EU and US propose new WTO green trade agreement for Doha round

EU and US propose new WTO green trade agreement for Doha round - Geneva,
30 November 2007
The EU has today launched with the US a proposal for much freer trade in green
goods and services as part of the Doha Round. This proposal is a first step in a more
comprehensive process and aims to eliminate tariffs and non-tariff barriers in trade in
key climate-friendly goods and services that have a clear role in protecting the
environment and promoting sustainable development. By making it cheaper and
easier to trade in these goods and services the EU proposal would help spread green
technologies globally, especially to industrialising developing countries. The proposal
will be an important part of the EU and US' contribution to the Bali Trade Minister's
summit on climate change next week.
The EU and the US proposal is a two tier process as part of a final Doha agreement.
• First, agreement to liberalise trade in at least 43 goods with clear environmental benefits
drawn from a World Bank list including solar panels and wind mill turbines.
• Second, an even more far-reaching Environmental Goods and Services Agreement
(EGSA) to be negotiated by WTO Members, which would foresee further binding
commitments to eliminate tariffs and non-tariff barriers in trade in green technologies. In
services, highly ambitious and comprehensive commitments would be undertaken that
address environmental and climate change challenges such as waste management.
Developing countries would be asked only to make contributions proportionate to their
level of development.
The global market for environmental goods and services is estimated to be worth more than
$550 billion dollars every year. The OECD estimates that green services account for 65% of
this market and green goods 35%. The EU accounts for around 30% of this market, and
large developing countries like China and India are also developing strong capacity. Trade in
green goods and services is growing twice as fast as global merchandise trade as a whole.
The proposal is a strong signal of the EU's conviction that ensuring the free movement of
green goods and services around the world is an important part of addressing climate
change.
Background
In December 2006 EU Trade Commissioner Peter Mandelson called for a global agreement
to liberalise trade in key environmental technologies. Under the Doha Development Agenda
WTO members have agreed to negotiations on 'the reduction or, as appropriate, elimination
on tariff and non-tariff barriers to environmental goods and services'. The joint EU-US
proposal covers both goods and services in a two-tiered approach. As an initial step, the joint
EU-US proposal envisages liberalisation for a list of 43 climate change friendly products
including wind turbines and related products, solar panels, solar driven stoves and boilers
and thermostats. The selection of goods is based on a study by the World Bank on trade and
climate change. Other products with a clear environmental benefit, for example goods related
to waste water management and potable water treatment, waste management, and air
pollution control could be added to this list. For services, the proposal includes commitments
for WTO Members interested in liberalising sectors that contribute to their efforts to address
climate change such as environmental services, architecture, engineering and construction
of energy-efficient facilities.

During a second stage, the EU and the US are proposing a new WTO agreement that would
further open trade in green goods and services on the basis of the complete list of
environmental goods submitted by the EU and other like-minded WTO members early in
2007. Any WTO member interested in participating in such an agreement could do so.
More information on the proposed agreement
Read Peter Mandelson's 2006 speech on trade and climate change