WORLD TRADE
ORGANIZATIONTN/TE/INF/2
19 December 2002
(02-7008)
Committee on Trade and Environment
Special SessionOriginal:  English
UNEP-MEA MEETING ON ENHANCING MEA AND WTO INFORMATION EXCHANGE
PALAIS DES NATIONS, GENEVA, 11 NOVEMBER 2002
Submission by the United Nations Environment Programme (UNEP)
This background note was prepared and circulated as annotations to the agenda of
the 11 November 2002 MEA-UNEP sponsored meeting entitled Enhancing MEA and WTO
Information Exchange .  The meeting was attended by trade and environment officials from capitals
and the Geneva-based missions, and by representatives of the Secretariats of the Convention onBiological Diversity, its Cartagena Protocol on Biosafety, the UN Framework Convention on Climate
Change, the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and
Their Disposal, and the Ramsar Convention on Wetlands, the interim Secretariats of the Stockholm
Convention on Persistent Organic Pollutants and the Rotterdam Convention on Prior Informed
Consent, UNEP, the WTO, and other inter-govern mental and non-government al organizations.  As
background to the meeting, this note offered in formation on how UNEP and relevant MEAs, together
with the WTO, can strengthen cooperation in two main areas - the development of procedures for
regular information exchange, and realizing opportunities to promote reciprocal observer status in
relevant MEA and WTO bodies.  The annotations also provided questions to help structure the
ongoing discussion of these issues.  The annotat ed agenda can be found together with related
background papers at http://www.unep.ch/etu/etp/events/MEA_WTO/11Nov2002.htm.
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I. INTRODUCTION AND BACKGROUND TO THE MEETING
1. The purpose of this background note is to examine how UNEP and relevant MEAs, together
with the WTO, can strengthen cooperation in two main areas: the development of procedures for
regular information exchange; and realizing opportunities to promote reciprocal observer status in
relevant MEA and WTO bodies.
2. This meeting is part of a process sponsored by UNEP, in cooperation with a number of MEA
Secretariats and the WTO, to enhance synergies and mutual supportiveness of MEAs and the WTO
(see Synthesis Report WT/CTE/W/213).  Underpinning this process is the belief that building a
mutually supportive relationship between trade a nd environment policies, rules and institutions is
required to maximize their joint contribution to sustainable development, and can yield significant
benefits for MEA parties and WTO Members.  This process is also contributing to informationexchange between MEA Secretariats on these same issues.
3. The importance of increasing cooperation between trade and environmental organizations has
been recognized in a number of important international negotiations:TN/TE/INF/2
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• The WTO’s Doha Ministerial Declaration welcomes “the WTO's continued
cooperation with UNEP and other inter-governmental environmental organizations”and “encourage[s] efforts to promote cooperation between the WTO and relevant
international environmental and developmental organizations” (paragraph 6).
• The Plan of Implementation adopted at the recent World Summit on Sustainable
Development (WSSD) similarly calls for efforts to “promote mutual supportiveness
between the multilateral trading system and the multilateral environmentalagreements, consistent with sustainable development goals, in support of the work
programme agreed through WTO, while recognizing the importance of maintaining
the integrity of both sets of instruments” (paragraph 92).  It also identifies the need to
“strengthen cooperation among UNEP and other United Nations bodies and
specialized agencies, the Bretton Woods institutions and WTO, within their
mandates” (paragraph 136).
4. In light of these statements, this meeting seeks to explore opportunities to increase
cooperation and information exchange.  Following a short introduction, the afternoon session will
explore approaches to enhancing information exchange and securing reciprocal observer status.  It
will commence with presentations by MEA and WTO staff, after which participants will be invited to
identify areas where information exchange procedures could be regularized and strengthened,cooperation could be deepened and fully reciprocal observer status for MEAs and the WTO could be
established in their respective bodies.
