Workshop on Environmental Goods and Services for Developing Country Members 18 February 2010 Marie Isabelle Pellan Counsellor, Trade and Environment Division

31. With a view to enhancing the mutual supportiveness of trade and environment, we agree to negotiations, without prejudging their outcome, on: (iii) the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services. a unique mandate with both challenges and opportunities... - improving access to green goods and technologies - delivering on the trade, environment and development dimensions of the mandate - overlap with other areas of the DDA

Trade Negotiations Committee (TNC) Negotiating Group on Market Access Negotiating Group on Rules Special Session of the Committee on Agriculture Special Session of the Council for Trade in Services Special Session of the Dispute Settlement Body CTE Special Session TRIPS Special Session GENERAL COUNCIL Para 31(iii)

Discussions in CTESS : Individual lists tabled by 9 Members : proposals on alternative approaches (India, Argentina, Brazil) July 08: Work Programme Oct. 09: Revised Work Programme (new timelines) Call for submissions on identification of EGs of interest and other issues under mandate April 2007: 153-items list by proponents (potential convergence set) technical discussions

Group of Friends (potential convergence set): Japan Japan Chinese Taipei Chinese Taipei European Union European Union Korea Korea New Zealand New Zealand Canada Canada United States United States Switzerland Switzerland Norway Norway Other Members that have contributed with submissions: Argentina, Brazil, China, Colombia, Cuba, India,Peru, Philippines, Saudi Arabia Argentina, Brazil, China, Colombia, Cuba, India, Peru, Philippines, Saudi Arabia

Identifying goods (product coverage) Responding to the mandate under 31(iii)... Determining treatment (modalities) Determining treatment (modalities)

No agreed definition or criteria (work in OECD, APEC – defining by doing) No agreed definition or criteria (work in OECD, APEC – defining by doing) Coverage: industrial and agricultural goods? Coverage: industrial and agricultural goods? Majority of goods proposed have multiple uses (not just environmental) Majority of goods proposed have multiple uses (not just environmental) Technical issues relating to tariff classification (ability to distinguish at border; use of ex-outs) Technical issues relating to tariff classification (ability to distinguish at border; use of ex-outs) Constant evolution of the technology (Review mechanism needed? one off exercise?) Constant evolution of the technology (Review mechanism needed? one off exercise?) Identifying goods/product coverage: Some challenges

Determining treatment/modalities In the context of a list... (Friends) In the context of requests and offers... (Brazil) In the context of the integrated approach... (Argentina) Flexibilities for DgC (S&D)

Tariff cuts over and above what will be agreed in NAMA List (Friends) S&D treatment could take the form of: Lower rates of liberalization Lower rates of liberalization Different timeframe for the elimination of tariffs (i.e. longer implementation periods) Different timeframe for the elimination of tariffs (i.e. longer implementation periods) Additional flexibilities (e.g. product exemptions) Additional flexibilities (e.g. product exemptions)

Interested Members would draw their own individual list of goods to be liberalized on an MFN basis Interested Members would draw their own individual list of goods to be liberalized on an MFN basis Process of bilateral negotiationsProcess of bilateral negotiations Avoids one size fits all (not a unique set of products); more in line with Members individual goals and level of development Avoids one size fits all (not a unique set of products); more in line with Members individual goals and level of development Requests and offers (Brazil)

Integrated Approach (Argentina) 1- Agree multilaterally on categories of environmental activities to combat climate change; 2- In accordance with categories, identify climate change mitigation and adaptation goods that may be used in national projects; 3- Proceed to reduce/eliminate tariff and NTBs with respect to goods required in the context of projects under the Clean Development Mechanism (time bound)

Some examples of NTBs in relation to EGs identified at workshop in Sept. 09: Some examples of NTBs in relation to EGs identified at workshop in Sept. 09: Complications related to customs procedures, valuation of goods; Import prohibitions; Immigration procedures; Local content requirements; Lack of intellectual property rights protection. Issue not discussed in detail (linked to product discussion); specific proposal by Brazil on standards for organically produced food Issue not discussed in detail (linked to product discussion); specific proposal by Brazil on standards for organically produced food Non-tariff barriers (NTBs) Establish mechanism or special work program for dealing with NTBs relating to EGs? Establish mechanism or special work program for dealing with NTBs relating to EGs? Addressing other issues under the mandate

Transfer of technology / TA Not specifically mentioned in mandate; for DgC integral part of S&D; Not specifically mentioned in mandate; for DgC integral part of S&D; Link to Working Group on Trade and Transfer of Technology established as part of Doha Work Programme Link to Working Group on Trade and Transfer of Technology established as part of Doha Work Programme In CTESS: some information exchange on existing projects or activities to promote transfer of environmentally-sound technology; no specific/detailed proposal to date In CTESS: some information exchange on existing projects or activities to promote transfer of environmentally-sound technology; no specific/detailed proposal to date Addressing other issues under the mandate

Environmental Services Covered in the next presentation... Addressing other issues under the mandate

Work Programme agreed in July 2008 and revised in October 2009 – remains the basis for future work in this area Work Programme agreed in July 2008 and revised in October 2009 – remains the basis for future work in this area Phase of Identification of EGs of interest (universe) - started in November; exercise to continue at February Meeting Phase of Identification of EGs of interest (universe) - started in November; exercise to continue at February Meeting State-of-Play under the Work Programme

Examples of categories of goods mentioned Renewable energy (wind; solar; geothermal); Renewable energy (wind; solar; geothermal); Waste management (Solid and hazardous waste; waste water); Waste management (Solid and hazardous waste; waste water); Air pollution control; Air pollution control; Environmental technologies for conservation, monitoring, analysis and assessment; Environmental technologies for conservation, monitoring, analysis and assessment; Energy efficient products; Energy efficient products; Carbon capture and storage, gas flaring emissions reduction, efficient consumption of energy; Carbon capture and storage, gas flaring emissions reduction, efficient consumption of energy; Biofuels; Biofuels; Organic products. Organic products.

Submissions identifying EGs of interest: - Friends (Job(09)/132) - Argentina (TN/TE/W/74) - Japan (TN/TE/W/75 and add.1) - Saudi Arabia (Job(09)/169 and add.1) - Philippines (Job/TE/2) Some overlaps with respect to products... State-of-Play under the Work Programme

Timeframe / linkages with other areas of DDA negotiations (NAMA/Ag modalities) Timeframe / linkages with other areas of DDA negotiations (NAMA/Ag modalities) Next Steps Further discussions needed on cross-cutting and development-related issues, based on Members input Further discussions needed on cross-cutting and development-related issues, based on Members input Compilation document to be developed to reflect Members proposals, including as regards the universe of goods identified so far (March stock-taking exercise) Compilation document to be developed to reflect Members proposals, including as regards the universe of goods identified so far (March stock-taking exercise)

Workshop on Environmental Goods and Services for Developing Country Members 18 February 2010 Marie Isabelle Pellan Counsellor, Trade and Environment Division