Trade liberalisation can provide access to green goods and technologies at lower cost and greater efficiency. This paper illustrates that liberalising trade in environmental goods can create new markets and export opportunities, thus supporting export-led development strategies.
The document figures that increased deployment of cheaper and better-quality environmental goods helps countries counter environmental degradation and climate change, facilitating the transition to a green economy. In this respect, the author notes that the greatest growth potential for environmental goods (EGs) is to be found in developing countries. Nevertheless, non-tariff barriers (usually technical regulations) hamper developing countries ability to trade in environmental goods.
The paper underlines that negotiations on environmental goods and services are part of the WTO Doha Round. However, lack of agreement on how to define and categorise environmental and climate-friendly goods and services has been one of the main barriers to progress in negotiations.
Conclusions include:
- the liberalisation of EGs alone will not produce the desired result
- EGs liberalisation must be part of a broader initiative that incorporates special and differential treatment, as well as technical and financial assistance to developing countries
- as many environmental goods are closely related to environmental services, liberalisation would be greatly enhanced if negotiations took a holistic approach to both categories
Furthermore, in terms of the WTO negotiations, the author hopes to see a successful conclusion of the WTO Doha Round, suggesting the following options in the meanwhile:
- WTO members could consider an initiative similar to the Information Technology Agreement (i.e. voluntary participation but extended concessions to all WTO members)
- another way would be a plurilateral treaty similar to the WTO Government Procurement Agreement (i.e. voluntary participation and extended concessions only to participating members)
- in addition, countries could opt to pursue liberalisation of certain environmental goods and services through regional or bilateral trade agreements
Summary was prepared by Eldis.