00-2812  MORE PRESS RELEASE 
 
TRADE AND ENVIRO NMENT BULLETIN 
 
PRESS/TE/033 
10 July 2000 
 
CTE HOLDS INFORMATION SESSION WITH MEAs AND ADDRESSES THE 
RELATIONSHIP BETWEEN THE WTO AND MEAs, THE EXPORT OF DOMESTICALLY 
PROHIBITED GOODS, THE TRIPs AG REEMENT AND FISHERIES SUBSIDIES 
 
 At a meeting on 5-6 July 2000, the Committe e on Trade and Environment (CTE), under the 
Chairship of Ambassador Yolande Biké (Gabon), held an Informa tion Session with MEAs;  and 
addressed the relationship between the WTO and multila teral environmental agreements (MEAs);  the 
export of domestically prohibited goods;  protec tion of biodiversity and traditional knowledge;  and 
the relationship between the Convention on Biological  Diversity and the TRIPs Agreement.  Issues 
also raised were the precautionary principle;  integr ated assessment of trade-related policies;  fisheries 
subsidies;  and energy subsidies.   The CTE is scheduled to meet on 24-25 October 2000 to hold a second MEA Information 
Session;  to examine all the items on its work pr ogramme;  and to adopt the CTE's report to the 
General Council on its work this year. ( See TE/030) 
  This Bulletin has been prepared by the WTO Secretariat, under its own responsibility.   
  Papers referred to in this Bulletin ca n be accessed through the WTO website, and are 
available from the Trade and Environment Division of the WTO Secretariat.  A list of the CTE 
documents from 1995 to present is contained in WT/CTE/INF/2.  Readers are kindly requested to 
inform the Secretariat if they wish to receive e-ma il copies of this and future copies of the Bulletin, or 
additional information about the WTO. 
 PRESS/TE/033 
Page 2/3 
  MORE  
Summary of main points 
 
 The focus of the 5-6 July meeting was on the linkages between the multilateral environment 
and trade agendas.  
 
 An Information Session with four Secretariat s of multilateral environmental agreements 
(MEAs)  was held on 5 July .  Presentations were made on the tr ade-related developments in their 
respective agreements by the Secretariats of the Convention on Biological Diversity;  the 
Montreal Protocol on Substances that Deplete the Ozone Layer;  the UN Framework Convention 
on Climate Change;  and the International Commiss ion for the Conservation of Atlantic Tunas.  
The Convention for the Conservation of Antarctic  Marine Living Resources also circulated a 
paper for this session.  The CTE will hold a second MEA Information Session on 24 October. 
 
 UNEP welcomed these regular MEA Information Sessions in the CTE, and presented a statement 
on the need to deepen collaboration between UN EP, MEAs and the WTO.  To this end, UNEP 
invited WTO Members to a UNEP and MEA-sponsored meeting  in September/October 2000 to 
examine trade and environment syne rgies and potential tensions.   
 
 Switzerland presented a new paper on the relationship between the WTO and MEAs .  Several 
delegations commented on the importance of cl arifying the relationship between these two legal 
regimes.  Others said that WTO provisions ar e already sufficiently flexible to accommodate 
MEAs. 
 
 Bangladesh presented a new paper on trade in domestically prohibited goods  (DPGs) 
containing its national experience in this area, as well as recommendations to advance work in the 
CTE on DPGs.  Members welcomed Bangladesh's proposals to address trade in domestically prohibited consumer goods, which represent a gap in the coverage of other international 
organizations operating in this area.  The Secretariat was requested to prepare a study on DPGs 
based on Bangladesh's recommendations. 
 
 India contributed a new paper on its national experience with the protection of biodiversity and 
traditional knowledge .  Members welcomed this "real world" paper, which sets out the concrete 
ways in which India is actively pursuing the implementation of the Convention on Biological 
Diversity.  Several Members noted that discussions  on issues related to the relationship between 
the TRIPs Agreement and the CBD are also taki ng place in the TRIPs Council, as well as the 
CBD, FAO, UNCTAD and WIPO. 
 
 Commenting on a Secretariat paper on the relationship between the Convention on Biological 
Diversity (CBD) and the TRIPs Agreement , several delegations emphasized the need for 
harmonizing the approaches in the TRIPs Agreem ent and the CBD.  Other Members said that 
TRIPs Agreement and the CBD are mutually compatible. 
 
