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Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
Environmental Goods And The Wto
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Environmental Goods And The Wto

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  • 1. ENVIRONMENTAL GOODS AND THE WTO THE ASIA WTO RESEARCH NETWORK SEMINAR Rokiah Alavi Taipei, 23-24 April 2006
  • 2. INTRODUCTION <ul><li>The Doha Ministerial Declaration called for the reduction/elimination of tariff and non-tariff barriers to environmental goods and services (EGS) – para 31 (iii). </li></ul><ul><li>Liberalization could increase the availability of green products – support environmental objectives. </li></ul><ul><li>Agreed that the negotiations for: </li></ul><ul><ul><li>Environmental goods will take place in the Negotiating Group on Market Access (NAMA). </li></ul></ul><ul><ul><li>Environmental services will take place in Council for Trade in Services Special Session (CTSSS). </li></ul></ul>
  • 3. DEFINITION <ul><li>Negotiation modalities – use OECD and APEC lists as a starting point. </li></ul><ul><li>No single accepted definition. </li></ul><ul><li>EGS - considered to be any equipment, material or technology used to address a particular environmental problem or as a product that is itself “environmentally preferable” to another similar products because of its relatively benign impact on the environment (Hamwey et al ., 2003). </li></ul>
  • 4. OECD/APEC and UNCTAD Lists <ul><li>Industrial goods used to provide environmental services to address pollution and waste affecting water, soil and air – OECD/APEC Definition </li></ul><ul><li>This includes: </li></ul><ul><li>Generally have multiple end-uses, only one of which is to provide environmental services. </li></ul><ul><li>2. Usually do not have inherently environmental characteristics; it is their use to provide environmental services that qualifies them as environmental goods. </li></ul><ul><li>Hamwey (2005) </li></ul><ul><li>Environmentally Preferable Products (EPPs), including both industrial and consumer goods - UNCTAD Definition </li></ul><ul><li>This includes: </li></ul><ul><li>Have environmentally preferable characteristics relative to substitute goods, i.e., reduced negative environmental impacts in production, end-use or disposal. </li></ul><ul><li>2. Are generally used for purposes other than environmental ones in commercial and household applications. </li></ul>
  • 5. OECD List Includes: <ul><li>Includes goods covering 132 6-digit HS Codes and covers the following: </li></ul><ul><li>Pollution Management: </li></ul><ul><ul><ul><li>Air pollution control </li></ul></ul></ul><ul><ul><ul><li>Water pollution control </li></ul></ul></ul><ul><ul><ul><li>Solid waste management equipment </li></ul></ul></ul><ul><ul><ul><li>Remediation/clean up of soil and water </li></ul></ul></ul><ul><ul><ul><li>Noise/vibration abatement </li></ul></ul></ul><ul><ul><ul><li>Environmental monitoring/analysis equipment </li></ul></ul></ul><ul><li>Renewable Energy Plants </li></ul><ul><li>Sustainable Forestry </li></ul><ul><li>Sustainable Agriculture and fisheries </li></ul><ul><li>Eco-Tourism </li></ul><ul><li>Portable Water </li></ul><ul><li>Recycling Systems/materials </li></ul><ul><li>Chemicals used in pollution control systems </li></ul><ul><li>Energy efficient or comparatively environment friendly consumer products </li></ul><ul><li>Cleaner technologies </li></ul><ul><li>(Source: OECD, 1999) </li></ul>
