RESTRICTED
WORLD TRADE WT/CTE/W/9
8June1995
ORGANIZATION(95-1522)
Committee onTrade andEnvironment
ENVIRONMENT AND SERVICES
1. TheMinisterial Decision onTrade andEnvironment states "that theCommittee onTrade
andEnvironment willconsider thework programme envisaged intheDecision onTrade in
Services andtheEnvironment ...asanintegral partofitswork, within theabove terms of
reference". TheMinisterial Decision onTrade inServices andtheEnvironment states that"[i]n
order todetermine whether anymodification ofArticle XIVoftheAgreement isrequired totake
account ofsuchmeasures [i.e.measures necessary toprotect theenvironment], torequest the
Committee onTrade andEnvironment toexamine andreport, withrecommendations ifany,on
therelationship between services trade andtheenvironment including theissue ofsustainable
development. TheCommittee shallalsoexamine therelevance ofinter-governmental agreements
ontheenvironment andtheirrelationships totheAgreement." Thisbackground document is
prepared toassist theCommittee 'sconsideration oftheissues referred toitintheMinisterial
Decisions citedabove.
2. Thispaper begins withanegotiating history ofArticle XIVoftheGeneral Agreement on
Trade inServices (GATS) andtheMinisterial Decision onTrade inServices andtheEnvironment.
Section IInotes certain features ofservices trade (complementarity ofservices withother
products, mode ofsupply ofservices, andpositive/negative effects ofservices ontheenvironment)
thatareimportant inanyconsideration ofwhether Article XIVneeds tobemodified totake
account ofmeasures necessary toprotect theenvironment. Section IIIdiscusses therelationship
between services trade andtheenvironment, andSection IVconsiders Article XIVoftheGATS in
comparison toArticle XXofGATT 1994 toassist inapreliminary assessment regarding the
adequacy ofArticle XIV(b) withrespect tomeasures necessary toprotect theenvironment.
Section Vprovides therelevant provisions oftheGATS, Section VIreports onrelevant ongoing
work inother international organizations, andSection VIIprovides asummary ofcertain relevant
features ofinter-governmental environmental agreements andtheirrelationship totheGATS.
I. NEGOTIATING HISTORY OFARTICLE XIVOFTHE GATS AND THE
MINISTERIAL DECISION ONTRADE INSERVICES AND THE ENVIRONMENT
3. Article XIVoftheGATS (hereinafter "Article XIV") contains thegeneral exceptions to
theAgreement, modelled onArticle XXoftheGATT (hereinafter "Article XX").1Article
XIV(b) states that"[s]ubject totherequirement thatsuchmeasures arenotapplied inamanner
which would constitute ameans ofarbitrary orunjustifiable discrimination between countries
where likeconditions prevail, oradisguised restriction ontrade inservices, nothing inthis
Agreement shallbeconstrued toprevent theadoption orenforcement byanyMember ofmeasures
...necessary toprotect human, animal orplant lifeorhealth."
1Asyet,there arenoagreed rules regarding safeguard measures intheareaofservices. SeeArticle XoftheGATS.
Forabackground noteonsafeguards andservices, seeMTN.GNS/W/70.WT/CTE/W/9
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4. Anticipating interpretative questions regarding thescope ofArticle XIVoftheGATS, the
Agreement contains aMinisterial Decision onTrade inServices andtheEnvironment (hereinafter
the"Decision") which wasadopted atthefirstmeeting oftheCouncil forTrade inServices on
1March 1995 (seedocument S/L/4). TheDecision acknowledges thatsince measures necessary
toprotect theenvironment mayconflict withother provisions oftheGATS, ageneral exception
forthese measures isnecessary. Itstates thatitisnotclear whether there isaneedtoprovide for
anything more bywayofexceptions thaniscontained inArticle XIV(b), andinorder to
determine whether amodification ofthisArticle isrequired totakeaccount ofsuchmeasures it
states thattheCouncil forTrade inServices willrequest theWTO Committee onTrade and
Environment toexamine andreport, withrecommendations ifany,ontherelationship between
services trade andtheenvironment including theissue ofsustainable development. The
Committee isalsotoexamine therelevance ofinter-governmental agreements ontheenvironment
andtheirrelationship totheGATS andwillreport ontheresults ofitswork tothefirstbiennial
meeting oftheMinisterial Conference attheendof1996.
5. Thestarting point fordetailed negotiations onthecontent oftheexceptions article inthe
GATS wasthetextcontained inthedraftservices agreement discussed atBrussels in1990
(MTN.TNC/W/35/Rev.1) which contained anumber ofbracketed proposals forenvironmentally
related exceptions. Inthattext,draftArticle XIVstates that:
"Subject totherequirement thatsuchmeasures arenotapplied inamanner which would
constitute ameans ofarbitrary orunjustifiable discrimination between countries where like
conditions prevail, oradisguised restriction oninternational trade inservices, nothing inthis
Agreement shall beconstrued toprevent theadoption orenforcement byanyParty ofmeasures
necessary:
(a)toprotect [national security] public morals [andorder], safety, [sustainable development
andenvironment,] [human, animal andplant lifeand], health [cultural values,] [its
environment,] [data,] [theintegrity ofinfrastructure ortransportation systems,]
[conservation ofexhaustible natural resources];
(b)..."
6. InthefinaltextofArticle XIV(b) oftheGATS, exception isprovided forreasons of
human, animal andplant lifeorhealth. Thisistheonlyprovision inArticle XIVthataddresses
environmental concerns. Article XIVdoesnotcontain anyreference tothe"environment",
"sustainable development", "theintegrity ofinfrastructure ortransportation systems", or
"conservation ofexhaustible natural resources".
(i) Negotiations regarding thereference totheenvironment inthedrafttext
7. Inthecourse of1991, asmall number ofdelegations proposed thattheGATS should
provide specific reference tothepossibility ofsuspending obligations inorder toprotect a
Member 'sownenvironment. Several delegations, however, questioned theneedforthis
exception, arguing thatenvironmental concerns were adequately covered under Article XIV(b)
which refers tomeasures "necessary toprotect human, animal orplant lifeorhealth".
Furthermore, theywere concerned overtheapparent vagueness andscope oftheterm
"environment".
8. Bytheendofthenegotiations, there wasabroad agreement among participants that
measures necessary toprotect human, animal andplant lifeorhealth were understood toincludeWT/CTE/W/9
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measures necessary toprotect theenvironment, provided suchmeasures were made effective in
conjunction withequivalent measures imposed domestically. Afewdelegations, however, feltthat
Article XIV(b) didnotcover allaspects ofenvironmental concerns, including maintenance of
landscape inthecountryside. Following theirefforts, andinrecognition oftheimportance ofthe
trade/environment link,itwassuggested andsubsequently agreed thatpriority beaccorded toa
GATS work programme which would examine thetrade/environment relationship including the
issue ofsustainable development. Aworking party wassuggested forthispurpose. Itwasalso
agreed thattheworking party would examine therelevance ofinter-governmental agreements on
theenvironment andhowtheGATS willdealwiththem. AtMarrakesh, these concerns were
encompassed intheMinisterial Decision onTrade inServices andtheEnvironment, anditwas
decided thatfuture work ontrade andenvironment intheWTO would beconducted under the
Committee onTrade andEnvironment, which wasestablished following theMinisterial Decision
onTrade andEnvironment. Asmentioned above, theDecision onTrade andEnvironment directs
theCommittee onTrade andEnvironment toconsider, interalia,thework programme envisaged
intheDecision onTrade inServices andtheEnvironment.
(ii) Negotiations regarding thereference toconservation ofexhaustible natural
resources inthedrafttext
9. Averylimited number ofdelegations supported theproposal toinclude anexception
relating toconservation ofexhaustible natural resources under Article XIVoftheGATS. The
needforthisexception wasjustified largely onthegrounds thatitwasnecessary toparallel the
obligations contained inGATT Article XX(g). Thediscussion, however, failed toreveal
convincing arguments regarding therelevance ofthisproposal intheservices trade context andit
wasconcluded thatanArticle XIVexception ontheconservation ofexhaustible natural resources
didnotappear necessary fortheGATS, since noadditional cover would beobtained beyond that
already contained intheGATT.
