Environment - Trade Policy
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 (EU) in meetings of the CTE. The common EU position is agreed by all EU member states.
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 but no agreement was reached on these issues.
Disappointingly, no agreement was also reached at the 6th Ministerial, which took place in Hong Kong in December 2005. However, the Ministerial Declaration at Hong Kong re-affirmed member states’ commitment to negotiate on all aspects of the mandate on environment which was agreed in Doha in 2001. Several CTE meetings are scheduled for the coming months in order to advance negotiations on this issue with a view to reaching agreement before the end of the year. The UK Government will continue working closely on this with the European Commission and other member states in order to move negotiations forward.
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 (see related links)
The UK is also active in the Organisation of Economic Co - operation and Development (OECD) through the Joint Working Party on Trade and Environment and we support United Nations Conference on Trade and Development (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:
BERR Enquiry Unit
Tel: 020 7215 5000
Email: enquiries@berr.gsi.gov.uk