UNCCC BALI 2007 PRESS RELEASE INFORMAL --TRADE MINISTER DIALOG ON CLIMATE CHANGE

UNCCC Bali 2007 : Press Release Informal

Trade Minister Dialog on Climate Change

Informal Trade Minister Dialog on Climate Change  : A breakthrough in encouraging discussion  on the interlinkage between trade and issue of climate change

Jimbaran, Bali, December 9, 2007 – the Minister of Trade of the Republic of Indonesia, Mari Elka Pangestu officially closed informal Trade Ministers Dialog on Climate Change ( ITMD ) which took place in Jimbaran, Bali since December 8, 2007. At the end of the  informal dialog, the  ministers proposed a number of recommendation  as a contribution concerning the issues of trade and climate change.

“This is a first meeting among trade ministers on climate change issues, In the past, discussion were still on the technical level in Geneva, which limit the focus of discussion on environmental goods and services. This meeting is special  because Trade Ministers as policy makers have conducted open and in-depth discussion on important issues on climate change which become the concern of the world including the developing countries”, Mari Pangestu said.

The two-day dialog was attended by trade ministers and vice ministers of trade and representatives of international organization. Three main issues discussed in the dialog :

(1) Issues faced in trade  and climate change;

(2) Mechanism and policy instruments on climate change and sustainable development; and

(3) Common objectives of trade and climate change. Issues addressed in the dialog are among others , development and poverty eradication , technology transfer, Clean Development Mechanism (CDM), product standard/labeling, financing and energy efficiency.

“Since this is not a negotiation process, there was a good airing of the opinions,  suggestion, and proposals on these matters, We are considering to work together  with international agencies to study further how international trade would contribute positively to the climate change issue”, Mari Pangestu, said.

Marie Pangestu underlined the importance of concerted multilateral efforts to address climate change issues for the further of sustainable development. It was stressed that international trade, development, and climate change are mutually supportive. It was recognized that poor and developing countries are the most  vulnerable from the effects of climate change and yet they have limited. Resources and technical capacity to address the challenges. In this context it was stressed that protecting and managing climate system for the benefit of present and future generations of humankind is a problem for all, and can not be effectively undertaken partially or unilaterally. The meeting also underscores the needs for concerted efforts at he multilateral level, and that international trade plays an important role in this regard.

In undertaking multilatelar actions, the dialogue emphasized the need to fully respect multilateral principles that exist in both the climate change  and international context, Such principles include the common but differentiated responsibilities and respective capabilities, non-discrimination, transparency, science and rules based, and special and differential treatment.

The dialogue raised concerns on the lack of adequate studies or empirical evidence on the effect or inter-linkages of international trade with climate change  and impact on development and poverty eradication. While the dialogue generally agreed on the important role of international trade in global economic development and welfare, there was however still a divergence of views on how best trade  can help mitigate and adapt to climate change, while keeping development  objective in mind. Variety of trade related policy options and mechanisms were discussed such as measures and management of carbon footprints, reducing or eliminating barriers for environmental  goods and services whose functions is to mitigate and facilitate adaptation, critical role of technology transfer, reducing, and development an efficient market based trading regime.

It was also stressed that whatever policies or mechanisms implemented to combat climate change must be taken in such a way as to minimize adverse social and economic impacts, and in a manner that is compatible with international trade rules so as it would not constitute a means of arbitrary or unjustifiable discriminations or a disguised restriction on international trade.

This informal dialogue again underlined a mandate given under  the Marrakesh Agreement and the Doha Declaration, to better mainstream issues related to the environment to the rules of the multilateral trading system. It was recognized that addressing climate change through enhancing the development and capacities in particular for developing  countries was equal importance to mainstreaming environment to the multilateral system. In this context, the contribution of multilateral trade regime to climate change  would be the successful and balance conclusion of the DDA ( Doha Development Agenda ) negotiations, including the implementation of the environment mandate.

“ I warmly welcome commitments of the ministers participating in the dialogue to actively participate in the dialogue aimed at addressing climate change. Issue of climate change is not only  the problem of environment, but an issue of sustainable development including  poverty alleviation, Therefore the commitments and a strong political will is needed to better, understand, build trust and strengthen a belief as well as the creation of the aim of international trade and the solution of climate change which is mutually supportive”, Mari Pangestu said.

To achieve the above targets, the ministers suggested the following concrete proposal :

1)      The urgent and successful conclusion of the Doha Development Agenda negotiation, including the environment mandate;

2)      More comprehensive study and better empirical evidence on the linkages and interface between international trade development, and climate change to enhance understanding and to enable Trade Ministers to take informed and more appropriate actions;

3)      Intensify high-level engagement and interaction on the issue of international trade and climate change . This may include of holding high-level meeting on the issue of trade of environment under the WTO, or in parallel with other international meetings, such as UNCTAD XII;

4)      Encourage future hosts of UNFCCC COP meeting to hold further dialogues as Trade Ministers platform on the issue international trade and climate change, and to look at the possibility of holding a joint session with finance and development Ministers;

5)      Strengthen and enhance engagement between the WTO and UNFCCC through information exchange mechanisms with the view to better improve the mutual supportiveness of international trade and climate change objectives.

“All participants of the dialog  fully respect the initiative of Indonesia to host this informal dialog and hope that this will be continued in the future. Taking into account the interlinkage between issues of environment and trade and development, so the organization of the dialog between ministers of trade and finance and development in the future “,  Mari Pangestu.

For further information, please contact :

Pusat HUMAS Departemen PerdaganganGedung I Lantai 2 Jln. M.I. Ridwan Rais No. 5

Jakarta 10110 INDONESIA

Telp. 081511316865 / 081584074952

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10 Des 2007 13:57 WIB PRESS RELEASE

Penulis : Drs.Simon Arnold Julian Jacob