Bridges Weekly Trade News Digest • Volume 10 • Number 13 • 12th April 2006

CTE-SS Examines Environmental Merits Of Renewable Energy, Air Pollution Goods

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At an informal meeting of the WTO Committee on Trade and Environment Special Session (CTE-SS) on 4-5 April, Members evaluated proposals seeking expedited liberalisation for certain renewable energy and air pollution control products as ‘environmental goods’ under Article 31(iii) of the Doha Declaration. The technical discussion focused on lists of such products that had been submitted by the EU, Canada, Japan and Taiwan.

Delegates did a product-by-product examination of the lists for the two categories, to see which met the criterion of having a single, clear environmental end use (see BRIDGES Trade BioRes, 3 March 2006). During the discussions, several developing countries said that many of the proposed products failed to qualify. Brazil, China, Malaysia, Thailand and others — some of them were part of the group of developing countries that in February had proposed the evaluation process followed at the meeting — suggested that the presence of products on the lists had less to do with their environmental value than with their export interest to the Member seeking liberalisation.

While the evaluation was conducted without prejudice to the ultimate approach that will be followed with regard to cutting tariffs on environmental goods, some developing country delegates expressed disappointment with the discussions, saying that list-based approach appeared to primarily benefit developed countries. They said that it seemed less likely to address their own environmental problems, which is what they had been hoping for.

Another technical discussion on products in the categories of wastewater management and hazardous waste management will be held on 10-12 May. Sources suggested that the US, Brazil, India and China may present papers on approaches to the negotiations at the next formal meeting of the committee, scheduled for 14-15 June.

ICTSD reporting.

AMIDST GLOBAL UNCERTAINTY, WTO PROJECTS MODEST INCREASES IN TRADE FLOWS

The WTO released a report on 11 April projecting modest increases in international trade and GDP growth in 2006, primarily due to looming uncertainties in the global economy and trade regime. Global income is expected to rise 3.5 percent in 2006 from 3.3 percent the year before; the real growth in international goods trade will likely rise from 6 percent in 2005 to an estimated 7 percent in 2006. Both had declined in 2005 after a particularly strong 2004. The value of world goods exports increased by 13 percent in 2005, after a 21 percent rise the previous year.

WTO Director-General Pascal Lamy said that the global trading system is in a period of transition. The world economy started to weaken in 2004, causing a deceleration in trade growth that lasted close to a year. Lamy urged Member governments to continue to strengthen the international trade system.

Rising energy and commodity prices had a significant effect on trade in 2005. Several oil importing countries experienced only moderate export growth, while fuel exporters reported sharp rises in exports. Africa, the Middle East, Central and South America, and the Commonwealth of Independent States — all net exporters of fuel — experienced dramatic export growth in 2005, with the value of exports rising by 29 to 35 percent.

Fuels and other mining products accounted for 16 percent of world merchandise trade last year, their highest share since 1985. In comparison, the share of farm products — the subject of some of the most strident disagreements in the ongoing Doha Round negotiations — fell to a record low level of 9 percent.

Developing countries, in general, experienced high rates of GDP and trade growth, which are expected to continue into at least the first half of 2006. Merchandise imports grew by 35 percent in India, highest among leading importers.

The press release can be found at http://www.wto.org/english/news_e/pres06_e/pr437_e.pdf.

ICTSD Reporting; "WTO forecasts slowdown in global commerce," INTERNATIONAL HERALD TRIBUNE, 12 April 2006.