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

4 EA of Trade Negotiations in Canada

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

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 PHASEANALYSISCONSULTATIONS Preparatory Issue Notice of Intent Establish Interdepartmental Committee Initial EA Scoping and initial analysis is completed for trade and investment negotiations Interdepartmental Consult provinces and territories, and expert advisory group Public report issued at end of each phase with request for comments Draft EA Detailed analysis is done if need determined during Initial EA and with consideration to changes in negotiation Ongoing Negotiations Final EA Monitoring & Follow up Confirmation of past analysis and additional analysis as required. Completed for all trade and investment negotiations.

4-Step Analytical Methodology 1. Identification of the economic effects of the negotiations 2. Identification of the likely environmental impacts of such changes 3. Assessment of the significance of the identified likely environmental impacts 4. 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 Increased understanding of general outcome Negotiation of specifics Initial understanding of topics to be negotiated e.g., tariff-related issues (agriculture, NAMA), services, rules and trade facilitation 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 Canadas Experience

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: nac/env/env-ea-en.asphttp:// nac/env/env-ea-en.asp