WTO Ministerial Section • Volume 9 • Number 41 • 30th November 2005

Lamy’s Draft Largely Adopts CTE Chair’s Text

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WTO Director-General Pascal Lamy’s 26 November comprehensive draft Hong Kong Ministerial Declaration incorporated almost word-for-word the entire text submitted to him by environment negotiations Chair Ambassador Toufiq Ali of Bangladesh.

The text contains two alternative bracketed approaches for identifying environmental goods and services (EGS) for the purposes of expedited liberalisation as per Paragraph 31(iii) of the Doha Declaration. Members had continued to differ on the two approaches when discussing the draft text on environment at the last session of the Committee on Trade and Environment Special Session (CTE-SS) on 22 November.

One option instructs Members to continue their work towards developing a "common understanding" on how to proceed. The other would see Members "complete by [...] 2006 the work under Paragraph 31(iii) by identifying environmental goods for the reduction or, as appropriate, elimination of tariffs and non-tariff barriers in this area."

The latter option is supported by countries that favour the so-called ‘list’ approach, which would have Members multilaterally agree on a list of goods earmarked for liberalisation (see BRIDGES Weekly, 16 November 2005). However, a number of developing countries are wary of committing to this approach, since they feel that the lists submitted so far only contain goods of export interest to rich nations. They prefer the first option, which they say would keep the approach to the negotiations as flexible as possible.

After discussions in earlier consultations did not resolve disagreement on a reference to the link between outcomes from the CTE negotiations on EGS and work in other negotiating committees, such as the one on non-agricultural market access (NAMA), the draft ministerial declaration text does not include any references to other negotiating bodies.

Weak recognition of talks on MEA-WTO relationship

Lamy’s draft text also acknowledges progress made under Paragraph 31(i) to clarify the relationship between WTO rules and specific trade obligations set out in multilateral environmental agreements (MEAs). In addition, it recognises work undertaken under paragraph 31(ii) towards developing effective procedures for the regular exchange of information between MEA Secretariats and the relevant WTO committees, and criteria for granting observer status.

The text that Chair Ali had submitted to Lamy and the Trade Negotiations Committee (TNC) had also included a footnote saying that some delegations wanted to see additional language with specific instructions from ministers in this paragraph. This had been added in response to calls from the EU and Canada for more ambitious language on the two negotiating items. The EU wanted bracketed text instructing Members to move into text-based negotiations on Paragraph 31(i), while Canada, supported by New Zealand, Switzerland, Mexico and Argentina, proposed a compromise phrase to "move to more substantive negotiations in these areas." The footnote, however, was not reflected in Lamy’s comprehensive draft text.

Members have been discussing the draft Hong Kong Ministerial Declaration text in a series of informal meetings, as well as in the TNC on 30 November. It will now be addressed in the General Council from 1-2 December.

Lamy’s draft Ministerial Declaration text is available at http://www.wto.org/english/thewto_e/minist_e/min05_e/draft_text_e.htm.

Ali’s draft text is available at http://www.ictsd.org/ministerial/hongkong/docs/05-11_24_trade_environment_draft_text.pdf.

ICTSD reporting.