1. UNCTAD Environmental goods and services

2. Mandate
“The reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services”, Doha Ministerial Declaration, para 31(iii)
Does not define environmental goods
except in juxtaposition with environmental services
Does not define negotiating modalities
Dual task

3. Institutional arrangements
CTESS: product coverage
NAMA: modalities
CTS: environmental services
AG?
Rules?

4. Role for CTESS Define environmental goods?
foreshadow modalities?
Identify issues relevant to environmental goods?
Mainstreaming vs. compartmentalizing

5. Lists OECD APEC National lists WTO compilation «Convergence list»
«Climate change» list

6. Defining goods Environmental goods Environmentally preferable products
dual use
Environmentally preferable products
relativism in time and space
Environmental goods = industrial goods?

7. NAMA +, scenario I Market access as priority
Extension of tariff negotiations
Trade performance as main criterion
assessing reciprocity
statistical approach and its deficiencies
Applied tariff differential (developed – developing) is in 2-3 percent range
going down as a result of unilateral liberalization
environmental projects enjoy tariff waivers

8. NAMA +, scenario II Environment as priority
Going beyond tariff negotiations
NTBs
Links to services negotiations
Agricultural goods (?)
Rules (?)

9. NTBs: defining the scope
NAMA: mandate on NTBs
Notifications proved difficult

10. NTBs “Critical mass” approach?
Practicality of negotiating objectives within the time-frame (?) for DDA negotiations
Reports on status of request-offer negotiations conducted bi- or pluri-laterally from Chairs of such negotiating groups
Hear presentations from NAMA Members pursuing particular initiatives in other Committees and Negotiating Groups

11. Services-led negotiations?
Environmental projects
goods account for 5-15 percent
ES play a role in the negotiations under Article XIX of the GATS

12. Negotiating dynamics Phased-in commitments
telecom, banking, insurance, distribution, business, postal and courrier, construction
Sectoral focus of current schedules
44 percent of membership
Sectoral pattern of offers
less than 10

13. Reality check Only 10% of the total EGS may actually be traded
Equipment: 35-45%
Services: 15-20%
over 50 percent are low tech - high volume
Goods and services: are they interrelated? In trade? In markets?
Projects as main vehicle

14. Alternative approaches
Bringing negotiations closer to real life situations
Refocusing on environment

15. Project approach Unilateral project definition (India)
apparently designed after CDM
Concessions limited in time, in scope

16. Integrated approaches
Combination of a list and project approach (Argentina)
List of private and public entities eligible for enhanced market access of relevant goods and services (Argentina, India)

17. Compatibility test Absent any new and particular rules
analysis of WTO law, as it stands, shows a number of uncertainties
MFN, like product, general exceptions, jurisprudence
WTO Members are free to negotiate a new framework
would form part of the WTO system
on a par with other agreements and will prevail as lex specialis over more general provisions
Two levels
Members may pvercome them by agreement

18. Environmental area approach
Environmental areas as point of convergence
UNCTAD expert meeting, July 2003
Start with multilaterally agreed goals and targets
MDGs, MEAs, other agreements
Proceed to technical negotiations
goods, services, standards, investment measures, IPRs, domestic regulation, other areas
Result: schedules (bindings), changes in rules (as appropriate), and protocols (measures of support)

19. Main areas Water and waste-water management Renewable energy
UNCTAD expert meeting, July 2003
Renewable energy
UNCTAD expert meeting, February 2005

20. Climate change Climate change under environmental area approach? US
«WTO Climate Initiative»
negotiation of parallel EGS Agreement
EU, US: early action on «climate-friendly» technologies
Proposal by Brazil: biofuels

21. Renewables UNCTAD’s expert meeting, Feb. 2005
goods, equipment, technologies, biofuels
Limits to tariff liberalization
Need for international deployment strategy
support measures
scope for trade and trade policy

22. Agricultural goods Ethanol Organic agricultural products
proposal by Brazil

23. Identifying issues List of renewable Standards Subsidies
energy efficiency
building materials, electric appliances
carbon content???
Subsidies
non-actionable subsidies for renewables?
phasing out of subsidies for fossil fuels???
Investment measures
local content requirements
Government procurement

24. Fall back option Request and offer Managing risks Tailor-made outcome
NTBs
proposal by Brazil

25. Climate change, GHG emissions reduction
Air pollution
Renewables
Biofuels
Agriculture
Organics
Environmental goods and services

26. Overriding considerations
How to ensure the negotiations and their outcome are commercially meaningful and financially viable?
How to make negotiations serve the higher purpose of environmental technology transfer?