World Trade Organization’s Director-General Ngozi Okonjo-Iweala seems more inclined towards addressing issues such as carbon pricing on the grounds of avoiding global trade frictions, said people familiar with the developments.
However, developing countries want the WTO to pursue a positive trade and environment agenda on several fronts, including on the intellectual property rights front to enable the transfer of technologies that would contribute to the mitigation of carbon emissions, sources said.
Ahead of the WTO’s Committee on Trade and Environment meeting next week, the submissions made by developing countries stand in contrast to the issues raised by industrialized countries, said people familiar with the developments.
The developing countries want the DG to galvanize membership against unilateral carbon taxes that are being advanced under controversial carbon-border-adjustment measures, said people familiar with the developments.
Against this backdrop, the developing countries made several submissions at the WTO’s Committee on Trade and Environment that would come up for discussion next week.
Under the title “Reinvigorating discussions on the relationship between trade and the transfer of environmentally sound technologies to developing countries to address climate change (JOB/TE/82, 11 October 2023, and JOB/TE/82/Corr.1, on 31 October 2023,” India “underscored the need for enabling concrete solutions on climate finance and technology transfer.”
India emphasized that “transfer of ESTs (environmentally sound technologies) is closely interlinked to the issue of intellectual property rights (IPRs) and that it is important to examine adequate solutions to ensure that IPRs are enablers and not bottlenecks in addressing the global crisis of climate change.”
In the above submission, India provided “a roadmap towards future work on trade and technology transfer for developing countries.”
Earlier, in a joint submission, India and South Africa raised concerns “on emerging trend of using environmental measures as protectionist non-tariff measures – JOB/TE/78/Rev.1, 31 May 2023” focusing on “the increasing use of unilateral measures impacting trade which were thought to be justified as environmental measures, with potential inconsistency with WTO rules and the undermining of the multilateral trading system.”
The two countries suggested several issues to be addressed by the CTE on a priority basis.
The issues include:
Further, the joint submission highlighted “that the WTO should remain an international organization that promotes effective collective action rather than unilateral measures and should not undermine the specialized rules of multilateral environmental agreements (MEAs), as issues of environment and climate change are best handled under specialized MEAs.”
It urged “WTO Members to ensure that any environment and climate related trade measures take into account CBDR-RC (common but differentiated responsibilities) of all Members.”
In a submission made in July 2023, the African Group highlighted “concerns with unilateral environmental measures and potential impact on developing countries.”
The Group underscored the need “to shift the narrative regarding the trade-environment nexus, with more emphasis on how to address the harmful impacts of trade or trade agreements on the environment, while recognizing the needs of developing countries.”
According to the African Group, “the approach to the trade and environment discussions requires a holistic, development-oriented and inclusive approach that comprehends the complex relationship between trade, environment and sustainable development, taking into account the developing country interests and challenges.”
It further proposed “the principles to guide the discussions towards the development and implementation of Trade-related Environmental Measures while ensuring the achievement of trade-related SDGs (sustainable development goals), including compliance and interplay with existing WTO rules, CBDR-RC, SDT, historical responsibility, polluter pays, transparency, non-discrimination, access to and transfer of technology, technical assistance and capacity building, environmental integrity and effectiveness, environmental impact assessment, responsible business conduct.”
The African Group also made another submission on “the role of transfer of technology in resilience building: climate change mitigation and adaptation – WT/CTE/W/254, 5 July 2023.” The large regional group identified “technology as a key element to facilitate growth and sustainable development which could only be achieved through fair access to and transfer of green technologies with financial assistance.”
On the lines of what India had argued on the issue of IPRs, the African Group too said several key issues much be addressed such as “assessment of TRIPS to enhance technology transfer for diffusion of climate change technologies, promotion of development and transfer of ESTs, creation of a trade and environment fund.”
The African Group urged members to discuss “the role of the WTO rules in climate-resilient technologies in the context of climate change mitigation and adaptation commence as soon as possible in the CTE.”
In another significant submission concerning “the principles and parameters that should guide and support policies and measures on trade and environment – RD/CTE/221, 9 March 2023,” Colombia proposed “that the CTE engages in a key initial discussion on the principles and parameters that should guide trade and environment discussions in the WTO.”
Colombia said, “based on these understandings, specific discussions on policies and measures of interest to the entire membership, and particularly to developing countries, in addition to those currently in place,” need to be addressed further.
The Colombian submission underscored the take the following principles into the discussion. The principles suggested by Colombia include: (I) international cooperation; (ii) CBDR-RC; (iii) non-discrimination; (iv) prevention in policy formulation, ensuring the adequate use of scientific evidence; (v) the recognition of the vision, priorities, and needs of developing countries in their diversity; and (vi) the avoidance of adverse effects on other environmental and socioeconomic aspects as much as possible.
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