Edited by Adil Najam Mark Halle Ricardo Meléndez-Ortiz TRADE AND ENVIRONMENT A RESOURCE BOOK Trade and Environment A Resource Book Trade and environment policy is increasingly intertwined and the stakes are nearly always high in both trade and environmental terms. These issues are often complex and discussions tend to become very specialized, challenging policy practitioners to understand and follow all the various sub-strands of trade and environment debates. This Resource Book seeks to demystify these issues without losing the critical nuances. This collaborative effort of some 61 authors from 34 countries provides relevant information as well as pertinent analysis on a broad set of trade and environment discussions while explaining, as clearly as possible, what are the key issues from a trade and environment perspective; what are the most important policy debates around them; and what are the different policy positions that define these debates. The volume is structured and organized to be a reference document that is useful and easy to use. Our hope is that those actively involved in trade and environment discussions—as practitioners, as scholars and as activists—will be able to draw on the analysis and opinions in this book to help them advance a closer synergy between trade and environmental policy for the common goal of achieving sustainable development. TRADE AND ENVIRONMENT – A RESOURCE BOOK Edited by Adil Najam, Mark Halle and Ricardo Meléndez-Ortiz TRADE AND ENVIRONMENT A RESOURCE BOOK Edited by Adil Najam Mark Halle Ricardo Meléndez-Ortiz T&E Resource.qx 10/17/07 4:39 PM Page i © 2007 International Institute for Sustainable Development (IISD), International Centre for Trade and Sustainable Development (ICTSD) and the Regional and International Networking Group (The Ring). Trade and Environment: A Resource Book Edited by Adil Najam, Mark Halle and Ricardo Meléndez-Ortiz ISBN 978-1-895536-99-7 Published by International Institute for Sustainable Development, International Centre for Trade and Sustainable Development, The Regional and International Networking Group This publication is available online at http://www.trade-environment.org http://www.iisd.org http://www.ictsd.org http://www.ring-alliance.org Cover photos from iStockphoto. Readers are encouraged to quote and reproduce this material for educational, not-for-profit purposes, provided the source is acknowledged. Trade and Environment: A Resource Book Printed on 100% post-consumer recycled paper. T&E Resource.qx 10/17/07 4:39 PM Page ii The International Institute for Sustainable Development (IISD, http://www.iisd.org) con- tributes to sustainable development by advancing policy recommendations on international trade and investment, economic policy, climate change, measurement and assessment, and nat- ural resources management. Through the Internet, we report on international negotiations and share knowledge gained through collaborative projects with global partners, resulting in more rigorous research, capacity building in developing countries and better dialogue between North and South. IISD’s vision is better living for all—sustainably; its mission is to champion innova- tion, enabling societies to live sustainably. IISD is registered as a charitable organization in Canada and has 501(c)(3) status in the United States. IISD receives core operating support from the Government of Canada, provided through the Canadian International Development Agency (CIDA), the International Development Research Centre (IDRC) and Environment Canada; and from the Province of Manitoba. The institute receives project funding from numerous governments inside and outside Canada, United Nations agencies, foundations and the private sector. The International Centre for Trade and Sustainable Development (ICTSD, http://www.ictsd.org) was established in Geneva in September 1996 to contribute to a better understanding of development and environment concerns in the context of international trade. As an independent nonprofit and nongovernmental organization, ICTSD engages a broad range of actors in ongoing dialogue about trade and sustainable development. With a wide network of governmental, nongovernmental and intergovernmental partners, ICTSD plays a unique sys- temic role as a provider of original, non-partisan reporting and facilitation services at the inter- section of international trade and sustainable development. ICTSD facilitates interaction between policy-makers and those outside the system to help trade policy become more sup- portive of sustainable