VZCZCXRO2367
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #2695/01 2670847
ZNR UUUUU ZZH
R 240847Z SEP 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6416
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHKL/AMEMBASSY KUALA LUMPUR 2386
RUEHBK/AMEMBASSY BANGKOK 8153
RUEHGP/AMEMBASSY SINGAPORE 6164

UNCLAS SECTION 01 OF 04 JAKARTA 002695 
 
SIPDIS 
 
SINGAPORE FOR SUSAN BAKER 
 
SIPDIS 
SENSITIVE 
 
DEPT PASS TO USTR SCHWAB 
DEPT FOR EAP/MTS, EAP/RSP, EB/TPP, EB/TPP/BTA 
COMMERCE FOR SBERLINGUETTE 
USTR FOR DKATZ 
TREASURY FOR IA-BAUKOL 
 
E.O. 12598: N/A 
TAGS: BEXP EINV ECON ID
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 
 
Excellency, 
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 
level. 
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: 
djkpi@depdag.go.id or hersoet2001@yahoo.com, copied to Mr. Deddy 
Saleh, Director for MultiLateral Cooperation deddy@saleh.to). 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 
 
            -2- 
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 
discussion. 
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 
 
 
 
 
 
                                                 cc. 
Executive Secretary, UNFCCC, Bonn 
 
Attachments: 
¶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 
                                                            Trade 
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 
process. 
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 
secretariat 
 
SIPDIS 
¶V. Proposed Topics 
DAY 1, SATURDAY, 8 DECEMBER 2007: 
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 
 
 
confirmed) 
 
Presentation by CSIS/NGO team (to be confirmed) 
 
Comments by Participants 
 
Discussions 
 
Dinner and cultural night (19.00 till finish) 
 
DAY 2: SUNDAY, 9 DECEMBER 2007 
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 
Discussions 
Coffee break (10.30-10.45) 
 
Session 3:   (CLOSED SESSION - MINISTERS/HIGH LEVEL POLICY MAKERS 
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 
Discussions 
 
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. 
 
HUME