• Trade and MEAs

Trade and MEAs

This paper sets out options for governments to clarify the relationship between the rules of the World Trade Organization (WTO) and multilateral environmental agreements (MEAs) in the light of the trade negotiations under the Doha Ministerial Declaration (DMD). There are potential conflicts between the rules and procedures of the WTO and MEA. Possible options for avoiding these conflicts and building a positive relationship between international trade and environmental objectives include:

Research and analysis:

• assessing impacts of WTO trade liberalization on achieving MEA objectives
• further documenting national experiences of trade and environment policy coordination

Information and guidance:

• endorsing existing elements of the WTO-MEA relationship
• developing ‘best practice’ guide for design and implementation of MEA trade measures in a WTO consistent manner

Communication and training:

• granting MEAs observer status in WTO bodies
• enhancing information exchange between MEA and WTO secretariats and bodies
• training and strengthening capacity

Law and policy, recommendations and reform:

•  exempting MEA trade measures from WTO rules
• codifying legal principles on the MEA-WTO relationship
• creating new WTO body to address the MEA-WTO relationship in a systemic way throughout the WTO
• creating new inter-institutional initiative, with multiple functions to improve the WTO-MEA relationship

Design and implementation:

• creating a mechanism for voluntary consultation to identify least trade-restrictive MEA measures before measures enter into force
• strengthening compliance with MEA requirements
• creating instruments to promote sustainable trade

Conflict resolution: 

•  requiring the sequencing of MEA and WTO disputes

Possible influences on the political feasibility of these outcomes in a WTO setting include movement on agriculture and intellectual property rights, the desire to have a minimalist outcome, or the complete collapse of the Doha Round. Even if the Round collapses, the debate will continue in the WTO under the regular mandate of the Committee on Trade and Environment. Ultimately, meaningful progress will be made only outside the confines of the DMD. Given the complex nature of the relationship, any lasting solutions ought to contain a strong political message that respects an appropriate division of labour between the WTO and MEA regimes based on core competencies.

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