WTO Members note work in three environment initiatives and discuss anti-deforestation efforts
At the 2 February meeting of the Committee on Trade and Environment
(CTE), WTO members received briefings on the three new environmental
initiatives launched on 15 December 2021 at the WTO. Members also discussed
in-depth the respective efforts of the European Union and the United Kingdom to
prevent global deforestation by regulating trade in agriculture.
Australia updated the committee on the work of the
Informal Dialogue on Plastics Pollution and Environmentally Sustainable
Plastics Trade (IDP). Sixty-eight members currently participate in the IDP and
work is ongoing to draft the plan for implementing the ministerial
statement launched in December.
New Zealand updated the committee on the joint
Ministerial Statement on Fossil Fuel Subsidy Reform, likewise launched in
December. New Zealand said 45 WTO members have endorsed the statement and that
the signatories intend to meet in the months ahead to advance work. The
statement remains open to new sponsors, New Zealand said. Several co-sponsors
expressed their support, while some members said this issue should not be
addressed in the WTO.
Canada provided an update on the Trade and
Environmental Sustainability Structured Discussions (TEESD). The ministerial
statement issued by the TESSD proponents in December 2021 sets out a
roadmap of meetings for 2022. Canada said participants in the structured
discussions intend to finalize a work plan in the near term. Several members
who took the floor noted the issues and elements they suggested be included in
the workplan. Canada said the TEESD remains open to new co-sponsors.
New Zealand also provided an update on behalf of
participants on negotiations towards the Agreement on Climate Change, Trade and
Sustainability (ACCTS). A second ministerial meeting was held in November and
the seventh round of negotiations concluded in December. The eighth round will
be held in March, New Zealand said.
Efforts against deforestation
The European Union provided an update on the
European Commission's legislative proposal on deforestation as part of a
broader update on the European Green Deal. The EU said the objective of the
deforestation proposal is to minimize the risk that products associated with
deforestation and forest degradation are placed on the EU market. The
regulation will set due diligence rules for operators to ensure that only
deforestation-free and legal products are allowed into the EU market. The EU
said it selected palm oil, soy, cattle, cocoa, coffee, and manufactured
products such as leather, chocolate, and furniture to be covered by the
proposal based on a thorough scientific and cost-benefit analysis of their
impact on deforestation. The EU also presented a timeline for other measures
and proposed packages to achieve its environmental objectives. Several members
in response said that sustainability initiatives should take into consideration
the needs and capacity of developing countries, particularly those that have
suffered massive deforestation in the past. Several members urged the EU to
favour multilateral cooperation and dialogue in its environmental efforts.
The United Kingdom presented to members the Forest,
Agriculture and Commodity Trade (FACT) Dialogue it launched with Indonesia last
year. The new initiative brings together a number of countries that are
key exporters and importers of agricultural products to discuss how to make
trade more sustainable and to prevent deforestation resulting from agricultural
practices. Twenty-eight countries have agreed on a joint statement on
"principles for collaboration," which sets out a roadmap for action.
The FACT co-chairs will be reconvening officials in March to finalize the
workplan for 2022, the UK said. FACT co-chairs and facilitators also welcome
further exploration of how to align the FACT and WTO processes.
The United Kingdom also updated the CTE on the side
event the UK hosted back-to-back with the Committee meeting, titled
“Implementing Due Diligence on Forest Risk Commodities – Recent Developments in
the United Kingdom.”The webinar explored the UK's proposed implementation of
due diligence legislation, which is being introduced through the UK's
Environment Act and aims to tackle illegal deforestation in UK supply chains.
Environmental database
The Secretariat presented its Environmental
Database (EDB) 2020 report, which was published in January. The EDB portal now
covers information on roughly 7,000 environment-related notifications, 14,500
measures notified under the WTO Agreement, and 9,300 environment-related
entries in Trade Policy Reviews.
In 2020, 16% of notifications made to the WTO were environment-related
as compared to 8% in 1997. There was a 23% increase in the number of
environment-related notifications compared with 2019. Around 50% of the
environment-related measures were technical regulations and specifications;
followed by import and export licenses, bans or prohibitions; and support
measures. The EDB can be accessed here.
Other items
The United Kingdom and the United Nations Framework
Convention on Climate Change briefed the committee on the outcomes from the
COP26 UN Climate Change Conference. Both expressed their commitment to continue
efforts to ensure the implementation of outcomes.
Egypt, the host of COP27, said it looked forward to
cooperating with all members to build on the success of COP26.
The World Customs Organization, the UN Industrial
Development Organization, and the UN Environment Programme provided respective
reports on their recent activities.
Members also took note of the information session
organized by the Secretariat on 19 November for delegates from the
Least-Developed Countries (LDC) Group to take stock of the role of the
committee and review members' initiatives on trade and environment in order to
strengthen LDCs' knowledge on the intersection between trade and environment
and to enhance their participation in various relevant fora