Geneva, 30 June 2016 - UNEP, an official observer to the World Trade Organization’s (WTO) Committee on Trade and Environment (CTE), partook in the group’s latest meeting held at the end of June. This event marks the first of two CTE meetings scheduled for this calendar year.
Launched in 1994, the CTE is a direct outcome of the Marrakesh Ministerial Decision on Trade and Environment. Open to all WTO members, the CTE has contributed to identifying and understanding the relationship between trade and the environment in order to promote sustainable development. The committee aims to make appropriate recommendations on whether any modifications of the provisions of the multilateral trading system are required, compatible with its open, equitable and non-discriminatory nature.
Given that the June assembly was the first since the Paris Agreement, climate policy and its implications entered the discussion on numerous occasions. The European Union highlighted that the agreement does not mark the end of a process, but rather a starting point, referencing a need for contributions to turn into robust policies at the national level, including those related to trade. Several countries, including Singapore, Mexico and China discussed their Intended Nationally Determined Contributions, with Singapore mentioning a need for consistency between economic measures intended to meet climate commitments and international trade rules.
Korea, Costa Rica and Canada later pitched a joint proposal in favour of intensifying cooperation between the climate change and trade regimes. While some members supported the proposal, others – including Egypt, Saudi Arabia, and Bolivia – disagreed, citing reasons including the broad mandate of the CTE and the very recent nature the Paris Agreement.
Regarding fossil fuel subsidies, a longstanding and contentious topic at the intersection of trade and environment, some members signalled continued commitment towards subsidy elimination. Other members voiced concern over such reforms, as well as the need to consider the unique needs of developing countries. Still others dissented, declaring the WTO an inadequate venue for such discussions.
Members also debated environmental provisions in Regional Trade Agreements, emphasizing the role that trade can play in climate resilient development and natural resource conservation and underlining the need to adapt approaches to differing country contexts. Additionally, Australia, serving as chair of the Environmental Goods Agreement negotiations, later provided an update on the current state of play.
Subsequent to an array of country interventions, UNEP briefed members on the second United Nations Environmental Assembly (UNEA), held in Nairobi at the end of May, where participants from 170 countries agreed to a series of 25 resolutions, many of which are directly linked to trade and environment. For instance, UNEA agreed that UNEP should accelerate support to countries, especially developing countries, to build national readiness capacity to implement the Paris Agreement, including through access to clean technologies.
UNEP also shared recent developments related to the Environment and Trade Hub, which aims to help countries deliver on the 2030 Sustainable Development Agenda at the nexus of environment, trade and investment.
UNEP’s statement can be accessed here.
