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A changing global agenda: Climate Change and Trade:

By Mariarosaria lorio1, International Policy Analyst

Globalization has too many Persisting imbalances in become a hidden barrier to then only products currently
times wrongly allowed multi- existing production and trade of products originating with quotas could be sensiti-
nationals to disregard both consumption models as well from developing countries ve. Tariff Simplication. Here
environment and labour as in existing international that are produced by multina- discussions are on whether or
standards. Existing unsustai- trade rules intersect with the tionals that have their head- not all tariffs have to be
and
production
nable quarters in the industrialized converted into "ad valorem"
development aspects of the
consumption systems resulted climate change debates? world. A global fund under (percentages of the value of
over time inter alia in increa- the MIDGs to finance clean the product). Other issues
sed energy use and energy The climate change technology transfer was pro- are: Footnote 5 on the Green
supplies as well as into negotiations will inevitably posed in Bali. Box and non trade distorting
increased emissions of gas highlight existing contrac- subsidies. In October discus-
carbon that have contributed tions within the multilateral Voices from the South have sions will be on Sensitive
to climate change. This is an trading system as it regards its already stressed that negotia- Products, the Special
issue that will be marking the sustainable development tions on climate change Safeguard
Mechanism,
forthcoming global agenda. objective as announced in the should not become an excuse Cotton, "Blue Box hea-
Preamble of the Marrakech to further limit developing droom" (allowing the US
In the context of the prepara- Agreement Establishing the countries' chances to achieve limits in Blue Box-type sup-
tion of the international WTO and its existing rules. economic and social develop- port per product that are 10%
Conference in Denmark in Some intersections include ment by shifting the burden or 20% more than estimates
2009, a number of develop- the following main principles on them. Therefore, in dea- of maximums under the 2002
ment-related issues have been and rules: ling with carbon emission Farm Bill). On 2d October
highlighted. The most recur- (i) Processes and production targets and energy pricing the Ambassador
Luzius
rent (non exhaustive list) rela- methods (PPMs) and non-dis- issues of transparency and Wasescha, permanent repre-
te to the: crimination principle. WTO development objectives must sentative of Switzerland to the
(i) intersection between cli- Members cannot discriminate be taken into account.' WTO was appointed to repla-
mate change and sustainable a product on the basis of its ce Ambassador Don
development policies, inclu- production history (i.e., Stephenson who took up new
ding food security and sustai- shrimp case); For further jnfi)rmatjo,z On duties in Ottawa. In this occa-
nable agriculture; this article, kindly contact: sion, the new Chair mentio-
(ii) costs of clean technology (ii) Subsidies in agriculture as ,narzaiorioCabluew,n.ch. ned how he sees NAMA
transfer and its impact on pro- they encourage over- issues: general architecture,
duction and exports; production in particular in the 2 India, Australia and cross-cutting subjects and
(iii) intellectual property industrialized agriculture; Indonesia have national plans country specific issues.
rights related issues; to fix their own carbon Consultations will continue
(iv) commitments on reduc- (iii) TRIPS and the transfer of targets. over the coming days.
tion of carbon gas emissions clean technologies and know-
and energy pricing; how. As IPRs are not owned 'Trade negotiations in the
(v) special and differential by Governments but rather by framework of the Doha
treatment to respond to diffe- private companies, the issue Development Agenda (DDA)
rentiated levels of responsibi- here how developing are deadlocked.
lities with regard to pollution countries could benefit from Negotiations on agri-
between industrialized and technology transfer. In Bali, it culture resumed on
developing countries; was discussed the possibility October. Issues on the
(vi) most appropriate measu- of using the same approach table are: Tariff Quota
res, i.e., eco-labelling, tax used for TRIPS and Creation .This issue
border measures or national medicines for clean tech- has implications for
plans, to tackle the climate nology transfer. No agree- the identification of
change challenge; ment was reached on this sensitive products,
(vii) scope of action at inter- issue. and smaller tariff
national, at regional and at reductions.
The
national level2 . (iv) Inappropriate use of tax payment for the
tariff
border measures might also smaller
What is the intersection be put in place by industri- reduction is a tariff
with trade rules and alized countries to compensa- quota, and if mem-
policy? te for costs of cleaner bers are not allowed
technology. This could to create new quotas,
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