Trade & Environment

Some WTO members are negotiating plurilateral agreements under the rubric of “trade and environment.” However, these initiatives are not in line with multilaterally-agreed principles from the UNFCCC such as Common But Differentiated Responsibilities (CBDR) and in fact would restrict the ability of many countries to address climate change domestically. In addition, they do not focus on what has been developing countries’ primary demands regarding climate change: for expanded rights to technology transfer for climate-related technologies.

Many of these initiatives represent a brazen attempt to pry open developing country markets for developed country exports by calling them “environmental” goods or services. At the same time, while blocking increased flexibilities for developing countries, developed countries are pushing for expanded flexibilities for themselves to use WTO-illegal unilateral measures, such as are included in the Carbon Border Adjustment Measures (CBAMs) of the EU, and Inflation Reduction Act (IRA) of the United States.

With the inappropriate support of the WTO Secretariat and without a multilateral mandate, a few initiatives are being taken by some members on trade and environment issues. These include the: Trade and Environmental Sustainability Structured Discussions (TESSD); Fossil Fuel Subsidy Reform; an Agreement on Climate Change, Trade and Sustainability (ACCTS) and the Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade (IDP).

Rich countries force WTO climate agenda: Justice missing for developing countries. (22 February 2024)

Positive Agenda for Trade and the Environment

UNCTAD’s Trade and Development Report 2023 - Chapter 2 underscores the need for "Revisiting existing international trade agreements to create policy space for countries to redesign their production, consumption, and trading profiles to face contemporary global challenges".

UNCTAD issues “positive” trade & environment agenda for BRICS. (D. Ravi Kanth, TWN, 3 October 2023)

Summary of UNCTAD’s Positive Trade and Environment Agenda. (D. Ravi Kanth, TWN, February 2023)

Trade and Environmental Sustainability Structured Discussions (TESSD)

Risks in trade as a solution for environmental problems. (Abhijit Das, 22 February 2024)

Risks in trade as a solution for environmental problems. (Abhijit Das, 28 November 2023)

[Interview] Unpacking WTO’s involvement in trade and environment negotiation at COP28 with Abhijit Das. (28 November 2023)

WTO Secretariat provides technical services for controversial TESSD. (D. Ravi Kanth, 4 April 2022)

Agreement on Climate Change, Trade and Sustainability (ACCTS)

An Agreement on Climate Change, Trade and Sustainability (ACCTS) is being negotiated in secret. (Jane Kelsey, September 2023)

Dialogue on Plastics Pollution (DPP)

On WTO website:

Unilateral Measures

How the EU’s Carbon Border Adjustment Mechanism discriminates against foreign producers. (Peter Lunenborg and Vahini Naidu, South Centre, February 2024)

Navigating new turbulences at the nexus of trade and climate change: Implications and options for Africa (Rob Davies, African Climate Foundation, 2023)

EU's "deforestation-free products" to constitute neo-colonial strategy? (D. Ravi Kanth, 8 March 2022)

General criticism

Attempts to pry open South markets on environmental goods & services. (D. Ravi Kanth, 20 May 2022)

North wants climate change issues as its new “trade weapons” at WTO. (D. Ravi Kanth, 9 February 2022)

WTO: Renewed push to advance climate change related trade initiatives. (D. Ravi Kanth, 31 January 2022)

EU paper on trade & environment dismisses Brussels initiatives at WTO. (D. Ravi Kanth, 19 January 2022)

Environment- and climate-related JSIs: Caveat emptor. (TWN, 25 November 2021)

Climate Deception: Non-binding “Targets” for Climate, but Binding Rules on Trade in Services. (Deborah James, 4 December 2015)

Further updates on the negotiations

Hard fight on unilateral trade measures to combat climate change, Hilary Kung. (22 December 2023)

WTO: Did DG breach Marrakesh Agreement in advancing carbon pricing?, by D. Ravi Kanth. (7 December 2023)

Trade: ICC funds WTO workshops in issuing two reports at COP28, by D. Ravi Kanth. (5 December 2023)

WTO: China seeks clarifications on controversial carbon tariff measures, by D. Ravi Kanth. (15 November 2023)

Trade: South countries voice concern over EU’s deforestation-free regulation, by D. Ravi Kanth. (19 September 2023)

WTO: DG remains upbeat on MC13, promotes GPA for “green” procureme, by D. Ravi Kanth. (14 September 2023)

Trade: Global South needs to stop EU’s “Green Deal” in its tracks at WTO, by D. Ravi Kanth. (5 September 2023)

WTO: China calls for dedicated multilateral discussions on EU’s CBAM, by D. Ravi Kanth. (16 June 2023)

Trade: Developing countries criticize EU’s “Green Deal” at WTO, by D. Ravi Kanth. (12 June 2023)

Inconsistent green energy stances by EU – CBAM versus FTA, by Sangeeta Godbole. (20 May 2023)

WTO: India galvanizes South over North’s unilateral environment measures, by D. Ravi Kanth. (17 March 2023)

Trade: WTO not forum to address trade-related climate change issues – India, by D. Ravi Kanth. (16 March 2023)

For older documents and articles see here.