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Environmental Goods Agreement (EGA) negotiations – State of Play
Monika Hencsey, chief negotiator of EGA
DG TRADE Unit D1 Trade and Sustainable Development, GSP
03.06.2015
Disclaimer: All images and photographs in this presentation are used purely for purposes of demonstration and do not in any way commit any of the companies shown to, or imply their approval of, any of the proposed policies, actions or measures featured.
Green trade, growth and jobs
1) EU world leader in export and import of green technologies;
EU export - EUR 146 bn, 9% of EU total export (2013)
EU import - EUR 70 bn, 4% of EU total import (2013)
annual growth rate – more than 10 per cent in recent years (dynamic sector).
2) EU employment (DG EMPL Communication) : considerable job creation in green sector;
increase from 3 to 4.2 million (2002 and 2011) across the EU.
20% growth rate throughout the recession years (2007 to 2011).
3) Environmental benefits
lower trade costs of green technologies
their increased uptake
Historic steps towards liberalisation of green trade
DDA Ministerial Declaration, 2001:
Para 31(iii) “ the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services.”
Asia Pacific Economic Cooperation (APEC), 2012: political commitment to reduce applied tariffs on 54 green goods to 5 per cent or less by the end of 2015;
Davos World Economic Forum statement:
24 January 2014
Launch of the Environmental Goods Agreement negotiations: July 2014
EGA Members
17 WTO Members
Original Members: EU, US, China, Australia, Canada, New Zealand, Switzerland, Norway, Korea, Japan, Chinese Taipei, Hong Kong China, Singapore, Costa Rica
newcomers: Israel, Turkey, Iceland
critical mass of trade
EGA negotiations are open to any WTO Member sharing similar level of ambition
Benefits for both industrialized and developing countries
EGA objectives
Make it easier to trade internationally in environmental goods and technologies that contribute to environmental protection, and in particular fight against climate change
1) Full elimination of tariffs
On a broad list of environmental goods
Building on the APEC list of 54 goods
2) Future oriented agreement
Revision clause on products (technologies changes)
Addressing other issues in the sector (NTBs, services)
3) MFN-based agreement once critical mass achieved
EGA timing
Commitment to "timely conclude the EGA negotiations"
Political opportunities of December 2015:
- UNFCCC climate negotiations in Paris (30 Nov - 11 Dec)
- 10th WTO Ministerial in Nairobi (15-18 Dec)
- Sustainable Development Goals
High on the political agenda
EU Climate and Energy Package, and roadmap to UNFCCC COP in Paris
President Obama’s climate action plan 2013
China and environmental protection
Where are we now?
First stage of negotiations completed
6 rounds - product nominations in 10 environmental categories
solid and hazardous waste management
air pollution control
water waste management and water treatment
cleaner and renewable energy (solar, wind, biomass, hydro, etc.)
energy efficient products
resource efficient products and technologies;
noise and vibration abatement
clean-up or remediation of soil and water
environmental monitoring and analysis
input from international experts (international organizations, national agencies, industry, business associations, NGOs, etc.)
Next steps
Second stage of negotiations just started
7th round 15-19 of June: start building a common list
positive process
focus on the support of product nominations by other members
guided by environmental credibility
no detailed qualitative or quantitative criteria for selecting of products but most respect principles agreed
role of the Chair in arbitration
In parallel: work on the text of the agreement (including review clause, services, NTBs)
What is an environmental good?
Common principles, exchange of lists
environmental end-use (no international methodology for LCA)
contributing to multiple environmental categories
part of a system (e.g. waste management chain)
main product + its parts
complementary to APEC list
Industrial goods with major focus on industrial applications, a few consumer goods
customs classification challenges: implementability at the border vs. precise targeting of an environmental good
HS 8483.40
Wind turbine gearboxes
HS 8428.33 waste conveyors
HS 8428.90 material handler
HS 8462.91 shredders, balers, compactors for waste metals
HS 8474.10, HS 8474.39, HS 8474.90 - machinery for sorting, washing mineral substances, and parts
HS 8505.90 magnetic pulley
HS 392510 waste containers
HS 8421.19, 8421.91 Oil skimmers
HS 7008.00
Multiple-walled insulating units of glass
HS 8418.61 and 8418.99
Heat pumps and parts
HS 9032.10
• Thermostats
HS 8413.20 Hand pumps
Stakeholders consultations
INTA hearing on green goods – March 2013
Civil society meeting – June 2014
Public consultation – July 2014
INTA technical brief – April 2015
Regular stakeholder events in Geneva (industry, think thanks, NGOs)
Exchange of views with international experts in the EGA negotiations
Sustainability Impact Assessment on Green Goods - 2015
- Draft Inception Report – 25th March
- SIA Civil Society meeting - 25th March
- 2 regional stakeholders' seminars: in Mexico and Vietnam
Commissioner's stakeholder event on EGA – 3 June 2015 (Green Week)
Thank you!
DG TRADE Unit D1,
GSP and Sustainable Development
DG TRADE website: http://trade.ec.europa.eu/doclib/press/index.cfm?id=1116
SIA stakeholder questionnaire:
http://www.egatradesia.com/Stakeholder-Questionnaire