USTR Aims to Launch Environmental Goods Negotiations Within Months
The Office of the U.S. Trade Representative (USTR) intends to launch negotiations within three months on a World Trade Organization agreement on comprehensive elimination of tariffs on environmental goods, said USTR Michael Froman in March 21 letters to Speaker of the House John Boeher, R-Ohio, and Senate President Pro Tempore Patrick Leahy, D-Vt. The agreement would boost U.S. environmental good exports by breaking down trade barriers with foreign partners and strengthen the global effort to preserve the environment.
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“U.S. exports of environmental goods, such as wind turbines, solar panels, and wastewater treatment filters, totaled $106 billion in 2013. Global trade in environmental goods has grown substantially over the last decade, and U.S. exports of environmental goods grew 5 percent faster than U.S. exports of industrial goods from 2008-2012,” said Froman in the identical letters. “U.S. tariffs on environmental goods are relatively low. However, some WTO Members apply tariffs as high as 35 percent on these products. Given a fair opportunity, U.S. companies will be able to compete and succeed in this dynamic global market.”
The U.S., along with 12 other nations and the European Union, initially announced the environmental goods agreement at the World Economic Forum in January (see 14012411). The agreement seeks to build off an Asia-Pacific Economic Cooperation pact to reduce to 5 percent or less tariffs on 54 environmental products (here). The APEC list includes such goods as solar water heaters, wind turbines and water treatment filters. The other 13 sponsors include Australia, Canada, China, Costa Rica, Hong Kong, China, Japan, South Korea, New Zealand, Norway, Singapore, Switzerland and Chinese Taipei.
National Foreign Trade Council (NFTC) Vice President for Global Trade Issues Jake Colvin said the NFTC is optimistic for the positive impact environmental trade liberalization will have on the U.S. business community. “NFTC applauds the strong leadership of the White House and USTR in support of green growth over many years, and across trade forums including the WTO and in APEC,” said Colvin in a statement (here).