Environmental Goods Agreement (EGA) negotiations State of Play

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1 Environmental Goods Agreement (EGA) negotiations State of Play Monika Hencsey, chief negotiator of EGA DG TRADE Unit D1 Trade and Sustainable Development, GSP 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

2 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

3 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

4 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

5 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

6 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

7 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.)

8 Next steps Second stage of negotiations just started 7th round 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)

9 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

10 HS Wind turbine gearboxes

11 HS waste containers HS waste conveyors HS material handler HS shredders, balers, compactors for waste HS magnetic pulley HS , HS , HS machinery for sorting, washing mineral substances, and parts

12 HS , Oil skimmers

13 HS Multiple-walled insulating units of glass

14 HS and Heat pumps and parts

15 HS Thermostats

16 HS Hand pumps

17 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 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)

18 Thank you! DG TRADE Unit D1, GSP and Sustainable Development DG TRADE website: SIA stakeholder questionnaire: