RESTRICTED
WORLD TRADE WT/CTE/W/42
4February 1997
ORGANIZATION(97-0411)
Committee onTrade andEnvironment
UNCED FOLLOW-UP WORK INGATT/WTO
Note Prepared bytheWTO Secretariat forSubmission totheFifth Session
oftheUnited Nations Commission onSustainable Development
April 1997
ThisNotehasbeenprepared bytheWorld Trade Organization (WTO) Secretariat onitsown
responsibility. Itresponds totheUnited Nations 'General Assembly Resolution 50/95 (December 1995)
whichinvitestheWTO"toaddresstradeandenvironmentmatterscomprehensivelyandtoreport,through
theCommission ofSustainable Development, totheEconomic andSocial Council andtheGeneral
Assembly atitsspecial session in1997 ontheconcrete progress achieved ontheissue oftrade and
environment."
I. INTRODUCTION
1. Inresponse totheUnited Nations 'Conference onEnvironment andDevelopment (UNCED)
heldinRioDeJaneiro in1992, amechanism forUNCED follow-up work intheGATT wasadopted
atthe48thSession ofCONTRACTING PARTIES (Decision of2December 1992). TheCommittee
onTrade andDevelopment andtheGroup onEnvironmental Measures andInternational Trade were
identified asthemain bodies inGATT responsible forthefollow-up process.
2. Upon theadoption oftheDecision onTrade andEnvironment attheMinisterial meeting in
Marrakesh (14April 1994), agreement wasreached ontheestablishment ofaWTO Committee on
Trade andEnvironment (CTE). Acomprehensive work programme fortheCTE waslaidoutwith
theaimofmaking trade andenvironment policies mutually supportive. TheCTE hasundertaken,
andwillcontinue toundertake, UNCED follow-up work intheWTO within thecontext ofitswork
programme.
3. TheGATT/WTOhasattachedgreatimportancetotheresultsofUNCED.InadoptingaDecision
toestablish amechanism forUNCED follow-up work intheGATT andthe1994 Decision onTrade
andEnvironment, GATT/WTO Members reflected their continued commitment toensure the
compatibility ofpolicies inthefields oftrade, environment andsustainable development, andtouphold
thePrinciples oftheRioDeclaration.
4. From 1993to1995, theGATT/WTO submitted annual Notes totheCommission onSustainable
Development (CSD) ontheprogress achieved intheimplementation ofAgenda 21commitments, as
presented inChapter 2ofAgenda 21on"International Cooperation toAccelerate Sustainable
Development inDeveloping Countries andRelated Domestic Policies" .TheNotes highlight the
importance oftheresults ofUruguay Round negotiations infurthering thegoaloftrade liberalization
andinbroadeningandstrengtheningtherule-basedmultilateraltradingsystem,andreportmoregenerally
onGATT/WTO discussions ontrade andenvironment.WT/CTE/W/42
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5. Since thelastNotesubmitted totheCSD, progress hasbeenmade onthreemainfronts: (a)the
implementation oftheresults ofUruguay Round negotiations following theentry intoforce ofthe
WTO on1January 1995; (b)theconclusion oftheWTO 'sfirstbiennial Ministerial Conference in
Singapore (9-13 December 1996) towhich theCTEsubmitted acomprehensive report onWTO activities
ontradeandenvironment; and,(c)theimplementation oftheGeneral Council 'sDecision onGuidelines
ForArrangements OnRelations With Non-Governmental Organizations (NGOs) (Decision of
18July1996).
II. PROGRESS INIMPLEMENTING THE RESULTS OFTHE URUGUAY ROUND
6. TheWTO Secretariat estimates that,when fullyimplemented, theresults oftheUruguay Round
would increase thelevelofworld merchandise trade intheyear2005 by12percentmore thanthen
thelevelwhich would haveexisted iftrade hadbeenlefttogrow annually atitsaverage fortheperiod
1980-91 (4.1percent). Thisincrease isestimated tobeapproximately $745billion (in1992dollars).
7. Theresults oftheUruguay Round aresignificant inthattheyopen upawide array of
opportunities fortrade andincome growth. When accompanied with appropriate policies for
environmental protection, greater trade liberalization willbewelfare enhancing. Increased trade
opportunities allow resources (including environmental resources) tobeallocated more efficiently on
aninternational scale. Trade-induced income growth canincrease demand forimproved environmental
quality, while rendering environmental protection measures more affordable. Inaddition, formany
developing countries, greater market access fortheircommodities cancontribute toreducing their
dependence ontheexport ofprimary goods, andtoenabling them toraisedomestic value-added.
