Non-trade standards
Trade in environmental goods and services and sustainable development: domestic considerations and strategies for WTO negotiations
Liberalising environmental goods and services in the context of a strategic sustainable development policy
Authors:
E. Claro; N. Lucas; M. Sugathan
Publisher:
Trade and Environment , 2007
Recently, there have been WTO negotiations on environmental goods and services (EGS). This has raised concerns with many developing countries. They are notably worried about a possible inclusion of goods only vaguely linked to environmental protection and about the impact of WTO EGS rulings on their domestic industries. Key issues for WTO EGS negotiations are:
- emphasising the negotiation's focus on the environment
- reaching a common ground on what is an environmental good
- product coverage, classification and technological evolution
- market access
- non-tariff barriers
- broadening the export basket for developing countries
- the effects of EGS imports on domestic industries and tariff-revenue
- creating and enhancing domestic capacities
- enabling technology transfer
- building a 'broader sustainable development package’
The paper argues that developing countries should liberalise EGS only in the context of a strategic sustainable development policy. A methodology for crafting an appropriate domestic policy framework is proposed. Within the WTO, GATS commitments should be arranged and supported by appropriate instruments such as:
- a Sectoral Annex
- an optional document such as an understanding or reference paper
- schedule-based clarifications



