International Seminary on Trade and Environment

International Seminary on Trade and Environment Location: Auditorium Mario Molina Ministry of Environment and Natural Resources Periférico Sur 4209, Mexico City Dates: July 31st and August 1 st, 2003 Language: Spanish (translation available) Sponsor: General Direction of Environmental Policy and Economic Research National Institute of Ecology (INE) PROGRAM INTRODUCTION Since WTO creation in 1995 and as a result of the Marrakech Ministerial decision, a committee to deal with trade and environment issues was created. The establishment of the committee helped to take into consideration environmental and sustainable development topics in the WTO agenda. By mandate, the committee must not overlook two guiding principles: WTO deals only with trade issues. Therefore its only duty is to study problems that rise when environmental policies have consequences on commerce. If the committee finds any dispute to settle, the way to solve it must adjust to the principles of the system and avoid measures that generate distortions on trade (WTO 1999: 46). The creation of the committee was a step forward in regard to the topic. However, since the WTO works as a forum where countries negotiate the commercial opening of their markets, the debate took a non-cooperative and controversial approach. Cases of conflict where commercial activities of some countries affected the environment began to arise. In 1999 the WTO reoriented the environmental policies to assure that trade is done within ecological limits but without affecting trade activities (Vaughan, et al. 1999: 7). Since then, there has been a great advance in the environmental-trade debate due to claims from social and international organizations who have given a greener perspective to the debate, rather than a commercial focus to the discussion. In the same way the WTO debate has undertaken one of their original goals, which is to increase the quality of life standards of population based on a sustainable (economic) development. The WTO seemed to have forgotten this objective. After Seattle and in response to the increasing protests around the world, the WTO opened the debate of environment and trade seeking the 1

achievement of a sustainable development, in order to get closer to world citizens. The result was the Doha Development Agenda. The declaration of the Fourth Ministerial Conference celebrated in Doha in November 2001, contains negotiation rules on several topics. Among those, trade and environment is one of the issues addressed. In order to check the advances of the negotiations, the fifth WTO Ministerial Conference will be celebrated in Cancun, Mexico. Some of the most important issues subject to negotiation are: Reduction or elimination of the custom and non-custom obstacles of environmental goods and services. Clarification and improvement of WTO disciplines with respect to subsidies. Reduction or elimination of restrictions and distortions of commerce that hinder trade, environment and development; Agreements over Intellectual property rights related to commerce; Sealed prescriptions with environmental goals. Cancun represents a challenge, among other reasons, because it is the first international forum after war. To a certain extent, the interests of the countries have changed, and therefore this can jeopardize the trade-environment debate. OBJECTIVE Having WTO Doha negotiations as a framework, the National Institute of Ecology has organized an international seminary where topics related to trade and environment will be discussed. The objective of the seminary is to be acquainted with recently research on issues such as environmentally harmful subsidies, liberalization of environmental services, and intellectually property rights. Due to the importance of the coming fifth WTO ministerial conference in Cancun, Mexico as a country should have a clear stand on the subject. With this seminary the institute seeks to contribute to this debate and help policy makers and public In general to be informed and updated with the subject as well as be in contact with national and international experts about the topic. This effort is closely related with the work that is being undertaken by the International Affairs Unit, Ministry of Environment and Natural Resources, the Sub -secretary of planning, Ministry of Environment and Natural Resources, the National Institute of Ecology and the Ministry of Economy, TOPICS OF DISCUSSION The field of trade and environment is quite large. This is why the seminary will focus on three specific areas: Subsidies The use of export subsidies was one of the most contentions issues during the Uruguay Round of negotiations. These differences remain even post Doha. Some countries propose the total elimination of all forms of export subsidies, others are prepared to negotiate further progressive reductions but 2

not complete elimination. Most developing countries argue that their domestic producers are disadvantaged if they have to compete with imports whose prices are depressed due to export subsidies or face greater competition in export markets for this reason. Another concern is the inequality in the rules governing export subsidies. Specifically, the fact that developed countries are allowed to continue to spend large amounts of money on export subsidies while developing countries cannot do so, firstly because they lack the money and secondly, because only those countries that originally subsidized exports were allowed to continue to do so. While the ongoing trade negotiations have potential to provide gains for the environment, there must be recognition that issues of environmental degradation and natural resource misuse are broader than issues addressed by trade negotiations alone. Focusing in the agricultural sector, a range of social issues such as poverty and rural development arise and cut across the range of negotiating issues. The questions for WTO negotiators become how to focus and conduct their efforts so that agricultural and trade policy reforms they design will support sustainable agriculture and rural development. In broad terms, negotiations for further liberalization of agricultural trade can be broken down into three general categories: 1) Market access: tariff reduction and tariff rate quotas 2) export and competition; and 3) domestic support. Environmental good and services Environmental goods and services is relatively a new area of trade policy involving the WTO. International market opportunities for environmental goods and services are substantial, relatively stable, and growing. Demand for green products and services is also growing in some developing countries of Asia, the Latin American and Caribbean region. There are two ways of approaching the development of markets in environmental goods and services: First, to examine and support specific market opportunities for specific product and services groupings, with a particular emphasis on opportunities presented to developing country exporters. Second, to examine trade policy aspects, including the current work in the World Trade Organization (WTO) arising from the Doha Ministerial mandate (paragraph 31(I) to reduce or eliminate tariffs and non-tariff barriers affecting environ-mental goods and services. Therefore, the opportunity that developing countries should explore is how to increase market capacities for environmental goods and services for which they have a strong comparative. There are important market opportunities for developing country producers, consumers, investors, marketing intermediaries to support environmental goods and services. However, there are several distinct obstacles that need to be addressed in order to realize these opportunities in the short- to mediumterm. Some of the most important questions to be answered in this wide area are: What are the key issues arising in the area of environmental goods and services? What comparative advantages do developing countries have in environmental goods and services? What are the constraints and opportunities to expand exports in these sectors, including supply capacities and niche markets? 3