 The EC presented a European Commission paper on the precautionary principle to help to build 
a common understanding of how to manage risks in s ituations where there is scientific uncertainty 
of the effects on human health and the environment.  The EC called for the clarification of the use of this principle in the WTO in order to ensure th at it is not used in an arbitrary way or as a form 
of protectionism.  Whilst supporting the emphasi s in the EC paper on science-based decision 
making, several delegations noted the lack of an internationally agreed definition of this concept 
and cautioned against invoking precau tion to justify protectionism. 
 
 The United States presented a new paper calling for reform of environmentally-harmful and trade-
distorting subsidies in the fisheries sector .  As a starting-point for a more vigorous analysis, the PRESS/TE/033 
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MORE US paper sets out a framework of categories for identifying perverse subsidies in the fisheries 
sector.  Several Members said that the WTO had the competence to ensure a "win-win" outcome 
for trade and environment, which would result fro m removing harmful subsidies.  Reference was 
made to the need to undertake a comprehensive fact ual analysis of fisheries subsidies, and reflect 
ongoing work in other intergovernmental organizations. 
 
 The Czech Republic gave a report on the UN-ECE/OECD Workshop on Enhancing the 
Environment by Reforming Energy Prices , held in the Czech Republic on 14-16 June 2000. 
 
 The Convention on Biological Diversity called on the CTE to advance work on the potential 
"win-win" opportunities  for the environment and trade that arise from eliminating trade 
restrictions and distortions in the fisheries, forestry and agricultural sectors.   
 
 The CBD reiterated its request for observer status  in the TRIPs Council and the Agriculture 
Agreement;  UNEP called on Members to give favourab le consideration to its request for observer 
status in the General Council, the TRIPs Counc il and the Committee on Trade and Development.  
 
 Informative statements were made by other intergovernmental organizations  (the CBD, FAO, 
UNCTAD, UNEP, and WIPO) on their respective work relevant to the CTE's agenda.   
 Detailed description of the issues addressed 
 
MEA Information Session 
 
 As a means to facilitate CTE Members' unders tanding of the linkages between the multilateral 
environment and trade agendas, and to build aw areness of the use of trade-related measures in 
multilateral environmental agreemen ts (MEAs), the CTE held an Information Session  with four 
MEA Secretariats.  Each of the following Secretar iats presented a paper and responded to questions 
from CTE Members on the trade-related developments in their respective agreements.  
- Convention on Biological Diversity (WT/CTE/W/149).  The CBD Secretariat also circulated 
the text of the Cartagena Protocol on Biosafety (WT/CTE/W/136); 
- Montreal Protocol on Substances That Deplete the Ozone Layer (WT/CTE/W/142); 
- UN Framework Convention on Climate Change (WT/CTE/W/153);  and - International Commission for the Conservation of Atlantic Tunas (WT/CTE/W/152). 
 
 The Convention for the Conservation of Anta rctic Marine Living Resources was unable to 
participate at this meeting, but circulated a paper on trade measures in CCAMLR (WT/CTE/W/148). 
  UNEP circulated a statement on the importance of strengthening the dialogue between the 
WTO, MEAs and UNEP.  In order to initiate  a process whereby the MEAs and UNEP identify 
measures to increase synergies and decrease tensions, UNEP invited WTO Members to a UNEP and 
MEA-sponsored meeting to be c onvened in September/October 2000. 
  The CTE is scheduled to hold a second MEA Information Session at its 24-25 October meeting with the following six Secretariats: 
 
- Convention on International Trade in Endangered Species of Wild Flora and Fauna; - Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and 
their Disposal; 
- UNEP Chemicals on the Prior Informed Consent (PIC) and draft Persistent Organic Pollutants 
(POPs) Conventions; PRESS/TE/033 
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MORE - Intergovernmental Forum on Forests (IFF);  
- International Tropical Timber Organization (ITTO);  and - UNEP Compliance and Enforcement of Envir onmental Conventions Unit on the Working 
Group of Experts on Compliance and Enforc ement of Environmental Conventions. 
 
