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2009/SOM2/MAG/WKSP/007
Session 3
Background Documents on Trade and Environment in APEC
Submitted by: Australia
/ Workshop on Environmental Goods and ServicesSingapore
28 July 2009
APEC Market Access Group
Workshop on Environmental Goods and Services:
Background Documents on Trade and Environment in APEC
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Excerpt from 2007 APEC report:
Strengthening Regional Economic Integration
We will refocus APEC’s trade and investment liberalisation and facilitation agenda on concrete initiatives that accelerate regional economic integration and reduce behind-the-border barriers, particularly in ways that could improve the investment climate in APEC economies and their competitiveness, including
. . .
▪ exploring ways to reduce barriers to trade in environmental goods and services
▪ . . .
Excerpt from Osaka Action Agenda: tariffs and non-tariff measures
1. TARIFFS
OBJECTIVE
APEC economies will achieve free and open trade in the Asia-Pacific region by:
a. progressively reducing tariffs; and
b. ensuring the transparency of APEC economies' respective tariff regimes.
GUIDELINES
Each APEC economy will:
a. take into account, in the process of progressive reduction of tariffs, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;
b. ensure that the progressive reduction of tariffs is not undermined by the application of unjustifiable measures; and
c. consider extending, on a voluntary basis, to all APEC economies the benefits of tariff reductions and eliminations derived from sub-regional arrangements.
COLLECTIVE ACTIONE
APEC economies will:
a. develop and keep current a computerized tariff database (APEC tariff database) and work toward establishing a database network without duplicating but rather supporting the WTO work in this area; and
b. identify industries in which the progressive reduction of tariffs may have positive impact on trade and on economic growth in the Asia-Pacific region or for which there is regional industry support for early liberalization.
2. NON-TARIFF MEASURES
OBJECTIVE
APEC economies will achieve free and open trade in the Asia-Pacific region by:
a. progressively reducing non-tariff measures; and
b. ensuring the transparency of APEC economies' respective non-tariff measures.
GUIDELINES
Each APEC economy will:
a. take into account, in the process of progressive reduction of non-tariff measures, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;
b. ensure that the progressive reduction of non-tariff measures is not undermined by the application of unjustifiable measures; and
c. consider extending, on a voluntary basis, to all APEC economies the benefits of reductions and eliminations of non-tariff measures derived from sub-regional arrangements.
COLLECTIVE ACTIONS
APEC economies will:
a. pursue incorporation of information on non-tariff measures into a future version of the APEC tariff database and compile a list of measures recognized as non-tariff impediments and a list of products affected by these impediments;
b. identify industries in which the progressive reduction of non-tariff measures may have positive impact on trade and on economic growth in the Asia-Pacific region or for which there is regional industry support for early liberalization;
c. progressively reduce export subsidies with a view to abolishing them; and
d. abolish unjustifiable export prohibitions and restrictions and endeavor to refrain from taking any such new measures.
PROPOSAL FOR INITIATING AN ENVIRONMENTAL GOODS AND SERVICES WORK PROGRAMME FRAMEWORK
Submitted by Singapore
AIM
1. This paper seeks CTI’s endorsement on a work programme framework for environmental goods and services (EGS) in APEC.
INTRODUCTION
2. Under the Committee for Trade and Investment (CTI), many projects have been endorsed and implemented to advance APEC’s interest in EGS. These include the 2007 and 2008 EGS Workshops and the 2008 trade in Environmental Services project. Other than CTI, there is also significant progress in the Energy Working Group (EWG) to promote energy efficient goods and energy standards.
3. The latest call for work in EGS comes from the APEC Ministers Responsible for Trade (MRT) Ministerial Statement in Arequipa, Peru, where the ministers instructed “officials to elaborate a work program to advance APEC work on environmental goods and services.”
EGS WORK PROGRAMME FRAMEWORK
4. Following the instruction from MRT, an EGS work programme is proposed to advance APEC work on EGS. Our objectives for developing a framework for the work programme are two-fold: The underlying main objective is to support the development of the EGS sector in APEC; the secondary objective is to link up the projects related to EGS in separate APEC working groups under a coherent and holistic framework.
