that green-related disputes would be referred to the WTO dispute settlement mechanism.  This 
would risk undermining the multilateral trading system .  He encouraged those with trade expertise to 
focus on these difficult questions over the coming months.   
107. Turning to the preparations for Rio+20, he not ed that national preparations were underway 
through the coordinated assistance of the DESA and the United Nations Development 
Program (UNDP).  These two organisations assisted  up to 60 developing countries prepare for the 
event.  Several countries were holding inter- sessional meetings:  Indonesia on the institutional 
framework for sustainable development;  Brazil on the objectives of the conference;  India on green 
economy, food security and energy security;  Monaco on oceans;  Germany on water issues;  the United States on social media for sustainable development;  and, China on green economy and 
institutional frameworks.  At the same time, some  regional consultations were underway, including 
those specifically for Small Island Development States  (SIDS).  All would culminate in five regional 
preparatory meetings coordinated by the Unite d Nations Regional Commissions.  These would be 
organised in collaboration with the UN system and in ternational financial institutions at the regional 
level.   
108. The representative of the UNCSD announced that he  would meet with several principals of 
UN specialised agencies, funds and programmes.  The meeting would form part of the on-going 
interagency collaborative process that he had set up over a year ago, through the expanded 
membership of the Executive Committee on Economic  and Social Affairs.  Furthermore, the 
Environment Management Group and the United Na tions Development Group were contributing to 
preparations within their respective mandates.  To establish synergies, the representative of the 
UNCSD would meet with the two co-chairs of those inter-agency mechanisms in a troika format.    
109. The UN system was producing a study pertaining to strengthening the institutional framework 
for sustainable development.  The assessment wa s expected to contribute to the discussions of 
member States and other stakeholders, in prepara tion for Rio+20.  Major groups of civil society 
(including non-governmental organizations, businesses, farmers and others, as defined by Agenda 21) 
were also actively engaged in the preparations.  These groups were expected to forge coalitions and 
work with governments to advance sustainable development.    
110. The next important deadline for all stakeholde rs was 1 November 2011.  By this date, the 
UNCSD expected to receive all inputs to a compila tion document that would form the basis for what 
was called the "zero draft" of the outcome paper.  Informal negotiations would start in January 2012  WT/CTE/M/52 
 Page 21 
 
 
  and culminate in the last PrepCom meeting to be held in Rio de Janeiro the week prior to the 
conference.  The United Nations urged the CTE to  provide input and assess how trade would support 
the transition to green economies to ma ke the Rio+20 Conference a success.  
111. The representative of India had questions rela ted to the draft negotiating document, which 
would be the subject of negotiations at the United Nations Commission on Sustainable 
Development (CSD)-19:  (i) he was surprised by the absence of a definition of green economy and 
therefore requested an explanation of the concep t;  (ii) he asked whether the large number of 
suggestions in this document for developing count ries meant that developed countries were already 
following the path of sustainable development;  a nd (iii) he enquired if only the sale of goods would 
result in technology transfer and how developing count ries that did not have this technology would be 
able to become self-sustainable;  he asked wh at mechanism the UNCSD suggested in order to 
operationalize technology transfer.  Moreover, it see med to him that the document only focused on the 
future and did not reflect the past, which would be  necessary to properly allocate responsibility.  He 
noted that climate was changing, not only becau se of current emissions, but also because of 
accumulated emissions.  There were massive costs involved in reducing and stabilising GHGs.  For 
this purpose, the cost had to be shared by all countries in accordance with the common but 
differentiated responsibility principle as agreed at the Rio Conference in 1992.  Finally, regarding 
green subsidies, he wondered whic h subsidies were "green subsidies" and how they differ from non-
green subsidies. 
112. The representative of the UNCSD first noted that the lack of a green economy definition was 
an issue, but that it would not deter work.  There was a group of developing countries that still had 
concerns on the concept, but the fact that the work was moving was encouraging.  It was now 
necessary to focus on the critical elements that  constituted the green economy.  Regarding the 
difference between green economy and sustainable deve lopment, there was a sort  of consensus that:  
sustainable development was found in a green economy;   sustainable development was a pathway that 
needed to be taken;  and, the green economy was the means to realize sustainable development.  