(iii) Negotiations regarding thereference tointegrity ofinfrastructure ortransport
systems
10. Following discussions, thedelegation proposing theexception wassatisfied thatthis
concern wasadequately covered bythereference to"safety" under sub-paragraph XIV(c)(iii).
II. COMPLEMENTARITY OFSERVICES WITH OTHER PRODUCTS, MODE OF
SUPPLY OFSERVICES, AND POSITIVE/NEGATIVE EFFECTS OFSERVICES ON
THE ENVIRONMENT
11. Important considerations withregard torules anddisciplines forservices trade2include
different possibilities forcomplementarity between aservice andother products, different modes
ofsupply ofservices, andthepositive ornegative effects oftrade inservices ontheenvironment.
2Forbackgr ound document soncertaintypesofservices,namel y,telecommuni cationsservices,constructionandengineering
services,transpor tservices,tourismservices,professi onalservices,andfinancialservices,see,respect ively,MTN.GNS /W/52,
53,60,61,67and68.WT/CTE/W/9
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(i) Complementarity ofaservice withanother product
12. Different features, notallmutually exclusive, regarding complementarity between
provision ofaservice andanother product include3:
(a) service trade notinvolving anycomplementary useofanyother product, e.g.
advice onenvironmental standards, onenvironmental law,oronenvironmental information and
data;
(b) service trade thatfacilitates theprovision ofanother product, e.g.repair and
maintenance orinstallation ofmachinery thatproduces anenvironmentally-friendly product,
development ofenvironmentally-friendly design standards, ortransport ofenvironmentally
friendly products toanother market;
(c) service trade involving theuseofanother product, e.g.transport requiring theuse
ofavehicle, repair ofcertain machines requiring other machines, special technology required for
collecting andtransporting hazardous waste, mineral excavation using certain specialized
machinery, ortourism requiring theprovision ofother goods/services;
(d) service being embodied inagood, e.g.computer programme forenvironment-
related activities contained inacomputer diskette oravideo filmcontaining instructions regarding
environmental safety.
13. These complementarities areimportant inanyconsideration ofpolicies regarding
enhancing orrestricting trade inservices (seebelow).4Forexample, aparticular environmental
effect might beduetoagood thatiscomplementary toaservice, andthustherelevant rules and
disciplines would include those pertaining togoods.
(ii) Mode ofsupply ofaservice
14. While goods trade involves cross-border movement oftheproduct being traded, services
trade could involve additional possibilities. Forexample, instead oftheservice being transported
across theborder totheconsumer, theconsumer could travel totheplace where theservice is
provided, e.g.tourism. Other possibilities include thenecessity fortheprovider ofaservice to
haveacommercial presence inthemarket oftheconsumer inorder toprovide theservice inthat
market, e.g.banking, construction, orsome professional services suchasconsultancy.5These
different possibilities arecovered under Article I.2oftheGATS which provides adefinition ofthe
supply ofaservice forthepurposes oftheAgreement.
3Thispaper doesnotdealwiththeissue ofdefinition orscope ofaservice. With improved statistics, more information,
changing tastes orperceptions, orsplintering ofproduction activities inacompany, thescope ofservices could include products
oractivities which were earlier notconsidered services.
4Inthissection, complementarity hasbeendescribed mainly interms ofcomplementarity between twoproducts. Another
typeofcomplementary relationship would betoconsider thelinkages between different types ofactivities which maybe
performed together. Forexample, cleaning upariver might alsorequire asubsequent service ofdisposal ofthewaste that
iscollected from theriver.
5Combinations ofthese possibilities cangiveusother situations suchasproducers andconsumers travelling totheterritory
ofathirdcountry tocarry outservices trade, e.g.aconsortium oftechnology sellers installing environmentally safetechnology
inthetourist industry inacountry which imports theservice, forconsumers from another country thatinsist onthatservice.WT/CTE/W/9
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15. Thepossibility thattrade inaservice might involve production ofthatservice inthe
territory oftheimporting country implies thattherelevant production facility would besubject to
environmental production andprocess standards intheimporting country. Likewise, relevant
standards oftheimporting country would apply toaprovider ofaservice (oranatural person)
whose commercial presence isrequired inthatcountry, e.g.lawyer oraconsultant advising on
limiting environmental damage. Moreover, depending onthenature ofcomplementarity ofa
service withanother product, theimporting country 'sstandards relating tothecomplementary
product might alsoapply when theservice isprovided, e.g.ifavehicle isusedfortransporting
goods across more thanonecountry, thevehicle would havetomeetthestandards ofallthe
countries inwhich itisused.
(iii) Positive/negative impact oftrade inservices ontheenvironment
16. Service trade could haveanadverse impact ontheenvironment (such aspollution caused
bytransport ortourism incertain circumstances), orcould contribute toimproving the
environmental situation (forexample, facilitating access toenvironmental services). Inthispaper,
these twotypes ofeffects willbereferred toas,respectively, "negative" and"positive" effects of
services ontheenvironment.
III. RELATIONSHIP BETWEEN TRADE INSERVICES AND THE ENVIRONMENT
17. Onthebasis oftheaspects mentioned inSection IIabove, thissection considers theeffects
oftrade inservices ontheenvironment, particularly inthecontext ofArticle XIVoftheGATS.6
18. Ifservice activities haveapositive effect ontheenvironment, thenincreasing trade insuch
services could haveabeneficial effect ontheenvironment. Trade could beincreased, for
example, bygranting larger market access toexternal suppliers ofservices orbyproviding
incentives (forinstance through subsidies) touseservices which havepositive effects onthe
environment. GATS doesnotrestrict theability ofanyMember toprovide conditions ofmarket
access more liberal thanthose contained intheirschedules. Regarding other incentives forusing
services which haveadirect positive effect ontheenvironment, theGATS doesnotyethaveany
particular disciplines onaspects suchassubsidies orgovernment procurement intheareaof
services.7Negotiations onthese policies willbeheldinthenearfuture. Thus, ifaMember
wants tofacilitate orincrease market access forimports ofservices which haveapositive direct
effect ontheenvironment, provisions oftheGATS donotrestrict suchaction.8
19. Ifprovision ofaservice involves acomplementary product, increasing theuseofthe
service concerned might alsorequire increasing imports (oruse)ofthecomplementary product.
Since these products could begoods, enhanced market access andincentives foruseofsuch
products would besubject totherules anddisciplines inAgreements other thantheGATS. Asin
thecaseoftheGATS, Members arenotrestricted from providing market access more liberal than
6Thispaper focuses ontheeffect oftrade inservices ontheenvironment andnotontheeffect oftheenvironment on
trade inservices (e.g. ecotourism). Theformer effect, i.e.theeffect ofservices ontheenvironment, ismore relevant to
aconsideration oftheimportance oftheprovisions ofGATS (including Article XIV) withregard totheenvironment.
7Forabackground document onsubsidies andinternational trade inservices, seeMTN.GNS/W/98.
