1. Chantal Line Carpentier, Ph.D. Head of Environment, Economy and Trade Program, CEC Geneva, December 7, 03 Greening Trade in North America: Sustainable Coffee the Poster Child

2. Outline of the Presentation Overview of the CEC CEC’s work on sustainable coffee Opportunity to greening trade Market access as a constraint –Standards, Labeling etc. What can we do? –Harmonization of standards –Equivalency –Mutual recognition

3. Commission for Environmental Cooperation Canada, Mexico, United States created CEC to better protect our shared environment NAAEC – parallel agreement to NAFTA

4. In North America –$11 trillion goods/services –Doubled trade since NAFTA –Mandated to monitor and minimize the environmental impacts –Trade is necessary but not sufficient to greening trade –Greening Trade work: What else is needed? –$11 trillion goods/services –Doubled trade since NAFTA –Mandated to monitor and minimize the environmental impacts –Trade is necessary but not sufficient to greening trade –Greening Trade work: What else is needed?

5. CEC Greening Trade Approach Environmental Assessment Measuring consumer interest Understanding producer/industry challenges Community partnerships Transparency and market information tools Financing of green goods and services Public policy

7. 7 Why Coffee and How?  Mexico has 10% of world’s biodiversity  Disappearing at alarming rates  Parks are not cost-effective nor efficient  Shaded coffee offer closest substitute to forest  Criteria that most favor biodiversity, Xalapa (SMBC)  Biodiversity meets the coffee market: Playa del Carmen, 1999  Market-based mechanisms

8. GREEN GOODS AS AN INCENTIVE Mexico mostly extensive production Shade grown: 60 – 99% Organic: 4% of export earnings, 5% world export  Ecolabeling programs provides information  creating a market-based approach  depending on acceptance of the label  Market US $530M global, $152 M North America  Premium is US$0.59/lb organic,$0.53 shade/lb

9. GHGs Costs Soil Loss Biodiversity Multiple Concerns in the Marketplace

10. A Market Full of Claims & Labels (p.53) Ozone- friendly Solar Powered Susta inable VOC Free Pesticide Free 100% Natural Organic Green Nature Friendly Eco-OK Bird- Friendly

11. Benefits Integration of supply chain approaches Improve understandings of issues Improve awareness of the issue Constraints Remains mainly niche market Consumer/industry confusion/label fatigue Market access Where to? Is Enhanced Cooperation possible?

12. Harmonization: adoption of one set of criteria Equivalency: agree on common ground Mutual Recognition –GTZ/German Coffee Association –ISEAL (SASA) Possible Path Forward for Cooperation (credibility, consumer values, no unnecessary trade restrictive effects, simplicity)

13. Environmentally Goods and Service?  > 600 Million ha of land in agriculture in NA  Represents 28% of total area of NA (50% in US)  Coffee, maize and palm could help preserve Mexico 10% of world’s biodiversity Shade grown coffee Renewable Energy Maize biodiversity Ecotourism Sustainable palm