Items 1&5 - MEAs 
 
 Switzerland reinvigorated the CTE discussions unde r this item of its work programme with a 
proposal to clarify the relationship between the WTO and mu ltilateral environmental agreements 
(MEAs) (WT/CTE/W/139) .  Switzerland called for an interpre tative decision to prevent unnecessary 
conflicts between the WTO and trad e-related measures in MEAs, ther eby creating more predictability 
and legal certainty.  This interpretative clarif ication would set out the approach of mutual 
supportiveness, whereby the WTO and MEAs should focus on their primary competence;  and the 
principle of deference, which would include objec tive criteria to determine the MEAs to which the 
WTO should defer competence.  Noting the uncertain ty that prevails concerning the relationship 
between the WTO and MEAs, several Members, in cluding Canada, EC, Hungary, Iceland, Japan, and 
Norway, supported the Swiss call for a clarification of these two legal regimes.  Iceland and Canada 
said that clarification should not be left to th e WTO dispute settlement system.  Norway suggested 
focusing on the content, not the form, of a potential cl arification, and set out several general premises 
to guide future discussions.  Canada said th at addressing the WTO-MEA interface needs to be 
pursued both in the WTO and UNEP (acting on behalf  of MEAs and working cooperatively with the 
WTO).  Japan suggested that Members bring forward examples of arbitrary or discriminatory 
application of trade measures in MEAs.   Several Members, including Australia, New Ze aland and the US, felt that the WTO already 
provides a sufficient framework to facilitate mutu al supportiveness with MEAs.  The US said that 
trade measures in MEAs are broadly accommodated in the WTO, particularly given the way in which 
WTO jurisprudence is evolving on environmental issues.  Therefore, clarification was not necessary.  Other Members, including Hong Kong China, India, Br azil, Malaysia and Pakistan, said that concerns 
in this area should not be exaggerated;  only ten percent of MEAs contained trade-related provisions 
and there had been no legal challenge in the WTO to  MEAs.  Therefore, there was no need to clarify 
WTO rules in this regard.  Argen tina recalled that trade measures are part of a carefully balanced 
package of instruments in MEAs, including technical  and financial assistance and capacity building;  
the WTO should not single out one part of this pack age.  Switzerland responded to the concerns raised 
by delegations on its paper;  and thanked Memb ers for provoking discussion and further thought on 
this important issue.  
 The Secretariat prepared up-dates of trad e-related developments in the Commission on 
Sustainable Development (WT/CTE/W/145);  the Intergovernmental Forum on Forests (WT/CTE/W/140);  the Convention on International Tr ade in Endangered Species of Wild Fauna and 
Flora;  and the draft Persistent Organic Pollutants Convention (WT/CTE/W/151).  Item 7 – Domestically prohibited goods 
  Bangladesh presented its national expe rience and recommendations concerning trade in 
domestically prohibited goods (DPGs) (WT/CTE/W/141).  Bangladesh called for Members to notify 
DPG exports in the area of domestically proh ibited consumer products according to the GATT 
notification system established in 1982.  Bangl adesh also called on the UNEP-UNCTAD Capacity 
Building Task Force on Trade, Environment and Development to build capacity in developing 
countries on DPGs and increase information shar ing on DPGs.  Brazil, the EC, Egypt, Hong Kong 
China, India, Japan, New Zealand, Norway, Pa kistan, Switzerland, and Thailand were among the 
delegations that supported Bangladesh's recomme ndations to move the discussions forward by PRESS/TE/033 
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MORE increasing transparency and technical assistance rela ted to trade in DPGs.  These issues were within 
the competence of the WTO to address.   Reference was made to work underway in a broad range of MEAs  and international 
organizations related to DPGs, including the WHO,  FAO, Basel Convention, Prior Informed Consent 
Convention, and the draft Persistent Organic Pollu tants Convention.  New Zealand and others noted 
that concrete work on DPGs would compliment ongoing discussion on market access issues in the 
CTE.  Following Bangladesh's proposal, the CTE requ ested the Secretariat to prepare an up-date of 
previous work on DPGs, focusing on the gaps in the c overage of other international instruments, such 
as consumer products.  Egypt thanked the EC for its  constructive response to Egypt's concerns about 
the export of cosmetics containing mercury.  Ille gal trade in banned substa nces continued to be an 
issue for many countries.  Item 8 – Trade-Related Aspects of Intellectual Property Rights (TRIPs) 
 