8. Fullimplementation oftheresults ofUruguay Round negotiations, therefore, isexpected to
promote sustainable development through trade liberalization, aprinciple objective ofAgenda 21.
Inaddition,itwouldcontributetofulfillinganumberofAgenda21'smorespecificgoals,whichinclude:
(a) Topromote anopen, non-discriminatory andequitable multilateral trading system that
willenable allcountries -inparticular, thedeveloping countries -toimprove their
economic structures andimprove thestandard ofliving oftheirpopulations through
sustained economic development.
(b) Toimprove access tomarkets forexports ofdeveloping countries.
(c) Toimprove thefunctioning ofcommodity markets andachieve sound, compatible and
consistent commodity policies atthenational andinternational levels withaviewto
optimizing thecontribution ofthecommodity sector tosustainable development, taking
intoaccount environmental considerations.
(d) Topromoteandsupportpolicies,domesticandinternational,thatmakeeconomicgrowth
andenvironmental protection mutually supportive.
9. Theimplementation oftheresults oftheUruguay Round isthepriority fortheWTO. Ina
preliminary assessment, theWTO 'sDirector-General, Renato Ruggiero, divided theimplementation
ofUruguay Round commitments intothree categories; namely, thefulfilment ofnotification
requirements, theimplementation ofsubstantive commitments tobring domestic legislation into
conformity withWTO obligations, andthefulfilment ofthevarious tasks stipulated bytheWTO
Agreements(suchasthepreparationofannualreviews).AllthreecategorieswereexaminedbyMinisters
attheirfirstbiennial Ministerial Conference inSingapore which hadasoneofitsaimstheassessment
oftheimplementation ofcommitments under WTO Agreements andDecisions.WT/CTE/W/42
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(i) Fulfilment ofNotification Requirements
10. TheDirector-General stated thatgreater transparency isessential todetermining theextent
towhich agreements arebeing applied. Theprimary instrument ensuring transparency isthenotifications
submitted byMembers totheWTO. Atotalof175notification requirements existintheareaoftrade
ingoods,and40undertheGeneralAgreementonTradeinServicesandtheAgreementonTrade-Related
Aspects ofIntellectual Property Rights. Many werecreated under theUruguay Round. Withregard
totheimplementation ofthese notification requirements, attheendof1995 itwasestimated thatthe
percentage ofWTO Members which hadmettheirnotification requirements ranged between lessthan
25percenttoalmost 90percent, depending ontheAgreement. Itwasevident fromtheassessment
thatsmaller developing countries were foremost amongst those encountering difficulties inmeeting
theirnotificationobligations.Therefore,theSingaporeMinisterialDeclaration(adoptedon13December
1996) urges WTO Members tostep-up theirefforts tomeet theirnotification obligations. Itstates
that"Because theWTO system relies onmutual monitoring asameans toassess implementation, those
Members which havenotsubmitted notifications inatimely manner, orwhose notifications arenot
complete, should renew theirefforts."
(ii) Bringing Domestic Legislation IntoConformity withWTO Obligations
11. AttheMinisterial Conference, Ministers reiterated theimportance ofMembers bringing their
domestic legislation intoconformity withtheirWTO commitments. Whilst theprocess ofdoing so
isalready underway, theyexpressed theirwishtoseeatimely implementation ofcommitments. On
thisissue, theMinisterial Declaration states that"Where legislation isneeded toimplement WTO rules,
Members aremindful oftheirobligations tocomplete theirdomestic legislative process without further
delay. Those Members entitled totransition periods areurged totakesteps astheydeem necessary
toensure thetimely implementation ofobligations astheycome intoeffect." Inaddition, itrequests
Members toreview ofalloftheirexisting andproposed legislation, programmes andmeasures inorder
toensure theirfullcompatibility withWTO obligations.
(iii) Fulfilment ofTasks Stipulated byWTO Agreements
12. Infulfilling thevarious tasks related toWTO Agreements, theMinisters declared thatthe
measures taken byMembers havesofarbeensatisfactory. TheMinisterial Declaration reaffirms the
importance ofimplementing Uruguay Round commitments andprovides thefollowing assessment of
theprogress made inimplementation:
"Weattach highpriority tofullandeffective implementation oftheWTO Agreement ina
manner consistent withthegoaloftrade liberalization. Implementation thusfarhasbeen
generally satisfactory, although some Members haveexpressed dissatisfaction withcertain
aspects. Itisclear thatfurther effort inthisareaisrequired, asindicated bytherelevant
WTO bodies intheirreports. Implementation ofthespecific commitments scheduled by
Members withrespect tomarket access inindustrial goods andtrade inservices appears to
beproceeding smoothly. With respect toindustrial market access, monitoring of
implementation would beenhanced bythetimely availability oftrade andtariff data.
