Cablegate: Invitation to Cop-13 Trade Ministerial

DE RUEHJA #2695/01 2670847
R 240847Z SEP 07






E.O. 12598: N/A
SUBJECT: Invitation to COP-13 Trade Ministerial

JAKARTA 00002695 001.2 OF 004

1. (SBU) SUMMARY: On September 24, Embassy received official
correspondence from Government of Indonesia (GOI) Minister of Trade
Mari Pangestu addressed to United States Trade Representative (USTR)
Susan C. Schwab. The letter is an invitation to attend a trade
ministerial on the margins of the COP13 conference in Bali in
December 2007 and includes a proposed agenda and schedule. A
response is requested by October 15. The full text of the letter
and accompanying attachments is included below. End Summary.

2. (SBU) Begin text:

Her Excellency
Ms. Susan C. Schwab
US Trade Representative
United Stated of America

Re: Trade Ministers' Dialogue on Climate Change Issues in the Side
of the UNFCCC COP13/MOP3, Bali, December 8-9, 2007

Indonesia will be hosting the 13th Conference of Parties of the
United Nations Framework of Convention on Climate Change (UNFCCC) in
Nusa Dua, Bali, Indonesia in December 2007. As we all know, climate
change has become one of the most important global issues, requiring
effective international policy frameworks and actions. The effects
of climate change are estimated to be most severe in the poorest
countries of the world, creating a potentially serious constraint on
sustainable development. Developed countries also face serious risks
from rising temperatures, changing weather patterns, and rising sea
In parallel with the above conference, I would like to invite
Ministers of Trade to attend the High Level Dialogue on Trade and
Climate Change issues. The meeting is aimed at initiating a
discussion and dialogue process among Trade Ministers on trade
policies related to climate change issues. For its content and
structure, basically I am proposing three discussion sessions,
followed by a wrap-up session. An objective background paper laying
out the relevant facts, analysis and issues will be prepared for
each session, and the draft papers will be sent out prior to the
meeting. A number of countries will be asked to kick off discussions
in each session, followed by an open session.
If agreed by all, the results of the discussion will be reported at
the UNFCCC COP13/CMP3 plenary sessions on the following day. Please
kindly review the attached draft Terms of Reference for further
details of the event. We are open to any suggestions and
improvements you may have. You can contact Mr. Herry Soetanto,
Indonesia's Director General of International Cooperation (phone
+6221 3440408; fax +6221 3858185, 3847273; emails: or, copied to Mr. Deddy
Saleh, Director for MultiLateral Cooperation I
would be grateful to have a response from you no later than 15
October 2007.

Jl. M.I. Ridwan Rais No. 5 Jakarta 10110
Ph: 62(021)3848667-3456318 Fax. 62(021)3846106

Although climate change has been discussed in the previous meetings
of the GB and the G20, this would be the first global event where
Ministers of Trade could focus on the tools and policies that they
can bring to bear on climate change mitigation and adaptation
issues. To keep the event manageable, I propose to invite around 30
countries and some national and international institutions
knowledgeable on the issues of trade and sustainable development. I
would also welcome your suggestions as to who the participants of
this dialogue should be.
I am quite enthusiastic about the potential of this event and I hope
you will be able to participate and contribute actively to the
I will be following up with you to consolidate these arrangements at
the earliest convenience.

JAKARTA 00002695 002.2 OF 004

Yours sincerely,
Mari Pangestu

Executive Secretary, UNFCCC, Bonn

1. Draft Term of Reference for High Level Event of the Ministers of
Trade at the UNFCCC COP13/CMP3. 8-9 December 2007, Bali, Indonesia;

Draft Terms of Reference
Ministers Dialogue on Climate Change Issues
at the 13th Conference of the
Parties of United Nations Framework Convention on
Climate Change (UNFCCC)

Bali, 8 December 2007

I. Introduction
Indonesia will be host country for the 13th Conference of the
Parties (CoP-13) of the UN Framework Convention on Climate Change
(UNFCCC) and the 3rd Meeting of the Parties (MoP-3 to the Kyoto
Protocol which will be held in Bali on 3 - 17 December 2007. On that
occasion, Indonesia will initiate a parallel meeting of an informal
dialogue among Trade Ministers on climate change and trade issues,
with more focus on policy oriented agenda.

Climate change has for sometime raising issues in trade discussion
within the World Trade Organization (WTO), and other fora. It is a
new challenge that transcends the traditional environmental problem
that can be resolved by a targeted environmental treaty with some
accommodation in the trade realm.

Awareness has been growing of the importance of managing the links
between trade and environmental regimes that recognize the integrity
of both. An underlying principle in the United Nations Framework on
Climate Change Convention (UNFCCC) to guide the efforts to stabilize
greenhouse gas concentrations in the atmosphere declares that
"measures taken to combat climate change, including unilateral ones,
should not constitute a means of arbitrary or unjustifiable
discrimination or a disguised restriction on international trade."
While the WTO Agreement recognizes that trade should be conducted
"while allowing for the optimal use of the world's resources in
accordance with the objective of sustainable development, seeking
both to provide and preserve the environment and to enhance the
means for doing so."

Recognizing the growing interaction between climate and trade
policies and their regimes, Indonesia is of the opinion that the
UNFCCC's conference in Bali would be a good occasion to start a
dialogue among Trade Ministers on the above policy issues. The
dialogue will be held on 8 - 9 December 2007 in Bali.

