1 Ministry of Development Industry and Trade MIFIC The Situation of Environmental Goods in Nicaragua with Reference to the APEC and OECD Lists A study conducted within the framework of the UNCTAD project Building Capacity for Improved Policy Making and Negotiation on Key Trade and Environment Issues (INT/0T/AQ). José Guillermo López López Head of Foreign Trade Policy (DPCE) MIFIC. 2 MIFIC
Trade and Environment in the Global Context
Much progress made in the legal field. International agreements for the protection and preservation of the environment.
Severe imbalances in the production and distribution of goods and services.
A high proportion of the worlds population lives in extreme poverty.
Rapid technological change on a global scale not matched by coordinated environmental management which always lags behind social and economic development.
3 Study on Environmental Goods in Nicaragua
Conducted within the framework of the WTO Ministerial commitments made in Doha Qatar.
The WTO Ministerial mandate to negotiate
the reduction or as appropriate elimination of tariff or non-tariff barriers to environmental goods and services.
Doha Ministerial Declaration paragraph 31(ii). 4 Development of the Environmental Goods Issue in Nicaragua
Has not been developed in a manner specifically linked to trade
5 Aims of the Study
To contribute to securing the basic tools for building capacity for policy-making and negotiation on environmental goods with a view to eliminating tariff and non-tariff barriers.
To identify the need to use these goods in conditions that favour the preservation and protection of the environment.
To propose a conceptual framework that allows the negotiation process to be defined by means of clear rules.
To determine what constitutes an environmental product an environmentally preferable product (EPP) or an organic product.
To evaluate environmental goods in Nicaragua by examining trade flows tariff protection levels production and production limitations.
6 Functions of the Environment Provides resources needed for production A place to deposit wastes and residues that generate production and consumption A source of services related to enjoyment of the environment scenic beauty clean air etc. 7 Environmental Goods Arising From These Three Functions Capital goods Inputs and raw materials Equipment Medicines Etc. Natural medicine etc. Air purifiers water purifiers aspirators etc. Chlorine chemicals etc. Cleaner machinery 8 WTO Negotiations on Environmental Goods
Remove non-tariff barriers
Eliminate bound tariffs
Reduce import tariff to 0 Result to allow access free of trade barriers so as to encourage their use in less costly conditions thereby promoting an environment that is better protected and preserved. 9 A clear definition of environmental goods is needed for the purpose of trade negotiations
The standard definition used in some countries does not relate to trade
Tangible resources used by human beings as production inputs or for final consumption and which are used up and transformed in the process.
10 The definition normally usedMakes no reference to any environmental properties.Covers products of all types.Relates more to friendly production methods and processes.
Wood fruit animal hides meat seeds medicines etc.
11 Definition proposed by Nicaraguas consultant
Environmental goods are goods which allow raw materials inputs capital goods and consumer goods in general to be produced and marketed under technologically and ecologically rational conditions which allow compliance with environmental requirements in international markets and which aim to preserve and protect the environment and human plant and animal health. This includes cleaner technologies and products which reduce environmental risks and minimize pollution and the use of resources.
12 Indicative Lists Compiled by APEC and the OECD
Were drawn up before trade negotiation objectives were undertaken in the WTO.
Are based on the interests of highly industrialized developing countries (USA EU Japan etc.).
Were drawn up taking into account the expansion and facilitation of trade rather than environmental effects.
A common list accommodating the interests of all WTO Members must be drafted within the WTO.
Nicaragua must negotiate the inclusion of a list of goods not yet included in the APEC and OECD lists e.g. medicines chemicals etc.
Nicaragua liberalization in other countries could serve to attract investment in these goods.
13 Trade Based on the APEC and OECD Lists
There is no tariff classification of any kind but Nicaragua does grant unilateral preferential treatment to all.
Environmental goods do not feature in WTO regional or bilateral integration agreements.
14 Trade FiguresTotal APEC and OECD 15 Individual Figures for APEC and OECD 16 Destination of Exports from Nicaragua Based on APEC and OECD Lists 17 Provenance of Imports to Nicaragua Based on APEC and OECD Lists 18 WTO MFN and Bound Tariff Levels in Effect in 2003 19 Environmental Goods OECD and APEC Lists 20 WTO Bound Tariffs - 2003
168 items. Tariffs 40
Tariff item 44 but in 2004 40
No major sensitivities at WTO level as no APEC or OECD products were bound at levels higher than the overall 40. Of these 70 enjoy 0 MFN.
21 Environmental Goods of Export Interest 22 Environmental Goods of Export Interest (CONTD) 23 Environmentally Preferable Products (EPPs) and Organic Products 24 Conclusions
The definition of environmental goods must not cover agricultural organic or environmentally preferable goods.
Environmental goods must lend themselves to specific functions for achieving friendly production methods and processes.
Importance of tariff and non-tariff liberalization of environmental goods within the WTO.
Need for clear identification of these goods in the Harmonized Commodity Description System at international level.
OECD and APEC lists must be treated as indicative i.e. as a reference for the purpose of establishing a common list.
Nicaragua has a high level of unilateral tariff liberalization with regard to APEC and OECD environmental goods.
Nicaragua must negotiate and request reciprocal access levels in line with its unilateral liberalization with a view to promoting investment in environmental goods.
25 THANK YOU FOR YOUR ATTENTIONglopez_at_mific.gob. ni
PowerShow.com is a leading presentation/slideshow sharing website. Whether your application is business, how-to, education, medicine, school, church, sales, marketing, online training or just for fun, PowerShow.com is a great resource. And, best of all, most of its cool features are free and easy to use.
You can use PowerShow.com to find and download example online PowerPoint ppt presentations on just about any topic you can imagine so you can learn how to improve your own slides and presentations for free. Or use it to find and download high-quality how-to PowerPoint ppt presentations with illustrated or animated slides that will teach you how to do something new, also for free. Or use it to upload your own PowerPoint slides so you can share them with your teachers, class, students, bosses, employees, customers, potential investors or the world. Or use it to create really cool photo slideshows - with 2D and 3D transitions, animation, and your choice of music - that you can share with your Facebook friends or Google+ circles. That's all free as well!
For a small fee you can get the industry's best online privacy or publicly promote your presentations and slide shows with top rankings. But aside from that it's free. We'll even convert your presentations and slide shows into the universal Flash format with all their original multimedia glory, including animation, 2D and 3D transition effects, embedded music or other audio, or even video embedded in slides. All for free. Most of the presentations and slideshows on PowerShow.com are free to view, many are even free to download. (You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all.) Check out PowerShow.com today - for FREE. There is truly something for everyone!