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The government aims to harmonise its objectives for trade and for the environment, both multilaterally through the WTO and through free trade agreements, to achieve the overarching goal of promoting sustainable development worldwide.
In 2001, the government adopted a framework for integrating environment issues and trade agreements. The framework guides New Zealand’s trade negotiations with other countries and seeks to ensure a linkage between trade and environment policy, including a mutual commitment to meet environmental standards.
The core elements of the framework are cooperation, consultation, and establishing common principles on trade and environment.
“WTO Members recognized that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living ... 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”. (From Environment Backgrounder, WTO website)
The Committee on Trade and Environment (CTE) was established in 1994 with a broad-based mandate to identify the relationship between trade and environmental measures in order to promote sustainable development, and make appropriate recommendations on whether any modifications of the provisions of the multilateral trading system were required.
With formal negotiations launched at Doha, the CTE has been restructured into the CTE in Regular Session (CTERS), and the the CTE in Special Session (CTESS). The mandate for the CTESS is contained in paragraph 31 of the Doha Development Agenda. It covers:
The CTE in Regular Session deals with its original agenda, contained in the 1994 Marrakesh Decision on Trade and Environment [external link to WTO website], and the non-negotiating issues of the Doha Ministerial Declaration. As mandated under paragraph 32 of the Doha Declaration, the CTE is giving particular attention to:
Any recommendations made by the Committee must be compatible with the open and non-discriminatory nature of the multilateral trading system. This means they must not affect the rights and obligations of WTO members under existing WTO rules (paragraph 51).
This negotiation is about the relationship between trade provisions contained in MEAs and WTO rules, and how to ensure that policy is implemented in a manner consistent with both sets of agreements. The negotiating mandate relates only to parties to both the WTO and the MEA in question. There has never been a formal dispute between the WTO and an MEA so the question of precedence of one agreement over the other has not been legally tested in either the WTO or in any MEA.
MEA Secretariats have been invited on an ad hoc basis to participate as observers in CTESS, pending a more formal decision on criteria for MEA observer status in the WTO. New Zealand has been supportive of MEA observership being put on a more permanent footing until the formal issue of criteria is resolved.
The environmental goods and services industry consists of activities which produce goods and services to measure, prevent, limit, minimise or correct environmental damage to water, air and soil, as well as problems related to waste, noise and eco-systems. This includes cleaner technologies, products and services that reduce environmental risk and minimise pollution and resource use[3] . However, it is important to note, in the context of the environmental goods negotiations, there is no agreed definition of “environmental goods”.
CTESS is working on that definition by developing and clarifying a list of environment goods. Several countries, including New Zealand, have submitted proposed lists and a number of technical discussions on them have taken place but, as mentioned above, there remains no agreement on a definition of environmental goods, or an agreed list of products. Once a list of environment products has been established, the process will be passed to the non-agricultural market access group. Environmental services are also covered in the services negotiations.
New Zealand has tabled a number of submissions to the WTO. These support the submission of lists of environmental goods to serve as a basis for the negotiation and as “reference points” to help identify which products may be considered environmental goods.
New Zealand also proposed that dual lists of environmental goods be developed – a core and a complementary list – both of which would be “living” lists that could be updated and expanded to reflect the development of new environmental technologies.
In May 2005 New Zealand tabled an extensive list of environmental goods. This list was subsequently revised, most recently in June 2006, to reflect the technical and other discussions in CTESS. New Zealand’s list is set out under the following categories: air pollution control; management of solid or hazardous waste; clean-up or remediation of soil and water; environmental monitoring, analysis and assessment equipment; potable water treatment; recycling systems; renewable energy plant; heat and energy management; soil conservation; waste water management; environmentally preferable products, based on end-use or disposal characteristics; and cleaner or more resource-efficient technologies and products. See related resources for papers submitted.
Labelling is not part of the WTO negotiating mandate. However, it is part of the CTE work programme. Environmental labelling schemes are a potentially effective method of informing consumers about environmentally friendly products. However, they can be misused for the protection of domestic markets so they need to be fair and transparent. The increasing number of environmental labelling schemes poses problems for developing countries who may be at a disadvantage due to their inability to fully participate in the processes for setting of environmental standards and regulations.
New Zealand has an interest in ensuring that any work on this issue balances legitimate environmental objectives on the one hand, and principles of transparency, non-discrimination and equal participation in standards-setting and access to labelling schemes on the other.
In this area of its work the CTE focuses on “win-win-win” situations, when eliminating or reducing trade restrictions and distortions would benefit environment, trade and development. There are two viewpoints on this issue: some WTO members consider that agricultural trade reform offers opportunities for trade, environment and development because subsidies have a negative effect, while others believe that domestic support is needed to ensure the environmental benefits (such as land conservation and management of water resources) that arise from agricultural production.
For information about Sustainable Exports (unrelated to the WTO) see below:
[1] Agreements agreed multilaterally aimed at eliminating or reducing damage to the environment.
[2] Tariffs are taxes on imports imposed as they cross the border. Non-tariff barriers may include ‘red tape’, labelling requirements, standards or specifications that add to the cost of getting imports on foreign shelves.
[3] OECD/Eurostat Informal Working Group definition, 1998.
[4] The references in square brackets are the document numbers allocated by the WTO Secretariat.