This dialogue is not meant to be a negotiating forum, but will serve
as a brain storming session among the Ministers on relevant key
issues and policy instruments that could contribute as guidance for
dealing with the potential inter-linkages between trade and climate
issues. The dialogue is expected to provide a recommendation on how
to address the mutually supportive links between trade, climate
change and sustainable development, particularly for the developing
countries. The conclusion and recommendation of the dialogue could
be presented at the high- level segment of the UNFCCC COP13/CMP3.
The outcome could also be circulated among COP13/CMP3 participants
in the form of Chair's Summary/Statement.

II. Objectives
The dialogue is intended to exchange views and experiences at the
Trade Ministerial level to clarify issues and seek for positive
relationship between trade and climate policies and regimes.

Specifically, the dialogue will consider:
(1) ways and means in which trade rules and policies may contribute

JAKARTA 00002695 003.2 OF 004

to mitigation and adaptation dimensions of climate change policy;
(2) ways in which trade communities could cope with institutional
challenges of climate change in future trade regimes; and
(3) policy tools and instruments in which possible conflicts between
trade and climate regime can be avoided.

Ill. Proposed Dialogue Format
This dialogue will be treated as an initial step for a continued
discussion process among trade ministers on climate change and trade
issues. Indonesia proposes three main discussion sessions, as
outlined below, followed by a wrap-up session.
Indonesia's Minister of Trade, H.E. Ms. Man E. Pangestu, is proposed
to be the chair for the overall process while Mr. Yvo de Boer, the
Executive Secretary of the UNFCCC, will set the stage for the event
by introducing a recent assessment on potential trade policy issues
that may be linked to actions for addressing climate change in the
welcoming lunch.
The first two sessions will be brain storming session, about 2 hours
in length each, will be attended by Ministers and selected
additional participants from relevant international institutions,
such as WTO, UNCTAD, and UNFCCC representatives, as well as from
NOOs and Academia. Each session will be opened with brief
introductions by selected presenters/resource persons. Participants
will comment on the topics presented during the discussion period.
The third session will be a closed session, about 2 hours in length,
only attended by Ministers and relevant high-level policy-makers,
which will precede a wrap-up session that will present participants
with conclusions and recommendations on how to move forward with the
Objective background papers for each session will be developed by
Indonesia's Ministry of Trade in collaboration with local and
international think tank groups as well as the team members of UN
CCC Secretariat and President-designated of the UNFCCC COP13/CMP3.
The papers will be distributed to participants two weeks before
dialogue takes place.

IV. Proposed Participants
About 30 countries/participants will be invited to the dialogue. The
list may include the following countries: Argentina, Australia,
Brazil, Canada, China, Denmark, France, Germany, Ghana, India,
Indonesia, Italy, Japan, Kenya, Malaysia, Mexico, Netherlands,
Nigeria, Norway,
Pakistan, the Philippines, Poland, Portugal, Russia, Saudi Arabia,
Singapore, South Africa, South Korea, Sweden, Turkey, UK, USA,
Vietnam, and European Commission.
In addition, number of NGO representatives, academia and think tank
groups (will be decided later on who and what) will be invited to
this dialogue to bring a broader information and perspectives as
well as key international institutions: UNCTAD, and UNFCCC and VITO

V. Proposed Topics
Welcoming lunch (12.00 -1430):
Introduction to Dialogue : H.E. Ms. Man E. Pangestu, Indonesia's
Minister of Trade

Opening remarks by Mr. Yvo de Boer, Executive Secretary of UNFCCC on
potential trade policy instruments that may be linked to actions on
addressing climate change
(to be confirmed)

Start of First Session (15.00-17.15)

Opening Remarks: Chair of Meeting - H.E. Ms. Mad E. Pangestu (15.00
- 15.15)

Session 1: Key Issues in Trade and Climate Policies
(15.15 - 17.15)

Objective: to increase understanding and awareness of the possible
inter linkages between trade and climate policies. This may cover
some ideas on ways in which carbon regimes may upset level playing
fields for trade in greenhouse gas-emissions product entering
international trade and also on potential for distortion of trade on
goods that are important for mitigation of and adaptation to climate
change through tariffs, restrictions on trade and subsidies

Presentation by IISD team (John Drexhage and Aaron Crosbey) (to be

JAKARTA 00002695 004.2 OF 004


Presentation by CSIS/NGO team (to be confirmed)

Comments by Participants


Dinner and cultural night (19.00 till finish)

Session 2: Trade Policy Tools and Instruments for addressing climate
change and sustainable development (830-10.30)
Objective: to stimulate discussion on what kind of tools and
instruments can promote positive linkages between trade and climate
change policies and avoid conflicts during implementation of the
respective regimes as well as sustainable development in developing
countries. Discussion could introduce countries' experiences and
best practice examples that may include free trade products and
technologies that are important for climate change mitigation and
adaptation, as well as rules related to carbon permit trading and
its interaction with trade in emissions-intensive goods.

Presentation by UNCTAD (to be confirmed)
Presentation by Trade Knowledge Network - to be confirmed
Comments by Participants
Coffee break (10.30-10.45)

ONLY): Common Objectives on Trade and Climate (10.45-12.45)

Objective: to stimulate discussion among Trade Ministers on possible
collective international and regional actions to increase positive
inter linkages between trade and climate. Discussion could focus on
different mechanisms or approaches for dealing with institutional
challenges of climate change in trade regimes, particularly in
developing countries where capacity gap is still wide.

Presentation on key findings from Session 1 and 2 by Chair
Comments by Other Ministers

Working Lunch and Wrap-Up Session (CLOSED-BY INVITATION ONLY):
Summary and Next Steps (13.00-15.00)

Objective: to discuss and agree on steps forward that may consists
of follow-up meetings, dialogues, or working groups, in addition a
Chair Summary will be produced during this wrap-up session.

Presentation on key findings from Session 1 and 2 by Chair

Closing Remarks (Chair)

End text.


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