Potential trade implications of CBD and the Cartagena Protocol
on BiosafetyMEA – UNEP meeting on Enhancing MEA and WTO
Information Exchange
11 November, Palais des Nations, Geneva Secretariat of the Convention on Biological Diversity
CBD: trade-related aspects -- November 2002 – Slide 2
Outline
Section I: The CBD1. Introduction: CBD objectives, general features,
overview
2. Potential trade implications of CBD provisions
3. Relationship with WTO
Section II: The Biosafety Protocol1. Overview
2. Examples of provisions with trade implications
3. Relationship with WTO
CBD: trade-related aspects -- November 2002 – Slide 3
CBD: Objectives (Art. 1)
• Conservation of biological diversity
• Sustainable use of its components
• Fair and equitable sharing arising out of the utilization of genetic resources, including by appropriate access to genetic resources and by appropriate transfer of technologies
CBD: trade-related aspects -- November 2002 – Slide 4
CBD: General features
• Convention sets goals, establishes general principles
• Application of specific measures largely prerogative of Parties
• Provisions may guide Parties to take measures with impacts on trade and the WTO framework
CBD: trade-related aspects -- November 2002 – Slide 5
CBD: OverviewArt. 1 – 5 General provisions
Art. 6 General measures for conservation and sustainable use
Art. 7 Identification and Monitoring
Art. 8 In-situ conservation
Art. 9 Ex-situ conservation
Art. 10 Sustainable use
Art. 11 Incentive measures
Art. 12 Research and training
Art. 13 Public education and awareness
Art. 14 Impact assessment and minimizing adverse Impacts
Art. 15 Access to genetic resources
Art. 16 Access to and transfer of technology
Art. 17 –18 Information exchange; technical and scientific information
Art. 19 Handling of biotechnology and distribution of its benefits
Art. 20 – 21 Finance
Art. 22 Relationship with other conventions
Art. 23 – 42 Convention process and institutional arrangements
CBD: trade-related aspects -- November 2002 – Slide 6
Trade-related provisionsArt. 1 – 5 General provisions
Art. 6 General Measures for conservation and sustainable use
Art. 7 Identification and Monitoring
Art. 8 In-situ conservation
Art. 9 Ex-situ conservation
Art . 10 Sustainable use
Art. 11 Incentive measures
Art. 12 Research and training
Art. 13 Public education and awareness
Art. 14 Impact assessment and minimizing adverse Impacts
Art. 15 Access to genetic resources
Art. 16 Access to and transfer of technology
Art. 17 –18 Information exchange; technical and scientific information
Art. 19 Handling of biotechnology and distribution of its benefits
Art. 20 – 21 Finance
Art. 22 Relationship with other conventions
Art. 23 – 42 Convention process and institutional arrangements
CBD: trade-related aspects -- November 2002 – Slide 7
Trade-related provisions
Identification, monitoring and policy responses
• Relevant articles: 7 (c), 14 (a) and (b), 8 (l), 6
• Obligations for identification, monitoring, assessment
• Obligations for policy responses, policy integration
• Implications for trade or trade policies
CBD: trade-related aspects -- November 2002 – Slide 8
Trade-related provisions
Sustainable use and incentive measures• Relevant articles: 6 (a), 10 (a), 11• Classification of incentive measures• Positive incentives measures and possible trade
implications• Perverse incentives measures and possible trade
implications• Indirect incentives measures and possible trade
implications
CBD: trade-related aspects -- November 2002 – Slide 9
Trade-related provisions
Alien Invasive Species
• Relevant articles: 8 (h)
• Trade-related aspects: the role of border control and quarantine measures
CBD: trade-related aspects -- November 2002 – Slide 10
Trade-related provisions
Access and benefit sharing; protection of biodiversity-related traditional knowledge
• Relevant articles: 15, 8 (j), 10 (d), 18.4• Aspects related to TRIPS: recent COP Decisions
• Role of IPR as a means to ensure benefit sharing: joint ownership, sharing of royalties, …
• Role of IPR to encourage access and benefit sharing and contribute to protection of traditional knowledge: disclosure of country of origin
• Need for further information gathering and analysis
CBD: trade-related aspects -- November 2002 – Slide 11
Trade-related provisions
Technology transfer
• Relevant articles: 16, 19.2
• Aspects related to TRIPS: the role of IPR
CBD: trade-related aspects -- November 2002 – Slide 12
Relationship with WTO
Article 22 (1): Relationship with other international conventions
“The provisions of this Convention shall not affect the rights and obligations of any Contracting Party deriving from any existing international agreement, except where the exercise of those rights and obligations would cause a serious damage or threat to biological diversity.”
