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38 J. World Trade 93 (2004)
Environmental Goods and Services: Defining Negotiations or Negotiating Definitions

handle is hein.kluwer/jwt0038 and id is 95 raw text is: Journal of World Trade 38(1): 93-122, 2004. 0 2004 Kluwer Law International. Printed in The Netherlands. Environmental Goods and Services: Defining Negotiations or Negotiating Definitions? Alexey VIKHLYAEV* At the Fourth World Trade Organization (WTO) Ministerial Conference in Doha in November 2001, WTO Members agreed to negotiations on the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services (EGS).1 The Doha Ministerial Declaration states that negotiations on trade liberalization in EGS should enhance the mutual supportiveness of trade and the environment, suggesting a potential for win-win outcomes.2 The uncertainty about definitions and classification of the environmental industry enhances the impression that there is everything to play for in the negotiations and that there are potential gains for developed and developing countries. Even a cursory look at the environmental industry suggests that the developed countries will be looking for winning propositions in terms of market access. For developing countries, it is access to EGS that is going to be more important. Their potential gains are in improved environmental conditions and resource management at home, and in strengthened capacity to comply with environmental requirements abroad. This win-win scenario begs some uncomfortable questions. First, does it mean that environmental benefits will go to one set of countries and trade gains to another? Contrary to the economic theory, the negotiating logic at the WTO says: imports are bad and exports are good. This logic has been defied only in three sectoral agreements reached since the Uruguay Round-on information technology, financial services and basic telecommunications services, where a large number of developing countries that had signed on were not, and did not expect to become exporters in the near future. The mandate provided for in paragraph 31 (iii) of the Declaration, although sector-specific, does not amount to a sectoral agreement. In fact, paragraph 16 of the Declaration states that the negotiations shall aim to eliminate barriers to products of export interest to developing countries. The Declaration also re-affirms the Guidelines for the services negotiations in that they shall aim to increase the participation of developing countries in trade in services.3 * Alexey Vikhlyaev, PhD, Economic Affairs Officer, Division on International Trade in Goods and Services, and Commodities, UNCTAD. The views expressed are those of the author and do not necessarily reflect the position of the UNCTAD Secretariat. I Doha Ministerial Declaration, para. 31(iii). 2 With a view to enhancing the mutual supportiveness of trade and environment, we agree to negotiations, without prejudging their outcome, on: ... (iii) the reduction or, as appropriate, elimination of tariff and non-tariff barriers to environmental goods and services. Doha Ministerial Declaration, para. 31. 3 Guidelines and Procedures for the Negotiations adopted by the Council for Trade in Services on 28 March 2001 form the basis for continuing the negotiations, with a view to achieving the objectives of the General Agreement on Trade in Services, as stipulated in the Preamble, Article IV and Article XIX of that Agreement. Copyright ' 2007 by Kluwer Law International. All rights reserved. No claim asserted to original government works.

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