Trade & Environment

Sustainable development and protection and preservation of the environment are fundamental goals of the WTO. They are enshrined in the Marrakesh Agreement, which established the WTO, and complement the WTO’s objective to reduce trade barriers and eliminate discriminatory treatment in international trade relations. While there is no specific agreement dealing with the environment, under WTO rules members can adopt trade-related measures aimed at protecting the environment provided a number of conditions to avoid the misuse of such measures for protectionist ends are fulfilled.
The WTO contributes to the protection and preservation of the environment through its objective of ensuring sustainable development and avoiding protectionism, through its rules and enforcement mechanism, and through work in different WTO bodies.

• Regular Trade and Environment Committee: The Trade and Environment Committee is the standing forum dedicated to dialogue between governments on the impact of trade policies on the environment, and of environment policies on trade. Created in 1995, the Committee has followed a comprehensive work programme. Under the Doha Development Agenda, the regular committee is also looking at the effects of environmental measures on market access, the intellectual property agreement and biodiversity, and labelling for environmental purposes.
• Negotiations: In the Doha Round, WTO members received a mandate to negotiate certain aspects of the link between trade and the environment, particularly the relationship between the WTO’s agreements and those of other agencies, and market access for environmental goods and services. These talks take place in “Special Sessions” of the Trade and Environment Committee.
• Environmental Goods Agreement : Separately, eighteen participants representing 46 WTO members are negotiating an Environmental Goods Agreement

i. Room Document on ‘Mission LiFE’ initiative including the compilation of various speeches / remarks / messages from the Mission LiFE launch event has been circulated in the Committee on Trade & Environment (CTE) of WTO on 2nd February, 2023. The Mission LiFE –Lifestyle for Environment was launched by Hon’ble Prime Minister of India and H.E. Secretary General of the United Nations Mr. Antonio Guterres on 20 October 2022. The launch ceremony took place in Kevadiya, Gujarat. The launch event was addressed by Hon’ble Prime Minister and H.E. Secretary General of the United Nations Mr. Antonio Guterres. Additionally, video messages by heads of ten nations as of the event date were also played at the event. This document is a collection of these addresses and messages, which describe various perspectives of mindful consumption.

ii. The Room Document on “Concerns on Emerging Trend of using Environmental Measures as Protectionist Non-Tariff Measures” has been submitted in the Committee on Trade and Environment which focuses upon increasing use of unilateral measures impacting trade and being justified as environmental measures. Key areas of concern highlighted are Carbon Border Adjustment Mechanism (CBAM), ban on import of products based on determination of deforestation free supply chain, Green Tariff Rate Quotas and measures prescribing Maximum Residue Limits (MRLs). Room Document emphasised upon harmonized application of international instruments under Multilateral Environment Agreements (MEAs) and the WTO Agreement. Room Document has drawn intervention from various WTO member countries and also support from many Member countries on the core theme. 28 interventions were made including those on behalf of ACP Group (62 WTO members, 8 WTO observers, 9 non-members non-observers), Africa Group (44 WTO members, 9 WTO observers) and EU (27 WTO members).