8Article XV.2 oftheGATS states that"[a]ny Member which considers thatitisadversely affected byasubsidy ofanother
Member mayrequest consultations with thatMember onsuch matters. Such requests shall beaccorded sympathetic
consideration."WT/CTE/W/9
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thatprovided forintheirschedules forgoods. However, ifincentives through subsidies or
government procurement aretobeprovided forincreasing theuseofthese products, therelevant
rules anddisciplines inthecorresponding Agreements relating togoods would havetobe
respected.9
20. Ifservice activities haveanegative effect ontheenvironment, thenaMember mayneed
tocontrol trade orproduction ofthatservice inorder tolimitthenegative effect. Such control
could taketheform ofdefining certain standards fortheservice concerned orlimiting thelevelof
theservice activity. However, thefactthatcertain restrictions might benecessary inthese
circumstances doesnotimply thatArticle XIVwould betheprovision needed tojustify the
imposition ofthose restrictions. Thegeneral exception under Article XIVprovides apossibility of
taking trade restrictive measures which areinconsistent withother provisions oftheGATS; an
alternative available toMembers would betorequest renegotiations oftheircommitments. Ifa
measure isconsistent withother provisions oftheGATS, there isnoneedtorelyonArticle XIV
tojustify thatmeasure. Thisisanimportant aspect tobeconsidered inthecontext ofthetask
entrusted totheCommittee onTrade andEnvironment under theMinisterial Decision onTrade in
Services andtheEnvironment, i.e.toconsider whether Article XIVprovides anadequate basis
under theGATS formeasures necessary toprotect theenvironment. Thus, therelevant questions
todetermine whether there isaneedforrelying onArticle XIVare:whatarethemeasures
needed forenvironmental purposes intheareaofservices; aresuchmeasures inconsistent with
anyprovision oftheGATS, andhence there isaneedtorelyonthegeneral exception provided
byArticle XIV; and,iftheyareinconsistent withanyprovision oftheGATS, isArticle XIVan
adequate basis fortaking suchmeasures. These aspects areaddressed inmore detail inSection IV
below.
21. Even inthecaseofnegative effects ofservices ontheenvironment, complementarity of
services withother products isanimportant consideration because thenegative environmental
effect might beentirely, ormainly, duetogoods thatarecomplementary totheservice activity
concerned. Insuchasituation, anyrestriction onservice trade onthebasis ofArticle XIVorany
other provision ofGATS maynotbenecessary toaddress theenvironmental problem. To
address thenegative environmental effect oftheservice activity, thenecessary restriction might
havetobeapplied tothecomplementary goods onthebasis ofprovisions ofother Agreements
(such asArticle XXofGATT 1994, orcertain technical standards). Thesituation might even
require restrictions justified under bothArticle XIVofGATS (with regard totheservice activity)
andArticle XXofGATT 1994 (with regard toagood). Forrules anddisciplines applying to
goods, itisworth recalling thegeneral interpretative notetoAnnex 1AoftheWTO Agreement
which states that"[i]ntheevent ofconflict between aprovision oftheGeneral Agreement on
Tariffs andTrade 1994 andaprovision ofanother agreement inAnnex 1AtotheAgreement
Establishing theWorld Trade Organization ...theprovision oftheother agreement shallprevail to
theextent oftheconflict".
IV. ACONSIDERATION OFARTICLE XIVOFTHE GATS INCOMPARISON TO
ARTICLE XXOFGATT 1994
22. Theprevious section pointed outthatenvironment-related policies could include measures
thatdonotrequire justification under Article XIVoftheGATS. Anyexamination ofsuch
9Iftheactivity which iscomplementary toorfacilitated byaservice isalsoaservice then, withregard totherelevant
rules anddisciplines, thesituation isthesame asinthecaseofadirect positive effect, i.e.provisions intheGATS donot
restrict aMember from providing greater market access orincentives totheother activity.WT/CTE/W/9
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policies willextend beyond theissue of"modification ofArticle XIVoftheAgreement". The
discussion inthissection ontheadequacy ofArticle XIVoftheGATS forenvironmental purposes
islimited toacomparison withArticle XXofGATT 1994. First, thetextual similarities between
Article XIV(b) ofGATS andArticle XX(b) ofGATT 1994 arenoted. Then, certain important
issues raised inthecontext ofsufficiency ofArticle XXtodealwithenvironmental concerns in
theareaofgoods arerecalled. Thisisfollowed byaconsideration oftherelevant issues that
would ariseinanassessment ofadequacy ofArticle XIVtodealwithenvironmental concerns.
Thedifferent issues inthisregard arehighlighted onthebasis ofaspects suchasdifferent modes
ofsupply ofservices andthenature ofcomplementarity ofservices withother products.
(i) Similarities inthetextsofArticle XXofGATT 1994 andArticle XIVofGATS
23. Article XIVoftheGATS isacounterpart toArticle XXofGATT 1994. InArticle XX,
Articles XX(b) and(g)havebeenconsidered relevant inthecontext ofenvironmental protection.
Asmentioned inSection Iabove, textcorresponding toArticle XX(g) wasnotincorporated inthe
GATS because itwasconcluded thatanArticle XIVexception ontheconservation ofexhaustible
natural resources didnotappear necessary fortheGATS.
24. ThetextofArticle XIV(b) isidentical tothatofArticle XX(b), andtheonlydifference
between thetwoarises duetosome difference inthetextofthechapeau ofArticle XIVin
comparison tothatofArticle XX. Thetextofthechapeau ofArticle XIVisidentical tothe
language ofthechapeau ofArticle XXexcept for"where thesame conditions prevail, ora
disguised restriction oninternational trade" inArticle XXbeing replaced by"where like
conditions prevail, oradisguised restriction ontrade inservices" inArticle XIV(emphasis added
tobothquotations).
25. While anyexamination ofthesufficiency ofArticle XIVofGATS fordealing with
environmental concerns would notnecessarily belinked toasimilar examination withregard to
Article XXofGATT 1994, thegeneral similarity between thetextsofArticle XIV(b) ofthe
GATS andArticle XX(b) ofGATT 1994 suggests thatthediscussion onsufficiency ofArticle
XX(b) withregard toenvironmental concerns would bearupon thediscussion onwhether ornot
Article XIV(b) provides anadequate basis forenvironmental measures.
(ii) Important issues raised withregard tosufficiency ofArticle XX(b) todealwith
environmental concerns
26. Anumber ofissues havebeenraised intheCommittee regarding adequacy of
Article XX(b) todealwithenvironmental concerns. They include mainly thescope ofactions that
canbetaken under Article XX(b) andthenecessity ofthese actions forachieving theobjective
specified inArticle XX(b).
27. Oneconcern regarding thescope ofaction under Article XX(b) relates toabsence of
anyexplicit mention oftheterm"environment" inthatprovision.10Thus aquestion thathas
arisen iswhether ornotthereference to"human, animal orplant lifeorhealth" inArticle XX(b)
covers allsituations which might require measures toaddress environmental problems. Asinthe
caseofthenegotiations onArticle XIVoftheGATS, concerns havebeenexpressed thatadding
theword "environment" inArticle XXmight broaden thescope oftheprovision andencourage
theuseofunilateral andextra-jurisdictional trade sanctions.
10Environment isnotmentioned even inArticle XX(g).WT/CTE/W/9
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28. Another aspect regarding thescope ofArticle XX(b) relates towhether theArticle could
justify measures taken toprotect human, animal orplant lifeorhealth outside thejurisdiction of
theMember taking themeasure. Inthisregard, arecent Panel stated that:
"5.26 ThePanel observed thatArticle XXprovides foranexception to
obligations under theGeneral Agreement. Thelong-standing practice ofpanels
hasaccordingly beentointerpret thisprovision narrowly, inamanner that
preserves thebasic objectives andprinciples oftheGeneral Agreement [footnote
omitted]. IfArticle XXwere interpreted topermit contracting parties todeviate
from theobligations oftheGeneral Agreement bytaking trade measures to
implement policies, including conservation policies, within theirownjurisdiction,
thebasic objectives oftheGeneral Agreement would bemaintained. Ifhowever
Article XXwere interpreted topermit contracting parties totaketrade measures so
astoforce other contracting parties tochange theirpolicies within their
jurisdiction, including theirconservation policies, thebalance ofrights and
obligations among contracting parties, inparticular therightofaccess tomarkets,
would beseriously impaired. Under suchaninterpretation theGeneral Agreement
could nolonger serve asamultilateral framework fortrade among contracting
parties.
