WORLD TRADE  
ORGANIZATION  TN/MA/W/70 
TN/TE/W/65 9 May 2006 
 
(06-2258) 
Negotiating Group on Market Access 
Committee on Trade and Environment  Special Session Original:   English 
 
  
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Market Access for Environmental Goods
 
 
Communication from Canada, European Communities, New Zealand, 
 Norway,  Singapore, Switzerland, and the United States  
 
 The following communication, dated 8 May 2006, is being circulated at the request of the 
delegations of Canada, European Communities, Ne w Zealand, Norway, Singapore, Switzerland, and 
the United States. 
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1. Summary 
1.1 This proposal seeks to advance the ne gotiations on environm ental goods under DDA 
Sub-paragraph 31(iii) by proposing a liberalizat ion modality for environmental goods.  The 
co-sponsors propose that Members eliminate tariff s on environmental goods, recognizing the need for 
flexibility in the case of developing countries, incl uding longer implementation periods. Specifically 
identified non-tariff barriers should also be addr essed to facilitate trade in environmental goods. 
 2. Introduction 
2.1 At Doha, Ministers agreed on a ground-breaki ng trade and environment mandate.  The market 
access component of the mandate identified environm ental goods and services for “reduction, or as 
appropriate, elimination of tariff and non-tariff barriers” in DDA Paragraph 31(iii).   
2.2 As for all non-agricultural goods, the task of developing modalities for such reduction or 
elimination falls to the Negotiating Group on Ma rket Access, for which this mandate presents 
particularly compelling policy incentives.  Increased  market access for environmental goods promises 
a “win-win-win” outcome, as it tran slates into greater access - for lower cost - to technologies and 
products that support governments’ environment and development goals  (e.g., improved sanitation, 
pollution prevention, renewable energy).  Liberalizat ion of trade in environmental goods will facilitate 
access to and encourage the use of environmental t echnologies, which can in turn stimulate innovation 
and technology transfer  
2.3 Researchers have found that “Countries whic h trade more environm ental goods have less 
pollution or consume energy more efficiently.”
1 High tariffs and other ba rriers to environmental 
goods impede access to these important technologies.  By reducing the prices of environmental goods 
through substantial reduction or e limination of import tariffs and specific non-tariff barriers, WTO 
                                                      
1 Mr. Bijit Bora and Mr. Robert Teh, “Tariffs an d Trade in Environmental Goods”, WTO workshop on 
environmental goods, Geneva, Switzerland, 11 October 2004. TN/MA/W/70 
TN/TE/W/65 Page 2 
 
 
  Members can take concrete and effective action to improve access to products needed to prevent 
pollution and meet their sustainable development goals.    2.4 While many countries have zero percent ta riffs on many environmental goods, a number of 
countries still retain significant tariffs as high as 35%.  The sponsors of this proposal advocate for 
ambitious commitments to be negotiated in NAMA to reduce or eliminate tariffs and non-tariff 
barriers on environmental goods, so as to benefit all consumers of these important technologies. 
3. Product Coverage 
3.1 The product coverage will need to be dete rmined; it should be as comprehensive as possible 
and based upon the work undertaken in the Committ ee on Trade and Environment in Special Session 
(CTESS).  Given the evolving nature of environmen tal goods, product coverage  should be reviewed 
and updated over time to ensure that WTO Members have access to the best available technologies to 
protect the environment and promote sustainable development.  
3.2 Efforts are underway in the CTESS to identif y environmental goods, but discussions have as 
yet been inconclusive, with several developing count ries noting that the task is made quite difficult 
without an indication of what the eventual m odalities will be, and how special and differential 
treatment will apply.  This proposal is intende d to inform the CTESS work by putting forward a 
modality proposal, including ideas for special and differential treatment.  4. Global Trade in Environmental Goods 
4.1 Estimates on global trade in environmenta l goods vary, depending on the product coverage 
used.  That said, most experts agree that global trade in environmental technologies is valued at 
approximately US$250 billion.  At a recent WT O workshop on environmen tal goods, global exports 
of environmental goods were esti mated to total US$216 billion in 2002 (product coverage based on 
OECD and APEC lists).  This represents approxima tely 4 percent of world exports overall.  From 
1990-2002, trade in environmental goods has grown more  than twice as fast (14 percent) as total 
merchandise trade (6 percent).
2  This growth is expected to contin ue.  For example, in the wastewater 
treatment sector, the World Bank estimates that annual investments in water supply and sanitation will need to double from the historical level of US$15 b illion per year to US$30 billion per year to meet 
future demand. 
 
5. Rates of Liberalization  
5.1 In recognition of the attention given to envi ronmental goods by Ministers in Doha, tariffs 
should be eliminated as soon as possible, but no later than 2008 for developed countries and those 
developing countries declaring themselves in a posi tion to do so.  For other developing countries, 
tariffs should be eliminated by X years thereafter.  Further flexibilities for developing countries may 
include exclusions for a limited number of products (e.g., similar to a “complementary” or “development” list). Given the unique mandate a nd the potential environmen tal and developmental 
benefits, we encourage least-developed countries to  examine where tariff reductions in bound and 
applied rates may be beneficial to their public a nd to achieving their sustainable development goals.   
                                                     
 
2 Ibid.  TN/MA/W/70 
 TN/TE/W/65 
 Page 3 
 
 
  6. Non-Tariff Barriers (NTBs) 
6.1 While reducing the cost of environmental goods  through the elimination of tariffs is an 
important means of making environmental goods mo re affordable and widely available, non-tariff 
barriers (NTBs) can be equally or even more si gnificant impediments to trade in such goods.   
Ministers recognized this situation in both paragra ph 16 and 31(iii) by also mandating the reduction or 
elimination of NTBs.  As appropriate, specifically  identified non-tariff barriers on particular goods 
(including any time-consuming and burdensome customs formalities) should also be addressed and 
reduced to the maximum extent so as to facilitate trade in environmental goods.  
 
 
 
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