World Trade Organization Developments and Forestry

1. John Mundy Director of Environmental and Sustainable Development Relations Division Foreign Affairs Canada World Trade Organization Developments and Forestry

2. 1. Presentation Overview • Recent developments at the WTO in the trade and environment relationship • Sustainable forestry management in the context of the Doha Development Agenda • Future directions

3. 2. Canada’s WTO Objectives • Agricultural trade reform • Improved market access goods and services • Strengthened trade rules • Integration of developing countries • Mutual supportiveness of trade and environmental objectives 3

4. 3. The July Package • A vote of confidence for multilateralism • Important step towards meeting Canada’s objectives • Opens the door to the next, more detailed stage 4

5. 4. Trade and Environment at the WTO Doha Ministerial Declaration - Paragraph 31 Negotiations on: (i) the relationship between existing WTO rules and specific trade obligations set out in MEAs; (ii) procedures for regular information exchange between MEA Secretariats and relevant WTO Committees; and (iii) the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services.

6. 5. Trade and Environment at the WTO Paragraph 32 on the CTE Work Programme, with “particular attention” to: (i) Effect of environmental measures on market access; (ii) Relevant provisions of TRIPS; and (iii) Labelling requirements for environmental purposes

7. 6. Trade and Environment at the WTO • Paragraph 33 on technical assistance and capacity building in the field of trade and environment • Paragraph 51 on identifying and debating developmental and environmental aspects of the negotiations to achieve the objective of sustainable development

8. 7. Trade Policy and Sustainable Forest Management • Forest loss resulting from conversion of agricultural land • Market-based tools to promote trade in forest products from sustainably managed forests: • Certification of forest management • Labelling of forest products • Measures beyond trade policy: domestic regulation, compliance, enforcement and monitoring

9. 8. CTE Report to 5th WTO Ministerial (Cancun) Paragraph 32 (i) discussions on forests: • WSSD Plan of Implementation and concept of sustainable forest management • Concerns over international trade in illegally harvested timber – importance of domestic regulation and international approaches • Relationship between tariff levels and over-exploitation • Positive measures in the forestry sector and national solutions

10. 9. CTE Report to 5th WTO Ministerial (Cancun) Paragraph 32 (iii) discussions on labelling: • Voluntary, participatory, market-based and transparent environmental labelling schemes • Technical assistance/capacity building for developing countries • Recognition of the equivalency of certification systems

11. 10. Future Directions… • Recognition of equivalency of forest certification systems – discussions in the TBT Committee • Certification as an issue in environmental goods and services under Paragraph 31(iii) in the CTESS? • Other international fora and national solutions