TN/TE/19
Page 5
Organization
TN/TE/19
22 March 2010
(10-1555)
Committee on Trade and Environment
Special Session
Committee on Trade and Environment in Special Session
Report by the Chairman, Ambassador Manuel A. J. Teehankee,
to the Trade Negotiations Committee for the purpose of the TNC stocktaking exercise [1]
1. This report is intended to take stock of progress made in the Committee on Trade and Environment in Special Session (CTESS) since my last written report to the Trade Negotiations Committee (TNC) in July2008[2]. It also aims at identifying the areas that will require further attention from Members to bring negotiations to a successful conclusion on all three parts of the mandate in Paragraph31 of the Doha Declaration.
2. The work programme setout in my July2008 report, which was updated in October2009 to include new timelines[3], has guided the continuation of work up to now.
I. Paragraph31(I)
3. The ideas put forward in Members' proposals for an outcome under Paragraph31(i)[4] fall within five main clusters: (a) the importance of national coordination to enhance the mutual supportiveness of trade and environment, and the value of experiencesharing in this regard; (b) how CTESS discussions on specific trade obligations (STOs) set out in multilateral environmental agreements (MEAs) could be reflected in an outcome; (c)dispute settlement/legal principles; (d)technical assistance to developing country Members; and (e) general principles.
4. Members' positions on these various issues were described in my July2008 report to TNC and to recall:
a.) National coordination: Many Members consider that the importance of coordination at national level, and the value of national experiencesharing regarding the negotiation and implementation of STOs set out in MEAs, should be highlighted in any outcome under Paragraph31(i). In this regard, it was further suggested that Members share experiences relating to their national coordination processes and to the negotiation and implementation of STOs in MEAs, as part of the work programme of the CTE in Regular Session.
b.) STOs: A number of proposals have focused on how discussions in the CTESS on STOs set out in MEAs could be reflected in an outcome. In the course of these discussions, Members identified, on an illustrative basis, provisions within MEAs that could qualify as "STOs"[5]. It was noted in this context that certain features of STOs were key to enhancing mutual supportiveness between trade and environment, although some delegations pointedout that prescriptive language on this aspect should be avoided.
c.) Dispute settlement/legal principles: Another proposal relates to dispute settlement procedures, in particular the use of MEA expertise in WTOdisputes. Strong concerns were raised by some Members that such a proposal could alter the balance of rights and obligations under existing agreements, including under the DSU. This is an area where further engagement would be needed and for Members to make further proposals on how any of these ideas could be reflected in an outcome.
d.) Technical assistance and capacitybuilding: The issue of technical assistance and capacitybuilding toassist Members in implementing STOs in MEAs in a WTOcompliant manner is also addressed in one of the proposals. This idea can be further examined in conjunction with other suggestions relating to the development dimension of Trade and Environment negotiations, also bearing in mind Paragraph 33 of the Doha Ministerial Declaration.
e.) General principles: Finally, some delegations have put forward proposals relating to preambular language or general principles that are considered to govern the WTOMEA relationship and which recall or affirm prior agreements or declarations. Members need to engage further on these issues when there is more clarity on the substance as well as the form of the outcome in this area.
5. I will be holding further dedicated discussions on these five clusters of issues mentioned above with the objective of achieving more clarity and specificity in terms of language, inorder tomove to textbased negotiations in this area pursuant to the CTESS Work Programme.
II. Paragraph31(II)
6. Discussions under Paragraph31(ii) are at a slightly more advanced stage as noted in my July2008 report. Members have identified elements drawn from the proposals on the table that could be included in an outcome.[6] Several of these elements, which are reflected in AnnexII of this report, have already garnered broad support from the membership.
7. For instance, with respect to information exchange, concrete suggestions were put forward regarding MEA information sessions to be held by the CTE, document exchange, and future collaboration in the context of technical assistance and capacitybuilding activities. Asregards the issue of observer status, the Committee considered some criteria that could guide WTO committees in their consideration of requests for observer status by MEAs.
