RESTRICTED
PREPARATORY COMMITTEE PC/SCTE/M/3/Rev.1/Add.1 *
FOR THE 20October 1994
WORLD TRADE ORGANIZATION
(94-2123)
SUB-COMMITTEE ONTRADE AND ENVIRONMENT
REPORT OFTHE MEETING HELD ON15-16 SEPTEMBER 1994
Note bytheSecretariat
Addendum
Indocument PC/SCTE/M/3/Rev.1, thefollowing paragraphs should beinserted after
paragraph 172:
172bis. Therepresentative ofVenezuela noted thathisdelegation hademphasized certain elements
which were essential totheSub-Committee 'sefforts toensure thattrade andenvironmental
policies were complementary. Statements hadshown thatmany aspects stillneeded tobeanalyzed
indetail before theSub-Committee could adopt commonly agreed criteria. With regard toborder
taxadjustment, forexample, there hadbeensuggestions thatthewayforward wastoallow more
room formanoeuvre sothatcharges andtaxes forenvironmental purposes could beunilaterally
applied tointernational trade, including fiscal measures applied toinputs orproduction processes
andmethods. However, these approaches overlooked twofundamental aspects: theimportance of
maintaining astrong multilateral trading system, which wasparticularly significant fordeveloping
countries, andaccepting theprinciple ofinternalization ofenvironmental costs.
172ter. Hisdelegation supported theviews ofthedelegations ofNigeria, Hong Kong andIndia,
andemphasized thatinexamining theharmonization oflegitimate environmental andtrade
policies, theSub-Committee should trytostrengthen themultilateral system byadopting
multilaterally-agreed criteria withtheaimofpreventing andeliminating unilaterally-restrictive
measures forenvironmental purposes which resulted inundue protection fordomestic industries.
With regard totheprinciple ofenvironmental costinternalization intheRioDeclaration, headded
thattheSub-Committee 'sdiscussions should alsolookatconcrete ways toincorporate the
principles ofdifferential responsibility andspecial anddifferential treatment. Aspointed outby
thedelegation ofEgypt, thediscussions onborder taxmeasures ortechnical requirements and
regulations should alsotouch onthedifferentiation ofstandards, transition periods fordeveloping
countries andspecific ways tofacilitate thetransition toenvironmentally-friendly technologies. It
wasnecessary toensure thatdiscussions ledtobalanced results regarding compliance withrules
andcommitments andstrengthened themultilateral trading system, withspecific provisions for
developing countries. Itwasintheinterest oftheSub-Committee toensure thatthere were clear,
universally-applied standards which didnothinder thesovereign development ofnational
environmental policies andavoided continuous recourse tounilateralism andenvironmental
protectionism based ontaxmeasures ortechnical standards which discriminated against imports.
Theexperience ofhisdelegation showed thatevenifenvironmental aimswere shared, the
application oftrade policies might leadtodistortions intrade flows andcause considerable injury,
particularly todeveloping countries.
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*InEnglish only.