development. By helping parties increase capacity and become better informed about each other, ICTSD builds bridges between groups with seemingly disparate agendas. It seeks to enable these actors to discover the many places where their interests and pri- orities coincide, for ultimately sustainable development is their common objective. The Regional and International Networking Group (The RING, http://www.ring-alliance.org) is a global alliance of predominantly Southern independent research and policy organizations. It was formed in 1991 to stimulate preparations for the 1992 Rio Earth Summit. In 1994 the group designed and implemented an ongoing program of capacity development, pooled and collaborative research at regional and global levels, with the goal of creating a unique and influ- ential platform for international comparative policy research, action and advocacy. With an emphasis on South-South and South-North collaboration, the Ring aims to improve environ- ment and development policy formulation processes, and to increase the regional and local impact of organizations working on sustainable development issues. Ring activities focus on strategic development, capacity strengthening and planning within the individual organizations, water and people, sustainable livelihoods (including people’s technologies), multilateral envi- ronmental agreements, trade and environment, climate change, financing for development, and people-centred governance approaches for development. Trade and Environment: A Resource Book iii T&E Resource.qx 10/17/07 4:39 PM Page iii Trade and Environment: A Resource Book iv T&E Resource.qx 10/17/07 4:39 PM Page iv Contributors vii Acronyms and Abbreviations xi Acknowledgements xvii A User’s Guide – Adil Najam, Mark Halle and Ricardo Meléndez-Ortiz xix Section I: Setting the Context The Evolution of the Trade and Environment Debate at the WTO – Hugo Cameron 3 Expert Opinion: The future of the trade and environment debate – Hector Torres 5 Expert Opinion: It’s time to make the global debate local – K.G. Anthony Hill 9 The Trade and Environment Policy Formulation Process – Doaa Abdel Motaal 17 Expert Opinion: The case for integrated assessment – Hussein Abaza 19 Expert Opinion: Policy should be made through negotiation, not litigation – Sabrina Shaw 23 Section II: Issues and Debates 1. Agriculture – Malena Sell 29 Expert Opinion: Agriculture, environment and social justice – Adriano Campolina 31 Expert Opinion: Dealing with the hidden agenda on agricultural subsidies – Vangelis Vitalis 35 2. Biotechnology – Heike Baumüller 39 Expert Opinion: Making the Cartagena Protocol work – Veit Koester 41 Expert Opinion: Biotechnology and the multilateral trading system – Gustavo Alanís-Ortega 45 3. Capacity Building – Christophe Bellmann 49 Expert Opinion: The Andean experience on capacity building – Luisa Elena Guinand and 51 María Elena Gutiérrez 4. Climate Change and Energy – Malena Sell 59 Expert Opinion: Doing trade and climate policy together – ZhongXiang Zhang 61 Expert Opinion: Can trade be an instrument of climate policy? – Gao Pronove 63 5. Dispute Resolution – Howard Mann and Yvonne Apea 67 Expert Opinion: Reforming the DSU – Welber Barral 69 Expert Opinion: PPMs, trade law and the environment – Robert Howse 73 6. Environmental Goods and Non-agricultural Market Access – Nathalie Bernasconi-Osterwalder, 77 Linsey Sherman and Mahesh Sugathan Expert Opinion: Liberalization of environmental goods: A double-edged sword 79 or a panacea? – Beatrice Chaytor Expert Opinion: Are environmental goods good for the South? – Magda Shahin 81 Trade and Environment: A Resource Book v Contents T&E Resource.qx 10/17/07 4:39 PM Page v Trade and Environment: A Resource Book vi 7. Environmental Services – Mahesh Sugathan and Johannes Bernabe 87 Expert Opinion: Making trade liberalization work for the poor – Sitanon Jesdapipat 89 8. Environmental Technologies – Sandeep Singh 93 Expert Opinion: Encouraging trade in biofuels – Suani Teixeira Coelho 95 9. Fisheries Subsidies – Anja von Moltke 101 Expert Opinion: Fisheries subsidies and beyond – John Kurien 103 Expert Opinion: Fixing Cotonou’s rules of origin regime – Roman Grynberg and Natallie Rochester 107 10. Illegal Trade in Natural Resources – Duncan Brack 115 Expert Opinion: Illegal trade in tropical timber – Chen Hin Keong 117 11. Intellectual Property Rights – David Vivas-Eugui and Heike Baumüller 123 Expert Opinion: The limits of geographical indications – Dwijen Rangnekar 125 Expert Opinion: Protecting genetic resources – Manuel Ruiz 127 