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Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

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Page 1: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Environmental Goods and Services

Environmental Goods and Services

VEENA JHA

UNCTAD MINISTRY OF COMMERCE

1st July 2002, Government of Costa Rica

Page 2: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

Multiple use Customs policy use Embedded technology Diversity of industries Maturity and sophistication

Page 3: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

Broad definition Include environmentally

preferable products Include agricultural products,

such as organic or products based on traditional knowledge

Page 4: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

Environmental products and technologies and services provided on an integrated basis

Need to move from narrow definition of environmental services because of privatisation

Page 5: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

APEC adopted OECD definition Activities which produce goods

and services to measure, prevent, limit or correct enviornmental damage to water, air and soil as well as problems related to

Page 6: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

APEC adopted OECD definition Waste, noise and ecosystems. Technologies processes, Products snd material Reduce environmental risk and

minimize pollution and material use

Page 7: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

Limitations of GATS Specific environmental media End of pipe Does not focus on design,

engineering,R/D,etc Utility based and not on provision

of environmental services

Page 8: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

Limitations of GATS Problems with dual use Overlap with business and

professional, construction, and education services

Page 9: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

DefinitionDefinition

CompromiseEnd useCore Intrinsically related

Page 10: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Tariffs generally low, including in developing countries

Average applied levels 18% and bound commitments average 29%

Page 11: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Goods in OECD definition capital goods or intermediate inputs and thus tariffs unlikely to be high even in developing countries

So tariffs not an issue, except for EPPs

Page 12: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Non Tariff BarriersPublic procurementEnvironmental standardsExport promotion policies,aid and export credits

Page 13: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Non Tariff Barriers IPRs Innovation and technology diffusion, including use of command and control and economic instruments

Page 14: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Non Tariff Barriers for servicesEstablishment of commercial presence

Entry and temporary stayRegistration and licensing

Page 15: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Registration and Licensing Business regulation including compliance with the regulatory framework

Environmental regulations and specific licensing requirements,

Trade policy issues,

Page 16: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Registration and Licensing Monopolies and exclusive suppliers

Trade relevant points Exclusive supplier rights Public monopolies Networks of services

Page 17: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Tariff and non tariff barriersTariff and non tariff barriers

Subsidies Government Procurement or

exemptions

Page 18: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Win Win situationsWin Win situations

Strengthening regulatory framework and choice of policy instruments

Hardware and software Implementation of pollution prevention by avoiding distortions

Page 19: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Win Win situationsWin Win situations

Fostering diffusion of Appropriate technology

Win’win liberalisation of waste and water management services

Private sector partnerships

Page 20: Environmental Goods and Services VEENA JHA UNCTAD MINISTRY OF COMMERCE 1st July 2002, Government of Costa Rica

Win Win situationsWin Win situations

ChallengesHigher consumer charges

Informal sectorState monopoliesPrivate monopolies