Canadian Manufacturing

Proposed trade deal could axe tariffs on environmental goods

by John Heilprin, The Associated Press   

Cleantech Canada
Exporting & Importing Cleantech Solar trade WTO

Proposed agreement at WTO would cover 86 per cent of trade in goods like solar panels, wind turbines

GENEVA—Diplomats from the United States, China and the European Union (EU) began talks with 11 other countries toward a deal that would cut tariffs on almost US$1 trillion worth of environmental goods.

The proposed agreement at the World Trade Organization (WTO) would cover 86 per cent of trade in goods such as solar panels and wind turbines for producing energy, filters for wastewater treatment and catalytic converters for air pollution control. U.S. exports of environmental goods reached $106 billion last year, and have grown 8 per cent a year since 2009.

The negotiations also include Australia, Canada, Costa Rica, Hong Kong, Japan, Korea, New Zealand, Norway, Singapore, Switzerland, and Chinese Taipei.

They are meant to build on a list of 54 environmental goods put together by members of Asia-Pacific Economic Cooperation (APEC) for which the governments hope to reduce tariffs to five per cent or less by the end of 2015.


The first stage of negotiations aims to eliminate tariffs or customs duties on a broad range of environmental goods, EU trade officials said.

A second stage could also address what’s known as non-tariff barriers and environmental services.

They said the EU, as a world leader in exports and imports of environmental goods, is particularly interested in reducing barriers to trade in environmental services such as the maintenance and engineering for wind farms.

Office of the United States Trade Representative Michael Froman said an agreement would eliminate tariffs of up to 35 per cent on dozens of items and fulfil a key part of President Barack Obama’s climate change agenda.

Though climate change isn’t technically part of the WTO’s work agenda, the organization considers itself relevant to the issue because of the way trade policies affect sustainable development, including the efficient allocation of natural resources.

“By eliminating tariffs on the technologies we all need to protect our environment, we can make environmental goods cheaper and more accessible for everyone,” Froman said.


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