Green economy had the potential to integrate th e three pillars of sustainable development 
- development, social development and environment protection.   
113. As for India's question on technology transfer, the representative of the UNCSD agreed that it 
was not possible to depend entirely on the market for the dissemination of technology.  The financial 
crisis had already given the world some lessons.  It  had been recognised that the market played an 
irreplaceable role for the dissemination of technology.   The government had an important role to play 
to create an enabling environment that could facilitate the dissemination through businesses and 
industries.  In a series of three conferences beginning at Beijing and in Bali, the UNCSD agreed to establish some mechanisms for technology transfer.  A technology mechanism was also established at 
Cancún.  Strategies were already in place to help operationalize technology transfer.    
114. Regarding the financing of green economy, the representative of the UNCSD was of the view 
that finance was an essential issue. He noted that  since the current pattern of development was not 
sustainable, countries would have to change the pa radigm, independent of the cost.  Turning to a 
green economy was a difficult choice, especially in times of austerity for donor countries.  Regarding 
the comment on the common but differentiated respons ibility, he stressed the importance of looking 
towards the future as current living styles and produc tion were not sustainable.  It was a fact that 
industrialisation, which took place more than 100 year s ago, had generated lot of emissions that had 
destroyed or damaged the environment.  By now,  the world had discussed enough about the past.  
Twenty years ago in Rio de Janeiro, member States , along with other stakeholders, came up with a set 
of principles (including the common but differentiate d and polluter pays principles).  The principles 
had been agreed upon, and negotiati ons would not be opened again.  WT/CTE/M/52 
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  115. Proceeding to India's question on emission reductions, the representative of the UNCSD 
recalled that the common but differentiated prin ciple applied to industrialized and developing 
countries.  Any misinterpretation of this principle would only further contribute to the confusion.  
Developing countries, particularly emerging economi es, had their responsibilities and had to make 
their contributions according to the Bali Road Map and the UNFCCC Principles. Regarding the 
question on green subsidies, he said that a numb er of countries had developed their green economy 
over the last 20 years and countries had accumulated ma ny experiences in this regard.  They had used 
subsidies as incentives to stimulate the developmen t of the green economy.  In his view, the CTE 
should look into the relevance of WTO rules. 
116. The representative of China noted that the obj ectives of Rio+20 fitted perfectly with the 
mandate of the CTE, and with the CTESS negotiatio ns on EGS.  China drew Members' attention to 
the joint communication from India and China in the context of the CTESS entitled "WTO 
Negotiations on Environmental Goods  and Services:  Addressing the Development Dimension for a 
"Triple-Win" Outcome".12  In order to achieve a triple-win  outcome the development dimension 
needed to be woven as an integral component of the EGS negotiations.  The three main elements to 
address the development dimension were categorised  as follows:  (i) a mechanism to ensure the 
development and transfer of envi ronmentally sound technologies (EST);  (ii) a financial mechanism to 
ensure access to and development of EST, investment in environmental projects and capacity development for production of the environmental goods;  and, (iii) Sp ecial and Differential Treatment 
for developing and LDC Members.  The representativ e of China took this opportunity to reiterate his 
government's commitment, both to the DDA EGS negotia tions and Rio+20, in pursuit of a sustainable 
development strategy for all. 
117. The representative of Australia noted that th e UNCSD presentation was extremely timely and 
of direct relevance to the work of the CTE.  In particular, the liberalization of EGS was one way of 
ensuring diffusion of green technologies as a path to achieving a green economy.  She wondered to what extent existing WTO rules had been consider ed as a means to ensure that green subsidies 
develop in favour of the achievement of a green  economy in a WTO-consistent manner.  Existing 
rules were flexible enough to accommodate environm ental objectives and to ensure that fundamental 
principles of non-discrimination were not ignored.  She wondered which new trade-related measures 
would best meet the perceived needs of the goals of Rio+20.  In that respect, she asked the extent to 
which the WTO would be able to provide backgr ound information on the current operations of WTO 
rules to delegates participating in Rio+20.    