5.27 ThePanel concluded thatmeasures taken soastoforce other countries to
change theirpolicies, andthatwere effective onlyifsuchchanges occurred, could
notbeprimarily aimed either attheconservation ofanexhaustible natural
resource, oratrendering effective restrictions ondomestic production or
consumption, inthemeaning ofArticle XX(g).Since anessential condition of
Article XX(g)hadnotbeenmet,thePanel didnotconsider itnecessary to
examine whether theUnited States measures hadalsomettheother requirements
ofArticle XX. ThePanel accordingly found thattheimport prohibitions ontuna
andtunaproducts maintained bytheUnited States inconsistently withArticle XI:1
were notjustified byArticle XX(g).
D. Article XX(b)
...
5.31 ThePanel recalled itsreasoning under Article XX(g).Itobserved that
thetextofArticle XX(b)doesnotspelloutanylimitation onthelocation ofthe
living things tobeprotected. Itnoted thattheconditions setoutinthetextof
Article XX(b)andthepreamble qualify onlythetrade measure requiring
justification ("necessary to")orthemanner inwhich thetrade measure isapplied
("arbitrary orunjustifiable discrimination", "disguised restriction oninternational
trade"). Thenature andprecise scope ofthepolicy areanamed intheArticle, the
protection ofliving things, isnotspecified inthetextoftheArticle, inparticular
withrespect tothelocation oftheliving things tobeprotected.
...
5.38 ThePanel thenexamined whether, under Article XX(b),measures
necessary toprotect thelifeorhealth ofanimals could include measures taken so
astoforce other countries tochange theirpolicies within theirownjurisdictions,WT/CTE/W/9
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andrequiring suchchanges inorder tobeeffective. ThePanel noted thatthetext
ofArticle XXisnotexplicit onthisquestion. ThePanel thenrecalled its
reasoning under itsexamination ofArticle XX(g)thatArticle XX,asaprovision
forexceptions, should beinterpreted narrowly andinawaythatpreserves the
basic objectives andprinciples oftheGeneral Agreement. IfArticle XX(b)were
interpreted topermit contracting parties todeviate from thebasic obligations of
theGeneral Agreement bytaking trade measures toimplement policies within their
ownjurisdiction, including policies toprotect living things, theobjectives ofthe
General Agreement would bemaintained. Ifhowever Article XX(b)were
interpreted topermit contracting parties toimpose trade embargoes soastoforce
other countries tochange theirpolicies within theirjurisdiction, including policies
toprotect living things, andwhich required suchchanges tobeeffective, the
objectives oftheGeneral Agreement would beseriously impaired.
5.39 ThePanel concluded thatmeasures taken soastoforce other countries to
change theirpolicies, andthatwere effective onlyifsuchchanges occurred, could
notbeconsidered "necessary" fortheprotection ofanimal lifeorhealth inthe
sense ofArticle XX(b).Since anessential condition ofArticle XX(b)hadnot
beenmet,thePanel didnotconsider itnecessary toexamine thefurther issue of
whether theUnited States measures hadalsomettheother requirements ofArticle
XX. ThePanel accordingly found thattheimport prohibitions ontunaandtuna
products maintained bytheUnited States inconsistently withArticle XI:1were not
justified byArticle XX(b)."11
29. Intheareaofgoods, Article XX(b) allows general exception measures thatare"necessary
toprotect human, animal orplant lifeorhealth" (emphasis added). Inthisregard, forexample,
thePanel on"Thailand -Restrictions onimportation ofandInternal Taxes onCigarettes" stated
that:
"74. ThePanel noted thataprevious panel haddiscussed themeaning ofthe
term"necessary" inthecontext ofArticle XX(d), which provides anexemption
formeasures which are"necessary tosecure compliance withlawsorregulations
which arenotinconsistent" withtheprovisions oftheGeneral Agreement. The
panel hadstated that
'acontracting party cannot justify ameasure inconsistent with
other GATT provisions as"necessary" interms ofArticle XX(d) if
analternative measure which itcould reasonably beexpected to
employ andwhich isnotinconsistent withother GATT provisions
isavailable toit.Bythesame token, incases where ameasure
consistent withother GATT provisions isnotreasonably available,
acontracting party isbound touse,among themeasures
reasonably available toit,thatwhich entails theleastdegree of
inconsistency withother GATT provisions. '(emphasis supplied;
[footnote omitted])
11Report ofthePanel on"United States -Restrictions onImports ofTuna", DS29/R (unadopted), 16June1994, pages
54to57.Theomitted footnote referred toreports ofthepanels on"Canada -Administration oftheForeign Investment
Review Act"adopted 7February 1984, BISD 30S/140, and"United States -Section 337oftheTariff Actof1930", adopted
7November 1989, BISD 36S/345.WT/CTE/W/9
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ThePanel could seenoreason whyunder Article XXthemeaning oftheterm
"necessary" under paragraph (d)should notbethesame asinparagraph (b).In
bothparagraphs thesame termwasusedandthesame objective intended: to
allow contracting parties toimpose trade restrictive measures inconsistent withthe
General Agreement topursue overriding public policy goals totheextent thatsuch
inconsistencies were unavoidable. Thefactthatparagraph (d)applies to
inconsistencies resulting from theenforcement ofGATT-consistent lawsand
regulations while paragraph (b)applies tothose resulting from health-related
policies therefore didnotjustify adifferent interpretation oftheterm"necessary".
75. ThePanel concluded from theabove thattheimport restrictions imposed
byThailand could beconsidered tobe"necessary" interms ofArticle XX(b) only
ifthere were noalternative measure consistent withtheGeneral Agreement, or
lessinconsistent withit,which Thailand could reasonably beexpected toemploy
toachieve itshealth policy objectives. ...".12
30. Animportant point regarding theterm"necessary" inArticle XXisthattheinconsistency
justified under thegeneral exception must benecessary fortheobjective thatistobeachieved by
theimposition ofthemeasure. Forexample, thepanel on"United States Section 337oftheTariff
Actof1930" (op.cit.)stated that:
"5.27 ...IntheviewofthePanel, whathastobejustified as"necessary" under
Article XX(d) iseachoftheinconsistencies withanother GATT Article found to
exist, i.e.inthiscase, whether thedifferences between Section 337andfederal
district court procedures thatresult inlessfavourable treatment ofimported
products within themeaning ofArticle III:4, asoutlined above (paragraph 5.20),
arenecessary."
(iii) Aspects relating totheadequacy ofArticle XIV(b) todealwithenvironmental
concerns
31. Asmentioned intheprevious section, since itmight bepossible totakeenvironmental
measures thatarenotinconsistent withother provisions oftheGATS, anassessment ofthe
adequacy ofArticle XIVforaddressing environmental concerns hastobegin byconsidering the
situations under which there isaneedtorelyontheexception under Article XIV(b). Inthis
context, itisworth recalling thethree questions mentioned earlier: whatarethemeasures needed
forenvironmental purposes intheareaofservices; aresuchmeasures inconsistent withany
provision other thanArticle XIVoftheGATS; and,iftheyareinconsistent withanother
provision oftheGATS, isArticle XIVanadequate basis fortaking suchmeasures. Reliance on
Article XIV(b) would benecessary tojustify ameasure which breaches acommitment under the
GATS.
32. Theissues under Article XIV(b) oftheGATS thatarisefortrans-border trade inservices
would beexpected tobesimilar tothose arising under Article XX(b) ofGATT 1994. However,
complementarity ofaservice withanother product could imply thatrestrictions onservices trade
under Article XIV(b) maynotbe"necessary toprotect human, animal orplant lifeorhealth".