8. There are still some outstanding issues that will require further consultations. One of them relates to the proposal that as part of the outcome under Paragraph31(ii), observer status be automatically granted to a number of MEAs who have taken part in the work of the CTE.[7]
9. I will be holding further consultations with Members on the elements of Paragraph31(ii) in the context of textbased negotiations.
III. Paragraph31(III)
10. Since my July2008 report to the TNC, further progress has been made pursuant to the Work Programme with regard to the identification of environmental goods of interest to Members and clarifications of approaches to achieving the mandate as a number of new submissions have been circulated in these respects.
11. Additionally, two workshops on Environmental Goods and Services were organized by the Secretariat in September 2009 and February2010, which have contributed to deepen Members' understanding of the environmental goods and services sector, aswell as the use of environmental technologies in different environmental activities. These workshops also provided an opportunity for Members to share their experience in developing a national position in response to the mandate in Paragraph31(iii), including allowing further discussion of examples of environmental goods of interest to Members.
12. To recall, the work programme under Paragraph31(iii) calls for submissions "identifying environmental goods of interest to Members across as many categories as possible, and/or environmental goods identified in any requests/offers they would have made to other Members".[8] Inaddition, the work programme also calls for any submission on potential tariff treatment for the goods identified, including special and differential (S&D) treatment; NTBs; other developmentrelated aspects; as well as proposals orclarifications of the approaches on how to deliver on themandate.
13. The identification phase under the work programme aims at setting out the "universe" of goods that may be covered under the mandate, without prejudice to the position of Members on the outcome, or to the approach for achieving it. The goods identified so far as part of this exercise are compiled in Section I of AnnexIII.[9] Where provided by the proponents, information is included on the product description; HS codes and possible exouts; environmental benefit or rationale; and category under which the goods were put forward.
14. The question of the approach used to reduce or eliminate tariff and NTBs to environmental goods pursuant to the mandate remains open at the moment. According to the proposals on the table, Members could reduce or eliminate tariff and nontariff barriers on the basis of an agreed set of environmental goods;[10] by undertaking commitments as a result of a requestoffer procedure to be carriedout within a specified period of time;[11] orby making concessions with respect to goods used in projects, for instance under the Clean Development Mechanism of the Kyoto Protocol.[12]
15. As regards tariff treatment, some of the proponents have already suggested that tariffs on the goods they put forward should be eliminated[13], while other Members who contributed to the identification of goods have not yet expressed a position on the issue. With respect to S&D treatment, one suggestion made was that tariffs could be eliminated as soon as possible, but no later than X, for developed countries and those developing countries declaring themselves in a position to do so, and that for other developing countries, tariffs should be eliminated by Y years thereafter.[14] Through further consultations with developing country Members, it may be possible to identify options for S&D treatment that will be considered acceptable to all delegations. Members will need to further exchange views and ideas on the potential tariff treatment, including any proposals on ensuring special and differential treatment for developing countries. Atthis stage, there are still very few concrete ideas on the table as to how to deliver on these aspects of the mandate.
16. With respect to nontariff barriers, there are some proposals on the table, relating in particular to the harmonization of standards on organic products[15] and energy efficient goods.[16] Some examples of NTBs were also mentioned in the context of the September2009 workshop, including with respect to renewable energy products in the wind and solar sectors; these examples included: difficulty to obtain working visa; business licensing and registration; local content requirements; lengthy procedures at point of entry; non recognition of testing standards; and transiting procedures. Such examples could be reverted to in future discussions,[17] and Members' constructive ideas and proposals will be required to make progress.
17. Finally, the importance of developmentrelated issues, including the issues of technical assistance, capacity-building, transfer of technology or technology diffusion, has been emphasized by several Members in the course of the discussions.[18] Some delegations foreshadowed that they may come forward with more specific ideas on how to integrate these aspects in the outcome. More proposals on developmental aspects could provide a concrete basis for future discussions.
