Trade and Environment: How it plays out in an evolving Multilateral Trade Regime Mark Halle Director, Trade and Investment International Institute for Sustainable Development (IISD) Copenhagen, 6 December 2004

Environment in the GATT Environment and GATT 1947 EMIT group Tuna-Dolphin Uruguay and the CTE

Environment in the WTO 3 Generations of Trade & Environment: Fear of the steamroller effect CTE – impact of environmental measures on trade A preference for disengagement?

CTE: Committee work – clarification, preparing a mandate for negotiation, negotiating rules Crystallization – an underrated form of progress

Dispute Settlement: PPMs and Extraterrioriality PPMs: the trade view PPMs: the environmental view GATT law and Tuna-Dolphin Shrimp-Turtle and the dawning of a new era

Dispute Settlement – Trade measures in MEAs From Tuna-Dolphin to Shrimp-Turtle Reformulated Gas EC-Beef Hormone case

Dispute Settlement – Risk and Precaution Rio Principle 15 EC Beef-Hormone Australia Salmon Japan Varietals

The Doha Mandate and Environment Environmental Negotiations: MEAs – a three-part disaster Observer status – political override Environmental goods and services – whose agenda Fish subsidies The Ante-Room Market access TRIPS Labelling for environmental purposes

The July Framework Environment as a trade-off issue The lack of demandeurs EU, Cotonou and the EPAs EU preference offer

The Shift to a Positive Agenda Improved understanding of the trade- environment link Environment as an international consensus Environment as a consumer demand Environment for trade preferences A positive agenda on environment without scope for green protection

Conclusions Green protection is real, but can be handled Real environmental demand is coming from consumers, not governments Environmental demand is an incentive to improve A rejectionist agenda is useless We need policy coherence We need an overall goal for the trading system