US Offers Environmental Duty-Free Plan

Geneva - The United States 'along with the European Union, New Zealand, Norway, Singapore and Switzerland' yesterday proposed a tariff-free sectoral initiative in the Doha Development Agenda industrials negotiations on environmental goods (WTD, 5/9/06).

The plan calls for the complete elimination of tariffs on all environmental goods within eight years by industrialized countries. Developing countries an unspecified date. Flexibilities for developing countries also would allow them to exclude a limited number of products. The proposal suggests that least-developed countries 'must examine where tariff reductions in bound and applied rates may be beneficial to their public and to achieving their sustainable development goals.'

The proposal was made as Nonagricultural Market Access Negotiations Chair Don Stephenson kicked off a round of intensive consultations today to address exceptions and flexibilities for developing countries.

There also is likely to be more talk of sectorals during the week, trade diplomats said.

The submission, however, did not detail what constitutes environmental goods should be as comprehensive as possible and must be based on the work done so far within the Doha negotiating body on environment. It is expected that the Doha environment group will eventually determine that constitute environmental goods - and then forward the list of NAMA negotiators.

The United States argued that increased market access for environmental goods offers a 'win-win-win' outcome for all involved. The paper pointed out that trade in environmental goods is estimated at around $216 billion for 2002.

On another issue, Ambassador Stephenson asked capital-based officials to come up with fresh ideas to narrow gaps in the talks - especially relating to handling unbound tariffs and preferences, diplomats added.