Presentation on theme: "L IBERALIZING T RADE IN E NVIRONMENTAL G OODS : W HAT TO INCLUDE ? Karsten Steinfatt Trade and Environment Division, WTO International Technical Workshop."— Presentation transcript:
L IBERALIZING T RADE IN E NVIRONMENTAL G OODS : W HAT TO INCLUDE ? Karsten Steinfatt Trade and Environment Division, WTO International Technical Workshop on Measuring Progress in Greening the Economy: Policies and Practices International Technical Workshop on Measuring Progress in Greening the Economy: Policies and Practices 15 May 2014
With a view to enhancing the mutual supportiveness of trade and environment, we agree to negotiations, without prejudging their outcome, on […] iii)the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services. Doha Ministerial Declaration (2001) Paragraph 31(iii) Identification of environmental goods and services Determination of modalities Doha Development Agenda: Paragraph 31(iii)
Environmental Goods Submitted by Categories (excluding minerals products, motor vehicles and electric appliances)
The end-use criterion Goods with environmental end-use characteristics: – Clear and direct environmental end use/benefit – Only to be used in environmental control/improvement – Contributes to the 3Rs Shortcomings: – Dual/multiple uses – Environmentally preferable goods
International instruments Agenda 21 Rio Declaration on Environment and Development Johannesburg WSSD Plan of Implementation MDGs MEAs (e.g., UNFCCC, CBD, Stockholm Convention on Persistent Organic Pollutants)
Customs workability HS is not always sufficiently specific – 55% of HS-6 tariff lines submitted by WTO Members make reference to ex-outs Differentiation possible according to specific criteria – Examples of past sectoral liberalization agreements
EG Identification: Challenges Constant evolution of technology 50% of existing technologies are expected to be replaced with new and different goods within 15 years (OECD, 2005); One off exercise? Review mechanism (proposed by New Zealand and group of friends). ?
9 Members: 169 HS6 Japan: 59 HS6 Saudi Arabia: 259 HS6 Philippines: 17 HS6 Qatar: 20 HS6 Singapore: 72 HS Note: Proportions not respected EG Identification: Convergence valves for boilers, gas turbines, (water) gas generators. 1
Environmental Goods Exports (excluding minerals products, motor vehicles and electric appliances)
Methodological issues Analysis based on the lists submitted in the CTESS and encompassing 409 different HS-6 tariff lines; Data sources: COMTRADE and WITS (WTO); Indicative analysis only: No consensus on the proposed environmental goods; Mineral products, (efficient) motor vehicles and (efficient) electric appliances omitted resulting in 348 HS-6 tariff lines; Trade flows overestimated because most of the 348 HS-6 submitted refer to ex-out.
APEC decision on environmental goods In 2012, APEC l eaders endorsed a list of 54 EGs for which APEC economies will reduce applied tariff rates to 5% or less by end 2015, taking into account: - individual economies economic circumstances, and - without prejudice to economies positions in the WTO Categories Number of HS sub- headings Renewable15 Environmental Monitoring, Analysis, Assessment Equipment 17 Environmental-protection 21 Environmentally Preferable Products1 Source: ICTSD
Conclusions Need for a closer dialogue between data experts and trade negotiators Technical assistance and capacity building to customs administrations would enlarge the realm of workable solutions Data needs: global value chains in environmental goods, NTBs.