What is the role of technology cooperation in providing developing countries with the means to produce environmental goods and services? How can developing countries address any like-product or process and production methodrelated issues that may arise when classifying environmental goods and services? What are the main issues arising from WTO negotiations? Intellectual property rights The relationship between intellectual property and the environment is important particularly for developing countries rich in biological resources. It is necessary, underpinning the need for effective capacity building to help understand the linkages and build mutually supportive trade and environmental policies. Because intellectual property is so intimately conne cted to who controls knowledge, as well as the products and processes embodying it, promoting a mutually supportive relationship between rules on intellectual property and the environment will require a concerted effort at the local, national, regional and international levels, undertaken through extensive consultation with a wide range of stakeholders. Some of the most important questions to be answered in this area are: How do intellectual property rights affect access and benefit sharing arrangements for genetics resources and traditional knowledge? What effect can intellectually property rights have on traditional farming practices that relate to the conservation of biological diversity, such as the practice of saving and sharing seeds? How do intellectual property rights such as patents or systems for plant variety protection affect its creation, transfer and dissemination? What is the relationship between intellectual property and technology transfer? How will existing and proposed future rules in this realm affect developing country interests economics, social and environmental? What practical and legal changes are required to ensure that the various dimensions of development are taken fully into account? TARGETED AUDIENCE The participants will include: Government officials working in the trade and environment sectors Academics and NGOs 4

PROGRAM OF THE EVENT The event is programmed for two days. Thursday July 31st and Friday August the 1 st, 2003. The first day of the event will be open to the public and the experts will discuss subjects such as: subsidies, liberalization of services and intellectual property, all this having the Doha Agenda as reference. The second day will be a reunion between the international experts and people from the ministry of environment. The latter with the goal of sharing ideas and answer questions about topics in environment and trade. Information Para mayores informes comunicarse con: Marisol Rivera Planter e-mail: marivera@ine.gob.mx 5

Agenda Time July 31st (free access) Program 8:30 to 9:00 Register 9:00 to 9:30 Opening Dr. Francisco Szekely y Sanchez Deputy Minister Ministry of Environment and Natural Resources 9:30 to 11:45 9:30 to 10:00 Dr. Exequiel Ezcurra President National Institute of Ecology Table 1 Topic: environmentally harmful subsidies Presentation: Lic. Alejandro Montiagudo Director of Environment affairs Ministry of Economy Researchers conferences: 10:00 to 10:30 10:30 to 11:00 11:00 to 11:30 Chantal Line Carpentier Head, Environment, Economy and Trade Program North American Commission Environmental Cooperation Marc Paquin & Stephanie Dionne Unisfera International Center Gareth Porter Porter Consultants, Inc. Chair: Carlos Muñoz Piña Director General Environmental Policy and Economic Research National Institute of Ecology 11:30 to 11:45 Discussion 11:45 to 12:15 Break. 12:15 to 14:30 Table 2 Topic: liberalization of services related to the environment 12:15 to 12:45 Presentation José Poblano Director General of International Commercial Negotiations Ministry of Economy Researchers conferences 12:45 to 13:15 13:15 to 13:45 Scott Vaughan Carnegie Endowment for International Peace (CEIP) Dale Andrew Head of Trade Policy Linkages Division in the Trade Directorate 6

OECD 13:45 to 14:15 Carlos Muñoz Villarreal CEPAL, consultant Chair: Enrique Lendo International Affairs Unit, Ministry of Environment and Natural Resources 14:15-14:30 Discussion 14:30 a 16:00 Lunch 16:00 a 18:00 16:00 to 16:30 Table 3 Topic: Intellectual Property Rights Presentation Florinda Pasquel General Direction Juridical Consulting Negotiations Researchers conferences: 16:30 to 17:00 17:00 to 17:30 Dwijen Rangnekar University College London Jorge Larson National Commission of Biodiversity 17:30-17:45 Discussion Chair: José Carlos Fernández Director of Environment al Economics National Institute of Ecology Time August the 1st (limited access) Program 10:00 to 12:00 Workshop State of the environment and trade debate in the Doha Reunion. Challenges and opportunities for negotiation in the fifth Ministerial Reunion in Cancun. Chair: Olga Ojeda International Affairs Coordinator 7