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Department of Trade and Industry
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Trade and Environment

The Government is committed both to protecting the environment and to maintaining an open, non-discriminatory and equitable multilateral trading system. For this reason, we must be sure that WTO rules can be applied without sacrificing environmental concerns; and that international work on environmental protection (for example, via international agreements governing the environment such as Multilateral Environment Agreements (MEAs)) can be pursued without sacrificing trade principles and WTO rights.

The Government's work on trade and environment is governed by some clear principles, for example:

a) we must at all cost avoid forging new protectionist tools: the principles of non-discrimination, national treatment and transparency must be fully respected;

b) wherever possible, environmental regulation must be multilaterally based; and command the widest support;

c) trade rules must not be used to block legitimate environmental regulation and we must be guided at all times by the principle of sustainable development;

d) where environmental action is required, it should be evidence based while acknowledging that there will not always be full certainty.. Risks will need to be assessed fully, including the risks if action is not taken.

The UK takes part in the WTO Committee on Trade and Environment (CTE), which examines the interface between trade and environment policies. The European Commission represents the European Union in meetings of the CTE. For more information on EU trade and environment policy, see the EU website.

At the WTO 4th Ministerial in Doha, which took place in November 2001, environment was included on the agenda for the first time. This important step must not be underestimated. It is the first time that the links between trade and environment have been explicily recognised as part of a Round. In the Doha Declaration, WTO members agreed to negotiations on the relationship between WTO rules and specific trade obligations set out in MEAs; procedures for regular information exchanges between MEA Secretariats and the relevant WTO committee and the reduction, or as appropriate elimination, of the tariff and non-tariff barriers to environmental goods and services.

WTO members also instructed the CTE to pursue further work on the environment agenda, paying particular attention to the effect of environmental measures on market access, especially in relation to developing countries, the relevant provisions of the Agreement on Trade- Related Aspects of International Property Rights and labelling for environmental purposes. Work on these issues includes the identification of the need to clarify any relevant WTO rules.

At the WTO 5th Ministerial in Cancun, which took place in September 2003, discussions on the environment agenda were limited to labelling for environmental purposes and observership status for MEA secretariats. Disappointingly, the Cancun Ministerial did not reach agreement on this or any other aspect of the Round, but we will continue to push for a successful outcome on all aspects of the WTO environment agenda by the end of the trade round.

Information on the progress of negotiations, including the position papers submitted by WTO Members such as the EU, can be found on the WTO website at the CTE link above.

The UK is also active in the OECD through the Joint Working Party on Trade and Environment and we support UNCTAD in its continuing work on trade and environment.

A number of Government Departments work together to develop trade and environment policy, including the Department for Environment, Food and Rural Affairs, the Department for International Development and the Foreign and Commonwealth Office

Contact:

Emma Squire
Tel: 020 7215 6017

Fax: 020 7215 2235
Email: emma.squire@dti.gsi.gov.uk