USTR Requests Study on Proposal to Eliminate Tariff and Non-Tariff Barriers on a Broad Range of Environmental Goods

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April 29, 2010

As part of the ongoing WTO Doha Round negotiations, the U.S. has been working with like-minded WTO partners to explore the potential for agreements on liberalizing trade in innovative, climate-friendly goods. This initiative could ultimately result in an multi-lateral agreement to eliminate tariffs and other barriers to trade in not only in renewable energy technologies (solar panels, wind turbines, etc.), but also in environmentally friendlier consumer products such as energy efficient cooking ranges, freezers, air conditioning machines, hybrid cars/automobiles, etc., and industrial machinery for a variety of applications. In March, the WTO Committee on Trade and Environment in Special Session (CTESS) released a preliminary list of proposal by member countries to liberalize trade in such products.

 

To further this initiative, the U.S. Trade Representative (USTR) has requested that the U.S. International Trade Commission (USITC) provide two reports: 1) an update to the USITC’s 2002 report on the economic effects of tariff reductions on environmental goods and 2) a new report assessing current global trade in such goods.

In the first report, USTR is requesting advice on the probable economic effect on U.S. industries and consumers of eliminating tariffs on dutiable imported goods from all U.S> trading partners. In the absence of a universally accepted definition of an “environmental good,” USTR is requesting that the USITC report on items listed in the WTO’s March CTESS proposal.

In the second report, USTR is requesting that the USITC:

• Provide an overview of the current state of global environmental goods trade;
• Develop industry, trade, and market information for the items proposed in Annex III of WTO document, TN/TE/19, including major U.S. producers and exporters, key U.S. export markets, MFN applied and bound tariffs in those markets, and the value of U.S. imports and exports for 2007-09, to the extent practical; and
• Prepare several case studies on the competitive position of selected U.S. environmental goods industries that produce the items proposed in Annex III of WTO document, TN/TE/19. The case studies should involve environmental goods of significant export and/or commercial interest to the U.S. and should include a description of the competitive factors affecting exports, or the potential to export these goods. To the extent practical, the case studies should also identify tariff and non-tariff measures, government programs, and technological advantages, and provide information on shares in domestic and major foreign markets

To inform its reports, it is expected that USITC will accept public comments on all issues raised by USTR’s request. For more information on how to submit comments, contact a Barnes/Richardson attorney.

To view the proposed list of environmental goods for trade liberalization, click here.