Download WTO and Environment

WTO Trade & Environment Negotiation
Yiting WAN
Director, WTO Department,
MOFCOM,China
Dec., 2011
Structure of the Presentation：
 WTO and environment
 WTO Trade and Environment Negotiation
 China’s positions on WTO Trade and
Environment negotiation
Part I:
WTO and Environment
WTO and Environment
Preamble of Marrakesh Agreement Establishing
the WTO: “…while allowing for the optimal use of
the world’s resources in accordance with the
objective of sustainable development, seeking both
to protect and preserve the environment and to
enhance the means for doing so in a manner
consistent with their respective needs and concerns
at different levels of economic development.”
WTO and Environment (cont.)
 GATT art. 20 “General Exceptions”:
“subject to the requirement that such measures are not applied in
a manner which would constitute a means of arbitrary or
unjustifiable discrimination between countries where the same
conditions prevail, or a disguised restriction on international
trade, nothing in this Agreement shall be contrued to prevent the
adoption or enforcement by any contracting party of measures”
(b) Necessary to protect human, animal or plant life or health
(g) Relating to the conservation of exhaustible natural resources
if such measures are made effective in conjunction with
restrictions on domestic production or consumption
WTO and Environment (cont.)
 The Agreement on Technical Barriers to Trade
(TBT):
“…technical regulations shall not be more trade-restrictive
than necessary to fulfil a legitimate objective taking account
of the risks non-fulfilment would create”
“such legitimate objectives are, inter alia, …protection of
human health or safety, animal or plant life or health, or the
environment”
WTO and Environment (cont.)
 Para. 6 Doha Declaration(2001, Doha, Qatar):
“…we recognize that under WTO rules, no country should
be prevented from taking measures for the protection of
human, animal or plant life or health, or of the environment
at the levels it considers appropriate”
“…subject to the requirement that they are not applied in a
manner which would constitute a means of arbitrary or
unjustifiable discrimination between countries where the
same conditions prevail, or a disguised restriction on
international trade…”
Part II: WTO Trade and
Environment Negotiation
Doha Mandate-Topics for Negotiation
The negotiation focuses primarily on three issues:
• Para.31(i) The relationship between the WTO and
MEAs
• Para.31(ii) Procedures for regular information
exchange between MEA Secretariats and the WTO,
and criteria for granting observer status
• Para.31(iii) The reduction or elimination of tariff and
non-tariff barriers to environmental goods and
services
Doha Mandate-STOs in MEAs
 DMD Para.31(i) : “ the relationship between
existing WTO rules and specific trade obligations
set out in multilateral environmental agreements
(MEAs). The negotiations shall be limited in
scope to the applicability of such existing WTO
rules as among parties to the MEA in question.
The negotiations shall not prejudice the WTO
rights of any Member that is not a party to the
MEA in question;”
Doha Mandate-STOs in MEAs (cont.)
 A focused discussion of the proposals on the table
 Possible outcome include: reference to the
mandate, observations on STOs in MEAs, the
importance of internal coordination in the
negotiation and implementation of MEAs, the use
of MEA expertise in the context of dispute
settlement
Doha Mandate-Observer Status for MEAs
 DMD Para.31(ii) : “procedures for
regular information exchange between
MEA Secretariats and the relevant WTO
committees, and the criteria for the
granting of observer status; ”
 Elements paper for a future outcome:
almost ready
Doha Mandate –Environmental Goods
and Services
Para.31 (ⅲ) members agree to negotiations, without
prejudging their outcome, on: “ the reduction or, as
appropriate, elimination of tariff and non-tariff barriers to
environmental goods and services. ”
 CTESS to determine product scope, modality for
concessions addressed by NAMA negotiation
 Quite Clear scope for environmental services, being
considered in services negotiations, request-offer
 Slow progress since started; wide divergences among
members;
Environmental Goods(1)
 US, EU, Japan, Canada, New Zealand, Korea
etc.
 Support the Environmental goods list
 9 members have submitted their lists
 153 products
Other lists: Philippines, Qatar, Saudi Arabia, Singapore
Environmental Goods(2)
 India, Brazil, Argentina, Egypt
 India: Environmental Project Approach (EPA)
 the programs can only be authorized by the
organizations designated by the country
 and only the products covered by the program can
enjoy the tariff concession
 Brazil: Request-Offer Approach
 demanding more flexibility for developing members
 organic agricultural goods should be included
Environmental Goods(3)
 Submission by India and China
TN/TE/W/79 15 Apr. 2011
---transfer of technology
---a financial mechanism
---S&D(lower preference margin, exclusions
for certain number of items, transition
periods)
Environmental Goods(4)
 A hybrid approach: a common core list, a
complementary self-selected list
---by Australia; Colombia; HK,China;
Norway; Singapore
Doha Mandate –Environmental Goods(4)
Headaches…
 Multiple-use products
 Not full match between environmental products
and HS headings
 Non-tariff barriers
 Technology transfer
 Agricultural goods, eg. Organic products, biofuels
(supporters: Brazil, India, Argentina, Ecuador,
Colombida, Cuba,Egypt,)
Doha Mandate –Environmental Services(1)
 Definition, Classification in the W/120
-A. Sewage service
-B. Refuse disposal services
-C. Sanitation services
-D. Other
Doha Mandate –Environmental Services(1)

Classification in the CPC prov.