12BISD 37S/200, 223(panel report adopted on7November 1990). Theomitted footnote inparagraph 74ofthepanel
report quoted above referred tothereport ofthepanel on"United States -Section 337oftheTariff Actof1930", L/6439,
adopted on7November 1989, paragraph 5.26, BISD 36S/345. Inthiscontext, seealsoparagraphs 5.34to5.39ofthereport
ofthepanel on"United States -Restrictions onImports ofTuna", DS29/R, op.cit.WT/CTE/W/9
Page11
Thenecessary restrictions might bethose applied tothecomplementary goods which havea
negative effect ontheenvironment. Anexample isaservice forinstalling different types of
technologies, some ofwhich haveserious adverse environmental effects when usedinaparticular
country. Thatcountry might restrict theimports ofmachinery which haveadverse environmental
effects, andinsuchasituation, therestrictive measure would benecessary forthemachinery
imported andnottheservice toinstall thatmachinery.
33. Thedifferent modes ofsupply ofservices alsohaveimplications forthetypes ofpolicies
thatapply toservice imports. Alarge number ofservice activities require production inthe
territory where theyaresold. Insuchcases, there would notbeanyproblem regarding
jurisdictional coverage ofproduction andprocess methods usedtoproduce theimported service
products because boththeimported service product anditsprocess andproduction method would
beunder thejurisdiction oftheimporting Member. Therefore, forexample, domestic standards
forproduction andprocess methods would apply tobothlocalproduction andproduction bythe
exporters oftheservice product inthesame territory. Animportant consideration withregard to
imposition ofenvironment-related standards within theterritory oftheimporting country would be
whether there isanyneedtodiscriminate between foreign producers/exporters ofaservice, or
between localproducers andforeign producers oftheservice within thesame territory. A
relevant aspect inthiscontext would betoconsider whether domestic environmental standards or
criteria under Article VIoftheGATS, applied uniformly, would suffice tomeetthe
environmental concern. Iftheterm"necessary" inArticle XIV(b) were tobeinterpreted asruling
outreliance onArticle XIV(b) provided other GATS-consistent measures were available, the
possibility ofusing GATS-consistent domestic standards would haveimplications regarding the
needtorelyonArticle XIV(b).
34. Another implication ofthedifferent modes ofsupply relates tothedisciplines imposed
under thechapeau ofArticle XIV. Similar toArticle XXofGATT 1994, thechapeau of
Article XIVstates that"[s]ubject totherequirement thatsuchmeasures arenotapplied ina
manner which would constitute ameans ofarbitrary orunjustifiable discrimination between
countries where likeconditions prevail, oradisguised restriction ontrade inservices, ...".The
prohibition ofarbitrary orunjustifiable discrimination between countries where likeconditions
prevail would apply totrans-border trade withdifferent countries, butisunlikely toberelevant
when production andprovision ofaservice takes place within theterritory oftheimporting
Member. Inthatcase, thelikely relevant conditions would bethose prevailing within theterritory
oftheimporting Member andnotthose prevailing inother countries. Insuchasituation, the
obligation under thechapeau ofArticle XIV(b) would belimited totherequirement thatthe
restrictive measure must notbe"adisguised restriction ontrade inservices". Thisdoesnotseem
torestrict thescope ofArticle XIVtodealwithenvironmental concerns incomparison to
Article XX(b) ofGATT.
35. Thediscussion inthissection hasshown thatformeasures necessary toprotect the
environment, certain features ofservices trade arelikely toresult inalower needtorelyonthe
general exception under Article XIV(b) oftheGATS compared tosuchreliance onArticle XXof
GATT 1994 intheareaofgoods. However, asinthecaseofArticle XXofGATT 1994, two
aspects pertaining tothescope ofmeasures justified under Article XIV(b), i.e.whether Article
XIV(b) covers alltheconcerns related to"environment" andwhether Article XIV(b) could justify,
notably inthecontext ofamultilateral environmental agreement, measures taken to"protect
human, animal orplant lifeorhealth" outside thejurisdiction oftheMember taking themeasure,
would imply aneedtofurther consider theadequacy ofArticle XIV(b) oftheGATS fordealing
withenvironmental concerns.WT/CTE/W/9
Page12
36. Theissue ofwhether there isneedtoaddtheterm"environment" wasaddressed during
thenegotiations anditwasconsidered thatinsertion ofthisterminArticle XIVcould extend the
scope oftheprovision beyond thejurisdiction ofaMember. Moreover, evenifthescope of
Article XIV(b) isconsidered asnotcovering allaspects ofenvironmental concerns, arelevant
question would bewhether measures thatdonotrequire justification under Article XIV(b), e.g.,
standards consistent withArticle VIoftheGATS, could dealwiththeadditional concerns.
37. Theissues relating tojurisdiction aresimilar tothose raised inthecontext ofArticle XX
ofGATT.
V. RELEVANT PROVISIONS OFTHE GATS
38. TheGATS hasaframework which contains rules anddisciplines, ormentions theneedfor
rules anddisciplines, foraspects suchasmarket access, standards, subsidies, safeguards, and
government procurement. These aspects cover issues thatareofageneral nature andarenot
limited totheGATS. Thissection willrefertoprovisions oftheGATS thatrelate tothese aspects
intheparticular context oftrade andenvironment.13
(i) Market access commitments forenvironmental services
39. TheGATS isintwoparts: aframework agreement andnational schedules ofspecific
commitments inwhich eachMember government inscribes theservices sectors andactivities to
which itwillapply themarket access andnational treatment obligations oftheGATS. The
schedules contain acategory titled environmental services. Such services would inprinciple have
apositive effect ontheenvironment.
40. Intheareaofenvironmental services, twenty countries made commitments (theEU
submitting acommon schedule onbehalf ofitstwelve member States) which were negotiated and
agreed asresult oftheUruguay Round. Themain sub-sectors included intheschedules relate to
sewage services, refuse disposal, sanitation services, cleaning ofexhaust gases, noise abatement
services andnature andlandscape protection services asdescribed intheUnited Nations Central
Product Classification System.
41. Although there areonlytwenty countries which made commitments inthisarea, farfewer
thanintourism orbusiness services, theycover virtually allofthemajor OECD markets andin
those markets provide suppliers ofenvironmental services whoaretrading orinvesting withthe
assurance thatconditions ofentry andoperation willnotbechanged totheirdisadvantage.
(ii) Market access commitments forother types ofservices
42. Thetypes ofmarket access provided forthese services varies widely across countries,
bothwithregard totheextent ofcoverage ofservice activities andnature ofaccess granted to
foreign providers ofservices. Animportant aspect toconsider withregard tothese services is
thatseveral ofthese services might bemore general inorientation, andwould havea
positive/negative environmental effect when usedinaspecific context butnotwhen usedin
another context, e.g.installation ormaintenance oftechnologies, andtesting orcertifying that
specified standards havebeenmet. Therefore, anyrestriction ontrade inthese services ingeneral
13Aspects suchasmost favoured nation treatment, national treatment anddispute settlement willnotbementioned in
thiscontext.WT/CTE/W/9
Page13
would cover activities much broader inscope thanthose which specifically relate tothe
environment. Oneimplication ofthiscould bethatcertain specific policies including standards
might bemore relevant forthese services, rather thanrestrictions thatapply more generally.14
(iii) Other provisions oftheGATS
43. Article IIIoftheGATS addresses transparency. Each Member isrequired, interalia,to:
promptly publish allrelevant measures ofgeneral application which pertain tooraffect the
operation ofGATS, andtopublish international agreements pertaining tooraffecting trade in
services towhich theMember isasignatory (Article III.1)15;promptly provide information on
theintroduction ofanynew(oranychanges toexisting) laws, regulations oradministrative
guidelines which significantly affect trade inservices covered byitsspecific commitments under
theGATS (Article III.3); andnormally byend-1996, establish oneormore enquiry points to
provide, upon request, specific information toother Members ontheaspects covered byArticles
III.1and3(Articles III.4).16Theprovision regarding enquiry points issimilar tothatcontained in
theAgreement onTechnical Barriers toTrade ("TBT") andAgreement ontheApplication of
Sanitary andPhytosanitary Measures ("SPS").
