1. Trade, Globalization and Sustainable Development: Where are we Post-WSSD? H.E. Dr. John W. Ashe WTO Symposium on Trade and Sustainable Development Geneva, 10-11 October 2005

2. Leading Question Overview of Major trends Changing nature of trade barriers   NTBs   Domestic regulations Trade and MEAs Trade in Environmental Goods & Services Concluding Remarks Outline

3. What are the major multilateral processes shaping the interactions among trade, globalization and sustainable development? WTO-Doha Monterrey Consensus 2005 World Summit CSD Multilateral environmental agreements

4. WSSD and Trade = JPOI Call for timely conclusion of Doha Development Round, specifically: Call for timely conclusion of Doha Development Round, specifically: Improved market access for developing countries; Improved market access for developing countries; Reduction with view to phasing out agriculture export subsidies, trade-distorting domestic support; Reduction with view to phasing out agriculture export subsidies, trade-distorting domestic support; Support for trade-related technical assistance and capacity-building; Support for trade-related technical assistance and capacity-building; Duty-, quota-free access to exports of LDCs; Duty-, quota-free access to exports of LDCs; Building capacity to diversify exports; Building capacity to diversify exports;

5. Trade and Sustainable Development – the JPOI links Incentives to adopt efficient, clean technology; Incentives to adopt efficient, clean technology; Increased availability, lower cost of clean technology; Increased availability, lower cost of clean technology; Technology transfer through export-oriented FDI; Technology transfer through export-oriented FDI; Information sharing with small- and medium enterprises; Information sharing with small- and medium enterprises;

6. Structure of world trade and the position of developing countries Developing countries account for a growing share of world trade, including for manufactures and services;

8. Non-traditional export opportunities for developing countries Moving up value-chain does not always mean moving from primary commodities to manufactures   natural-resource based industries   services

9. Low-income countries still face obstacles to world trade integration Tariff escalation remains a problem Other trading costs weigh heavily Weak supply side response Even as tariff rates fall, non-tariff barriers remain and even increase

10. Source: UN-ECLAC, Agricultural Development Unit, based on WITS/TRAINS data (World Integrated Solution, Trade Analysis Information System).

11. Non-tariff barriers (NTBs) Non-tariff barriers (NTBs) are an increasing source of concern especially for the world’s poorer nations; Non-tariff barriers (NTBs) are an increasing source of concern especially for the world’s poorer nations;  Currently affect up to 40% of the exports of the world's least developed countries;  Wide ranging (direct and indirect);

12. Evolution of NTB use by category Source: UNCTAD TRAINS database

13. The trend in the evolution of NTBs creates a challenge for JPOI Thwarts the role of trade in achieving sustainable development, by, inter alia Thwarts the role of trade in achieving sustainable development, by, inter alia Affecting higher value aquaculture exports, making moving up value chain more difficult; Affecting higher value aquaculture exports, making moving up value chain more difficult; Risk of market fragmentation; Risk of market fragmentation; Measures often exceed multilaterally accepted norms; Measures often exceed multilaterally accepted norms; Challenge for small economies and community- based entrepreneurial capacity; Challenge for small economies and community- based entrepreneurial capacity;

14. Domestic environmental legislation and barriers to trade National legislation and regulatory regimes can act as barriers to trade-related sustainable growth. National legislation and regulatory regimes can act as barriers to trade-related sustainable growth. Examples: Examples:  Biofuels are environmentally preferable products but effected by protective trade rules;  Approval of biotech products is long and complex in key markets;  Foreign organic production systems are not recognized key markets, requiring dual certification.

15. Trade and Multilateral Environmental Agreements Proliferation of trade agreements and environmental agreements; Proliferation of trade agreements and environmental agreements; Agenda 21 of the Rio Conference states that measures should be taken to “avoid unilateral action to deal with environmental challenges outside the jurisdiction of the importing country”; Agenda 21 of the Rio Conference states that measures should be taken to “avoid unilateral action to deal with environmental challenges outside the jurisdiction of the importing country”; WTO Members have agreed to clarify the legal relationship between WTO rules and MEAs; WTO Members have agreed to clarify the legal relationship between WTO rules and MEAs; No disputes have thus far come to the WTO regarding the trade provisions contained in an MEA; No disputes have thus far come to the WTO regarding the trade provisions contained in an MEA; Of the approximately 200 MEAs currently in force, only about 20 contain trade provisions. Of the approximately 200 MEAs currently in force, only about 20 contain trade provisions.

16. Trade in Environmental goods and services Opportunity for fast tracking Opportunity for fast tracking  Trade in environmental Goods and Services is sizable and growing fast;  Elimination of tariff and non-tariff barriers to environmental goods and services;

17. Growth of environmental goods trade, 1990-2002 Source: Bora and Teh (2004). Tariffs and Trade in Environmental Goods. WORKSHOP ON ENVIRONMENTAL GOODS, Geneva, 11 October 2004. WTO Secretariat.

18. Growth Factors for environmental goods and services Domestic regulation and public pressure Domestic regulation and public pressure Customer requirements: global supply chains Customer requirements: global supply chains EU enlargement; regional trade agreements EU enlargement; regional trade agreements Infrastructure development Infrastructure development MEAs and associated financing mechanisms MEAs and associated financing mechanisms

19. Measures to address market access concerns Enable developing countries to be more involved in standard setting Enable developing countries to be more involved in standard setting Enhance the capacity of developing countries to deal with NTBs Enhance the capacity of developing countries to deal with NTBs Formulate a balanced approach towards disciplining arbitrary and abusive use of such barriers Formulate a balanced approach towards disciplining arbitrary and abusive use of such barriers

20. Measures to foster int’l diffusion of environmental goods and services Public financing, risk sharing for export of EGS – consistent with international trade disciplines, e.g., Public financing, risk sharing for export of EGS – consistent with international trade disciplines, e.g., waste-water treatment technology waste-water treatment technology flue gas capture flue gas capture methane capture from landfills for power geneneration methane capture from landfills for power geneneration waste incineration, including for power generation waste incineration, including for power generation

21. Conclusion Firm groundwork in major multilateral processes; Firm groundwork in major multilateral processes; Progress on implementation is vital; Progress on implementation is vital; Successful completion of Doha would mean greater progress in sustainable development objectives: Successful completion of Doha would mean greater progress in sustainable development objectives: Reversal of the trend in escalating NTBs Reversal of the trend in escalating NTBs Addressing market-access concerns for developing countries Addressing market-access concerns for developing countries More can be achieved by focusing on areas of opportunity for fast-tracking: More can be achieved by focusing on areas of opportunity for fast-tracking: Trade in Environmental Goods and Services Trade in Environmental Goods and Services Cleaner production technology Cleaner production technology