 India contributed its national experience, as one  of the mega-diverse countries of the world, 
with the protection of biodiversity and traditional knowledge (WT/CTE/W/156-IP/C/W/198).  
India stressed that this experience reveals that  domestic action and legi slation is not enough;  
international action is necessary to counter bio-pira cy and to promote benefit sharing in cases where 
the use of genetic resources is legitimate.  Inte rnational action should cover issues such as the source 
of the genetic resources and an undertaking that laws  and regulations of the country of origin have 
been respected.  India commented on the developm ent of traditional knowledge digital libraries to 
address bio-piracy.  Brazil, Cuba, Malaysia, and Peru  and others endorsed the need for international 
action.  Brazil said that it is necessary to establish minimum multilateral standards to protect traditional knowledge.    
 Noting the collective nature of traditional know ledge, Japan said that the TRIPs Agreement 
was not adapted to deal with this area.  Canada  said it was examining current intellectual property 
regimes to identify holders of in digenous knowledge and to document this knowledge.  Reference was 
made by Brazil, Canada, Japan, Switzerland, the EC and others, to the expertise in WIPO to discuss 
the issues related to traditional knowledge raised in India's pa per, and to establish technical 
cooperation in this area.  Whilst there were of ten disputes about whether something was patent-
worthy, the US noted that the examples in India' s paper had been successfully addressed.  The US was 
not sure it accepted that there was a phenome non that could be termed "bio-piracy". 
  India's paper also refered to the need to harmonize the TRIPs Agreement and the Convention 
on Biological Diversity (CBD) such that patent appl icants would be required to disclose the source of 
origin of genetic resources.  This would ensure  benefit sharing of the commercial use of these 
resources.  Switzerland, Norway and the EU noted th at whilst it was important to ensure compatibility 
between the TRIPs Agreement and the CBD, the re lationship between these two agreements should 
not be isolated from the general debate on the relationship between the WTO and MEAs.  Several 
others said that the TRIPs Agreement and th e CBD were already mutually supportive. 
 
 Norway welcomed the Cartagena Protocol a nd recalled the CBD decision at the Conference 
of the Parties in May 2000 inviting the WTO to acknowledge the relevant CBD provisions and take 
into account the interrelatedness of the CBD and the WTO.  The Secretariat was requested to 
circulate, as a joint CTE-TRIPs Council document, th e relevant decisions from the Conference of the 
Parties of the CBD in May 2000.  The CBD noted three main issues on its agenda of particular 
relevance to the CTE:  intellectual property right s (IPRs) and prior informed consent;  IPRs and 
traditional knowledge;  and IPRs and access and be nefit sharing.  The CBD reiterated the call for 
CBD Parties to provide information on their implementation.   PRESS/TE/033 
 Page 7 
 
 
MORE  Several Members commented on a Secretariat paper on TRIPs Article 27.3(b) , which 
presents case studies of sui generis  intellectual property rights systems and legislation for CBD 
implementation (WT/CTE/W/125).  The EC recalled th e relevance of the review of Article 27.3(b) 
currently underway in the TRIPs Council.  
 In response to a request at the CTE's Februa ry meeting, the FAO circulated a statement 
clarifying the range of options concerning the legal status of the revised International Undertaking 
on Plant Genetic Resources  (WT/CTE/W/146).   
 Item 2 – Environmental and trade principles 
  The EC presented a European Commission paper on the precautionary principle 
(WT/CTE/W/147-G/TBT/W/137) and called for clarification of the use of this principle in the WTO in order to ensure that it is not used as a form of protectionism.  The principle of precaution is used to 
help take decisions and manage risks to protect human health and the environment where there is 
scientific uncertainty.  The EC set out that measure s based on this principle should be proportional, 
non-discriminatory, cost effective and transparent.  The EC said that this concept was a principle of 
international law, which had recently been incl uded in the Cartagena Protocol on Biosafety. 
  Noting that the concept of precaution is an inherent component in the domestic regulatory framework of many countries, several Members said that they shared common ground on a number of 
issues raised in the EC's paper.  Australia and ot hers welcomed the emphasis by the EC on scientific 
risk assessment and science-based decision-making, as reflected in the WTO Agreement on Sanitary 
and Phytosanitary (SPS) Measures.  Japan noted th e lack of concensus on the precautionary approach 
with respect to food safety and inquired as to the re lationship between the precautionary principle and 
the SPS Agreement.  Japan and Hong Kong China noted the need to clarify the issue of the burden of 
proof with respect to the use of the concept of precaution.   
  The US said a precautionary approach was reflected  in various international fora, including the 
SPS Agreement;  the precautionary approach to fisher ies management is a key component of fisheries 
agreements, such as the 1995 UN Agreement on Stradd ling Fish Stocks and Highly Migratory Stocks 
and the FAO Code of Conduct for Responsible Fisher ies.  The US noted that the use of precaution 
was context specific.  Japan and the US said that it w ould be difficult to arrive at an internationally 
agreed definition of this concept.  Several Members registered their concern that this concept could be 
misused to justify protectionism.   UNEP briefed the CTE on its reference manual on integrated assessment of trade-related 
policies , which is currently under preparation (WT/CTE/W/157). 
 Item 3(b) - Eco-labelling 
  The Secretariat issued a new paper updating work on the market access effects of eco-
labelling (WT/CTE/W/150).  The EC requested this document to be circulated in the TBT 
Committee.  Canada said that eco-labelling and certification were important issues on the CTE's 
agenda for the October meeting, at which point Canada would comment further on this new paper. 
 Item 4 – The WTO Environmental Database 
 