Progress hasbeenmade alsoinadvancing theWTO reform programme inagriculture,
including inimplementation ofagreed market access concessions anddomestic subsidy and
export subsidy commitments."
13. TheMinisters recognized theimportance ofbetter assisting developing andleast-developed
countries (LDCs) infulfilling theirobligations. Better assistance wasdeemed necessary tofacilitate
theirintegration intothemultilateral trading system. Therefore, theMinisterial Declaration commitsWT/CTE/W/42
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WTO Members toimprove theavailability oftechnical assistance under agreed guidelines todeveloping
countries, andtoimprove theoverall capacity ofLDCs torespond totheopportunities offered bythe
trading system through thepreparation ofa"Plan ofAction" forthem. Theplanwillaimatdesigning
acoordinated strategy toaccelerate ofthedevelopment ofLDCs, suchas,forinstance, through
providing them withdutyfreeaccess tomarkets onanautonomous basis.
III. REPORT OFTHE CTE TOTHE SINGAPORE MINISTERIAL CONFERENCE
14. The1994 Decision onTrade andEnvironment established theCTE"with theaimofmaking
international tradeandenvironmental policies mutually supportive," aprinciple objective ofAgenda 21.
TheCTE submitted areport totheWTO 'sfirstbiennial Ministerial Conference inSingapore on
WTO activities ontrade andenvironment. Thereport isappended tothisNote, andtheterms of
reference anddetailed work programme oftheCTEareannexed toit.IntheMinisterial Declaration
adopted atthatConference, thefollowing statement wasincluded ontheCTE.
"The Committee onTrade andEnvironment hasmade animportant contribution towards
fulfilling itsWork Programme. TheCommittee hasbeenexamining andwillcontinue to
examine, interalia,thescope ofthecomplementarities between trade liberalization,
economic development andenvironmental protection. Fullimplementation oftheWTO
Agreements willmake animportant contribution toachieving theobjectives ofsustainable
development. Thework oftheCommittee hasunderlined theimportance ofpolicy
coordination atthenational levelintheareaoftrade andenvironment. Inthisconnection,
thework oftheCommittee hasbeenenriched bytheparticipation ofenvironmental aswell
astrade experts from Member governments andthefurther participation ofsuchexperts in
theCommittee 'sdeliberations would bewelcomed. Thebreadth andcomplexity ofthe
issues covered bytheCommittee 'sWork Programme shows thatfurther work needs tobe
undertaken onallitems ofitsagenda, ascontained initsreport. Weintend tobuild on
thework accomplished thusfar,andtherefore direct theCommittee tocarry outitswork,
reporting totheGeneral Council, under itsexisting terms ofreference."
IV. WTO RELATIONS WITH NGOS
15. Article VoftheMarrakesh Agreement states that"TheGeneral Council maymake appropriate
arrangements forconsultation andcooperation withnon-governmental organizations concerned with
matters related tothose oftheWTO." In18July1996, Article Vwasfollowed byaGeneral Council
Decision onGuidelines ForArrangements OnRelations With NGOs. TheDecision states that
WTO Members recognize therolethatNGOs canplayinincreasing public awareness withrespect
toWTOactivities,andthattheyagreeinthisregardtoimprovetransparencyandworktowardsimproved
communication withNGOs.
16. Building onArticle VandtheDecision of1996, theWTO hastaken anumber ofinitiatives
toencourage theparticipation ofNGOs. Meetings withNGOs havebeenorganized tobriefthem on
WTO activities, andtosolicit theirinput intotheWTO 'swork programme. TheWTO will,infuture,
work towards continued cooperation andconsultation withNGOs.
17. AttheSingapore Ministerial Conference, theWTO 'sDirector-General expressed hiscontinued
commitment tocooperation withNGOs inthefollowing statement:
"Inits18Julydecision, theGeneral Council encouraged theSecretariat tostrengthenWT/CTE/W/42
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relations withtheNGO community. Already wehavemoved towards greater transparency
withthedecision toderestrict more documents more quickly. Wehavealsomade arange
ofWTO material available ontheInternet. Iagree thatmore could bedonetomake
documentation available, toimprove transparency, andtoexpand ourdialogue withNGOs,
andIwillcontinue topress ahead, bearing inmind thattheWTO isamembership-based
organization andthatwemust allagree oncommon direction. Theimportant point to
emphasize isthatweareallmotivated bythesame belief --thataninformed andengaged
public willbemore supportive ofefforts tomanage globalization foreveryone 'sbenefit."