Supporter letter to Secretary of State for Trade on a WTO Climate Waiver

Dear Ms Trevelyan,

We are concerned that the Government is not facing up to the urgency of the climate crisis when it comes to trade.

As supporters of Traidcraft Exchange, which has been working with producers in the Global South for over 30 years to gain a fairer deal from trade, we know that trade rules can impact lives for better or worse. Climate change is already devastating livelihoods across the Global South. This includes many countries with both the least historical responsibility for emissions and the least capacity to respond. It is crucial that trade rules operate to boost action on climate and development, and at the very least do not get in the way. Yet despite acknowledging that trade ‘is part of the solution’, the UK Government has yet to develop a joined-up approach to trade, climate and development.

The Government has an opportunity to partly rectify this at the upcoming meeting of the World Trade Organisation, its Twelfth Ministerial Conference. This will be the UK’s first as an independent member, and falls during the UK’s continuing presidency of COP26. During ‘MC12’, the UK Government must support a Climate Waiver – an agreement to temporarily lift WTO rules where they prevent action on climate – and show real leadership on trade and climate.

WTO rules are currently blocking urgently needed action to achieve a massive global transition away from fossil fuels. This problem will only grow as countries look to increase their ambitions under the Paris Agreement to align with 1.5 degrees. Already, efforts by the EU, US, Canada, India and China have been challenged at the WTO, with dirty fuel regulations being watered down, and investment in the renewable energy sector scaled back as a result. Earlier this year, the UK joined this list when the EU challenged Government policies supporting the UK offshore wind industry. And these cases impact beyond the countries involved, with the threat of WTO disputes acting as a chill on the ambition of other governments.

We are particularly concerned about the impact of WTO rules on access to green technology by countries in the Global South. Technology transfer will be key to climate change adaptation, but also to the ability of countries to leapfrog fossil-fuel intensive development and build new, green industries. Yet restrictive WTO patent rules currently prevent producers in the Global South adopting and developing local versions of green technology products. Further, they require producers to pay high prices for these products from countries in the Global North with high R&D capacities, deepening global inequality.

A Climate Waiver – as proposed by UNCTAD and senior WTO figures – would be a first step towards addressing these issues and bringing the WTO up to date for the climate crisis. It is a necessary step to deal with a global crisis, as with previous WTO waivers on action against blood diamonds, or to secure affordable access to essential medicines. It would also require bold leadership to bring about, which the UK can deliver by calling for a Climate Waiver in its MC12 statement – and so building momentum among members – and by pushing for its inclusion in any Ministerial Declaration on Trade and Environment. The Government demonstrated leadership at COP26 and has promised ‘ambitious international action at MC12’. We call on the Government to deliver on this promise, show a real commitment to trade and climate action, and in these ways support a Climate Waiver at the WTO.