Title: Sin t
1Ministry 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.
2MIFIC
- 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.
3Study 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).
4Development of the Environmental Goods Issue in
Nicaragua
- Has not been developed in a manner specifically
linked to trade
5Aims 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.
6Functions 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.
7Environmental 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
8WTO Negotiations on Environmental Goods
- Remove non-tariff barriers
Eliminate bound tariffs
- Import licensing
- Quotas
- Quantitative restrictions
- Permits
- Import controls
- Etc.
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.
9A 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.
10The 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.
11Definition 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.
12Indicative 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.
13Trade 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.
14Trade FiguresTotal APEC and OECD
In thousands of US dollars In thousands of US dollars In thousands of US dollars In thousands of US dollars In thousands of US dollars In thousands of US dollars In thousands of US dollars
Year Total Exports Exports of environmental goods of Nicaraguas total exports Total imports Imports of environmental goods of Nicaraguas total exports
2000 629,351.10 3,880.12 1 1,720,629.40 49,603.04 3
2001 532,243.20 5,697.11 1 1,774,847.00 57,301.35 3
2002 634,827.97 9,943.25 2 1,798,753.90 53,147.67 3
Total 1,796,422.27 19,520.48 1 5,294,230.30 160,052.06 3
Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua. Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua. Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua. Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua. Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua. Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua. Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua.
15Individual Figures for APEC and OECD
List Exports Exports Exports Imports Imports Imports Total Exports Total imports
Year 2000 Year 2001 Year 2002 Year 2000 Year 2001 Year 2002 Period Period
OECD 3,842.8 5,371.52 8,813.52 43,646.6 45,349.9 44,628.8 44,628.8 133,625.4
APEC 187.6 570.93 3,671.16 18,878.0 26,575.2 23,580.8 23,580.8 69,034.1
Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists). Source MIFIC (Documentation Centre, OECD and APEC lists).
16Destination of Exports from Nicaragua Based on
APEC and OECD Lists
COUNTRY EXPORT 02
TOTAL 9,943.25 100
DOMINICAN REPUBLIC 3,278.14 33
COSTA RICA 2,010.52 20
GERMANY 1,938.94 20
CANADA 1,834.19 18
UNITED STATES 295.69 3
HONDURAS 252.59 3
GUATEMALA 106.87 1
UNKNOWN 67.25 1
AUSTRALIA 47.92 0
PANAMA 42.37 0
BOLIVIA 33.74 0
EL SALVADOR 18.01 0
ARGENTINA 9.95 0
BELIZE 3.77 0
IRELAND 1.73 0
COLOMBIA 1.48 0
MEXICO 0.05 0
NORWAY 0.04 0
Source Statistics Department, MIFIC, Nicaragua. Source Statistics Department, MIFIC, Nicaragua. Source Statistics Department, MIFIC, Nicaragua.
17Provenance of Imports to Nicaragua Based on APEC
and OECD Lists
COUNTRY IMPORT 02
TOTAL 53,147.67 100
GERMANY 42,790.69 80.5
BRAZIL 3,456.32 6.5
COSTA RICA 2,177.30 4.1
CHINESE TAIPEI 1,435.88 2.7
EL SALVADOR 1,145.72 2.2
CHINA 645.92 1.2
CHILE 523.97 1
UNITED STATES 355.36 0.7
COLOMBIA 140.65 0.3
SPAIN 117.59 0.2
CANADA 97.93 0.2
BELGIUM 83.39 0.2
AUSTRIA 64.24 0.1
ITALY 50.38 0.1
REPUBLIC OF KOREA 31.71 0.1
AUSTRALIA 30.56 0.1
GUATEMALA 0.06 0
Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua Source Ministry of Development, Industry and Trade (MIFIC), Nicaragua
18WTO MFN and Bound Tariff Levels in Effect in 2003
19Environmental Goods OECD and APEC Lists
Exports Exports Exports Imports Imports Imports Total Total Lines Lines
Import tariffs 2000 2001 2002 2000 2001 2002 Export Import
0 1,156.08 3,439.48 4,978.61 34,817.11 38,432.29 37,712.05 9,574.17 49 110,961.45 69 147
5 122.50 310.23 1,488.67 10,802.23 15,222.98 11,175.10 1,921.40 10 37,200.31 23 23
10 15.76 10.73 45.74 1,537.48 1,492.64 1,481.02 72.23 0 4,511.14 3 2
15 6.51 12.45 42.74 1,775.61 1,919.92 2,527.84 61.70 0 6,223.37 4 6
40 2,579.27 1,924.22 3,387.49 670.61 233.52 251.66 7,890.98 40 1,155.79 1 1
Total 3,880.12 5,697.11 9,943.25 49,603.04 57,301.35 53,147.67 19,520.48 100 160,052.06 100 179
Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua. Source Ministry of Development, Industry and Trade, Nicaragua.
20WTO 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.
21Environmental Goods of Export Interest
HS HS 6-digit description MFN-Import-tariff Bound Category OECD APEC 2000 2001 2002
HS HS 6-digit description 2003 WTO 2003 USE OECD APEC EXPORT EXPORT EXPORT
3,589.77 4,963.33 6,231.81
2207.10 Ethanol 10 44 Other energies X 2,579.27 1,924.22 3,387.49
2522.20 Slakes (hydrated lime) 5 40 Chemical recovery systems X 3.57 25.01 32.97
2835.23 Phosphates of trisodium 0 40 Chemical recovery systems X - 656.11 -
3209.90 Other paints and varnishes, in aqueous medium 15 40 Cleaner technology and products X 6.51 9.22 1.52
3802.10 Activated carbon 0 40 Chemical recovery systems X 932.91 2,040.61 655.83
22Environmental Goods of Export Interest (CONTD)
HS HS 6-digit description MFN-Import-tariff Bound Category OECD APEC 2000 2001 2002
HS HS 6-digit description 2003 WTO 2003 USE OECD APEC EXPORT EXPORT EXPORT
3,589.77 4,963.33 6,231.81
3924.90 Household and toilet articles of plastic 10 40 Waste collection equipment X 15.76 10.62 42.66
3926.90 Other articles of plastic 5 40 Screens/ strainers X X(ex) 26.51 74.88 180.74
7309.00 Tanks, vats etc. 5 40 Sewage treatment X 14.49 41.90 82.34
8409.99 Parts for diesel or semi-diesel engines 0 40 Mufflers/ silencers X 10.75 180.76 1,633.66
8419.19 Other instantaneous or storage water heaters, non-electric 5 40 Renewable energy plant X X(ex) - - 214.60
Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC). Source Own, based on data from APEC, OECD and the Ministry of Development, Industry and Trade of Nicaragua (MIFIC).
23Environmentally Preferable Products (EPPs) and
Organic Products
Organic products Certified In transition
1. Coffee X
2. Sesame X
3. Cocoa X
4. Beans X
5. Vegetables X
6. Soya X
7. Tobacco X
8. Flowers and foliage X
9. Manioc X
10. Annatto X
11. Turmeric X
12. Ginger X
13. Neem X
14. Cashews X
15. Medicinal plants X
16. Maize X
17. Chayotes X
18. Sorghum X
19. Tomatoes X
20. Avocados X
21. Organic fertilizer X
Source Pedro Cussianovich, Consultant, IICA Source Pedro Cussianovich, Consultant, IICA Source Pedro Cussianovich, Consultant, IICA
24Conclusions
- 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.
25THANK YOU FOR YOUR ATTENTIONglopez_at_mific.gob.
ni