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Exploring Linkages between Environmental Goods and Services Presentation to the WTO Symposium on Trade and Sustainable Development within the Framework.

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Presentation on theme: "Exploring Linkages between Environmental Goods and Services Presentation to the WTO Symposium on Trade and Sustainable Development within the Framework."— Presentation transcript:

1 Exploring Linkages between Environmental Goods and Services Presentation to the WTO Symposium on Trade and Sustainable Development within the Framework of 51 of the Doha Ministerial Declaration By Ronald Steenblik, OECD Trade Directorate Geneva, 10 October 2005

2 Some proposed environmental goods … Valves Filters Laboratory glassware Pumps Meters Photos source: http://www.sxc.hu/http://www.sxc.hu/ Photos credits: Water pump: Greg Jacobsen; Big valve: Cheryl Empey; Gas meter: K. Fawcett; Laboratory flask [Liquid contained]: Dain Hubley; Air filter: Jaime Barber

3 … and environmental services Wastewater management services Photos source: http://www.sxc.hu/http://www.sxc.hu/ Photos credits: Wastewater management: Sherry Wil; Garbage 4: Jeinny Solis S. Solid waste management services

4 Environmental services (Sanitation services) Photos source: http://www.sxc.hu/http://www.sxc.hu/ Photos credits: Beach cleaning: Rolf Esslinger; Street sweeper: Tim and Annette; Snow truck: Rui R. Street cleaning Beach cleaning Snow removal

5 Environmental services (Other environmental services) Nature and landscape protection services Noise and vibration abatement services Air-pollution control and monitoring Environmental protection services not elsewhere classified Remediation and clean- up of soil, surface water and groundwater Photos source: http://www.sxc.hu/http://www.sxc.hu/ Photos credits: Power plant [Industrial 8]: Kenn Kiser; Sound meter: Stephen Gibson; Golf course: Gary Tamin; Oil spill crew [marea negra 4]: Mariano Lesser; Chemical analysis: Ulrik De Wachter.

6 Case studies OECD engaged two consultants to find cases of exports of environmental services to private customers in developing countries. Asked what environmental goods were used in connection with those services, and from where they were procured. Asked were there any trade barriers?

7 Example: multi-service contract Client: Arcelors Vega do Sul plant (Brazil). Service supplier: Veolia Environnement (France) Contract: wastewater management, solid-waste manage- ment, process water, electricity, natural gas, industrial gases, compressed air Goods: tanks, pumps, compressors, filters, valves and fittings, measurement instrumentation … Provenance: estimated 75% procured locally Import barriers: tariff exemption procedure activated, but process was extremely long and difficult

8 Example: water & wastewater treatment Client: Shanghai Chemical Industrial Park (China) Service supplier: Sino French Water Development Co. Ltd. (France and Hong Kong) Contract: production of 200,000 m 3 /day industrial water and 7,000 m 3 /day of potable water; treatment of various industrial effluents Goods: tanks, pumps, compressors, filters, valves, monitoring instruments (manostats, pyrometers, …) Provenance: tanks, valves, many instruments procured locally; 20-30% of pumps and compressors imported. Import barriers: tariffs

9 Example: soil remediation Client: major manufacturer and retailer of cosmetics Service supplier: Indonesian subsidiary of Environmental Resources Management (USA) Contract: take over monitoring of groundwater pollution at former production facility, including installing new wells Goods: bladder pumps, diffusion bags containing distilled water, filters, passive sorbent collection devices, bottles Provenance: originally from Australia, more and more from Malaysia Import barriers: tariffs

10 Findings (1) The market for environmental services is growing, driven by: –Ever tighter regulations –CSR and other private obligations –Desire of industrial clients to stick to core competencies –Contractual advantages of servicing multiple clients

11 Findings (2) Goods associated with environmental services –Frequent need for: hardware to move air, solids or fluids; to store fluids; and instruments –Imports of specialty items; local procurement of heavy equipment and more common items

12 Findings (3) Import barriers –Information is difficult to obtain (sensitive issue) –Experiences vary. Waivers of tariffs are not uncommon, but administratively burdensome when used –Trade facilitation is sometimes an issue

13 For more information www.oecd.org/trade Steenblik, Ronald, Dominique Drouet and George Stubbs (2005) Synergies between trade in environmental services and trade in environmental goods, OECD Trade and Environment Working Paper No. 2005-01.


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