5. The aim of the meeting is to realize synergies and enhance the mutual supportiveness of
MEAs and the WTO.  Presentations are intended to encourage an open discussion among participants
in the meeting.  To facilitate the discussion, background information and suggested issues fordiscussion can be found in the attached annotations.  Annotation I covers procedures for regular
information exchange between MEA Secretariats and relevant WTO bodies, while Annotation II
covers the issue of observer status.  Focusing on concrete examples should serve to illustrate the
issues, and increase the chances that the debate is less conceptual and more action-oriented.  A
non-exhaustive list of issue areas where information exchange and reciprocal observer status canenhance synergies between MEAs and the WTO can be  found in Annex 1.  Additionally, participants
are encouraged to review the note prepared by  the WTO Secretariat entitled “Existing Forms of
Cooperation and Information Exchange between UNEP/MEAs and the WTO” (TN/TE/S/2).
II. PROCEDURES FOR INFORMATION EXCHANGE (ANNOTATION I)
6. Communication between international trade, environmental and other institutions is an
essential part of strengthening the institutional framework for sustainable development.  Promoting
communication requires enhanced procedures for regular information exchange between trade and
environmental institutions.  This session is design ed to facilitate a dialogue between trade and
environmental officials, and staff of the WTO, MEA Secretariats and UNEP on ways to enhance the
mutual supportiveness of trade and the environment policies through procedures for regular
information exchange.  It will explore the role of information exchange, as well as ways that
procedures for information exchange could be strengthened.
7. Strengthening procedures for regular information exchange offers a range of benefits to WTO
Members and MEA parties.  It complements efforts to promote more effective cooperation between
trade and environmental officials at the national level.  It can help to strengthen common
understandings at all levels of the relationship be tween trade and environmental policies, rules and
institutions.  It provides a platform for more effective cooperation to realize synergies in areas such ascapacity building, use of economic instruments and technology transfer.  It can also help to avoidTN/TE/INF/2
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potential tensions from arising in relation both to the implementation of existing commitments, and to
the negotiation of future ones.
8. WTO negotiations on procedures for information exchange are established in paragraph 31 of
the Doha Ministerial Declaration, which states:
With a view to enhancing the mutual supportiveness of trade and environment, we
agree to negotiations, without prejudicing their outcome, on: … (ii) procedures for
regular information exchange between MEA Secretariats and the relevant WTO
committees , and the criteria for granting observer status. (emphasis added)
9. Establishing procedures for regular information exchange is also supported by the
encouragement of Ministers in Doha to “promote cooperation between the WTO and relevant
international environmental and developmental organizations” (paragraph 6).  It would also be a step
towards fulfilling the call in the WSSD Plan of Implementation to “strengthen cooperation amongUNEP and other United Nations bodies and specialized agencies, the Bretton Woods institutions and
WTO, within their mandates (paragraph 136).”
10. Cooperation and information exchange betw een the WTO and MEAs has been on the
multilateral agenda for some time.  The Committee on Trade and Environment, in its 1996 Report to
the Singapore Ministerial, stated:
In order to enhance understanding of the relationship between trade and
environmental policies, co-operation between the WTO and relevant MEAs
institutions is valuable and should be encouraged.  The CTE recommends that the
WTO Secretariat continue to play a constructive role through its cooperative efforts
with the Secretariats of the MEAs and provide information to WTO Members ontrade-related work in MEAs. (paragraph 175)
11. The UNEP meetings, including the 23 October 2000 meeting on “Enhancing Synergies and
Mutual Supportiveness of MEAs and the WTO”  and the 26 June 2001 meeting on “Compliance,
Enforcement and Dispute Settlement in MEAs and the WTO” re-emphasized the importance ofincreasing information exchange and coopera tion between the WTO, UNEP and MEAs (see
http://www.unep.ch/etu/etp/events/MEA_WTO/11Nov2002.htm , WT/CTE/W/184, WT/CTE/W/199).
12. Information exchange is especially important in the context of the WTO’s negotiations on
“the relationship between existing WTO rules and specific trade obligations set out in MEAs”(paragraph 31(i) of the Doha Ministerial Declaratio n).  Full and timely information exchange between
the WTO, UNEP and all relevant MEAs will ensure that these negotiations enhance the mutual
supportiveness of trade and environment policies, and maintain the integrity of both sets of
agreements.  Such a full and timely exchange of information would be greatly facilitated by an early
harvest in negotiations on procedures for information exchange.
