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

2. 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. 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. 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. 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. 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. 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. 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. 9 8. CTE Report to 5 th 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. 10 9. CTE Report to 5 th 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. 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