Presentation on theme: "Liberalizing Trade in Environmental Goods: What to include?"— Presentation transcript:
1Liberalizing Trade in Environmental Goods: What to include? International Technical Workshop on Measuring Progressin “Greening” the Economy: Policies and PracticesLiberalizing Trade in Environmental Goods: What to include?Karsten SteinfattTrade and Environment Division, WTO15 May 2014
2Doha Development Agenda: Paragraph 31(iii) Doha Ministerial Declaration (2001)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.Paragraph 31(iii)Identification of environmental goods and servicesDetermination of modalities
3Identifying environmental goods Possible parameters:Categories/activitiesEnd-use characteristicsContribution to internationally agreed environmental objectivesCustoms workability
4Environmental Goods Submitted by Categories (excluding minerals products, motor vehicles and electric appliances)
5The end-use criterionGoods with environmental end-use characteristics:Clear and direct environmental end use/benefitOnly to be used in environmental control/improvementContributes to the 3RsShortcomings:Dual/multiple usesEnvironmentally preferable goods
6International instruments Agenda 21Rio Declaration on Environment and DevelopmentJohannesburg WSSD Plan of ImplementationMDGsMEAs (e.g., UNFCCC, CBD, Stockholm Convention on Persistent Organic Pollutants)
7Customs “workability” HS is not always sufficiently specific55% of HS-6 tariff lines submitted by WTO Members make reference to “ex-outs”Differentiation possible according to specific criteriaExamples of past sectoral liberalization agreements
8EG Identification: Challenges Constant evolution of technology50% of existing technologies are expected to be replaced with new and different goods within 15 years (OECD, );“One off” exercise?Review mechanism (proposed by New Zealand and “group of friends”).?
9EG Identification: Convergence Saudi Arabia: 259 HS6Qatar: 20 HS673314215819 Members: 169 HS6211532Overlapping# HS-61x2782x893x354x78145231valves for boilers,gas turbines,(water) gas generators.112055118Philippines: 17 HS6Japan: 59 HS6Singapore: 72 HS6Note: Proportions not respected
10Environmental Goods Exports (excluding minerals products, motor vehicles and electric appliances)
11Methodological 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 HS-6 tariff lines;Trade flows overestimated because most of the 348 HS-6 submitted refer to “ex-out”.
12APEC decision on environmental goods In 2012, APEC leaders 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 WTOCategoriesNumber of HS sub-headingsRenewable15Environmental Monitoring, Analysis, Assessment Equipment17Environmental-protection 21Environmentally Preferable Products1Source: ICTSD
13ConclusionsNeed for a closer dialogue between data experts and trade negotiatorsTechnical assistance and capacity building to customs administrations would enlarge the realm of workable solutionsData needs: global value chains in environmental goods, NTBs.