DAVID LABORDE – CSILLA LAKATOS MARKET ACCESS OPPORTUNITIES FOR ACP COUNTRIES IN ENVIRONMENTAL GOODS Paper sponsored by the ICTSD.

SCOPE OF ANALYSIS ACP countries belonging to the WTO 63 HS6 products Renewable Products and Energy Sources include 38 HS6 products among which we find primary cell and batteries used for electricity generation through an electromechanical process rather than combustion; Environmental Monitoring, Analysis and Assessment Equipment covers 7 HS6 products including thermostats used for controlling the efficiency of the heating system, manostats with applications in waste water management and different control instruments used in producing electricity from renewable energy; the Waste Management, Recycling and Remediation category covers 18 HS6 products among which tubes, pipes and reservoirs used in delivering safe drinking water and sanitation, vapor and steam boilers.

OVERVIEW ACP trade, Mios USD ( ) GoodsEG Exports 166, % Imports 115, , % Collected duties 11, % Faced duties 3, %

MAIN COUNTRIES

SHARE IN TOTAL EXPORTS/IMPORTS

MAIN PRODUCTS

PRODUCT SHARE IN ACP EG TRADE

MARKET SHARE FOR ACP TRADE

TARIFF STRUCTURE Importer ACPBICDevpingOECDWTO Bound Tariffs Exporter ACP BIC Devping OECD WTO Applied Tariffs * ACP BIC Devping OECD WTO

IMPERFECT USE OF PREFERENCES AND RULES OF ORIGIN

BUT ALSO NTB S

PARTIAL EQUILIBRIUM TO STUDY FOR SCENARIOS Doha Modalities : this scenario implements the Doha modalities in market access for NAMA products. Tariff cuts have been determined using the Swiss Formula with Special and Differential Treatment, including sensitive products for developing countries. For a detailed description of the Modalities see Laborde and Martin (2011). Full liberalization within ACP countries : this scenario entails the full removal of tariff barriers for EGs within ACP countries in addition to the tariff cuts of the Doha Modalities for the rest of the world; Full liberalization among WTO members : here, we consider the complete elimination of barriers to trade on environmental products among all WTO members; WTO liberalization with Special and Differential Treatment (SDT) : in this scenario we examine the full removal of tariff barriers on EGs for developed countries while developing countries cut tariffs by 50% more than the tariff cut implied by the Swiss formula.

MAIN RESULTS

ACP EXPORTS BY MARKETS Doha Modalitie s Full Liberalizatio n within ACPs Full Liberalizatio n among WTO members WTO liberalization with Special and Differential Treatment non-ACP countries 0.41% 2.34%1.44% EU % 0.99% Japan -0.01% -0.04% Korea 9.72% 27.87% USA 0.02% 0.42% China 2.27% 9.83%3.44% India 1.61% 14.41%11.94% ACP countries -0.06%32.03%-17.14%-0.21%

MAIN CHANGES AT THE PRODUCT LEVEL Full Liberalization among WTO members WTO liberalization with Special and Differentiate Treatment EGs $ milEGs% $ milEGs% , % , % % , % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % , % % , % %

CONCLUSIONS Asymmetric trade pattern Large market access in OECD markets BUT importance of rules of origin and imperfect utilization rate of preferences Role of regional trade WTO liberalization with Special and Differential Treatment (SDT) option as way forward