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China’s Practices in Trade and Environment LI Yihong E-mail: [email protected]

Chinas Practices in Trade and Environment LI Yihong E-mail: [email protected]

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Page 1: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

China’s Practices in Trade

and Environment

LI Yihong

E-mail: [email protected]

Page 2: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part I

China’s Policy on

Environment Protection

Page 3: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part I China’s Policy on Environment Protection

Eleventh Five-year Plan: Main Indicators on Resources and Environment

Indicators 2005 2010 growth rate(%)

Nature

Reduction on energy consumption per unit of GDP ( %)

20 binding

Reduction on water consumption per unit of industrial added-value ( %)

30 Binding

Utilization Coefficient of water consumption on agriculture irrigation

0.45 0.5 0.05 expecting

Synthesized Utilization Ratio of industrial solid waste (%)

55.8 60 4.2 expecting

Retaining Volume of culture land

( 100 million hectare)1.22 1.2 -0.3/y binding

Reduction on total discharge of major pollutants ( %)

10 binding

Coverage Ratio of Forestry ( %) 18.2 20 1.8 binding

Page 4: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part I China’s Policy on Environment Protection

Eleventh Five-year Plan:

Part VII: Building up a energy-saving and environmentally friendly society

--Development of Circular Economy

--Protection and Recovery of Ecosystem

--Reinforcement of Environment Protection

--Strengthening of Resources Management

--Rationally Utilization of Marine & Climate Resources

Page 5: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part I China’s Policy on Environment Protection

REPORT ON THE WORK OF THE GOVERNMENT (Delivered by Premier Wenjiabao at the Fifth Session of

the Tenth National People's Congress on March 5, 2007 )

Achievements of Eleventh Five-year Plan in 2006:

--While energy consumption per unit of GDP for the previous three years rose by 4.9%, 5.5% and 0.2% respectively, it dropped by 1.2% in 2006.

--Growth in total emission of major pollutants declined:

Chemical oxygen demand rose 1.2%, down from an increase of 5.6% the year before. Discharge of sulfur dioxide rose 1.8%, down from 13.1% in the previous year.

Page 6: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part I China’s Policy on Environment Protection

REPORT ON THE WORK OF THE GOVERNMENT (Delivered by Premier Wenjiabao at the Fifth Session of

the Tenth National People's Congress on March 5, 2007 )

Main goals for China's economic and social development in 2007:

--On the basis of structural improvement, improved productivity, reduced

consumption of energy and environmental protection, GDP is projected to increase

by 8%.

--The number of jobs created in urban areas is to be at least 9 million, and

the rate of registered urban unemployment is expected to be kept below 4.6%.

--The overall inflation level is to remain comparatively stable. The

increase of consumer prices is projected to stay below 3%, and it is expected to

improve the imbalance of international payments.

Page 7: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part I China’s Policy on Environment Protection

REPORT ON THE WORK OF THE GOVERNMENT (Delivered by Premier Wenjiabao at the Fifth Session of

the Tenth National People's Congress on March 5, 2007 )

In order to achieve the goals and fulfill the tasks for this year's economic and social development, the following principles are stressed to adhere:

“endeavor to improve the quality and efficiency of economic growth. Emphasis should be laid on saving energy and resources, protecting the environment and using land intensively……”

Page 8: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part I China’s Policy on Environment Protection

REPORT ON THE WORK OF THE GOVERNMENT (Delivered by Premier Wenjiabao at the Fifth Session of

the Tenth National People's Congress on March 5, 2007 )

Priorities for the 2007: --Reinforced measures will be taken to save energy, lower energy consumption, protect the environment and use land economically and intensively.

--The focus of energy-saving and environmental protection efforts will be made on the following areas:

Improve and tighten enforcement of energy consumption and environmental protection standards;Resolutely close down backward production facilities;Concentrate work on key industries and enterprises;Improve the policy agenda on energy-saving & environmental protection;Accelerate the development of energy-saving and environmentally friendly technologies;Beef up the measures on elimination of pollution and protection of environmentStrengthen supervision and governance of compliance with the law; Fulfill the objective-outcome performance system for saving energy and protecting environment

Page 9: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part II

China’s Practice in Economic Cooperation Agreements

Page 10: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

General Practice

Environment cooperation is usually as a part in the Economic Cooperation Agreements concluded by China and its trade partners.

Note: Economic Cooperation Agreements only refer to those no market access issues have been touched upon.

Part II China’s Practice in Economic Cooperation Agreements

Page 11: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part II China’s Practice in Economic Cooperation Agreements

Examples:

China-Australia Trade and Economic Framework Arrangement

Paragraph 3: The parties will take steps to promote strategic

cooperation in industries with outstanding potential. The main sectors are,

inter alia, agriculture, energy and mining resources, TCF, mechanical and

electronic products, tourism, education, inspection and quarantine,

customs, environmental protection….

Page 12: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part II China’s Practice in Economic Cooperation Agreements

Examples:

China-New Zealand Trade and Economic Cooperation Framework

Paragraph 2: The Parties will take steps to promote strategic

cooperation in areas of significant mutual economic potential, inter

alia: agriculture; animal husbandry; forestry; wool; services, including

education, tourism, air services, and labor and rofessional services;

science and technology; environmental protection…

Page 13: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part III

China’s Practice in FTAs

Page 14: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part III China’s Practice in FTAs

General Practice

There is no Environment Chapter in any FTAs signed or under negotiation, while environment goods and services are included in the goods and services parts respectively.

Page 15: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part III China’s Practice in FTAs

Approaches: * No environment language * Sustainable development mentioned in the preamble

* Common understanding that environment measures could be considered when to interpret the “General Exceptions”

* To be reflected in the Cooperation Chapter

Page 16: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn

June 19, 2007

Part III China’s Practice in FTAs

China-Chile FTA:

Article 108 Labor, Social Security and Environmental

Cooperation

The Parties shall enhance their communication and cooperation on labor,

social security and environment through both the Memorandum of

Understanding on Labor and Social Security Cooperation, and the

Environmental Cooperation Agreement between the Parties.

Page 17: Chinas Practices in Trade and Environment LI Yihong E-mail: liyihong@mofcom.gov.cn