UNCTAD
Environmental goods and services
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
Institutional arrangements
• CTESS: product coverage
• NAMA: modalities
• CTS: environmental services
• AG?
• Rules?
Role for CTESS
• Define environmental goods?– foreshadow modalities?
• Identify issues relevant to environmental goods?
• Mainstreaming vs. compartmentalizing
Lists
• OECD
• APEC
• National lists
• WTO compilation– «Convergence list»
• «Climate change» list
Defining goods
• Environmental goods– dual use
• Environmentally preferable products– relativism in time and space
• Environmental goods = industrial goods?
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
NAMA +, scenario II
• Environment as priority
• Going beyond tariff negotiations– NTBs
• Links to services negotiations
• Agricultural goods (?)
• Rules (?)
NTBs: defining the scope
• NAMA: mandate on NTBs
• Notifications proved difficult
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
Services-led negotiations?
• Environmental projects– goods account for 5-15 percent
• ES play a role in the negotiations under Article XIX of the GATS
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
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
Alternative approaches
• Bringing negotiations closer to real life situations
• Refocusing on environment
Project approach
• Unilateral project definition (India)– apparently designed after CDM
• Concessions limited in time, in scope
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)
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
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)
Main areas
• Water and waste-water management– UNCTAD expert meeting, July 2003
• Renewable energy– UNCTAD expert meeting, February 2005
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
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
Agricultural goods
• Ethanol
• Organic agricultural products– proposal by Brazil
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
Fall back option
• Request and offer
• Managing risks
• Tailor-made outcome
• NTBs– proposal by Brazil
Climate change, GHG emissions reduction
Agriculture
Biofuels
Environmental goodsand services
Air pollutionRenew
ables
Organics
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?