13. There are a variety of contexts in which procedures for information exchange could be further
developed.  To facilitate a dialogue, the following non-exclusive list of areas and issues are offered asa starting point for discussion by participants at this meeting.
14. Information exchange through formal meetings.  Meetings, such as the CTE’s MEA
Information Sessions, have increased understanding of critical trade and environment issues.
• Six CTE MEA Information Sessions have been  conducted during the five years since
late 1997.  Could such meetings be formalized as part of the WTO agenda?  Should
the regularity of such meetings be increased?TN/TE/INF/2
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• With the support of donor countries, UNEP has enabled developing country
environmental officials to participate at UNEP-sponsored and CTE meetings.  Howcould participation by developing country environmental officials be assured and
enhanced in future meetings?
• Some WTO Members have noted that issue-specific meetings - such as those on
fisheries subsidies and compliance - have advanced trade and environment
discussions.  Should future WTO information meetings be focused on specific themes(e.g. developing countries’ capacity building needs, technology transfer, or use of
economic instruments to promote mutually supportive implementation of MEA and
WTO obligations)?
• The WTO and MEA Secretariat and UNEP have prepared papers, either individually
or jointly, to support past information sessions.  How can papers, such as the joint
WTO-UNEP background note on Compliance and Dispute Settlement Provisions in
the WTO and MEAs (WT/CTE/W/191, available at web address above) , be best used
to support future meetings?
15. Information exchange through exchange of documents.  Sharing documents provides an
important vehicle for information exchange between MEA Secretariats and the relevant WTO bodies.
• What kinds of written documents are currently shared between MEA Secretariats and
the relevant WTO bodies?  Is there a need to make WTO and MEA documents more
easily available to trade and environment officials in both governments andsecretariats?  What procedures might facilitate more effective document exchange?
16. Information exchange between trade and environmental officials at national level.
Information exchange and cooperation at the national level is a most important part of ensuring policy
coordination and promoting a mutually supportive relationship between trade and the environment .  
• How can information exchange between MEA Secretariats and relevant WTO bodies
enhance information exchange between trade and environmental officials at thenational level?
• Could governments use information sessions to share best practices of modes of
cooperation at the national level?  How could such experiences be fed into capacitybuilding exercises conducted by  WTO/UNCTAD/UNEP and others?
17. Secretariat-to-Secretariat Cooperation.  National-level cooperation, and cooperation between
Secretariat staff and government officials, could be supported by enhanced information exchange and
cooperation between secretariats:
• What are the opportunities to further strengthen cooperation between officials
representing the secretariats of the WTO, MEAs and UNEP?  What are the benefits of
more understanding by trade and environment officials in WTO, MEAs and UNEP?How can officials deepen their understanding of others’ institutions?  What areas
would benefit from greater cooperation?
III. THE ROLE OF OBSERVER STATUS IN INFORMATION EXCHANGE
(ANNOTATION II)
18. An important means for increasing cooperation between trade and environmental institutions
is the granting of reciprocal observer status.  Discussions should aim to explore ways to enhance
opportunities for securing reciprocal observer status, with the goal of realizing synergies between
MEAs and the WTO.TN/TE/INF/2
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19. WTO negotiations on criteria for observer status in the context of trade and environment are
established in paragraph 31 of the Doha Ministerial Declaration, which states:
With a view to enhancing the mutual supportiveness of trade and environment we
agree to negotiations, without prejudicing their outcome, on: … (ii) procedures for
regular information exchange between MEA Secretariats and the relevant WTOcommittees, and the criteria for granting observer status . (emphasis added)
20. Securing reciprocal observer status for the WTO, MEAs and UNEP is an essential part of
realizing complementarities between trade and environmental institutions.  Reciprocal observer status
complements and facilitates national level cooperation between trade and environment officials.  It
provides MEA Secretariats with an opportunity to deepen their knowledge of trade issues and to more
effectively serve their parties.  It also ensures that MEA negotiations and processes touching onmandates of the WTO have relevant information, enabling parties to MEAs to identify ways to avoid
tensions and realize synergies between MEAs and the WTO .  Finally, it helps to ensure that WTO
trade and environment negotiations - particularly those directly affecting the mandates of MEAs -
have access to accurate and relevant information.