- Sewage services (CPC 9401)
- Refuse disposal services (CPC 9402)
- Sanitation and similar services (CPC 9403)
- Cleaning services of exhaust gases (CPC 9404)
- Noise abatement services (CPC 9405)
- Nature and landscape protection services (CPC 9406)
- Other environmental protection services (CPC 9409)
Doha Mandate –Environmental Services(3)
 General
-Environmental services: one of the least-committed sectors under
the GATS
-59 Members have undertaken specific commitments in at least
one of the seven CPC sub-sectors of environmental services
-In total, 318 sub-sectors have been scheduled
-Recently acceded Members have undertaken a proportionally
higher level of commitments
Doha Mandate –Environmental Services(4)
 Request on environmental servces
-Bilateral requests of other WTO Member to
China
-Plurilateral request
 Offers on environmental services
 Signaling conference in July, 2008
Doha Mandate – Issues for Discussion
To give particular attention to:
 Para.32(i) The effect of environmental measures on
market access, and those situations in which the
elimination or reduction of trade restrictions and
distortions would benefit trade, environment and
development
 Para.32(ii) The relevant provisions of TRIPs Agreement
 Para.32(iii) Labelling requirements for environmental
purposes
Doha Mandate – Effect on Market Access
 Para. 32(i) : to give particular attention to “the effect
of environmental measures on market access,
especially in relation to developing countries, in
particular the least-developed among them, and those
situations in which the elimination or reduction of
trade restrictions and distortions would benefit trade,
the environment and development”
 Standards, technical regulations, labelling
requirements, packaging and recycling requirements,
charges and taxes for environmental purposes
Doha Mandate – Labelling Requirements
 Para. 32(iii) to give particular attention to
“labelling requirements for environmental
purposes”
Doha Mandate – Effect on Market Access
and Labelling
Developing countries’ concerns:
 Increasing number, complexity and
stringency of environmental and health
requirements, set by different actors
(“patchwork of requirements”)
 Inadequate access to information about
existing or new requirements by producers
from developing countries
Doha Mandate – Effect on Market Access
and Labelling (cont.)
Developing countries’ concerns:
 high compliance cost in sectors where SMEs
play an important role
 Insufficient participation in
international standard-setting activities
(or at consultation stage) to safeguard
developing country interests
 Environmental requirements often ignore
the principle of “common but
differentiated responsibilities”
Doha Mandate – Effect on Market Access
and Labelling (cont.)
 Reasonable objective to protect environment vs.
excessive technical requirement
 Avoid de facto trade barriers
 Technical assistance, notification, consultation,
data sharing, capacity building by training
Doha Mandate – relation with TRIPS
Agreement
 Para. 32(ii) to give particular attention to
“relevant provisions of TRIPS agreement”
 Environment protection and technology transfer
 Relation between Convention on Biodiversity(CBD) and TRIPs (addressed in DDA
TRIPs negotiation)
 Not active discussion
Doha Mandate-TA&CB
 Para 33 “We recognize the importance of
technical assistance and capacity building in the
field of trade and environment to developing
countries, in particular the least-developed among
them……”
 Eg. Preparation of technical regulations,
establishment of relevant bodies, facilitating
participation in international standard system,
training for government officials, workshops to
introduce new environmental measures
Doha Mandate – Environment and
Development
 Para. 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 development
appropriately reflected”
Part III
China’s Positions on DDA Trade
and Environment Negotiation
China’s Positions on DDA Trade and
Environment Negotiation
 Main objective: triple wins for environment,
development and trade; to enhance the mutual
supportiveness
 Part of the “development” agenda; The result should
help enhance the ability of developing countries in
addressing their environmental problems by
themselves；enhance the ability of environment
protection and sustainable development in
developing countries
China’s Positions on DDA Trade and
Environment Negotiation(cont.)
 The negotiation is not supposed to create
additional barriers to trade
 Members should not promote only trade
interests in the disguise of environmental
protection
 Technology transfer and financial assistance to
developing countries should be addressed
effectively
China’s Positions on DDA Trade and
Environment Negotiation(cont.)
 Not opposed to a list for the genuine “single-use”
environmental products(EGs)
 Clear definition and standards for the EGs to avoid
“free-riders” on the list
 The result should reflect the S&D treatment for
developing members
Eg. Developed members offer zero tariff while
developing countries offer a lower tariff level;
 Willing to work together with other members for the
solution of multiple-use products
China’s DDA Offers in Environmental
Services
 Signaling Conference, July, 2008, Geneva
 Allow solely foreign-owned companies in
sub-sectors of environmental services,
provided our requests in mode 4 and
maritime services be accomodated
Current Access to Environmental Services
in China
 8 sub-sectors: sewage services, solid waste
disposal services, cleaning services of
exhaust gases, noise abatement services,
nature and landscape protection services,
other environmental protection services,
sanitation services
Covering all modes of services, allowing
major shares by foreign investors
China’s National Policy
 China’s 11th Five-year National Plan(2006-2010),
Chapter 6 Titled “To Encourage the Development
of Resources-conservative and Environmentfriendly Society”
 “…the production should strictly implement the
environmental protection criteria…,
appropriately control the export of high energyconsuming, heavy-polluting products.”