44. Under Article IVoftheGATS, contact points havetobeestablished bydeveloped
countries (andtotheextent possible byother Members) byend-1996 toprovide information in
theirrespective markets concerning commercial andtechnical aspects ofsupply ofservices,
registration, recognition andobtaining ofprofessional qualifications, andavailability ofservices
technology.
45. Other aspects thatcould relate totheenvironment include technical standards andlicensing
requirements asbarriers totrade, government procurement, subsidies, andgeneral exceptions. As
mentioned above, there arenoagreed disciplines intheGATS ongovernment procurement and
services; Articles XIII.2 andXV.1 require negotiations onthese issues tobeheldinthenear
future. Likewise, under Article VI.4, theCouncil forTrade inServices hastodevelop any
necessary discipline toensure "that measures relating toqualification requirements and
procedures, technical standards andlicensing requirements donotconstitute unnecessary barriers
totrade inservices". These requirements havetobe,interalia,based onobjective and
transparent criteria, suchascompetence andtheability tosupply theservice; notbemore
burdensome thannecessary toensure thequality oftheservice; andinthecaseoflicensing
procedures, notinthemselves bearestriction onthesupply oftheservice (these three criteria are
mentioned inArticle VI.4(a)to(c)). Moreover, forthesectors where aMember hasundertaken
specific commitments, these three criteria havetobecomplied withinapplying licensing and
qualification requirements andtechnical standards evenbefore thenecessary disciplines are
14Ofcourse, trade restrictions could belinked tothespecific useoftheservice. However, inthatcaseaquestion that
would arise iswhether themeasure under Article XIV(b) is"necessary" toachieve theenvironmental objective.
15Except inemergency situations, therelevant measures should bepublished atthelatest bythetimeoftheirentry into
force.Ifpublicationofrelevant measur esorinternationalagreement sisnotpracticable,thentheinformationhastobeotherwise
made publicly available.
16Other aspects oftransparency arementioned either intheprovisions discussed below inthissection orinArticles III.5
(counter-notification ofmeasures considered toaffect theoperation ofGATS), IIIbis(disclosure ofconfidential information),
V.5andV.7(information tobeprovided when there iseconomic integration among Members), Vbis(labour market
integration), VII.4 (recognition ofstandards, licenses, certificates inother countries), VIII. 3and4(monopolies andexclusive
service suppliers), IX(business practices), X(emergency safeguard measures), XII.4 (restrictions tosafeguard thebalance
ofpayments), andXVIbis.2(security exceptions).WT/CTE/W/9
Page14
developed (Article VI.5.a.i).17However, indetermining whether aMember isapplying licensing
andqualification requirements andtechnical standards thatnullify orimpair itsspecific sectoral
commitments, "account hastobetaken ofinternational standards ofrelevant international
organizations applied bythatMember" (Article VI.5.b; footnote omitted).18
46. Article VIIofGATS addresses recognition byMembers ofstandards, licenses,
certification orexperience inother countries asmeeting theirownrequirements regarding
standards orcriteria forauthorization, licensing orcertification ofservice suppliers. Such
recognition maybebased onautonomous recognition, anagreement orarrangement withthe
country concerned, orthrough harmonization (Article VII.1). However, wherever appropriate,
recognition should bebased onmultilaterally agreed criteria. Members havetowork in
cooperation withrelevant intergovernmental andnon-governmental organizations towards the
establishment andadoption ofcommon international standards andcriteria forrecognition and
common international standards forthepractice ofrelevant services trades andprofessions
(Article VII.5).
VI. RELEVANT ONGOING WORK INOTHER INTERNATIONAL ORGANIZATIONS19
47. Thissection willprovide asummary ofongoing work onenvironment andservices in
selected international organizations.
International Maritime Organization (IMO)
48. TheInternational Maritime Organization (IMO) hasdeveloped anumber ofinternational
Conventions dealing with, interalia,maritime safety andmaritime pollution. These Conventions
address issues suchasconstruction andequipment ofships carrying dangerous chemicals, disposal
ofsewage, garbage andlandgenerated waste, airpollution byships, andsharing ofinformation
andresearch. Animportant aspect oftheIMO'songoing work istoensure thattherelevant
Conventions arekeptuptodate. Recent amendments include: amendments totheInternational
Convention forthePrevention ofPollution from Ships (1973) asmodified bytheProtocol of1978
relating thereto (MARPOL 1973/78), which affect fouroftheConvention 'sfivetechnical
annexes, i.e.annexes dealing withoilpollution, pollution bynoxious liquid substances,
regulations fortheprevention ofpollution byharmful substances inpackaged form, andwith
garbage; amendment totheInternational Maritime Dangerous Goods Code (seeMSC/Cir.659:
Amendment No.27-1994); newrecommendations onsafetransport ofdangerous cargoes and
related activities inportareas (MSC/Circ.675); andrevised standards forthedesign, testing and
locating ofdevices toprevent thepassage offlame intocargo tanks intankers (MSC/Circ.677).
17ThefulltextofArticle VI.5(a) isasfollows: "Insectors inwhich aMember hasundertaken specific commitments,
pending theentry intoforce ofdisciplines developed inthese sectors pursuant toparagraph 4,theMember shallnotapply
licensing andqualification requirements andtechnical standards thatnullify orimpair suchspecific commitments inamanner
which: (i)doesnotcomply withthecriteria outlined insubparagraphs 4(a), (b)or(c);and, (ii)could notreasonably have
been expected ofthatMember atthetimethespecific commitments inthose sectors were made."
18Article XVIII oftheGATS states that"Members maynegotiate commitments withrespect tomeasures affecting trade
inservicesnotsubjecttoschedul ingunder ArticlesXVIorXVII, includingthoseregardingqualifications,standardsorlicensing
matters. Such commitments shall beinscribed inaMember 'sschedule."
19Forabackground document thatprovides information andreferences relating tomaterial oninternational arrangements
anddisciplines relevant totrade inservices, seeMTN.GNS/W/93.WT/CTE/W/9
Page15
TheInternational Convention onOilPollution Preparedness, Response andCooperation, adopted
inNovember 1990 byaconference convened bytheIMO, entered intoforce inMay1995.
49. Thetaskofdrawing upanIMO strategy forUNCED follow-up isbeing addressed bythe
UNCED Working Group oftheIMO. TheWorking Group 'sreport willbeformally considered
atthe37thsession oftheIMO'sMarine Environment Protection Committee inSeptember 1995.
Other ongoing work attheIMO includes: preparation ofaCode forsafenavigation and
watchkeeping bytheMaritime Safety Committee oftheIMO, withatarget completion dateof
1997; mandatory measures tocontrol airpollution from ships areexpected tobeconsidered ata
conference tobeheldinautumn 1996; and,theIMO andUNCTAD areco-operating indealing
witheconomic aspects oftheprovision ofportfacilities forship-generated wastes. Abeginning in
thiscontext hasbeenmade bysubmission totheIMO'sShip/Port Interface Working Group ofa
jointUNCTAD/IMO document onfinancial mechanism forthefunding ofportreception facilities.
United Nations Environment Programme (UNEP)
50. In1992, UNEP assisted indrafting avoluntary codeofconduct forthecommercial
banking sector. Bymid-1995, some 80commercial andinvestment banks from developing and
developed countries hadsigned the"Statement byBanks ontheEnvironment andSustainable
Development." TheStatement commits signatories tobestindustry practices inenvironmental
management, toundertake thesame environmental impact assessment procedures fordomestic and
offshore finance, andtointegrate environmental factors intocredit riskdecisions. UNEP
convenes anAdvisory Group onBanks andtheEnvironment, toreview andexchange information
onenvironmental riskandinvestment opportunities. In1994, ithosted thefirstinternational
meeting withbanks onbanking trends andtheenvironment: thereport ofthatmeeting,
"Greening Financial Markets," waspublished inearly 1995. Alsoin1995, UNEP released the
findings ofthefirstglobal survey oncommercial andinvestment banking response to
environmental risk. InMarch, UNEP announced asimilar initiative withmajor insurance,
re-insurance andpension fundcompanies onenvironmental management. InMay1995, UNEP 's
Governing Council requested UNEP toexplore opportunities intheprivate financial services
sector, related tofinancing sustainable development. InOctober 1995, UNEP andEBRD will
co-host atwo-day meeting on"Investment Opportunities andtheEnvironment."
