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47/FINAL Joint Working Party on Trade and Environment COM/ENV Unclassified COM/ENV/TD(2006)47/FINAL Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development 12-Mar-2007 ___________________________________________________________________________________________ English - Or. English ENVIRONMENT DIRECTORATE TRADE DIRECTORATE Unclassified COM/ENV/TD(2006)47/FINAL Joint Working Party on Trade and Environment Regional Trade Agreements and Environment This report provides an overview of approaches to environmental issues in Regional Trade Agreements and summarises countries' experience in the negotiation and implementation of relevant provisions. The report was declassified by the JWPTE at its meeting of 5-6 December 2006. For further information, please contact Ms. Cristina Tébar Less, telephone: +33 (0) 1 45 24 18 51; Email: [email protected] or Ms. Joy A. Kim, telephone: +33 (0) 1 45 24 95 29; Email: English - Or. English [email protected] JT03223481 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format COM/ENV/TD(2006)47/FINAL TABLE OF CONTENTS List of acronyms and RTA memberships.................................................................................................... 5 Executive Summary .................................................................................................................................... 8 1. Introduction .................................................................................................................................... 12 Background............................................................................................................................................ 12 Overview and scope............................................................................................................................... 12 2. Approaches to environment in RTAs............................................................................................. 14 Key environmental provisions in RTAs ................................................................................................ 14 Countries’ mandates on environment and RTAs................................................................................... 16 Types of RTAs and their environmental components ........................................................................... 19 Managing differing levels of environmental commitments: an emerging problem?............................. 22 3. Negotiating environmental commitments in RTAs: some key questions ...................................... 25 Why do some countries include environmental commitments in RTAs?.............................................. 25 Why do some countries resist including environmental considerations in RTAs?................................ 26 What are the main difficulties in the negotiation of environmental considerations in RTAs?.............. 27 How have countries’ positions evolved? ............................................................................................... 28 Which factors facilitate the negotiation of environmental considerations in RTAs? ............................ 29 What are the (ancillary) benefits of environmental commitments in RTAs? ........................................ 30 What are the basic institutional choices related to environment in RTAs? ........................................... 32 4. Assessing the environmental impacts of RTAs.............................................................................. 35 What have been the main benefits of carrying out assessments? .......................................................... 36 Country approaches to environmental impact assessment of trade agreements.................................... 38 Analysis of EU, US, and Canadian approaches.....................................................................................45 5. Environmental co-operation ........................................................................................................... 48 Key aspects of environmental co-operation........................................................................................... 48 Financing environmental co-operation.................................................................................................. 55 Institutions dealing with environmental co-operation ........................................................................... 59 Areas of environmental co-operation in selected RTAs........................................................................ 60 Specific areas of environmental co-operation ....................................................................................... 64 Key factors for successful environmental co-operation under RTAs.................................................... 65 6. Environmental standards and enforcement of environmental laws................................................ 69 Key links between environmental standards and trade.......................................................................... 69 Setting levels of environmental protection............................................................................................ 70 Types of provisions related to environmental laws and standards ........................................................ 71 Other mechanisms to enhance environmental performance.................................................................. 75 7. Procedural guarantees, enforcement mechanisms, and dispute settlement .................................... 77 Procedural guarantees............................................................................................................................ 77 Enforcement mechanisms and dispute settlement ................................................................................. 78 State-to-State mechanisms: key elements.............................................................................................. 78 Public submission mechanisms ............................................................................................................. 83 8. Parties’ right to adopt or maintain environmental regulations ....................................................... 88 General exceptions clauses in RTAs modelled after Article XX .......................................................... 89 Exceptions clauses modelled after Article 30 (ex-Article 36) of the EC Treaty ................................... 90 2 COM/ENV/TD(2006)47/FINAL Other general exceptions clauses........................................................................................................... 91 Relationship between RTAs and Multilateral Environmental Agreements........................................... 92 9. Public participation and consultation in RTAs............................................................................... 95 Experience with public participation and consultation in RTAs ........................................................... 95 Transparency and public participation before and during the negotiation of RTAs.............................. 96 Public participation in conducting environmental reviews.................................................................... 98 Public participation in RTA ratification processes................................................................................ 99 Public consultation in the implementation phase of RTAs.................................................................. 100 10. Conclusions and overview of key experiences............................................................................. 103 ANNEXES.................................................................................................................................................. 112 Annex 1: Weblinks to selected RTAs .................................................................................................... 112 Annex 2: Environmental side agreements and chapters on environment in RTAs................................. 115 1. Agreement on Environmental Cooperation between the Government of Canada and the Government of the Republic of Costa Rica (2001) .................................................................................................. 115 2. Environment Cooperation Agreement among the Parties to the Trans-pacific Strategic Economic partnership agreement (Brunei Darussalam, the Republic of Chile, New Zealand, and the Republic of Singapore) (2005)................................................................................................................................ 122 3.1. Central America-Dominican Republic-United States Free Trade Agreement (US-CAFTA-DR) (2005): Chapter on Environment......................................................................................................... 126 3.2. Agreement among the Governments of Costa Rica, the Dominican Republic, el Salvador, Guatemala, Honduras, Nicaragua, and the United States of America on Environmental Cooperation (2005)................................................................................................................................................... 135 Annex 3: Overview of environmental impact assessments of selected RTAs ....................................... 142 Annex 4: Provisions on environmental co-operation in selected RTAs................................................. 146 BIBLIOGRAPHY......................................................................................................................................
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