5. This EGS Work Programme framework (“the Framework”) uses the basic value-chain of EGS as a framework to holistically address all aspects of EGS. There are four main components to this Framework: R&D, Supply, Trade and Demand.
a. R&D. For both goods and services, this refers to developing new and better EGS through innovation and R&D which address not only trade in EGS but also environment and development (i.e. rural development, job creation and applied technology). APEC economies can share ideas and best practices on innovation and R&D programmes that spur the development of EGS.
b. Supply. For goods, this includes the incorporation of cleaner, more resource and energy efficient technologies. For services, this includes the training of skilled personnel. Both entail a need for more focus and investment in the EGS industry. APEC economies can explore ways to facilitate investment in EGS and share best practices in developing the EGS industry sector.
c. Trade. This component aims to improve trade in EGS through trade facilitation and trade liberalisation. For the former, APEC MAG (Market Access Group)/GOS (Group on Services) can come up with projects that facilitate trade in EGS. For trade liberalisation, this component adheres to the Doha Para 31(iii) mandate. Recognising that the negotiations will be done in the WTO, APEC MAG/GOS can come up with ways to support the negotiations in the WTO.
d. Demand. An increase in demand will create incentive for the market to increase R&D and investment in EGS. APEC economies can look into sharing best practices in public education on EGS and pro-EGS consumer policies, such as measuring and showing the impact of EGS on the environment.
6. A diagrammatic form of this Framework is shown in Figure 1. An improvement in all the components of the Framework will improve the entire EGS sector and naturally lead to greater EGS trade among APEC economies.
FITTING THE EGS WORK PROGRAMME FRAMEWORK WITHIN APEC
7. The Framework is designed to be multi-discipline and span across the different committee/working group silos. Projects relating to the 4 components can be identified or proposed to meet the Framework objective. These projects, once endorsed, will become an integral part of the work programme and can come from MAG, IEG (Investment Experts’ Group), GOS, SCSC (Subcommittee on Standards and Conformance), EWG or other APEC groups.
8. The CTI will be responsible for maintaining and overseeing the Framework. For non-CTI fora like EWG and ISTWG (Industrial Science and Technology Working Group), progress reports on relevant projects under the Work Programme can be provided to CTI through their respective head Committee for CTI’s monitoring purpose.
THE NEXT STEP
9. If the Framework is adopted, the next step is to operationalise this with projects addressing the four different components. Economies are encouraged to consider existing project proposals, with a view to their early endorsement, and to propose new projects for this purpose. The attached annex, submitted for CTI’s further discussion, serves as a living list of possible EGS projects that are either under discussion or awaiting project proposals.
SUMMARY
10. The proposed Framework is designed to meet the MRT instruction to advance APEC’s interest in EGS. Instead of just focusing on any single aspect of EGS, the work programme should address every aspect of EGS sector holistically with a clear main objective of promoting the development of the EGS sector in APEC. The four components of the framework for the work programme, namely R&D, Supply, Trade and Demand, will address the different aspects of the EGS sector value-chain. To develop the EGS sector, we will need to integrate and evaluate the analysis of each component holistically and strengthen the entire value-chain.
. . . .
APEC MINISTERS RESPONSIBLE FOR THE ENVIRONMENT
Vancouver, Canada
25 March 1994
FRAMEWORK OF PRINCIPLES FOR INTEGRATING ECONOMY AND DEVELOPMENT IN APEC
Preamble
The challenge of sustainable development requires integration of economy and environment in all sectors and at all levels.
The experience of APEC members is that a market economy can be a very efficient and flexible means of allocating resources to meet individual preferences. Competitive market economies make for a dynamic and innovative society.
But the market will not necessarily deliver other objectives that society may have, such as meeting the basic needs off all citizens, environmental quality, and access to resources for future generations.
In seeking to reconcile the objectives of economic growth and efficiency with improved environmental outcomes, the following principles could be taken into consideration by member economies to achieve sustainable development.
