Amid Discord, WTO Members Explore Compromises on Environmental Goods

According to the Chinese document, the standard tariff treatment for developed countries being discussed in the NAMA negotiations (a ‘Swiss’ formula with a coefficient of would reduce the US’s average tariff rate on select environmental products from 1.31 percent to 0.94 percent. In the case of the EU, the average rate would fall from 2.01 percent to 1.45 percent. For Japan, the decline would be from 0.24 percent to 0.16 percent.

In contrast, China’s own average tariff for the same set of products would come down from 7.59 percent to 5.02 percent using a “Swiss” formula coefficient of 20, one of the parameters under consideration for developing countries in the NAMA negotiations. In the case of Brazil, the average applied tariff rate would fall much more dramatically, from 31.71 percent to 12.08 percent. For India, the average rate would go from 30.47 percent to 11.28 percent.

The move to highlight the relatively deep tariff cuts faced by developing countries was seen by many as a lever to secure special and differential treatment provisions, as well as technology transfer.

More simulations on the impact of tariff cuts on environmental goods, especially on trade flows, are expected shortly.

‘Hybrid’ approach presented

Mexico made a presentation on the ‘hybrid’ approach towards tariff liberalisation. Mexico’s approach would see members undertake tariff-reduction commitments on a self-selected list of environmental goods, and then use a request-offer process to negotiate further commitments.

In another presentation on possible elements of a ‘hybrid’ approach, Singapore, Australia, Hong Kong and Norway proposed to have a core list of ‘single-use’ environmental goods, complemented by a selected list and a request-and-offer approach.

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