Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Definition l Multiple use l Customs policy use l Embedded technology l Diversity of industries l Maturity and sophistication

Definition l Broad definition l Include environmentally preferable products l Include agricultural products, such as organic or products based on traditional knowledge

Definition l Environmental products and technologies and services provided on an integrated basis l Need to move from narrow definition of environmental services because of privatisation

Definition l APEC adopted OECD definition w Activities which produce goods and services to measure, prevent, limit or correct enviornmental damage to water, air and soil as well as problems related to

Definition l APEC adopted OECD definition w Waste, noise and ecosystems. w Technologies processes, w Products snd material w Reduce environmental risk and minimize pollution and material use

Definition l Limitations of GATS w Specific environmental media w End of pipe w Does not focus on design, engineering,R/D,etc w Utility based and not on provision of environmental services

Definition l Limitations of GATS w Problems with dual use w Overlap with business and professional, construction, and education services

Definition w Compromise u End use u Core u Intrinsically related

Tariff and non tariff barriers w Tariffs generally low, including in developing countries w Average applied levels 18% and bound commitments average 29%

Tariff and non tariff barriers w Goods in OECD definition capital goods or intermediate inputs and thus tariffs unlikely to be high even in developing countries w So tariffs not an issue, except for EPPs

Tariff and non tariff barriers w Non Tariff Barriers u Public procurement u Environmental standards u Export promotion policies,aid and export credits

Tariff and non tariff barriers w Non Tariff Barriers u IPRs u Innovation and technology diffusion, including use of command and control and economic instruments

Tariff and non tariff barriers w Non Tariff Barriers for services u Establishment of commercial presence u Entry and temporary stay u Registration and licensing

Tariff and non tariff barriers w Registration and Licensing u Business regulation including compliance with the regulatory framework u Environmental regulations and specific licensing requirements, u Trade policy issues,

Tariff and non tariff barriers w Registration and Licensing u Monopolies and exclusive suppliers u Trade relevant points n Exclusive supplier rights n Public monopolies n Networks of services

Tariff and non tariff barriers w Subsidies w Government Procurement or exemptions

Win Win situations u Strengthening regulatory framework and choice of policy instruments u Hardware and software u Implementation of pollution prevention by avoiding distortions

Win Win situations u Fostering diffusion of Appropriate technology u Win’win liberalisation of waste and water management services u Private sector partnerships

Win Win situations X Challenges X Higher consumer charges X Informal sector X State monopolies X Private monopolies