Principle: Sustainable Development
Member economies should promote sustainable development and a higher quality of life for all people. All the possible measures should be seriously considered to bring about a society where “… environmental protection shall constitute an integral part of the development process and cannot be considered in isolation from it” (from Principle 4, Rio Declaration on Environment and Development).
Member economies should promote the complementary principles of reduction of poverty and improvement of the environment, consistent with Principle 5 of the Rio Declaration.
Principle: Internalisation
Members should “endeavour to promote the internalisation of environmental costs and the use of economic instruments, taking into account the approach that the polluter should, in principle, bear the cost of pollution, with due regard to the public interest and without distorting international trade and investment.” (Principle 16, Rio Declaration)
Principle: Science and Research
Scientific research should be fostered to increase the community’s understanding of ecological systems, and their interactions with the economy, employment and human communities.
Principle: Technology Transfer
Member economies should cooperate to strengthen capacity building for sustainable development through exchanges of scientific and technical knowledge. They should enhance the development and transfer of technologies, including new and innovative technologies, consistent with Chapter 34 of Agenda 21.
Principle: The Precautionary Approach
Member economies should, according to their capabilities, widely apply the precautionary approach in accordance with Principle 15 of the Rio Declaration: “…Where there are treats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation”.
Principle: Trade and the Environment
Member economies should support multilateral efforts to make trade and environment policies mutual supportive, consistent with Principle 12 and other relevant principles of the Rio Declaration.
Principle: Environmental Education and Information
Member economies, industry, consumer groups and environmental groups should provide to all citizens information and educational opportunities that will enhance informed choices that affect the environment.
Principle: Financing for Sustainable Development
Member economies should cooperate to meet the goal of mobilising financial resources for sustainable development, including the exploration of innovative approaches to fund raising schemes and mechanisms, taking into account conditions and priorities of APEC members.
Principle: Role of APEC
APEC members should, in promoting regional cooperation, make the best use of existing multilateral and bilateral fora, and activities of APEC to attain sustainable development. These fora and activities have contributed to the implementation of Agenda 21 in the fields of environmental priority setting, accumulation of scientific knowledge, and enhancement of capacity building. APEC members should seek appropriate ways and means by which APEC can add concrete value to these ongoing activities, avoiding duplication of functions.
Meetings of APEC ministers responsible for the environment should be held on an ad hoc basis as the necessity arises.
APEC members should consider ways to better incorporate sustainable development into the work of APEC Working Groups and Committees, where relevant, including consideration of these issues at the levels of Senior Officials Meetings and Ministerial Meetings.
APEC members should achieve the integration of economy and environmental considerations through conscious efforts to incorporate environmental concerns into decision making for sustainable development at all levels.
APEC MEETING OF MINISTERS RESPONSIBLE FOR THE ENVIRONMENT
Vancouver, 23-25 March 1994
APEC ENVIRONMENTAL VISION STATEMENT
Vancouver, Canada
25 March 1994
This meeting of APEC Ministers for the Environment forged consensus on a wide range of issues, sharing the spirit of the Rio Declaration on Environment and Development. We reaffirmed the inseparable linkages between environment protection and economic growth to build an enduring foundation for sustainable development in our region.
We want to see the continued dynamic growth and growing interdependence of APEC member economies which has transformed our region. We are concerned that degradation of our environment will adversely affect our ability to sustain our economic growth. Our efforts to assure stable and sustainable development must take account of the effect of our economies and our populations on the natural environment. To this end we support the outcomes of UNCED.
We, the Asia Pacific economies are agreed that we must protect our environment and conserve natural resources. In particular, we have to improve the quality of air, water and manage energy resources to ensure sustainable development and provide a more secure future for our people. We agree to develop co-operative programs to this end.
We recognize that problems such as climate change, biodiversity loss, pollution and waste, deteriorating water quality and availability, soil erosion, population pressures, and growing energy consumption challenge all of us to cooperate more effectively in dealing with these issues. APEC should take the lead in addressing these global problems and solutions in line with the global consensus reached at UNCED.