The World Trade Organization (WTO) Trade and Environment Week kicked off on Monday (16.11.2020) with a high-level event where agency leaders, ministers and representatives of civil society and business examined the lessons that could be learned from the devastation of COVID-19. The event was co-organized by the WTO and the United Nations Environment Programme (UNEP).
"We are facing the most acute health crisis in a century and the worst economic crisis of our lifetimes," where "years of hard-won development progress are being reversed," he said. Chad Blackman, Ambassador of Barbados to the WTO and Chair of the WTO Committee on Trade and Environment (CTE), at the opening of the event. He noted that it is crucial that "Trade and environmental policies work in unison and not in discord» to support recovery efforts towards a “greener future”.
UNEP Executive Director Inger Anderson, warned that one of the main drivers of crisis events is “our unsustainable production and consumption.” He called for action at all levels and across all sectors, including in the trade policy arena, to address tensions over the role of trade in exacerbating environmental damage. Anderson drew attention to a UNEP report titled “Sustainable resource trade: global material flows, circularity and trade,” which outlines the relationship between trade rules and a circular economy.
WTO Deputy Director-General Alan Wolff, said COVID-19 “has become a stark reminder that nature, human health and the economy are … interconnected.” He said the pandemic offers an opportunity for action on sustainable development and WTO reform. Wolff highlighted examples of where trade policy can lead to better environmental outcomes, including ongoing WTO negotiations to eliminate harmful fisheries subsidies and negotiations among a subset of WTO members on new rules on e-commerce..
Wolff further outlined the WTO's efforts to foster dialogue and cooperation through initiatives supported by many members to address trade and the circular economy, and the reform of fossil fuel subsidies. He said: Efforts to “green” the WTO Aid for Trade initiative should also be further developed..
Ministers from Costa Rica and Rwanda offered national perspectives.
Andrea Meza Murillo, Minister of Environment and Energy of Costa Rica, stated that “environmental issues are part of development models” and stressed the importance of whole-of-government and whole-of-society approaches to ensure transformative outcomes. He highlighted the Climate Change, Trade and Sustainability Agreement (CCTSA) negotiation process as an example of where an integrated approach can be implemented.
Soraya Hakuziyaremye, Minister of Trade and Industry of Rwanda, noted that developing countries often face the question of how to industrialize in a way that uses environmentally friendly strategies and technologies. She highlighted examples of Rwandan programs that have worked to achieve that balance, and the particular challenges faced by small and medium-sized enterprises (SMEs).
Noting the disruption to supply chains caused by the pandemic, Hakuziyaremye said incorporating environmental considerations into future manufacturing will be crucial in recovery and in the implementation of the African Continental Free Trade Area (AfCFTA), where UNEP and the WTO could play a role.
Jamshyd N. Godrej, Chairman of the Board of Directors of Godrej & Boyce Manufacturing Company Limited, India, highlighted the “very important role of the private sector in bringing about change for the better,” which depends partly on themselves and partly on the regulatory environment in which they operate. He highlighted efforts by India’s cement industry to improve energy efficiency and reduce its environmental footprint, and an initiative to introduce the use of energy standards in household appliances.
Ellen MacArthur, Founder and Chair of Trustees of the Ellen MacArthur Foundation, said that an "extractive economy" is a "linear economy," and the transition to a circular economy, which is "restorative and regenerative," will be key to "getting out of a deep crisis."
Closing the event, andAmbassador Chad Blackman of Barbados, Chair of the WTO Committee on Trade and Environment, said: “We should never waste a good crisis. Now is the time to reimagine a global economy that is sustainable and delivers prosperity for all, but in a way that does not harm the environment and does not inhibit the progress of trade and growth.”
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