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The Eco-Industry and Trade Agreements

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  • Solveig Delabroye

Abstract

The eco-industry is a key sector for our future, both economically (the industry accounts for 3% of GDP in most developed countries) and as a tool to tackle ecological challenges. For the past decade, international organizations such as the WTO and OECD have pledged for a swift liberalization targeting Environmental Goods and Services (EGS), which are still characterized by high tariffs and non-tariffs barriers and a low level of competition. In spite of many political declarations, no international trade agreements directed specifically at this industry has been reached except from the one adopted by the Asia-Pacific Economic Cooperation (APEC) in 2012. This report examines the reasons for the apparent failure of international negotiations on this issue, specifically focusing on the idiosyncrasies of the eco-industry regarding custom regulations and on what are stakes for each party. Indeed, strategic trade analysis of the respective interests of developing and developed countries reveals asymmetric incentives, which sheds some light on the discrepancies between enthusiastic political statements and the lack of actual agreements. Finally, some past bilateral and regional trade and environmental agreements and the solutions they propose in relation to the current situation in international trade of EGS are considered, and the relevance of global trade agreements as a tool of EGS policy is discussed. L'industrie environnementale est un secteur-clé pour notre futur, à la fois sur le plan économique (le secteur représente environ 3% du PIB dans les pays développés) et comme instrument pour répondre aux défis écologiques croissants. Durant la dernière décennie, les organisations internationales (OCDE, OMC) ont appelé à une libéralisation rapide des Biens et Services Environnementaux, qui se distinguent aujourd'hui par des barrières douanières et règlementaires importantes et une concurrence relativement faible. Malgré de nombreuses déclarations politiques, aucun accord de commerce international spécifique à ce secteur n'a été conclu à l'exception de celui ratifié au sein de la Coopération Economique pour l'Asie-Pacifique (APEC) en 2012. Ce rapport se penche sur les raisons de ce qui semble pour l'instant être un échec des négociations internationales, en s'attachant aux spécificités de l'éco-industrie en terme de régulations douanières, mais aussi aux enjeux de ces négociations pour les différentes parties prenantes. Une analyse stratégique des intérêts commerciaux respectifs des pays développés et en développement révèlera des incitations asymétriques et expliquera en partie l'écart entre les déclarations d'intentions et l'absence d'accords effectifs. Enfin, nous examinerons quelques exemples d'accords bilatéraux ou régionaux concernant le commerce ou l'environnement pour voir quelles solutions peuvent être apportées, et interrogerons la pertinence d'accords de commerce en tant qu'outil de facilitation du commerce international des biens et services environnementaux.

Suggested Citation

  • Solveig Delabroye, 2014. "The Eco-Industry and Trade Agreements," CIRANO Working Papers 2014s-45, CIRANO.
  • Handle: RePEc:cir:cirwor:2014s-45
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    File URL: https://cirano.qc.ca/files/publications/2014s-45.pdf
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    References listed on IDEAS

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    Keywords

    Eco-industry; internatioal market; trade agreements; Industrie environnementale; marché international; accord de commerce international;
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