  • 6. APEC List Includes: <ul><li>Covers 104 HS Codes </li></ul><ul><li>Similar to OECD lists – have 54 goods in common at HS 6-digit level. </li></ul><ul><li>Differences: </li></ul><ul><ul><ul><li>Excludes minerals and chemicals </li></ul></ul></ul><ul><ul><ul><li>Includes a more extensive set of goods needed for environmental monitoring and assessment </li></ul></ul></ul>
  • 7. EPPs <ul><li>For most developing countries – EPPs are of their export interests. </li></ul><ul><li>No specific list has been submitted to NAMA. </li></ul><ul><li>Country proposals include: </li></ul><ul><ul><ul><li>Non-timber forest products such as honey, gum-arabic etc. </li></ul></ul></ul><ul><ul><ul><li>Products based on traditional knowledge </li></ul></ul></ul><ul><ul><ul><li>Products made of natural fibres such as jute, sisal and coir </li></ul></ul></ul><ul><ul><ul><li>Wood and wood based products </li></ul></ul></ul><ul><ul><ul><li>Eco-labeled or certified products made with environment friendly processes </li></ul></ul></ul><ul><ul><ul><li>Organic products </li></ul></ul></ul><ul><ul><ul><li>Biofuels such as ethanol and biodiesel </li></ul></ul></ul>
  • 8. Trade and External Barriers <ul><li>Environmental sector is big and expanding; expenditure is more than US$600b. in 2005 (Vaughan, 2003) – mainly in solid waste management, water equipment and air pollution abatement. </li></ul><ul><li>Trade – developed countries in general have trade surplus, while developing countries face deficit (OECD/APEC lists product). </li></ul><ul><li>Tariff protection - developed countries have lower tariffs than developing countries and LDCs (Hamwey, 2005; Bora and Teh, 2004). </li></ul><ul><li>There was large gap between bound and applied rates (Fliess and Lejarraga, 2005; Bora and Teh, 2004 ). </li></ul>
  • 9. Average Bound Tariffs Source: Bora and Teh, 2004
  • 10. Average applied tariff Source: Bora and Teh, 2004
  • 11. Environmentally Preferable Products (EPPs) – UNCTAD’s List <ul><li>Export interests of developing countries, particularly Asia. </li></ul><ul><li>Exports about 30% of global EPPs exports (Kim, 2005). </li></ul><ul><li>Tariff protection for EPPs in developed countries is low; high in developing countries. </li></ul><ul><li>Tariffs higher for textiles and apparels made of natural fibres such as cotton, wool and silk. </li></ul><ul><li>Various forms of NTBs. </li></ul>
  • 12. SOURCE: Hamwey, 2003 Apparel manufactured from natural cotton fibres – lower/negative environmental impacts during end-use and/or disposal phases of their life-cycle. EPP-CA Raw cotton materials and cotton textiles EPP-CM Includes apparel manufactured from natural wool and silk fibres -lower/negative environmental impacts during end-use and/or disposal phases of their life-cycle. EPP-WSA Wood and wood based products including building supplies and furniture. EPP-Wood Comprises of recoverable materials that are reintegrated into the production cycle. Includes scrap and waste paper, wood, plastics, rubber and various scarp metals. EPP-RCY Includes consumer and industrial non-durable and semi-durable EPP goods. Include wide variety of goods including natural fibres for industrial uses, and in the form of textiles , natural rubber, natural vegetable derivatives, colourings and dyes. EPP-Core Including fuels for CT, and power generation technology application. Includes natural gas, propane and butane, as well as ethanol and a range of agricultural feedstocks – bagasse and oilseed – used respectively to produce ethanol and biodiesel fuels. CT-FUEL Clean technologies used for power generation. This list includes energy efficient natural gas based power generation and renewable energy technologies and their components. CT CLASSIFICATION OF GOODS AS EGs UNCTAD EG GROUP