Expert Opinion: Focusing on the local agenda – Stella Wattimah Simiyu 131 12. Investment – Luke Eric Peterson 135 Expert Opinion: Investment rules for sustainable development – Konrad von Moltke 137 Expert Opinion: Investment law as if development mattered – Marcos A. Orellana 139 13. Multilateral Environmental Agreements – Vicente Paola B. Yu III 145 Expert Opinion: The logic of the WTO-MEA relationship – Alejandro Jara 147 Expert Opinion: MEA misconceptions and contradictions – Rob Monro 149 14. Policy Coherence – Otto Genee 159 Expert Opinion: Promoting policy coherence – Bernice Wing Yee Lee 161 Expert Opinion: New policy coherence challenges – Stéphane Guéneau 165 15. Regional Arrangements – Aaron Cosbey 169 Expert Opinion: Fostering sustainable development with RTAs – Hank Lim and Matthew Walls 171 Expert Opinion: The “shadow” trading system of RTAs – Adil Najam and Dirk Swart 175 16. Standards and Labelling – Tom Rotherham 179 Expert Opinion: Eco-labels from a Southern perspective – Veena Jha 181 Expert Opinion: Confronting eco-labelling myths – Nicola Borregaard and Annie Dufey 185 17. Trade Facilitation – Luke Eric Peterson 189 Expert Opinion: Putting the environment into trade facilitation – Sachin Chaturvedi 191 Section III: Resources The Doha Ministerial Declaration: Annotating the Trade and Environment Linkages – 199 Adil Najam and Trineesh Biswas A Trade and Environment Timeline – Compiled by Trineesh Biswas 215 A Trade and Environment Glossary – Compiled by Sarah Mohan and Heike Baumüller 221 Online and In-print Resources – Compiled by Sarah Mohan, Heike Baumüller and Ruth Fend 239 T&E Resource.qx 10/17/07 4:39 PM Page vi HUSSEIN ABAZA (Egypt) is the Chief of the Economics and Trade Branch of the United Nations Environment Programme (UNEP), based in Geneva. G USTAVO ALANÍS-ORTEGA (Mexico) is President of the Centro Mexicano de Derecho Ambiental (CEMDA) and teaches environmental law at the Universidad Iberoamericana in Mexico City. Y VONNE APEA (Ghana), formerly Program Co-ordinator – Dispute Settlement at the International Centre for Trade and Sustainable Development (ICTSD), is now Conference and Project Manager at the Economist Intelligence Unit. W ELBER BARRAL (Brazil) is a professor of law at the Federal University of Santa Catarina, Florianópolis, Brazil . H EIKE BAUMÜLLER (Germany), formerly Program Manager – Environment and Natural Resources at the International Centre for Trade and Sustainable Development (ICTSD), is now an independent consultant working in Cambodia. C HRISTOPHE BELLMANN (Switzerland) is Programs Director at the International Centre for Trade and Sustainable Development (ICTSD). J OHANNES BERNABE (Philippines) served as a trade negotiator for his country and is currently the Trade in Services Coordinator at the International Centre for Trade and Sustainable Development (ICTSD). N ATHALIE BERNASCONI-OSTERWALDER (Switzerland/Canada) is the Managing Attorney of the Geneva Office of the Center for International Environmental Law (CIEL). N ICOLA BORREGAARD (Chile) is Advisor to the Chilean Minister of Economy and Energy. D UNCAN BRACK (United Kingdom) is an Associate Fellow with the Energy, Environment and Development Programme at Chatham House (the Royal Institute for International Affairs). H UGO CAMERON (Canada) is an International Trade Expert with International Lawyers and Economists Against Poverty (ILEAP) and former Senior Associate with the International Centre for Trade and Sustainable Development (ICTSD). A DRIANO CAMPOLINA (Brazil) is the Regional Director for the Americas for ActionAid International, based in Brazil. 1 All authors have expressed their personal opinions in their contributions. Their views do not necessarily reflect those of the organizations with which they are affiliated. Trade and Environment: A Resource Book vii Contributors 1 T&E Resource.qx 10/17/07 4:39 PM Page vii SACHIN CHATURVEDI (India) is a Research Fellow at the Research and Information System for Developing Countries (RIS), based in New Delhi, India. B EATRICE CHAYTOR (Sierra Leone) served as a trade negotiator for her country and is currently the Director of Policy, Planning and Research at the Sierra Leone Ministry of Trade and Industry. H YUN JUNG JO CHOI (Korea) is a graduate researcher at the Fletcher School of Law and Diplomacy, Tufts University. S UANI T EIXEIRA COELHO (Brazil) is São Paulo State’s Deputy Secretary of State for the Environment and Head of the Brazilian Reference Center on Biomass, University of São Paulo. A ARON COSBEY (Canada) is an Associate of