International Civil Aviation Organization (ICAO)
51. Thecompetent ICAO environmental body isitsCommittee onAviation Environmental
Protection (CAEP) which isscheduled tohold itsthirdmeeting inlate1995.
52. Given thewidespread recognition oftheimportance ofuniform world-wide standards for
civilaircraft tothedevelopment ofinternational airtransport, states haverelied onthesystem of
common international standards resulting from theConvention onInternational Civil Aviation and
itsAnnexes when applying environmentally-related regulations tointernational airtransport. An
important example isthedevelopment andapplication ofinternational noise andemission
standards foraircraft certification through Annex 16oftheConvention. Another isAssembly
Resolution A28-3 which setoutamultilateral framework forthepossible introduction ofoperating
restrictions onsub-sonic jetaircraft which exceed thenoise levels inVolume I,Chapter 3of
Annex 16.There arealsoseveral other Assembly Resolutions which address environmental
matters, themost recent being Assembly Resolution A29-12 ontheEnvironmental Impact ofCivil
Aviation ontheUpper Atmosphere.WT/CTE/W/9
Page16
53. Thefuture regulatory arrangement would encompass bothnational andinternational
measures dealing withprotection oftheenvironment. Because ofthewidevariety ofproposals
forprotecting theenvironment andthemany different forawhere these proposals areproduced,
noprecise definition ofenvironmental measures hasbeendeemed necessary. Generally, ifa
proposed laworregulation hasasapurpose theprotection oftheenvironment andcould affect
international airservices itwould beincluded inthisarrangement, inrespect oftheeffects
concerned.
54. Inaddition tocommitting States towork through ICAO onenvironmental measures
affecting international airtransport, thearrangement would alsorequire States toundertake two
concrete obligations withrespect totheirenvironmental measures which arerelevant to
international airtransport. Firstly, theywould havetogivedueconsideration topotentially
adverse economic effects, forexample bymeans ofacost/benefit analysis. Secondly, States
would havetotakeaction towards ensuring thatenvironmental protection measures donot
discriminate against airtransport oragainst aircarriers ofother States.
55. Thisarrangement doesnotspecify anyparticular method ofmeeting thecommitments
contained therein. Thisflexibility isintended totakeintoaccount thevarious ways States and
international organizations develop andestablish environmental measures.
International Telecommunications Union (ITU)
56. Although within ITUthere isnospecific committee discussing the
Environment/Telecommunication link,theITUworks withother international organizations onthe
implication oftelecommunications fortheenvironment, e.g.inthefieldofsatellites for
monitoring theenvironment.
World Tourism Organization
57. TheWorld Tourism Organization isactive inthetourism/environment areaandisfocusing
onapplying thesustainable development principles inAgenda 21interms ofimplementing
practical measures; major projects arelisted intheAnnex tothispaper.WT/CTE/W/9
Page17
VII. INTER-GOVERNMENTAL AGREEMENTS ONTHE ENVIRONMENT AND THEIR
RELATIONSHIP TOTHE GATS
58. Thissection willpresent asummary ofselected provisions ofcertain multilateral
environmental agreements thatrelate totheGATS withregard toservices andtheenvironment.20
Therelationship oftheprovisions ofmultilateral agreements totheGATS willdepend onthe
nature oftheobligations undertaken byMembers intheirschedules.
59. Multilateral environmental agreements relyonmutual co-operation toaddress aspecific
environmental problems, including cooperation through exchange ofinformation andresults of
research anddevelopment, technical assistance, cooperation inpreventing ordealing with
environmental problems, inmonitoring compliance bytheparties, provision ofinsurance and
financial assistance, facilitation oftechnology transfer, andinsetting technical norms. Arecent
study oninternational environmental lawnoted that"much ofinternational environmental law
relates toageneral obligation ofStates tocooperate ininvestigating, identifying, andavoiding
environmental harms".21These aspects require access to,orprovision of,services which havea
positive impact ontheenvironment andfacilitate theachievement oftheenvironmental objectives
ofthese multilateral agreements.22
20Forfurtherinformationonmultilateralenvironment alagreement s,seeL/6896, TRE/W /1and10/Rev.1, andPC/SCTE/W /3
and4.Themultilateral agreements reviewed forthissection are:Convention onInternational Trade inEndangered Species
ofWildFauna andFlora (1973, amended 1979 and1983); Convention fortheProtection oftheOzone Layer (Vienna 1985);
Montreal Protocol onSubstances thatDeplete theOzone Layer (1987); London Adjustments totheMontreal Protocol on
Substances thatDeplete theOzone Layer (1991); Copenhagen Adjustments andAmendments totheMontreal Protocol on
Substances that Deplete theOzone Layer (1992); Transfrontier Movements ofHazardous Waste (OECD
Decision/Recommendation Adopted on1February 1984); Basel Convention ontheControl ofTransboundary Movements
ofHazardous Wastes andTheir Disposal (1989); Bamako Convention ontheBanoftheImport intoAfrica andtheControl
ofTransboundar yMovement andManagement ofHazar dousWastesWithinAfrica(1991); London GuidelinesFortheExchange
ofInformation onChemicals inInternational Trade (amended 1989); Convention onBiological Diversity (1992); United
Nations Framework Convention onClimate Change (1992); Barcelona Convention fortheProtection oftheMediterranean
SeaAgainst Pollution (1976); Convention fortheProtection andDevelopment oftheMarine Environment (1983); Protocol
Concerning Co-operation inCombating OilSpills intheWider Caribbean Region (1986); United Nations Environment
Programme: Montreal Guidelines ontheProtection oftheMarine Environment Against Pollution from Land-Based Sources
(1985); Kuwait Regional Convention forCo-operation ontheProtection oftheMarine Environment from Pollution (1978);
Amazon Treaty Pact(1978); Convention onLong-Range Transboundary AirPollution (1979); 1988 Protocol tothe1979
Convent iononLong-Range Transboundar yAirPollutionConcer ningtheEmissionsofNitrogenOxidesorTheirTransboundar y
Fluxes; Convention fortheProtection andDevelopment oftheMarine Environment oftheWider Caribbean Region (1983);
Protocol Concerning Specially Protected Areas andWildlife totheConvention fortheProtection andDevelopment ofthe
Marine Environment oftheWider Caribbean Region; TheConvention onWetlands ofInternational Importance Especially
asWaterfowl Habitat (Ramsar, 1971); International Tropical Timber Agreement (1994); Convention ofthePrevention of
Marine Pollution byDumping ofWastes andOther Matter (1972); Convention forthePrevention ofPollution byShips
(1973); Convention ontheConservation ofMigratory Species ofWild Animals (1980); United Nations Convention onthe
LawoftheSea(1982); TheConvention Concerning theProtection oftheWorld Cultural andNatural Heritage (Paris, 1972);
TheConvention ontheConservation ofMigratory Species ofWild Animals (Bonn, 1979).
21David Hunter, JuliaSommer andScott Vaughan (1994), Concepts andPrinciples ofInternational Environmental Law:
AnIntroduction ,Environment andTrade Paper Number 2,United Nations Environment Programme, page 15.