118. The representative of Switzerland expressed their support for a road map for a green 
economy.  Trade was an enabling condition that could contribute to a green economy.  
Switzerland posed two questions:  (i) how the subject  of trade and green economy was treated in the 
preparation process for Rio+20;  and (ii) how the representative of the UNCSD envisaged the linkages 
between green economy and international sustainable governance.   
119. The representative of Zimbabwe hoped that th e green economy would be pursued with a 
holistic approach.  The needs of developing c ountries had to be met when dealing with poverty 
eradication, taking into account some of the complex ities related to the current world trading system.   
120. The representative of the UNCSD agreed that s ubsidies were an issue.  Whether existing 
WTO rules would be adequate was not clear.  WTO ru les had flexibilities that would need to be taken 
advantage of.  There was a need to analyse existing trade rules and examine developed and 
developing countries' experiences.  As for the broade r goals of Rio+20, he indicated that the set of 
principles agreed in Rio de Janeiro in 1992 needed  to be honoured and implemented.  Therefore, 
                                                      
12 TN/TE/W/79.   WT/CTE/M/52 
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  Rio+20 would be a Conference for implementation, fo r action, not for developing other principles.  
Reinvigorating the sustainable development trajector y would be the objective of the Conference.   
121. Regarding Switzerland's questions, the represen tative of the UNCSD explained that the 
institutional framework was one of the two major th emes of the Conference.  There were three broad 
proposals:  (i) the umbrella proposal, from Brazil, which addressed how to create synergies and make 
best use of those existing institutions like the CS D, UNEP, UNDP and the UN system;  (ii) the joint 
proposal, put forward by the European Union, whic h addressed the possibility of turning UNEP into a 
world environment organization;  there were differe nt views on this last proposal and some countries 
were not favourable;  and (iii) the proposal on  the institutional framework, which was mainly 
supported by developing countries,  and aimed at the strengthening  of existing institutions.   
122. Regarding Zimbabwe's question, he noted that the objective was to turn developing countries 
into developed ones.  The green economy and Rio+20 would have to eradicate or at least reduce the 
difficulties of developing countries, particularly  LDCs, in order to ensure global sustainable 
development.  Many developed countries had b een generous and helpful towards developing 
countries.  However, if the world wanted to develop a green economy, developing countries and 
LDCs needed more help from their development pa rtners.  Developed countries had more or less 
completed their industrialisation and urbanisation processes while some countries, for instance in Africa, had not even begun industrialisation nor genera te emissions. He emphasized the contradictions 
put upon developing countries and LDCs.  They were being prevented from using their natural 
resources for growth and developm ent, whilst being pushed into usi ng renewable energies, developing 
new capacities and accessing new technologies through the market, in compliance with international 
rules and intellectual property.  This was why,  UNCSD called for mutual support among countries in 
different stages, in pursuit of a common priority - sustainable development.  He was confident that 
countries would reach agreement.   
123. The representative of the European Union noted that without liberalised trade, technologies 
would be less available and more costly.  China w as a very good example of the application of that 
principle.  He referred to the negotiations on EG S and commented that despite the well understood 
triple-win, lack of commitment remained on that  part of the DDA, which was, at time, being 
portrayed as a means to achieve more ma rket access for industrialised countries. 
124. The representative of the United States appreciat ed UNCSD's support to international trade.  
Trade alone might not be enough to promote technol ogy diffusion, but it was necessary.  Moreover, 
combined with other aspects of an enabling envi ronment, like intellectual property protection, 
investment guarantees, it could be a driving force.   She suggested that to discuss these important 
topics further, it would be useful to have written submissions from WTO Members. 
125. The representative of the UNCSD noted that sust ainable development was an indivisible issue 
across religions and hemispheres.  It should not be come an issue that come in-between government 
and opposition.  He made this poi nt because 2012 would be a year of election for several countries 
and this was usually a difficult time to make additional commitments.   
V. DATE OF NEXT MEETING 
126. The next meeting of the Committee was e xpected to be in the autumn of 2011. 
__________