  • 13. SOURCE: Hamwey, 2003
  • 14. SOURCE: Hamwey, 2003
  • 15. Case Studies <ul><li>Wind Turbine </li></ul><ul><li>Natural Fibre Products </li></ul>
  • 16. WIND TURBINES AND PUMPS <ul><li>Wind turbine are made in many shapes and sizes – small ones produce a few hundred watts of power and the large ones 5 million watts. </li></ul><ul><li>Large turbines – dominant exporters: Denmark, Germany, USA and Spain. Production includes all parts – manufacturing activities distributed not only in OECD countries, but also across several developing countries. </li></ul><ul><li>Small turbines – produced mainly by developing countries. </li></ul><ul><li>Statistics only indicative – difficulty to distinguish the product from other items classified under the same HS code. </li></ul>Source: Steenblik, 2005
  • 17. Regional Distribution: New Installed Wind Power Capacity in 2004 (%)
  • 18. Top 10 Wind Large Capacity Turbine Manufacturers by Country Source: Lewis and Wiser (2005), Table 4, p.26 100.0 100.0 8331 41966 TOTAL 10.7 5.3 441 4489 Others 1.9 2.6 218 806 Mitsubishi Japan 3.0 2.9 243 1273 Made 9.4 11.5 956 3935 Gamesa Spain 5.3 2.9 242 2219 Nordex 2.1 3.5 291 893 RE Power 13.7 14.6 1218 5758 Enercon Germany 10.6 18.0 1503 4428 GE Wind USA 15.2 10.3 855 6398 NEG Micon 8.0 6.6 552 3367 Bonus 20.0 21.8 1812 8400 Vestas Denmark Share of Total Global Turbines (%) Global Market Share, 2003 (%) 2003 Installed Capacity (MW) Total Installed Capacity (MW) Company
  • 19. Major Large Capacity Turbine Producers in Developing Countries <ul><li>Suzlon Energy – India; </li></ul><ul><ul><li>The 7th largest wind turbine manufacturer in the world in 2004 </li></ul></ul><ul><ul><li>Had 4.5 percent of global market share in 2004 </li></ul></ul><ul><li>Goldwind – China </li></ul><ul><ul><li>No export yet </li></ul></ul><ul><ul><li>Producing for domestic market </li></ul></ul>
  • 20. Wind Turbine Sales in China by Manufacturer, 2003
  • 21. <ul><li>Wind turbines: tariff is high in developing countries –15% or more. OECD countries – very low tariff. </li></ul>LEADING EXPORTERS AND HIGEST TARIFF APPLIED TO WIND POWERED ELECTRIC GENERATING SETS SOURCE: Taken from Steenblik (2005), Annex Table 4 15 (2000) Yemen 15 (2003) Tanzania 15 (2001) Romania 16 China 15 (2002) Nigeria 23 Malaysia 15 (2004) Nepal 23 S. Korea 15 (2003) Cambodia 33 South Africa 20 (2003) Thailand 69 Tunisia 20 (2003) Maldives 95 Namibia 20 (2003) Brunei 678 Singapore 3-23 (2004) Mexico 771 India 25 (2004) India 2000 Brazil 33.5 (2004) Bermuda 964 965 Denmark 35 (2001) Bahamas 1 128 505 World Applied Tariff (%) (Data Year) Importers with the highest level of duty Export Value (US$000) Leading Exporters
  • 22. Non-Tariff Barriers <ul><li>Local Content Policy </li></ul><ul><li>Certification </li></ul><ul><li>Export Credit Assistance </li></ul><ul><li>Preferential Import Duty for Parts and Duty Exemption </li></ul><ul><li>Technology Transfer and R&D capacity </li></ul>
  • 23. NATURAL FIBRES <ul><li>JUTE AND JUTE PRODUCTS </li></ul><ul><ul><ul><li>Raw jute fibre – do not face much barriers. Exports to developed country under GSP, no tariff escalation (except Australia) </li></ul></ul></ul><ul><ul><ul><li>Japan – woven fabrics – no GSP </li></ul></ul></ul><ul><ul><ul><li>Developing countries importers - tariff escalation. </li></ul></ul></ul><ul><ul><ul><li>China: raw (8%), woven fabrics and jute sacks (13%), jute carpets (22.3%) </li></ul></ul></ul><ul><ul><ul><li>Iran – raw and yarn (5-25%), woven fabrics (60%), carpets (250%), jute sacks (500%) </li></ul></ul></ul>SOURCE: Consultation on Natural Fibre (2005), obtained from www.fao.org
