Environmental Assessment of Trade Negotiations

1
Environmental Assessment of Trade Negotiations

• Government of Canada Approach
• WTO Public Forum
• September 25, 2006

2
Overview

• Why we do environmental assessment (EA) of trade
  negotiations
• Canadas approach
• Context
• Key objectives and activities
• Experience
• Recent progress and challenges

3
Why assess environmental impacts of trade
negotiations?

• Gain understanding of trade-related environmental
  impacts
• Enhance positive impacts
• Mitigate negative impacts
• Inform policy makers and trade negotiators
• Facilitate integrated decision making
• Promote mutual supportiveness of trade and
  environmental objectives

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EA of Trade Negotiationsin Canada
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Context

• Canadian Cabinet Directive on the Environmental
  Assessment of Policy, Plan and Program Proposals
• 2001 Framework for Conducting Environmental
  Assessments of Trade Negotiations
• Complemented by Handbook
• Interdepartmental approach
• Previous Canadian and international efforts

6
EA Framework Key Elements

• Objectives inform negotiators and address public
  concerns
• Scope issues for which we have a negotiating
  mandate
• Focus domestic environmental effects
• Process three phases of increasingly detailed
  analysis based on progress in negotiations
• Methodology environmental analysis flows from
  economic analysis
• Consultations throughout

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Potential phases of a Full EA
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4-Step Analytical Methodology

• Identification of the economic effects of the
  negotiations
• Identification of the likely environmental
  impacts of such changes
• Assessment of the significance of the identified
  likely environmental impacts
• Identification of enhancement/mitigation options

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Types of trade-related effects

• Effects can be positive and negative
• Five types of trade-related effects
• Scale
• Structural
• Product
• Technology
• Regulatory

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As negotiations proceed
Mandate and agreement to negotiate

• Initial understanding of topics to be negotiated
• e.g., tariff-related issues (agriculture, NAMA),
  services, rules and trade facilitation

Increased understanding of general outcome
Negotiation of specifics
Signed Agreement
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Roles and responsibilities

• Interdepartmental EA Committee for each
  negotiation
• Chaired by the Chief negotiator
• Analysis is undertaken by trade negotiators in
  consultation with experts in key departments and
  agencies (including Environment Canada and the
  Canadian Environmental Assessment Agency)
• Communications and consultations expert
• Interdepartmental Steering Committee oversees EA
  work and provides guidance
• Choose areas to focus efforts for improvement
  every year

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Consultations

• Strong commitment to consultations throughout
• Consult with
• Interdepartmental community
• Provinces and Territories
• EA Advisory Group (academic, industry, NGO
  representatives)
• Canadian public
• report issued at end of each phase of the EA

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Canadas Experience
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EAs undertaken

• Completed
• Initial EA for WTO, FTAA, CA4, and Singapore
  trade negotiations
• Initial EA for Canada-Peru Foreign Investment
  Promotion Agreement (FIPA)
• Underway
• Initial EAs for bilateral trade negotiations with
  the EU and Korea, FIPAs with India and China
• Draft EA for WTO Doha Development Agenda
• Final EA for Canada-Peru Foreign Investment
  Promotion Agreement (FIPA)

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Overview of WTO EA process

• Initial EA of the Doha Negotiations
• Notice of Intent issued indicating EA would be
  completed and requesting comments
• Report released November 2002 with request for
  public comments
• Draft EA currently in progress
• Interdepartmental committee established under
  chairmanship of chief negotiator
• Scope of analysis based on findings from Initial
  EA, comments received from Initial EA, as well
  as areas where there is a new negotiating mandate
  (e.g. trade facilitation)
• Analysis and drafting conducted by Government of
  Canada trade negotiators and environmental
  experts
• Provinces and territories consulted on
  preliminary Draft EA report
• EA Advisory Group consulted on preliminary Draft
  EA report
• Feedback circulated to WTO EA Committee and EA
  Steering Committee to inform further work

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Progress and challenges
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Analysis

• Progress
• Some progress on quantitative analysis, but
  remains largely qualitative
• Use of indicators to provide info on key
  relationships and issues
• Application of the EA Framework to foreign
  investment protection agreements (FIPAs)
• Challenges
• Limits of quantitative modelling
• Lack of comprehensive environmental data
• No one stop shop for information
• Difficulty assessing effects attributable to the
  negotiation

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Communications and consultations

• Interdepartmental committee
• Positive working relationship
• Improved awareness
• Constructive
• Commitment to ongoing improvement
• Limited feedback from public
• Recent efforts
• Improve documentation
• Established expert advisory group
• Outreach

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Ongoing challenges and efforts

• Data limitations
• Consultation outcomes
• Timing
• Areas of negotiations that are not tariff-related
• Follow- up

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In summary.

• Steep learning curve incremental improvements
• Positive outcomes from internal approach to
  analysis
• Committed to continuing to share information
• Visit our web-site to see all guidance and
  reports http//www.dfait-maeci.gc.ca/tna-nac/env/
  env-ea-en.asp