Harmonizing Environment and Trade Policies

- Report of the Advisory Group on Global Environmental Problems -

1995
Environment Agency

This report was submitted to the Environment Agency of Japan in April 1995 by the Special Sub-group on Environment and Trade attached to the Advisory Group on Global Environmental Problems. The Advisory Group meets occasionally to make recommendations to the Director-General of the Environment Agency. Their views and recommendations do not necessarily reflect the views of the Environment Agency.

Summary

Introduction

I. The Basic Perspective on "Environment and Trade"

1. The Basic Understanding of the Issue

2. The Implications for Japan

II. Basic Issues for the Integration of Environment and Trade Policies

1. Internalization of Environmental Costs

2. Coordination in the Formulation of Environmental and Trade Policies

3. Dimensions of Developing Countries

4. Trade in Renewable Commodities and the Environment

5. Efforts by the Private Sector

III. Coordination between Environmental Policies and GATT/WTO Trade Rules

1. Trade Restriction Measures for Environmental Purposes

2. Issues Concerning PPM-related Requirements

3. Coordination between Multilateral Environmental Agreements and GATT/WTO Rules

4. Harmonization of Environmental Standards

5. Eco-labeling, Packaging and Recycling Requirements

6. Dispute Settlement Concerning "Environment and Trade"

Annex

(Annex1) THE BASIC ENVIRONMENT PLAN

(Annex2) GATT

• GATT Secretariat Report(1992)
• Group on "Environmental Protection Measures and Trade": Chairman’s Report (1994)

(Annex3) APEC

• "Framework of Principles for Integrating Trade and Environment in APEC"
• "Achieving the APEC Vision: Free and Open Trade in the Asia Pacific"

(Annex4) THE 1972 OECD GUIDING PRINCIPLES

(GUIDING PRINCIPLES CONCERNING THE INTERNATIONAL ECONOMIC ASPECTS OF ENVIRONMENTAL POLICIES)

(Annex5)

OECD’S PROCEDURAL GUIDELINES ON INTEGRATING TRADE AND ENVIRONMENT POLICIES (1993)

(Annex6) GATT ARTICLE XX

Member List