CBD: trade-related aspects -- November 2002 – Slide 13
Relationship with WTO
Applications for observer status
• CTE (granted)
• CTE Special Session (pending)
• TRIPS Council (pending)
• Committee on Agriculture (pending)
Section II
The Biosafety Protocol and its relationship with international
trade
CBD: trade-related aspects -- November 2002 – Slide 15
Objective
• In accordance with the precautionary approach contained in Principle 15 of the Rio Declaration, to contribute to ensuring adequate level of protection in the field of the safe transfer, handling and use of LMOs resulting from modern biotechnology that may have adverse effects on the conservation and sustainable use of biological diversity, taking into account risks to human health
CBD: trade-related aspects -- November 2002 – Slide 16
Scope
• Applying to:- Transboundary movement (main focus)- Transit- Handling and - Use
of all LMOs that may have adverse effects on the conservation and sustainable use of biodiversity, taking into account risks to human health
• Exception: - Pharmaceuticals covered by other relevant
international agreements or organizations
CBD: trade-related aspects -- November 2002 – Slide 17
Means
• General measures
• Procedural and other requirements
• Operational mechanisms
(Biosafety Clearing-House)
CBD: trade-related aspects -- November 2002 – Slide 18
General measures
• Not restricting the right of Parties to take action that is more protective than that called for in the Protocol, provided it is:
- consistent with the objective and the provisions of the Protocol;
- in accordance with that Party’s obligations under
international law
CBD: trade-related aspects -- November 2002 – Slide 19
Procedural and other requirements
Three categories of LMOs:• LMOs for intentional introduction into the
environment (e.g. seed)
• LMOs intended for direct use as food or feed or for processing (e.g. genetically modified fruits for human consumption)
• LMOs for contained use (e.g. for laboratory use)
CBD: trade-related aspects -- November 2002 – Slide 20
Procedural and other requirements
• Advance Informed Agreement Procedure (AIA procedure)
• Procedure for LMOs intended for direct use as food or feed or for processing (LMO-FFP procedure)
• Requirements for handling, transport, packaging and identification
CBD: trade-related aspects -- November 2002 – Slide 21
AIA procedure
• Application:
First intentional transboundary movement of LMOs for intentional introduction into the environment of the Party of import
• Procedural steps:
Notification by the Party of export/exporter acknowledgement of receipt of notification by the Party of import decision-making review of decision
CBD: trade-related aspects -- November 2002 – Slide 22
AIA procedure
Decision-making:
• Risk Assessment
• Precautionary Approach
CBD: trade-related aspects -- November 2002 – Slide 23
AIA procedure
Risk Assessment
• Carry out in a scientific sound manner
• Conduct in accordance with a technical annex containing general principles and methodologies
CBD: trade-related aspects -- November 2002 – Slide 24
AIA procedure
• Outcomes of decision-making:- Approving the import, with or without
conditions; - Prohibiting the import; - Requesting additional information; - Extending 270 days deadline by a defined
period of time
• Review of decisions
CBD: trade-related aspects -- November 2002 – Slide 25
Procedure for LMO-FFPs
• Informing of final decisions on domestic use, placing on the market of LMOs
• Decision-making on imports: subject to domestic regulatory framework that is consistent with the objective of the Protocol
• Precautionary approach
CBD: trade-related aspects -- November 2002 – Slide 26
Precautionary Approach
Lack of scientific certainty due to insufficient relevant scientific information and knowledge regarding the extent of the potential adverse affects of a LMO on the conservation and sustainable use of biological diversity in the Party of import, taking also into account risks to human health, shall not prevent that Party from taking a decision, as appropriate, with regard to the import of the LMO in question in order to avoid or minimize such potential adverse effects.
CBD: trade-related aspects -- November 2002 – Slide 27
Socio-Economic Considerations
• Take into account socio-economic considerations arising from the impact of LMOs on the conservation and sustainable use of biodiversity, especially with regard to the value of biodiversity to indigenous and local community
• Consistent with Parties’ international obligations
CBD: trade-related aspects -- November 2002 – Slide 28
Trading with Non-Parties
• Consistent with the objective of the Protocol
• Encouraging non-parties to adhere to the Protocol
CBD: trade-related aspects -- November 2002 – Slide 29
Other requirements
Handling, transport, packaging and identification
• Documentation accompanying shipment of LMOs (identification of LMOs, contact information, etc. )
• Consideration of the need for and modality of developing standards
CBD: trade-related aspects -- November 2002 – Slide 30
Relationship with other agreements
Most Relevant WTO Agreements
• The SPS Agreement
• The TBT Agreement
• The GATT 1994
CBD: trade-related aspects -- November 2002 – Slide 31
Relationship with other agreements
• Mutual supportiveness
• Not imply a change in the rights and obligations of a Party under any existing international agreements
• Not intend to subordinate the Protocol to other international agreements
CBD: trade-related aspects -- November 2002 – Slide 32
Relationship with other agreements
Application of Observer Status
• The SPS Committee (Pending)
• The TBT Committee (Pending)