21. The WTO Secretariat has broad access to international environmental negotiations and
deliberations.  The WTO is an observer in UNEP’s Governing Council.  It also regularly attends the
meetings of major MEAs.  Its participation in these meetings is facilitated by the open approach to
observer status adopted by MEAs.  Many MEAs, such as the Basel Convention and the
Convention on Biological Diversity, allow any go vernmental or non-governmental body qualified in
the relevant field to be represented as an observer unless at least one third of Parties present object.
22. Currently, a number of MEAs as well as UNEP have access to some WTO bodies (see
TN/TE/S/2 for a summary).  The following requests for observer status, however, remain outstanding:
• The Convention on Biological Diversity’s request for observer status in the
Committee on Agriculture, the TBT Committee, the SPS Committee, and the TRIPSCouncil;
• The International Tropical Timber Organization’s request for observer status in the
CTE;  and
• UNEP’s request for observer status in the General Council and TRIPS Council.
23. Additionally, UNEP and the MEA Secretariats have not yet been granted observer status to
special sessions of the CTE.  Consequently, they are excluded from observing negotiations on “the
relationship between existing WTO rules and specific trade obligations set out in MEAs”.  The
absence of MEA Secretariats and UNEP from these discussions is a matter of concern for many WTOMembers and for the parties of many MEAs, and seems unlikely to produce results that best promote
the mutual supportiveness of the two systems.
24. Negotiations under paragraph 31(ii) could help to address the current asymmetry in the
reciprocity of access to trade and environment processes.  Paragraph 31(ii) provides a mandate for
negotiations in the context of “enhancing the mutual supportiveness of trade and environment”.  In
paragraph 31(ii), the phrase preceding the reference to observer status refers to “MEA Secretariats and
the relevant WTO committees”.  Consequently, this mandate would seem to address negotiations oncriteria for observer status for environmental institutions such as the MEAs and UNEP in relevant
WTO bodies, and not to extend to the more general issue of observer status for international
organizations in the WTO, which is being discussed in the General Council and the
Trade Negotiations Committee.TN/TE/INF/2
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25. The importance of observer status for environmental institutions in relevant WTO bodies was
recognized in the 1996 Report of the CTE to the Singapore Ministerial, which noted “observer status
of relevant MEAs in WTO bodies, as appropriate, can play a positive role in creating clearer
appreciation of the mutually supportive role of trade and environment policies.  Requests from the
appropriate bodies of MEAs for observer status should be considered in this light” (paragraph 217).The report also stated that the “CTE should also consider extending invitations to appropriate MEA
institutions to attend relevant discussions of the CTE” (paragraph 175).  More recently, the
Chairman’s summary of the 23 October 2000 UNEP meeting on “Enhancing Synergies and Mutual
Supportiveness of MEAs and the WTO” , noted “UNEP, MEAs and the WTO should provide
substantive input into each other’s work and workshops, including through participation by WTO
staff at MEA meetings, and through observer st atus for UNEP and MEAs in WTO Committees and
Councils” (see www.unep.ch/etu/etp/events/recent/chairsum_mea.pdf also released asWT/CTE/W/199) .
26. The session is designed to encourage discussion of ways to enhance reciprocal observer status
in MEAs and the WTO.  Participants are invite d to consider the following non-exhaustive list of
questions:
• How can criteria for observer status for MEAs and UNEP build from Annex 3 of the
Rules of Procedure for Sessions of the Ministerial Conference and Meetings of the
General Council (WT/L/161) in a manner that enhances access for relevant
environmental institutions to WTO bodies?
• Can observer status be granted on an ad hoc  basis to CTE normal and special
sessions, pending conclusion of negotiations under paragraph 31(ii)?  What is therelevance of paragraph 5 of Annex 3 of the Rules of Procedure, which states that
relevant WTO bodies may offer specific invitations to intergovernmentalorganizations to attend their meetings to follow particular issues within a body in an
observer capacity?
