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Position Papers
Brussels, 15 november 1999


EURO COOP calls for Trade and Environment to be put on the Agenda for WTO Negotiations in Seattle


Euro Coop is the European Community of Consumer Co-operatives, whose members are the national organisations of consumer co-operatives in 13 of the 15 member states of the EU and in 5 central and eastern European countries. Created in 1957, Euro Coop today represents over 3,200 local or regional co-operatives, membership of which amounts to over 19 million consumers in the EU and 2 million in the associated countries of central and Eastern Europe.

Euro Coop believes it is important that the issue: Trade and Environment is put on the agenda for the new round of trade negotiations in the WTO at the Ministerial Meeting in Seattle in order to promote sustainable development and fair trade. Euro Coop calls for the EU and its Member States to take a firm position on the issue so it will not be watered down by negotiation in Seattle.

Euro Coop is of the opinion that consumers have a right to know what is going on during WTO negotiations. WTO should look at how it can improve the openness and transparency of its deliberations. Consumer bodies should be involved with the consultative process to ensure that their views, and not just those of Governments' and trading interests, are taken into account.

Euro Coop supports an open and transparent trading system. Protectionist policies designed to erect barriers to trade have not been in consumers' interest, as these barriers have led to higher prices for consumers in the protected market. However, Euro Coop believes that rules are needed to ensure that consumers are protected. In the context of the environment, we believe that WTO rules can promote environmental protection and sustainable development. We do not accept that free trade should mean that the 'lowest common denominator' should prevail as far as the environment is concerned. We are concerned that WTO rules are being referred to in a number of areas that would effect the environment. To illustrate our concerns we give three examples and comment on the use of the precautionary principle.

1. The EU Eco-labelling System:

Euro Coop has expressed its views on a number of occasions about the eco-labelling system, but we are concerned that certain countries are complaining to the WTO that the system is a technical barrier to trade. In our view, eco-labelling is a voluntary scheme which aims to give consumers more information about the environment impact of a product. It should not fall foul of WTO rules.

2. Voluntary Labelling Schemes:

Similarly, Euro Coop would argue that voluntary labelling schemes such as the Forestry Stewardship Council (FSC) and the Marine Stewardship Council (MSC) aim to give consumers information about the conditions under which the product was produced.

Euro Coop does not accept that the above-mentioned labelling schemes are barriers to trade in any way, i.e. regarding Non-Product Related Process and Production Methods (PPMs). Quite the contrary, they are environmental policy instruments and would solve the dilemma between lack of consumer information and barriers to trade. Therefore, Euro Coop believes that WTO rules should make it clear that such labelling schemes are allowed and should serve as minimum requirements for any new labelling schemes introduced.

3. Producer Responsibility:

Besides, Euro Coop is concerned that EU directives in such areas as packaging waste and waste electronic items are threatened by WTO rules. Whilst Euro Coop may have criticisms of some features of these directives, we consider that the EU must have the right to progress producer responsibility initiatives in the interest of the environment.

4. The Precautionary Principle:

Euro Coop believes that it is necessary to maintain the right of the European Union to take precautionary action and to keep higher safety standards than internationally accepted in order to protect human health, safety and the environment, for instance concerning GMOs. Euro Coop realises that it is a challenge to distinguish between when the principle is used for precautionary action, and when it is used as a barrier to trade. However, there is a need to clarify the relationship between multilateral trade rules and the precautionary principle in order to allow WTO Members to take action under the principle. Furthermore, Euro Coop is concerned that international decisions are increasingly driven by economic and political interests, which often prevail over consumers' concerns.