 The 1999 Environmental Database , which compiles the environment-related notifications 
under WTO Agreements, was issued by the Secretariat as WT/CTE/W/143. PRESS/TE/033 
Page 8 
  END  
Item 6 – Effects of environmental measures on ma rket access and environmental benefits of trade 
liberalization 
 
 A paper by the United States added a new dimens ion to the analysis in the CTE of fisheries 
subsidies by setting out an illustrative list of fisheries subsidies that are environmentally-harmful and 
trade-distorting (WT/CTE/W/154).  This framework  for identifying perverse fisheries subsidies 
stimulated a vigorous discussion.  New Zealand, Iceland, Australia, Argentina, Chile, Hong Kong 
China, Peru and others supported the proposal to eliminate fisheries subsidies, thereby creating a 
"win-win" situation for the environment and for trad e.  Chile noted the important development as well 
as environmental issues, as trade in fisheries products is a significant sector in many developing countries.  Chile, Colombia, Ecuador and Peru had recently agreed to protect fish resources on the 
high seas in the southeastern Pacific.  Argentina sai d that it was necessary to take into account that 
artisanal fisheries were different from industrial fisheries.  Canada asked for clarification on how the 
US had determined the various categories of  subsidies described in its paper.   
  Korea noted the importance of employment in th e fisheries sector.  Japan asked for concrete 
examples of harmful fisheries subsidies in order to  contribute to the understanding of what, if any, 
subsidy-related problems existed in this sector. 
 
 Reference was made to ongoing work in APEC, FAO, and OECD on government transfers to the fisheries sector, which can contribute to the Secretariat's paper requested for the October CTE 
meeting.  Japan, Korea and the EC said that discussions in the CTE should await results of the 
ongoing work in these organizations;  a comprehensive factual analysis of fisheries management and 
fisheries subsidies was important.  New Zealand, Ar gentina, the US and others said that there was a 
clear role for the WTO to tackle the subsidies-related dimensions of  overfishing and overcapacity.  In 
addressing the serious problems affecting many fisheries, Australia said the CTE should not debate the respective roles of fisheries management and su bsidy reform;  clearly there was a need for action 
on both fronts.  
 The Convention on Biological Diversity called on the CTE to advance work on the potential 
"win-win" opportunities  for the environment and trade that arise from eliminating trade restrictions 
and distortions in the fisheries, forestry and agricultural sectors.   The Czech Republic gave a report on the UN-ECE/OECD Workshop on Enhancing the 
Environment by Reforming Energy Prices , which was held in Prühoni ce, the Czech Republic on 
14-16 June 2000.  The EC noted that distortions to trade and environmentally-unfriendly levels of 
consumption were a failure of market prices to inte rnalize costs in the ener gy sector;  as such, what 
were the environmental benefits of higher oil prices?  General 
  The CTE asked the Secretariat to seek clarification on OPEC's  interest in the work of the 
CTE before consideration is give n to granting it observer status. 
  The Secretariat circulated a list of CTE working papers  from 1995 to present 
(WT/CTE/INF/2).   