and Senior Advisor to the International Institute for Sustainable Development (IISD). A NNIE DUFEY (Chile) is Research Associate at the International Institute for Environment and Development (IIED). O TTO GENEE (The Netherlands) is the Director of the Policy Coherence for Development Unit at the Dutch Ministry of Foreign Affairs. R OMAN GRYNBERG (Canada/Australia) is the Director for Economic Governance at the Pacific Islands Forum Secretariat. S TÉPHANE GUÉNEAU (France) is a Policy Analyst and at the Institute for Sustainable Development and International Relations (IDDRI) in Paris, France. L UISA ELENA GUINAND (Venezuela) is the Coordinator for Environment and Sustainable Development at the General Secretariat of the Andean Community, M ARÍA ELENA GUTIÉRREZ (Peru) studies sustainable development and conserva- tion biology at the University of Maryland, U.S. M ARK HALLE (U.S./Italy) is the European Representative and Global Director of the Trade and Investment Program of the International Institute for Sustainable Development (IISD). K.G. A NTHONY HILL (Jamaica) is a seasoned trade negotiator and was his coun- try’s Ambassador and Permanent Representative to the United Nations in Geneva. R OBERT HOWSE (Canada) is the Alene and Allan F. Smith Professor of Law at the University of Michigan Law School and a former Canadian trade diplomat. A LEJANDRO JARA (Chile) is a Deputy Director-General of the World Trade Organization (WTO) and was formerly the Chair of the WTO Committee on Trade in Services Special Session and Ambassador and Permanent Representative of his country to the WTO. S ITANON JESDAPIPAT (Thailand) is a Technical Advisor for the Red Cross/Red Crescent Climate Centre in the Netherlands. V EENA JHA (India) is the coordinator of the UNCTAD Initiative on Strategies and Preparedness for Trade and Globalization in India. Trade and Environment: A Resource Book viii T&E Resource.qx 10/17/07 4:39 PM Page viii CHEN HIN KEONG (Malaysia) is the Senior Forest Trade Advisor to TRAFFIC International, based in Malaysia. V EIT KOESTER (Denmark) was with his country’s Ministry of Environment and is now the Chairman of the Compliance Committees of the Cartagena Protocol and the Aarhus Convention. J OHN KURIEN (India) is a professor at the Centre for Development Studies, Thiruvananthapuram. B ERNICE WING YEE LEE (Hong Kong, China) was the Policy Analysis and Strategy Advisor at the International Centre for Trade and Sustainable Development (ICTSD). H ANK LIM (Singapore) is the Director of Research at the Singapore Institute of International Affairs. H OWARD MANN (Canada) is a practicing lawyer and the Senior International Law Advisor to the International Institute for Sustainable Development (IISD). R ICARDO MELÉNDEZ-ORTIZ (Colombia) is the Executive Director of the International Centre for Trade and Sustainable Development (ICTSD). R OB MONRO (Zimbabwe) was head of Zimbabwe Trust, an NGO which was one of the founders and promoters of the CAMPFIRE program. D OAA ABDEL MOTAAL (Egypt) is Counsellor in the Cabinet of the Director- General of the World Trade Organization (WTO). A DIL NAJAM (Pakistan), an IISD Associate, teaches international negotiation and diplomacy at the Fletcher School of Law and Diplomacy, Tufts University. M ARCOS A. ORELLANA (Chile) is Senior Attorney with the Center for International Environmental Law (CIEL) in Washington, D.C., and Adjunct Professor at American University Washington College of Law. L UKE ERIC PETERSON (Canada) is Editor of Investment Treaty News, a report- ing service published by the International Institute for Sustainable Development (IISD). G AO PRONOVE (Philippines) is the Executive Director of Earth Council Geneva. D WIJEN RANGNEKAR (United Kingdom/India) is a Senior Research Fellow at the School of Law and Centre for the Study of Globalisation and Regionalisation, Warwick University. N ATALLIE ROCHESTER (Jamaica) is a Services Analyst with the Caribbean Regional Negotiating Machinery. T OM ROTHERHAM (United Kingdom) is Head of the Corporate Responsibility practice at Radley Yeldar Consulting and an Associate at the International Institute for Sustainable Development (IISD). M ANUEL RUIZ (Peru) is Director of the Program on International Affairs and Biodiversity of the Peruvian Society for Environmental Law (SPDA). Trade and Environment: A Resource Book ix T&E Resource.qx 10/17/07 4:39 PM Page ix [...]