World Trade Organization

Developments and Forestry

John MundyDirector of Environmental and Sustainable

Development Relations DivisionForeign Affairs Canada

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1. Presentation Overview

• Recent developments at the WTO in the trade and environment relationship

• Sustainable forestry management in the context of the Doha Development Agenda

• Future directions

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2. Canada’s WTO Objectives

• Agricultural trade reform

• Improved market access goods and services

• Strengthened trade rules

• Integration of developing countries

• Mutual supportiveness of trade and environmental objectives

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3. The July Package

• A vote of confidence for multilateralism

• Important step towards meeting Canada’s objectives

• Opens the door to the next, more detailed stage

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4. Trade and Environment at the WTO

Doha Ministerial Declaration - Paragraph 31 Negotiations on:

(i) the relationship between existing WTO rules and specific trade obligations set out in MEAs;

(ii) procedures for regular information exchange between MEA Secretariats and relevant WTO Committees; and

(iii) the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services.

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5. Trade and Environment at the WTO

Paragraph 32 on the CTE Work Programme, with “particular attention” to:

(i) Effect of environmental measures on market access;

(ii) Relevant provisions of TRIPS; and

(iii) Labelling requirements for environmental purposes

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6. Trade and Environment at the WTO

• Paragraph 33 on technical assistance and capacity building in the field of trade and environment

• Paragraph 51 on identifying and debating developmental and environmental aspects of the negotiations to achieve the objective of sustainable development

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7. Trade Policy and Sustainable Forest Management

• Forest loss resulting from conversion of agricultural land

• Market-based tools to promote trade in forest products from sustainably managed forests:

• Certification of forest management

• Labelling of forest products

• Measures beyond trade policy: domestic regulation, compliance, enforcement and monitoring

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8. CTE Report to 5th WTO Ministerial (Cancun)

Paragraph 32 (i) discussions on forests:

• WSSD Plan of Implementation and concept of sustainable forest management

• Concerns over international trade in illegally harvested timber – importance of domestic regulation and international approaches

• Relationship between tariff levels and over-exploitation

• Positive measures in the forestry sector and national solutions

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9. CTE Report to 5th WTO Ministerial (Cancun)

Paragraph 32 (iii) discussions on labelling:

• Voluntary, participatory, market-based and transparent environmental labelling schemes

• Technical assistance/capacity building for developing countries

• Recognition of the equivalency of certification systems

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10. Future Directions…

• Recognition of equivalency of forest certification systems – discussions in the TBT Committee

• Certification as an issue in environmental goods and services under Paragraph 31(iii) in the CTESS?

• Other international fora and national solutions