• Should there be a presumption in favour of participation by environmental institutions
as observers at the WTO, to complement the favorable access given by MEAs togovernmental and non-governmental institutions including the WTO? What kind of
characteristics could constitute a basis for presuming that MEAs have an appropriateinterest in matters before particular WTO bodies?  How can procedures be developed
in a manner to ensure that both current requests for access to relevant WTO bodies, as
well as requests from MEAs that may be negotiated in the future, are reviewed on an
expedited basis?TN/TE/INF/2
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ANNEX 1
I. SUBSTANTIVE ISSUES RELATED TO INFORMATION EXCHANGE AND
OBSERVER STATUS
1. A number of issues identified in the Doha Ministerial Declaration, the WSSD Plan of
Implementation, and/or this UNEP-sponsored process on enhancing synergies between the WTO and
MEAs (see WT/CTE/W/213) could provide useful topics for further discussion in the context of
enhanced cooperation, procedures for information exchange, and observer status.  These include, but
are not limited to:
• Capacity building.   The Doha Ministerial Declaration recognizes the importance of technical
assistance and capacity building in the field of trade and environment (paragraph 33) and states
“capacity-building programmes have important roles to play” in ensuring “developing countries
… secure a share in the growth of world trad e commensurate with the needs of their economic
development” (paragraph 2).  The WSSD Plan of Implementation similarly calls for efforts to
“continue to enhance the mutual supportiveness of trade, environment and development with a
view to achieving sustainable development” by inter alia encouraging “efforts to promote
cooperation on trade, environment and development, including in the field of providing technical
assistance to developing countries, between the secretariats of WTO, UNCTAD, UNDP, UNEP
and other relevant international environmental and development and regional organizations”
(paragraph 91(c)).  It also calls to “enhance the delivery of coordinated, effective and targeted
trade-related technical assistance and capacity-building programmes, including to take advantageof existing and future market access opportunities and to examine the relationship between trade,
environment and development” (paragraph 45(e)).  These recommendations are relevant to
capacity building activities conducted under both the Integrated Framework for Least Developed
Countries, and the WTO’s Technical Coopera tion Programme.  At a UNEP workshop in
March 2002, on Capacity Building on Environment, Trade and Development, some participantsrequested the design and implementation of collaborative capacity building activities on
enhancing synergies between MEAs and the WTO.  Presentations by secretariats of MEAs and
the WTO at this meeting highlighted the potential for collaboration in areas such as capacity
building for customs and control agencies; regional workshops on the managements of dangerous
chemicals and hazardous waste, including in a trade context; and the promotion of trade insustainably produced products from wetland s (www.unep.ch/etu/etp/events/Capacity_Building/
19March_CB.htm, also available as WT/CTE/W/206).
• Technology transfer.  The WTO’s Working Group on Trade and Technology Transfer,
established pursuant to paragraph 37 of the Doha Ministerial Declaration, is examining therelationship between trade and transfer of technology, and any possible recommendations on steps
that may be taken within the mandate of the WT O to increase flows of technology to developing
countries.  Technology transfer is important in the context of many MEAs, and has also been
noted as an area of potential synergy between MEAs and the WTO (WT/CTE/W/213).  Synergiescould be realized between technology transfer and technical assistance provisions that exist in
MEAs and the WTO, such as Article 66.2 of the TRIPS Agreement and specific provisions in the
Basel Convention, the Montreal Protocol, the Climate Change Convention and the Convention on
Biological Diversity.  The WSSD Plan of Implementation also includes many references to
technology transfer.
• Assessment.  The Doha Ministerial Declaration notes “efforts by Members to conduct national
environmental assessments of trade policies on a voluntary basis” (paragraph 6), and “encouragesexpertise and experience to be shared with WTO Members wishing to perform environmental
reviews and assessments at the national level” (paragraph 33).  The WSSD Plan ofTN/TE/INF/2
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Implementation, similarly, calls on governments to “encourage the voluntary use of
environmental impact assessments as an important  national-level tool to better identify trade,
environment and development interlinkages.  Further encourage countries and international
organizations with experience in this field to provide technical assistance to developing countries
for these purposes” (paragraph 91(d)).  The use of assessment at a national level as a tool toidentify trade, environment and development interlinkages, and associated technical assistance
needs, could be the subject of future informa tion exchange.  UNEP is already collaborating with
the CBD Secretariat on its study of the effects of trade liberalization on agricultural biodiversity,
which is being undertaken in conformity with decisions passed at the Fourth and Fifth
Conferences of the Parties of the CBD.  Ongoing UNEP country projects on integrated assessment
of trade liberalization in the rice sector will inform the work that the CBD Secretariat is
undertaking, and is also of relevance to the ongoing WTO negotiations aimed at extending theAgreement on Agriculture.
