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 • Canada’s 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

4. EA of Trade Negotiationsin Canada

5. 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

7. Potential phases of a Full EA

8. 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

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

10. “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

11. 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

12. 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

13. Canada’s Experience

14. 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)

15. 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

16. Progress and challenges

17. 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

18. 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

19. Ongoing challenges and efforts • Data limitations • Consultation outcomes • Timing • Areas of negotiations that are not tariff-related • Follow- up

20. 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