Indian officials wary of EU-US proposal on environmental goods, plus reactions on fisheries subsidies and zeroing
India and Brazil have criticised the new EU-US proposal for a new WTO “green trade agreement”. The proposal envisaged as a two tier process would according to the European Commission compise of these two stages:
- First, agreement to liberalise trade in at least 43 goods with clear environmental benefits drawn from a World Bank list including solar panels and wind mill turbines.
- Second, an even more far-reaching Environmental Goods and Services Agreement (EGSA) to be negotiated by WTO Members, which would foresee further binding commitments to eliminate tariffs and non-tariff barriers in trade in green technologies. In services, highly ambitious and comprehensive commitments would be undertaken that address environmental and climate change challenges such as waste management. Developing countries would be asked only to make contributions proportionate to their level of development.
A two page summary of the proposal is available here.
The Guardian reports on Indian and Brazilian reaction to this proposal:
“We don’t think it’s a basis for negotiation on environmental products,” said Brazil’s top trade negotiator, Roberto Azevedo. “Brazil is deeply disappointed with the proposal. We find the proposal modest, we find it biased and we find it protectionist,” he told a briefing.
Azevedo noted that the U.S.-EU proposal made no reference to biofuels, of which Brazil is a major producer, or the technologies to produce them, and said the list was geared to U.S.-EU products. “Anything that they don’t produce is not on the list,” he said.
Bhatia said India could support proposals to free up trade in goods whose sole use was countering climate change, such as solar panels or windmills, but the list could be extended over time to new models of cars or refrigerators that were more energy-efficient, and that was unacceptable.
“Their list is a disguised effort at getting market access through other means and does not satisfy the mandate for environment,” he said.
India and Brazil are also opposing the new negotiating text on “rules” (view it here) that would allow “zeroing” for calculation of anti-dumping duties.
India’s reaction to the fisheries text, is also not very enthusiastic:
Bhatia said the proposals on banning most fisheries subsidies, welcomed by environmental groups, would cause India difficulty as it tries to improve the living conditions of its fishermen, among the poorest people in the country.
The proposals do give some leeway to developing countries to support fishermen, but he said the conditions, such as setting up approved fisheries management schemes, were too onerous.
India had proposed special treatment for small scale, artisanal fisheries on development grounds. Draft article III of the new fisheries text deals with S&DT for developing countries.