  • 24. Applied Tariff on Imports of Jute and Jute Products (%) SOURCE: Consultation on Natural Fibre (2005), obtained from www.fao.org 13.0 25.0 500.0 0.0 0.0 GSP- 0.0 Applied – 4.0 0.0 Sack of Jute 22.3 25.0 250.0 n.a. 0.0 GSP- 0.0 Applied – 5.0 GSP- 0.0 Applied – 5.0 Carpets of Jute 15.0 25.0 75.0 0.0 10.0 GSP- 0.0 Applied – 5.1 GSP- 0.0 Applied - 1.6 Twins Cordage of jute 13.0 25.0 60.0 GSP- 0.0 Applied – 12.8 0.0 GSP- 0.0 Applied – 4.0 0.0 Woven Fabrics of Jute, unbleached 9.0 10.0 25.0 0.0 5.0 0.0 0.0 Multiple Cabled Yarn 9.0 10.0 25.0 0.0 5.0 0.0 0.0 Single Yarn 8.0 5.0 5.0 0.0 0.0 0.0 0.0 Jute Fibres Raw China Pakistan Iran Japan Australia EU USA
  • 25. NATURAL FIBRES <ul><ul><li>SISAL AND SISAL PRODUCTS </li></ul></ul><ul><ul><ul><li>Principal market – USA and EU. </li></ul></ul></ul><ul><ul><ul><li>Developed countries - zero duty / GSP </li></ul></ul></ul><ul><ul><ul><li>China – tariff escalation – domestic processing industry protection. </li></ul></ul></ul>SOURCE: Consultation on Natural Fibre (2005), obtained from www.fao.org
  • 26. Applied Tariff on Imports of Sisal and Sisal Products (%) 15.0 0.0 0.0 GSP 0.0 Applied 15.7 GSP 0.0 Applied 5.0 Other twins or cordage of sisal 15.0 0.0 10.0 GSP 0.0 Applied 15.7 0.0 Binder or baler twins of sisal 6.0 0.0 0.0 0.0 0.0 Sisal Fibre Raw China Japan Australia EU USA
  • 27. NATURAL FIBRES <ul><ul><li>3. COIR AND COIR PRODUCTS </li></ul></ul><ul><ul><ul><li>Major exporters – India and Sri Lanka </li></ul></ul></ul><ul><ul><ul><li>Principal market – EU. </li></ul></ul></ul><ul><ul><ul><li>Developed countries - zero duty / GSP </li></ul></ul></ul><ul><ul><ul><li>China – tariff escalation – domestic processing industry protection. </li></ul></ul></ul>SOURCE: Consultation on Natural Fibre (2005), obtained from www.fao.org
  • 28. Applied Tariff on Imports of Coir and Coir Products (%) 26.0 GSP 0.0 Applied 5.2 0.0 GSP 0.0 Applied 4.0 0.0 Floor Coverings of Coconut Fibres/Coir 6.0 0.0 0.0 0.0 0.0 Coir yarn 6.0 0.0 0.0 0.0 0.0 Coir Fibre, Raw China Japan Australia EU USA
  • 29. NATURAL FIBRES <ul><ul><li>4. ABACA AND ABACA PRODUCTS </li></ul></ul><ul><ul><ul><li>Major exporters – Philippines and Ecuador </li></ul></ul></ul><ul><ul><ul><li>Principal market – USA, EU and Japan. </li></ul></ul></ul><ul><ul><ul><li>Developed countries - zero duty / GSP </li></ul></ul></ul><ul><ul><ul><li>China – tariff escalation – domestic processing industry protection. </li></ul></ul></ul>SOURCE: Consultation on Natural Fibre (2005), obtained from www.fao.org
  • 30. Applied Tariff on Imports of Abaca and Abaca Products (%) 15.0 GSP 0.0 Applied 3.0 10.0 GSP 0.0 Applied 10.0 GSP 0.0 Applied 4.8 Twins or Cordage of Abaca 3.0 0.0 0.0 0.0 0.0 Abaca Fibre, Others 3.0 0.0 0.0 0.0 0.0 Abaca Fibre, Raw China Japan Australia EU USA
  • 31. Concluding Remarks <ul><li>Need to identify existing and potential export interests of EGs </li></ul><ul><li>Promote production of EGs </li></ul><ul><li>Periodical review of EGs list – development of new products, technology and awareness </li></ul><ul><li>Identify export barriers of each product – existing and potential </li></ul><ul><li>Market access – supply side and demand side </li></ul><ul><li>Serious effort need to be taken to improve consumers and producers awareness on EGs. </li></ul>

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