At an early-May negotiating session of the WTO Committee on Trade and Environment (CTE), Members considered a streamlined list of environmental goods slated for tariff cuts or elimination, based on proposals previously submitted by Canada, the EU, Japan, Korea, New Zealand, Norway, Taiwan, Switzerland and the US.
The revised list (JOB (7)/54) set out a reduced set of goods in response to concerns raised by trading partners, and sought to offer the potential for convergence among Members. With their proposal, the proponents hoped to encourage more focused engagement on products of interest and trigger momentum in the negotiations.
Coined ‘the potential convergence set’ of products by its co-sponsors, the list contains 153 products (including a number of ex-outs, i.e. specific products identified solely by name rather than by HS code). This is a significantly lower number than the 465 products on the previous consolidated list of goods. The new list groups the various products under broad environmental categories, with details related to the environmental benefits of each product described in an additional column. Some delegates noted, however, that the proposal did not clarify how many of the products on the list were ‘dual-use’ items (meaning they could be used for other purposes than solely environmental ones).
The proposal envisages extended liberalisation periods for developing countries. It also includes a review mechanism to ensure that the list does not remain static over time.
Many countries developing countries, including major players such as Brazil and India, said they wanted discussions on whether to adopt a ‘list’ or ‘project-based’ approach – or a compromise solution – before progressing to discussions on specific products (Bridges Year 10 No.4, page 12). Reportedly, India is set to submit a new proposal fleshing out issues related to the project approach, including more development elements. The next CTE negotiating session is scheduled for 11 June.