22Examples oftheprovisions dealing withthese aspects are:Convention fortheProtection oftheOzone Layer (Vienna
1985), Articles 3and4,andAnnexes IandII;Montreal Protocol onSubstances thatDeplete theOzone Layer (1987), Articles
5,9and10;London Adjustments totheMontreal Protocol onSubstances thatDeplete theOzone Layer (1991), Articles
10and10A; Basel Convention ontheControl ofTransboundary Movements ofHazardous Wastes andTheir Disposal (1989),
Articles 4,10,13and14;London Guidelines FortheExchange ofInformation onChemicals inInternational Trade (amended
1989), Articles 2,13,14and15;Convention onBiological Diversity (1992), Articles 12,13,17,18and19;United Nations
Framework Convention onClimate Change (1992), Articles 4,5,8and9;Barcelona Convention fortheProtection ofthe
(continued...)WT/CTE/W/9
Page18
60. Inorder toaddress thenegative effects ofcertain services ontheenvironment, some
multilateral environmental agreements contain conditional orabsolute prohibition ofanactivity,
prior informed consent orprior authorization, andtechnical norms setting qualitative and
quantitative standards. Under theBasel Convention, hazardous waste notbeing managed inan
"environmentally sound manner" provides thebasis forpreventing imports ofthewaste, or
preventing exports ofthewaste toanother country where ithastobemanaged.23Certain
agreements prohibit orimpose requirements ofprior permits foractivities thatwould cause
pollution24,contain provisions forimproved designs inorder tomitigate pollution25,andsome
agreements contain general provisions thatallow parties totake"allappropriate measures" or
"every practicable measure" or"allpossible measures", insome instances withtheadditional
requirement thatthese measures beinconformity withinternational law.26Afewagreements also
contain restrictions imposed oncertain service activities onenvironmental grounds.27
22(...continued)
Mediterranean SeaAgainst Pollution (1976); Article 11; Protocol Concerning Co-operation inCombating OilSpills in
theWiderCaribbean Region(1986), Article6;UnitedNationsEnvironment Programme: MontrealGuidelinesontheProtection
oftheMarine Environment Against Pollution fromLand-Based Sources (1985), Item8,9,11,13,14and15;Kuwait Regional
Convention forCo-operation ontheProtection oftheMarine Environment from Pollution (1978), Articles III,IX,X,XI
andXII; Amazon Treaty Pact(1978), Article VII; United Nations Convention ontheLawoftheSea(1982), PartXII,
Sections 2and3.
23Basel Convent ionontheControlofTransboundar yMovement sofHazar dousWastesandTheirDisposal (1989), Article4.
24Seeforexample, ibid.,Article 4;Protocol forthePrevention ofPollution oftheMediterranean SeabyDumping
from Ships andAircraft, Articles 4,5,and6;Convention forthePrevention ofPollution byShips (1973), Article 5.
25See,forexample, Convention onPrevention ofPollution byShips (1973), Article 11.
26See,forexampl e,BarcelonaConvent ionfortheProtectionoftheMediterranean SeaAgainstPollution(1976), Articles5,
6,7and8;Protocol forthePrevention ofPollution oftheMediterranean SeabyDumping fromShips andAircraft, Article 13;
Protocol Concerning Co-Operation inCombating Pollution oftheMediterranean SeabyOilandOther Harmful Substances
incases ofEmergency, Article 9.TheUnited nations Convention ontheLawoftheSeastates inseveral contexts that
"States shall adopt lawsandregulations" fortheprevention, reduction andcontrol pollution inthemarine environment.
SeeArticles 207to212.
27Seeforexample, theProtocol Concerning Specially Protected Areas andWildlife totheConvention fortheProtection
andDevelopment oftheMarine Environment oftheWider Caribbean Region, Article 3and5;Convention onPrevention
ofPollution byShips (1973), Articles 4and5;Convention onthePrevention ofMarine Pollution byDumping ofWastes
andOther Matter (1972), Article VII.ANNEXWT/CTE/W/9
Page19Environmental Programme oftheWorld Tourism Organization
Theprogramme goaloftheWorld Tourism Organization inEnvironment andPlanning willcontinue tofocus ontranslating environmental
concerns intopractical measures destined tomake tourism trulysustainable. Thiswillentail continuation ofanumber ofmedium-term, coreprojects
(indicators, agenda 21implementation, sustainable tourism planning, etc.), while addressing, inresponse topriorities identified byMembers, newtopics
suchasecotourism, rural andvillage tourism, urban andhigh-density tourism. With respect tofinance, continued emphasis willbeplaced onenhancing
contacts between tourism project promoters (including governments) andbi-andmulti-lateral assistance institutions.
Heading 1: Environment
GOAL: Totranslate environmental concerns about tourism development intopractical measures thatwillmake tourism trulysustainable.
OBJECTIVE 1:
Assist Members toattain, adopt andmaintain thehighest possible environment standards, bothintheirtourism development andintheoperation
oftheirtourism sector, incooperation withinterested international organizations.
Activities Outputs With theassistance of
(a)Principles andpractice ofecotourism
developmentPlanning, engineering anddesign approaches to
plant andinfrastructure creation forecotourismConsultants
International Organizations
(b)Tourism andenvironment indicators for
specific sitesLists ofrecommended, segmented, indicators
forspecific sites; assistance tocountries,
through workshops andseminars, incarrying
outpilottesting ofindicatorsIndicator Expert Group
(c)Management ofbuiltheritage sitesfor
travel andtourismIdentification ofbestpractices formanagement
oftourism atbuiltheritage sites, withemphasis
onheritage preservation andrespect ofcarrying
capacityGroup ofExperts
International Organizations
Private SectorOBJECTIVE 2:WT/CTE/W/9
Page20
Apply systematically theprinciples concerning sustainable development contained inAgenda 21andother documents adopted atthe1992 United
Nations Conference onEnvironment andDevelopment. Ensure thattourism remains central tothediscussion ofglobal environmental issues inkeeping
withitsimportance asaworldwide economic, social andcultural phenomenon.
Activities Outputs With theassistance of
(a)Application ofAgenda 21totourism:
Sustainable tourism development forsmall
islandsOrganization, towards theendof1996, ofan
expert meeting ontourism development in
small islands: therecommendations adopted at
themeeting would takeaccount notonlyof
main Agenda 21principles (sustainability,
conservation ofbiodiversity, capacity building)
butalsofactors related tothespecificity of
tourism insmall islands (roleofimports,
dependence upon transport links -especially air
-andleakage ofreceipts)Consultants
International Organizations
Private Sector
(b)Pilottesting ofBlueflagtechnical manual Evaluation, incoastal states ofvarious regions,
oftheGlobal flagtechnical manual completed
in1995Governments
International Organizations
Private Sector
(c)Tourism andtheenvironment reference
centreMaking knowledge concerning the"tourism and
travel-related environment" generated bythe
World Tourism Organization andother
organizations more widely available through the
Tourism Documentation CentreDatabases ofinterested international
organizations andother partnersHeading 2: Planning forsustainable tourism developmentWT/CTE/W/9
Page21GOAL: Totranslate environmental concerns about tourism development intopractical measures thatwillmake tourism trulysustainable.
OBJECTIVE 3:
Foster, through research, publications andtraining, integrated planning forsustainable tourism development atthenational andregional levels.
Activities Outputs With theassistance of
(a)Planning forhighdensity andurban
tourismDevelopments, onthebasis oftheexperience of
World Tourism Organization member States, of
principles forthedevelopment ofthese inter-
related forms oftourism withparticular
reference touse-intensityConsultants
International organizations
Private Sector
(b)Product development andplanning for
rural andvillage tourismEvaluation oftheproduct andmarketing aswell
astheplanning andinfrastructure implications
ofthisnewform of"green" tourism bothin
developing anddeveloped countries: this
activity should leadtoahandbook for
development ofrural tourism productsConsultants
International Organizations
(c)Finance andplanning ofnational parks
andprotected areas fortourismExpanded andupdated version ofthe
1992 "Guidelines": Development ofnational
parks andprotected areas for"tourism"
including newchapters onfinance andwildlife
managementConsultants
Parkmanagers
International Organizations
(d)Climate andtourism Follow upof1993 working arrangement
between World Tourism Organization and
World Meteorological Organization byissue of
abrochure covering main issues of"Climate
andTourism"World Meteorological Organization