Trade and Environment negotiations status under the WTO

This policy brief investigates the status and implications of the tariff-only approach in the ongoing WTO negotiations on environmental goods (EGs). It traces the evolution of trade and environment discussions from the GATT era to the WTO, focusing on the Doha Development Agenda and the APEC list of environmental goods. The brief critically examines the outcomes of tariff liberalization efforts, highlighting disparities between developed and developing countries in terms of export competitiveness, import dependency, and policy space erosion. Using trade data and bound tariff rates, it assesses the impact of eliminating tariffs on 59 EGs and explores the feasibility of a plurilateral agreement. The analysis reveals that while developed countries stand to gain from improved market access, developing countries face significant challenges, including potential disinvestment and employment loss. The brief concludes with recommendations for a more balanced agreement that includes non-tariff measures, technology transfer, and special treatment for developing nations.