China’s Practices in Trade and Environment

1. China’s Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

2. Part I China’s Policy on Environment Protection

3. Part I China’s Policy on Environment Protection • Eleventh Five-year Plan: Main Indicators on Resources and Environment

4. Part I China’s Policy on Environment Protection • Eleventh Five-year Plan: Part VII: Building up a energy-saving and environmentally friendly society --Development of Circular Economy --Protection and Recovery of Ecosystem --Reinforcement of Environment Protection --Strengthening of Resources Management --Rationally Utilization of Marine & Climate Resources

5. Part I China’s Policy on Environment Protection REPORT ON THE WORK OF THE GOVERNMENT(Delivered by Premier Wenjiabao at the Fifth Session of the Tenth National People's Congress on March 5, 2007 ) • Achievements of Eleventh Five-year Plan in 2006: --While energy consumption per unit of GDP for the previous three years rose by 4.9%, 5.5% and 0.2% respectively, it dropped by 1.2% in 2006. --Growth in total emission of major pollutants declined: Chemical oxygen demand rose 1.2%, down from an increase of 5.6% the year before. Discharge of sulfur dioxide rose 1.8%, down from 13.1% in the previous year.

6. Part I China’s Policy on Environment Protection • REPORT ON THE WORK OF THE GOVERNMENT (Delivered by Premier Wenjiabao at the Fifth Session of • the Tenth National People's Congress on March 5, 2007 ) • Main goals for China's economic and social development in 2007: • --On the basis of structural improvement, improved productivity, reduced consumption of energy and environmental protection, GDP is projected to increase by 8%. • --The number of jobs created in urban areas is to be at least 9 million, and the rate of registered urban unemployment is expected to be kept below 4.6%. • --The overall inflation level is to remain comparatively stable. The increase of consumer prices is projected to stay below 3%, and it is expected to improve the imbalance of international payments.

7. Part I China’s Policy on Environment Protection • REPORT ON THE WORK OF THE GOVERNMENT (Delivered by Premier Wenjiabao at the Fifth Session of • the Tenth National People's Congress on March 5, 2007 ) • In order to achieve the goals and fulfill the tasks for this year's economic and social development, the following principles are stressed to adhere: • “endeavor to improve the quality and efficiency of economic growth. Emphasis should be laid on saving energy and resources, protecting the environment and using land intensively……”

8. Part I China’s Policy on Environment Protection • REPORT ON THE WORK OF THE GOVERNMENT (Delivered by Premier Wenjiabao at the Fifth Session of • the Tenth National People's Congress on March 5, 2007 ) • Priorities for the 2007: • --Reinforced measures will be taken to save energy, lower energy consumption, protect the environment and use land economically and intensively. • --The focus of energy-saving and environmental protection efforts will be made on the following areas: • Improve and tighten enforcement of energy consumption and environmental protection standards; • Resolutely close down backward production facilities; • Concentrate work on key industries and enterprises; • Improve the policy agenda on energy-saving & environmental protection; • Accelerate the development of energy-saving and environmentally friendly technologies; • Beef up the measures on elimination of pollution and protection of environment • Strengthen supervision and governance of compliance with the law; • Fulfill the objective-outcome performance system for saving energy and protecting environment

9. Part II China’s Practice in Economic Cooperation Agreements

10. Part II China’s Practice in Economic Cooperation Agreements • General Practice Environment cooperation is usually as a part in the Economic Cooperation Agreements concluded by China and its trade partners. Note: Economic Cooperation Agreements only refer to those no market access issues have been touched upon.

11. Part II China’s Practice in Economic Cooperation Agreements • Examples: • China-Australia Trade and Economic Framework Arrangement • Paragraph 3: The parties will take steps to promote strategic cooperation in industries with outstanding potential. The main sectors are, inter alia, agriculture, energy and mining resources, TCF, mechanical and electronic products, tourism, education, inspection and quarantine, customs, environmental protection….

12. Part II China’s Practice in Economic Cooperation Agreements • Examples:China-New Zealand Trade and Economic Cooperation Framework Paragraph 2: The Parties will take steps to promote strategic cooperation in areas of significant mutual economic potential, inter alia: agriculture; animal husbandry; forestry; wool; services, including education, tourism, air services, and labor and rofessional services; science and technology; environmental protection…

13. Part III China’s Practice in FTAs

14. Part III China’s Practice in FTAs • General Practice There is no Environment Chapter in any FTAs signed or under negotiation, while environment goods and services are included in the goods and services parts respectively.

15. Part III China’s Practice in FTAs • Approaches: ＊No environment language ＊Sustainable development mentioned in the preamble ＊Common understanding that environment measures could be considered when to interpret the “General Exceptions” ＊To be reflected in the Cooperation Chapter

16. Part III China’s Practice in FTAs • China-Chile FTA: Article 108 Labor, Social Security and Environmental Cooperation The Parties shall enhance their communication and cooperation on labor, social security and environment through both the Memorandum of Understanding on Labor and Social Security Cooperation, and the Environmental Cooperation Agreement between the Parties.

17. Thank You!