| Volume 11 | Number 8 | 7 March 2007 |
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ENVIRONMENT: WTO MEMBERS DISCUSS INFORMATION EXCHANGE WITH MEAS A recent meeting of the special (negotiating) session of the WTO Committee on Trade and Environment (CTE) focused on the relatively less contentious agenda item of procedures for information exchange between multilateral environmental agreement (MEA) secretariats and relevant WTO committees. Informal talks continued on liberalisation of environmental goods and services. The meeting of CTE special session, which took place from 1-2 March, was the first following the resumption of full Doha round talks a month ago. Discussions revolved around a new US submission (TN/TE/W/70, available at http://docsonline.wto.org) on Para 31 (ii) of the Doha Declaration (information exchange). The submission proposed that MEA information sessions within the CTE take place on a regular basis, initially once per year. Regarding MEA observer status in other WTO bodies, the US proposed that the CTE special session develop a non-exhaustive list of "indicative questions" to aid these WTO bodies in making decisions on a case-by-case basis. Possible questions included whether an MEA contained specific trade obligations or other trade-related obligations, and if so, whether these were relevant to the particular WTO body's scope of work. The US also proposed that the CTE special session grant seven MEA secretariats (which now have ad hoc observership) permanent observer status for the remainder of the Doha. The US stressed that communication between all interested ministries (i.e. transport, agriculture, customs) should be improved at the domestic level. It emphasised that enhanced international coordination, while useful and important, could not replace the much more direct and efficient means of ongoing national-level coordination between trade and environment officials. The submission proposed that the WTO secretariat, with the aid of relevant MEA secretariats, focus more assistance on building the capacity of developing country Members to foster their own internal trade and environment coordination processes. Commenting on the submission, Switzerland wanted specific reference to the UN Environment Programme (UNEP) included in any decision on information exchange. The EU called for permanent observership for all MEA secretariats. 'On the whole,' however, one developing country delegate said, 'the US submission seemed acceptable to most if not all Members.' Informal discussion also took place on the liberalisation of environmental goods and services (EGS). Generally, developed countries have proposed that Members should agree to a 'list' of specific environmental goods slated for liberalisation. Many developing countries fear that such a list would mainly feature goods of export interest to developed countries, and have come up with alternative approaches. A developing country trade delegate said the recent informal talks had been 'constructive,' noting that he sensed a certain 'softening' of attitudes among delegations. The next CTE special session is scheduled for 2-3 May. According to trade sources, India is planning to submit a revised proposal on its 'project' approach to EGS before this meeting. The chair of the negotiations, Ambassador Toufiq Ali (Bangladesh), will likely convene an informal meeting on 30 March. ICTSD reporting. NAMA TALKS MAKE PROGRESS ON NON-TARIFF BARRIERS While core issues related to reducing industrial tariffs remain blocked pending movement on farm trade in the Doha round negotiations, Members made progress on non-tariff barriers (NTBs) during a week of discussions on non-agricultural market access (NAMA) that wrapped up in Geneva on 2 March. The chair, Ambassador Don Stephenson (Canada), called the developments encouraging. Specifically, he said Members had agreed to submit textual proposals on vertical (sectoral) and horizontal (general) NTBs by 23 March. He would then compile the proposals into a rudimentary negotiating text. Members also met informally to discuss sectoral liberalisation initiatives, set to bring down tariffs in a particular sector once enough countries sign onto them. The US reported on the discussions on chemicals, Japan on the electronic and electrical sector as well as the autos and auto parts sector, Switzerland on enhanced health care and pharmaceutical products, Thailand on gems and jewellery, and Canada on fish and forestry products. Members did not spend time discussing the main divisive NAMA issues: the tariff reduction formula numbers that will determine the depth of cuts; flexibilities for developing countries to shield some products from tariff reduction; and the treatment of unbound tariffs (see BRIDGES Weekly, 28 February 2007). Discussions seeking to generate an overall political deal covering key areas of the Doha round -- especially agriculture, but also NAMA -- are ongoing (see related story, this issue). Chair Stephenson will continue to hold informal talks on NAMA; the next week of official negotiations is scheduled to begin on 26 March. ICTSD reporting. INDIA UNDER PRESSURE IN WINE AND SPIRITS SPAT Due to growing threats of WTO dispute settlement procedures, India has indicated that it is considering lowering its import duties on wine and spirits. Brussels formally challenged the tariffs in November 2006 by requesting consultations at the WTO, with Washington following suit on 6 March. For years, Brussels and Washington have raised concerns over India's strong-beverage duties, which allegedly run as high as 550 percent in certain cases. Until now, India has refused to modify its system. Under its WTO commitments, the implicated tariffs are to be held within 150 percent. However, on top of this base duty, India purportedly imposes an 'additional duty' and an 'extra additional duty' on imports of wine and distilled spirits. India's budget for 2007-2008, which was unveiled last week, did not reflect any reductions in tariffs on wines and spirits, prompting EU Agricultural Commissioner Mariann Fischer Boel to state that she was 'disappointed'. Kamal Nath, Indian Minister of Commerce, noted that a cut in the tariffs could be made outside the budget. "This is being discussed at the highest level in the government" Nath said after a meeting with Boel on 7 March. He further stated that he did not believe that "it will come to a stage where the WTO will have to settle the dispute." In addition, India's Secretary of Commerce Gopal Pillai's stated that India is planning to scrap the duties and introduce legislation that would level imported liquors with domestic ones. He said he believed a resolution could be reached in two months. Exports of
wines and spirits to India have grown continuously over the past
years, but allegedly no where near its full potential. In 2005,
EU spirit exports amounted to EUR43 million and wine exports to
EUR7 million. US exports of wine and spirits to India have grown
by 200 percent in 2000-2005. |
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