harnessing trade for sustainable development and a green economy · 2012-03-07 · and a green...
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Vesile KulaçoğluDirector, Trade and Environment Division,WTO
Vesile KulaçoğluDirector, Trade and Environment Division,WTO
HARNESSINGTRADEFORSUSTAINABLEDEVELOPMENTANDAGREENECONOMY
Trade and Sustainable
Development
Rio Declaration(Principle 12)
UNFCCC (Article 3.5)
WTO(Preamble, MarrakeshAgreement)
2
Objectives Rules
Enforcement Transparency
WTO
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Objectives
System of rules
Institutions & Monitoring Mechanisms
Enforcement Mechanism & WTO Case Law
Core Mission of Trade Opening
Living standards, full employment, using the world's resources sustainably & protecting the environment
Policy space for necessary trade-related measures for legitimate objectives such as the environment, subject to conditions aimed at avoiding hidden protectionism
Ensure predictability, monitor implementation & enable action if measures impact on trade
Confirms a balance between Members’ right to take trade related environmental measures & the rights of other Members under WTO rules
Leads to more efficient allocation of natural resources, stimulates growth and raises income levels, improves access to green technologies
Privatestandards• Market
fragmentation?
Taxes and othermarket tools• Border
adjustments?
Subsidies• Trade distortions?
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Price and market mechanisms
Border adjustments ?Relocation of production to a country that does not apply an equivalent instrument?
May increase production costs of domestic firms
Environmental requirements
Concerns related to inadequate design, insufficient transparency, lack of harmonization or mutual recognition
Increasingly significant determinants of access to foreign markets
Green Support Programs
May reduce exporting countries’ access to the market of the subsidizing country or may increase the exports of the subsidizing country
May lower costs for producers, leading to lower green product prices
Technical regulations and standards•Agreement on Technical Barriers to Trade
Taxes and other market instruments•General Agreement on Tariffs and Trade
Subsidies•Agreement on Subsidies and Countervailing
Measures
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Environmental requirements, e.g. Product/production specifications, voluntary/mandatory, characteristics/ performance, labelling
Environmental requirements, e.g. Product/production specifications, voluntary/mandatory, characteristics/ performance, labelling
TBT AgreementTBT Agreement
Price & market mechanisms, e.g. environmental taxes, ETSPrice & market mechanisms, e.g. environmental taxes, ETS
GATTGATT
SCM AgreementSCM AgreementSupport programs, e.g. R&D, fiscal, price and investment measuresSupport programs, e.g. R&D, fiscal, price and investment measures
Key WTO Agreement
Key WTO AgreementKey policy instrumentKey policy instrument
Improve resource use & reduce pollutants, e.g. for energy efficiency, forestry management
Improve resource use & reduce pollutants, e.g. for energy efficiency, forestry management
Internalize env’tal costs, e.g. for GHG emissionsInternalize env’tal costs, e.g. for GHG emissionsPromote development & deployment of green technologies
Promote development & deployment of green technologies
Key objectiveKey objective
Green procurement, e.g. adoption of technical specifications & evaluation criteria that promote procurement of green goods & services
Promote sustainable consumption and production
GPA
Objectives Rules
Enforcement Transparency
WTO
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Right to adopt measures to
achieve legitimate objectives
Rights of others under basic trade
rules
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WTO rules, as confirmed by case law
Essential to maintain a balance between
Under certain conditions, Members can adopt trade-related measures aimed at protecting the environment
the right of Members to take regulatory measures to achieve legitimate policy objectives
the rights of other WTO Members under basic trade rules
WTO jurisprudence has confirmed that WTO rules do not trump
environment, as long as…
several carefully crafted conditions are respected…
which seek, among other things, to ensure that green measures are
not applied arbitrarily and not used as disguised protectionism.
Objectives Rules
Enforcement Transparency
WTO
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Trade Policy Review Mechanism
Legally-Binding Dispute Settlement Mechanism
2008: WTO MonitoringMechanism
Specific trade concerns
Trade policy reviews
Monitoring
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The WTO is a repository for trade-related policy information and a forum for deliberations
Members inform each other about new or forthcoming trade-related measures
Technical requirements
Sanitary and phytosanitary measures
Subsidies
Agriculture measures
1995 to 2011: 14200 notifications submitted to the TBT Committee, an average of 830 measures notified per year
Technical Barriers to Trade Agreement
Approximately 15% about measures related to the environment
1995 to 2011: 330 specific trade concerns raised in the TBT Committee, an average of 19 concerns (new and old) raised per year
Approximately 22% about measures related to the environment
The WTO Committee on Trade and Environment is the right forum to foster international co-operation on trade-related green economy measures
Coverage includes
Sustainability aspects of trade in individual sectors
such as forestry and energy
The effect of green labelling schemes
on market access