18. Several delegations have made reference to the linkages between the work of the CTESS under Paragraph31(iii) and the work of other negotiating groups. Such linkages call for continuing the coordination between the CTESS and other groups, in particular as regards to work in the Council for Trade in Services in Special Session on environmental services, which is an integral part of the mandate under Paragraph31(iii).
19. Concerning the next steps, Members will need to start reviewing what is on the table, engage in focused discussions and provide further outcome-specific submissions and proposals. The new proposals submitted and presented in late 2009 and early 2010 were encouraging, as was the fact that a number of delegations also foreshadowed that they would soon be making contributions to the identification exercise as well as on other aspects of the mandate.
20. Atthis stage, it is clear that further broadbased engagement from Members will be necessary in order to get to a stage where we can start seeing the contours of an outcome under Paragraph31(iii).
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21. With respect to the work of the CTESS in general, some progress has been made over the last year. Members will have to continue to work in a constructive spirit on all aspects of the Paragraph31 mandate, with a view to achieving convergence and a coherent and substantially meaningful result that provides a win for trade, development and the environment.
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ANNEX I
REVISED WORK PROGRAMME OF THE CTE IN SPECIAL SESSION
To: / Delegates to the Committee on Tradeand Environment in Special Session (CTESS) / Fax No: / See list
From: / H.E. Ambassador Manuel A.J. Teehankee
Chairman of the CTESS / Date: / 2/10/09
Number of Pages (including this one): 4 / Div. Ref: / N:\#Ted\2009\CTESS\Meetings\18-19 November
Reg. Ref:
CTESS Work Plan and
Meeting of 1819 November 2009
1. Further to the discussion at the Informal Open-Ended Meeting of the CTESS held on 24September, delegations will find below the work plan of the Committee for the coming months, which is based on the programme of work set out in the July 2008 Chair's Report to TNC.[19]
1. Paragraphs31(i) and (ii)
2. Significant progress has been done so far on the WTOMEA issue. As regards the mandate in Paragraph31(ii) concerning cooperation between the WTO and MEA Secretariats, Members already have the architecture of a text. With respect to Paragraph31(i), extensive discussions have also taken place on the basis of Members' proposals for an outcome. While some of the proposals on this part of the mandate seem to have garnered broad support, others will require further consultations with delegations.
3. In the next phase of work under both Paragraph31(i) and 31(ii), textbased negotiations will begin on the basis of Members' proposals. This phase will start in November with a process of consultations in various configurations aimed at making progress on the ideas and proposals on the table with a view to producing a draft text, depending on progress made, by February 2010.
2. Paragraph31(iii)
4. Following the workshop held from 2325 September, which allowed for a detailed examination of the different environmental goods and services sectors, the Committee will be proceeding with its work under Paragraph31(iii) as follows.
5. By 6 November, Members are invited to make submissions identifying environmental goods of interest to them across as many categories as possible, and/or environmental goods identified in any requests/offers they would have made to other Members.[20] Proposals on other aspects of the mandate may also be submitted at this stage, including on developmentrelated aspects and crosscutting issues such as technical assistance, capacitybuilding or transfer of technology.
6. The submissions will be compiled by the Secretariat and discussed at the next CTESS meeting scheduled on 1819November. Consultations will be held in the leadup to, and after, the November meeting.
7. The main purpose of this next phase is to create a broader basis for discussing the universe of environmental goods that may be subject to the reduction or elimination of tariff and nontariff barriers, as well as the development aspects of particular importance to Members. Other issues will also be addressed in this context, such as: HS codes and exouts; the environmental rationale or benefit; the environmental category under which the goods may fall; the potential tariff treatment, including any proposals on special and differential treatment; and nontariff barriers. It is understood that this next phase of work is without prejudice to the proposals on the table, the issue of treatment to be granted to environmental goods, or the final outcome.
8. In a subsequent phase, Members will be invited to update their submissions made in the initial phase, indicate new environmental goods of interest or put forward further offers. These submissions will be compiled again and discussed at a meeting of the Committee in February. Members will then review what is on the table and engage in focused discussions on crosscutting and development related issues, as well as on a possible outcome to the mandate under Paragraph31(iii).