... Social Sciences, Peking University and Chinese Academy of Sciences, Beijing x T&E Resource. qx 10/17/07 4:39 PM Page xi Trade and Environment: A Resource Book Acronyms and Abbreviations AB Appellate Body ABS access and benefit-sharing ACP African, Caribbean and the Pacific AFP Asia Forest Partnership AoA Agreement on Agriculture APEC Asia Pacific Economic Cooperation (Forum) ASEAN Association of Southeast... obligations in MEAs; observer status for MEA secretariats; and the liberalization of trade in environmental goods and services This reflected the perception that accepting an environmental mandate remained a trade- off for developing countries, which have not been demandeurs in these areas Paragraphs 32, 33 and 51 make up Doha’s “non-negotiating” trade and environment mandate Paragraph 32 focuses the...T&E Resource. qx 10/17/07 4:39 PM Page x Trade and Environment: A Resource Book MALENA SELL (Finland) is Program Officer, Environment and Agriculture at the International Centre for Trade and Sustainable Development (ICTSD) MAGDA SHAHIN (Egypt) is her country’s Assistant Foreign Minister for International Economic Affairs and earlier served as her country’s Ambassador to Greece and chief trade negotiator... intellectual and managerial talents of these institutions In this regard, we are especially grateful to Heike Baumüller and Hugo Cameron (at ICTSD) and David Boyer (at IISD) who have been critical to the intellectual substance as well as the management of the process Important inputs were also provided by Sarah Mohan (at ICTSD) and Sabrina Shaw, Trineesh Biswas and Stuart Slayen (at IISD) at various stages... University and an independent researcher HECTOR TORRES (Argentina) served as a trade negotiator for his country and is now an Executive Director at the International Monetary Fund (IMF) VANGELIS VITALIS (New Zealand) is a former Chief Advisor at the OECD and currently a Senior Trade Negotiator for the New Zealand Ministry of Foreign Affairs and Trade DAVID VIVAS EUGUI (Venezuela) is Program Manager – Intellectual... application of technical regulations and standards and marked the first reference to the environment in a GATT agreement 3 T&E Resource. qx 10/17/07 4:39 PM Page 4 Trade and Environment: A Resource Book While trade officials were factoring the environment into international trade agreements, trade measures were being used as a tool to advance global environmental goals In 1975, the Convention on International... Organization IMF International Monetary Fund IPOA-IUU International Plan of Action to Prevent, Deter and Eliminate Illegal, Unreported, Unregulated Fishing IPPC International Plant Protection Convention IPR intellectual property right ISBs international standards bodies ISEAL International Social and Environmental Accreditation and Labelling Alliance ISO International Organization for Standardization... small and medium-sized enterprise SPS sanitary and phytosanitary (measures) STOs specific trade obligations TA technical assistance TACB technical assistance and capacity building TBT xiv metric tons technical barriers to trade T&E Resource. qx 10/17/07 4:39 PM Page xv Trade and Environment: A Resource Book TEDs turtle excluder devices TK traditional knowledge TNC Trade Negotiations Committee TPRM Trade. .. fisheries, Paragraph 28 of the Declaration man- continued from page 5 However, as a global citizen, I believe that the international arena should demand enforceability and accountability in the implementation of national environmental regulations Once nations have set their environmental laws and regulations, they should have an international obligation to ensure that these laws and regulations are implemented... PRONAF National Program for Strengthening Family Farming (in Brazil) PRSP poverty reduction strategy paper REACH Registration, Evaluation and Authorization of Chemicals The Ring The Regional and International Networking Group RTA regional trade agreement S&DT special and differential treatment SCM subsidies and countervailing measures SIA sustainability impact assessment SIDS small island developing states . Edited by Adil Najam Mark Halle Ricardo Meléndez-Ortiz TRADE AND ENVIRONMENT A RESOURCE BOOK Trade and Environment A Resource Book Trade and environment policy is increasingly intertwined and the stakes. development. TRADE AND ENVIRONMENT – A RESOURCE BOOK Edited by Adil Najam, Mark Halle and Ricardo Meléndez-Ortiz TRADE AND ENVIRONMENT A RESOURCE BOOK Edited by Adil Najam Mark Halle Ricardo Meléndez-Ortiz T&E. Environmental Law (SPDA). Trade and Environment: A Resource Book ix T&E Resource. qx 10/17/07 4:39 PM Page ix Trade and Environment: A Resource Book x MALENA SELL (Finland) is Program Officer, Environment