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UNCTAD Environmental goods and services. Mandate The reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods.

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Presentation on theme: "UNCTAD Environmental goods and services. Mandate The reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods."— Presentation transcript:

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

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 –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

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 –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 UNCTADs expert meeting, Feb –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 –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 Agriculture Biofuels Environmental goods and services Air pollution Renewables Organics

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?


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