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L IBERALIZING T RADE IN E NVIRONMENTAL G OODS : W HAT TO INCLUDE ? Karsten Steinfatt Trade and Environment Division, WTO International Technical Workshop.

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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:

1 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

2 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)

3 Identifying environmental goods Possible parameters: – Categories/activities – End-use characteristics – Contribution to internationally agreed environmental objectives – Customs workability

4 Environmental Goods Submitted by Categories (excluding minerals products, motor vehicles and electric appliances)

5 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

6 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)

7 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

8 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 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

10 Environmental Goods Exports (excluding minerals products, motor vehicles and electric appliances)

11 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.

12 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

13 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.


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