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Market access opportunities for ACP countries in environmental goods

This paper analyzes the market access opportunities for ACP countries in environmental goods, with a focus on renewable products and energy sources, environmental monitoring equipment, and waste management, recycling, and remediation products. The study examines different scenarios, including Doha Modalities, full liberalization within ACP countries, full liberalization among WTO members, and WTO liberalization with Special and Differential Treatment. The results highlight the asymmetric trade pattern, the importance of rules of origin and utilization rate of preferences, and the role of regional trade.

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Market access opportunities for ACP countries in environmental goods

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  1. Market access opportunities for ACP countries in environmental goods David Laborde – Csilla Lakatos Paper sponsored by the ICTSD.

  2. Scope of analysis • ACP countries belonging to the WTO • 63 HS6 products • Renewable Products and Energy Sources include 38 HS6 products among which we find primary cell and batteries used for electricity generation through an electromechanical process rather than combustion; • Environmental Monitoring, Analysis and Assessment Equipment covers 7 HS6 products including thermostats used for controlling the efficiency of the heating system, manostats with applications in waste water management and different control instruments used in producing electricity from renewable energy; • the Waste Management, Recycling and Remediation category covers 18 HS6 products among which tubes, pipes and reservoirs used in delivering safe drinking water and sanitation, vapor and steam boilers.

  3. Overview

  4. Main countries

  5. Share in total exports/imports

  6. Main products

  7. Product Share in ACP EG TRade

  8. Market share for ACP trade

  9. Tariff structure

  10. Imperfect use of preferences and rules of orIgin

  11. But also NTBs

  12. Partial equilibrium to study for scenarios • Doha Modalities: this scenario implements the Doha modalities in market access for NAMA products. Tariff cuts have been determined using the Swiss Formula with Special and Differential Treatment, including sensitive products for developing countries. For a detailed description of the Modalities see Laborde and Martin (2011). • Full liberalization within ACP countries: this scenario entails the full removal of tariff barriers for EGs within ACP countries in addition to the tariff cuts of the Doha Modalities for the rest of the world; • Full liberalization among WTO members: here, we consider the complete elimination of barriers to trade on environmental products among all WTO members; • WTO liberalization with Special and Differential Treatment (SDT): in this scenario we examine the full removal of tariff barriers on EGs for developed countries while developing countries cut tariffs by 50% more than the tariff cut implied by the Swiss formula.

  13. Main results

  14. ACP exports by markets

  15. Main changes at the product level

  16. Conclusions • Asymmetric trade pattern • Large market access in OECD markets BUT importance of rules of origin and imperfect utilization rate of preferences • Role of regional trade • WTO liberalization with Special and Differential Treatment (SDT) option as way forward

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