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Rich Countries Press for Early Deal on Environmental Goods

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Rich countries made a call for an early deal on the liberalization of trade in environmental goods and services at a ministerial conference of the World Trade Organization (WTO), which entered its second day on Tuesday.

"We fully support fast-tracking action in the WTO's work on liberalizing trade in climate-friendly technologies," US Trade Representative Ron Kirk told a working session of the conference.

Trade chiefs of the WTO's 153 members started to meet on Monday, aiming to give a new push to global trade and the long-stalled Doha Round talks, although the conference was not a negotiating session.

Launched in 2001, the Doha Round has been deadlocked in the past eight years due to differences between developed and developing countries over access to agricultural and non-agricultural markets.

Japanese Economy, Trade and Industry Minister Masayuki Naoshima said WTO members could seal a deal on reducing tariffs for environmental goods and services before wrapping up the Doha Round, and an early deal would provide fresh impetus to the whole negotiations.

"Some like-minded nations, including Japan, are considering conducting discussions with a view to achieving an early agreement to liberalize trade in environmental goods," he said.

Meanwhile, the European Union (EU) also threw its weight behind the issue.

"Trade policy can make a significant contribution, through the liberalization of trade in relevant environmental goods and services," outgoing EU Trade Commissioner Catherine Ashton said on Monday.

"We in Europe invite all members of the WTO to intensify work in this area," added Ashton, who became the EU's foreign policy chief on Tuesday.

As a key UN conference to draft a new international deal on reduction of greenhouse gas emissions is just around the corner, WTO Director-General Pascal Lamy had asked WTO trade chiefs to discuss the role of trade in the global fight against climate change.

World governments are due to meet next week in Copenhagen, Denmark on a new deal to cut greenhouse gas emissions, a successor to the Kyoto Protocol which expires in 2012.

While rich countries want to use the momentum to push for an early deal on environmental goods and services, in which they are more competitive, developing countries could hardly accept that.

Indonesian Trade Minister Mari Pangestu stressed the importance of financing to developing countries preparing to deal with the effects of climate change.

"Lowering tariffs on clean technology is not going to be enough... to address the climate change objective," Indonesian Trade Minister Mari Pangestu said.

"From a developing country perspective, we also need to have financing and capacity building," she added.

The climate talks are also in stagnation since developed countries are reluctant to make generous contributions to help developing countries deal with climate change, including financing and technology transfer.

A trade official from an emerging economy said it is simply inappropriate to single out environmental goods and services for an early deal.

"Why should not agricultural trade be concluded first? It concerns feeding billions of people," he said, adding there was already an agreement that the Doha Round has to be wrapped up with a single package.

Developing countries had made it clear that they oppose any form of selective re-sequencing of issues.

"We furthermore oppose any form of selective re-sequencing of issues, or reopening of stabilized parts of the draft modalities," ministers of the informal group of WTO developing members said on Monday.

(Xinhua News Agency December 2, 2009)

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