• Trade-related obligations in MEAs.  The Doha Ministerial Declaration establishes negotiations
on “the relationship between existing WTO rules and specific trade obligations set out in MEAs”
(paragraph 31(i)).  The WSSD Plan of Implementation also calls for efforts to “promote mutual
supportiveness between the multilateral trading system and the multilateral environmental
agreements, consistent with sustainable development goals, in support of the work programmeagreed through WTO, while recognizing the importance of maintaining the integrity of both sets
of instruments” (paragraph 92).  Ways to promote mutual supportiveness between obligations in
trading and environmental agreements, in a manner that maintains the integrity of both sets of
agreements, could be the subject of future information exchange.
• Compliance, enforcement and dispute settlement.   The Chairman’s summary of 26 June 2001
UNEP meeting on “Compliance, Enforcement and Dispute Settlement in MEAs and the WTO”
noted “greater information exchange in the area of compliance and dispute settlement may assist
both MEA and WTO officials in understanding the objectives of their different agreements.  In
the context of the WTO, it may assist officials to understand the utility of conservation measures
under MEAs, in the event of an MEA-related disput e in the WTO”.  Participants in this meeting
also raised the possibility that cooperation between  the secretariats of MEAs and the WTO in the
context of potential disputes, could help to prevent them becoming formal ones, and would in any
case enhance exchange of relevant information between the competent bodies within these
organizations.
• Economic instruments.   The application of economic instruments for environmental protection
has the potential both to advance implementation of MEAs, and with appropriate design,
minimize trade distortions.  A workshop convened by the CBD in October 2001 (reportUNEP/CBD/SBSTTA/7/11/Add.1) highlighted the importance of developing cooperation with
international organizations focused on economic policies, including “in particular, trade policies
under the WTO”.  UNEP has established a Working Group on Economic Instruments, which is
currently undertaking a focused exploration of how economic instruments can contribute to the
implementation of MEAs.  The CITES Secretariat has prepared a paper on “Economic Incentives
and Trade Policy” which is currently under discussion at its Twelfth Meeting of the COP, in
Santiago de Chile (COP 12, Doc. 18).  The Conference of the Parties to the Convention onBiological Diversity, in its programme of work on incentive measures, has underlined the need for
further work on positive incentives as well as on perverse incentives and their removal or
mitigation, and has requested the CBD Secretariat to elaborate proposals for application of ways
and means to remove or mitigate perverse incentives.  These substantive initiatives would be
served by more detailed information exchange between these bodies and the WTO Secretariat,raising the potential for closer collaboration.TN/TE/INF/2
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• Environmental goods and services.   Liberalization of trade in environmental goods and services,
negotiations on which are mandated under paragraph 31(iii) of the Doha Ministerial Declaration,
is also of relevance to the implementation of MEAs.  For example, liberalization of goods and
services related to environmentally sustainable technologies (ESTs) could, by lowering the cost or
otherwise increasing the availability of these goods and services, contribute to implementation ofMEAs.  Furthermore, the definition of what is an environmental good or service, which is proving
to be an important issue at the start of these WTO negotiations, is an area where MEAs may have
relevant information and expertise.  Trade in environmentally preferable products may also be
covered by these negotiations, which trade could also support MEA implementation, as noted by
some MEA Secretariats in the March 2002 workshop.  Information exchange and collaboration
between the relevant secretariats on the issue of environmental goods and services could therefore
yield information which enhances the mutual supportiveness of the trade and environment.
2. Other issues upon which cooperation and information exchange may be considered by WTO
Members and MEA parties to be beneficial include, inter alia , market access, labelling for
environmental purposes; and exploring means to e nhance cooperation between trade and environment
officials at the national level.
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