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Summary of Market Access Group Workshop on Environmental Goods and Services (egs) 28 July, 2009 Singapore


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2009/SOM2/MAG/007rev1


Summary of Market Access Group Workshop on Environmental Goods and Services (EGS)

28 July, 2009

Singapore


  1. Representatives from APEC economies, including Active Participants from Chile, China, Indonesia, Malaysia, Philippines, Peru, Thailand, Viet Nam, met in Singapore. Convenor of Sub-Committee on Standards and Conformance (SCSC) was also present. Invited moderators and speakers were with diversified backgrounds: from developing and developed economies; from governments, international organizations, business and NGO. The participants discussed on:




  1. Environmental goods and developing economies: role and relevance of developing economies to disseminating environmental goods;

  2. Environmental goods and technology: role and relevance of technologies to achieving enhanced energy conservation and efficiency; and,

  3. Facilitation of business environment: establishment of a common platform to eliminate/moderate existing obstacle.

For the details of the workshop including the information on moderators and speakers, the programme of the workshop is attached.




  1. The following points were made in the presentations and discussions in the Workshop.




  • The participants were reminded that Ministers Responsible for Trade (MRT) instructed APEC officials including MAG to finalise the EGS work programme for consideration by AMM 2009. Ministers stated “APEC can make an important contribution to the success of the Copenhagen Conference by exploring ways to reduce barriers to trade and investment in environmental goods and services (EGS).”




  • The participants were reminded that APEC has been working on EGS for a number of years; the EGS is highlighted under REI mandate; the agenda on trade and environment dates back to 1994 when Ministerial meeting on trade and environment was held; that MAG now has a number of projects on EGS including this workshop.




  • The participants were informed that in 2009 ABAC Sustainable Development Working Group (SDWG) put the issue of EGS on its agenda, and were reminded that ABAC had recommended to MRT that priority “be attached to trade in environmental goods and services in APEC’s liberalization agenda in 2008/2009.”




  • It was pointed out that NTBs such as standard-setting and certification issues may be more relevant than tariffs to promote greater trade in energy-efficient products; liberalization of tariffs alone may not guarantee a diffusion of the technologies of or the creation of markets for renewable energy products in developing economies.




  • It was noted that trade and investment is one channel that could facilitate the transfer, diffusion and dissemination of environment/climate change related technologies. Some participants noted that it was important to make technologies available for developing economies through technology transfer, especially in order to enhance their capacities to cope with climate change issues.




  • It was pointed out that the market does not always deliver cost-effective energy savings, so robust government policy is needed to ensure greater energy efficiency; one of the policies which have been common is energy labels and standards.




  • It was demonstrated that economies such as Chinese Taipei and Thailand have been making the efforts to develop their green energy technology, green manufacturing and green products. It was explained that Thai industry has gone through a number of capacity building activities to make itself “early birds” for green electronics markets created by various environmental regulations. Chinese Taipei takes advantage of IT industry and legislative and administrative efforts to support R&D of green energy industry.




  • It was demonstrated by speakers that developing economies, in particular Asian economies, are already a part of production chain of plenty of EGSs such as air-conditioners, refrigerators and TV sets.




  • It was pointed out that energy standards and labeling are business driver. For example, minimum energy performance standards (MEPS) compel industry to make energy performance improvements, and labeling helps consumers identify energy efficient models in a product class. On the other hand, different testing standards for energy efficiency among different markets would cause high cost for manufacturers, although harmonization or alignment of energy standards is a challenge.




  • It was pointed out that trade is still important to disseminate energy-efficient appliances; for energy-efficient products to be included in tariff reduction/elimination initiative, agreement is needed that either (i) a set of product descriptions, testing standards, and efficiency thresholds must be standardized, or (ii) goods that exceed existing national energy efficiency thresholds should enjoy lower/zero tariffs (called “MEPS+ approach”).




  • The participants were reminded that APEC has other sub-fora such as SCSC and EGEE&C (Expert Group on Energy Efficiency and Conservation, a sub-group of EWG) which work to address the issues on energy efficiency standards and labeling. It was agreed that to address the issue on trade in EGS, collaboration among relevant groups is necessary; MAG also needs to explore ways to collaborate and cooperate with these groups. In the workshop, SCSC Convenor requested Chair of EGEE&C (one of speakers to the workshop) to join the next SCSC meeting in early August (although the latter is not able to come), and Chair of EGEE&C invited Convenor of MAG to the next EGEE&C meeting in early October in Taipei.


APEC Market Access Group

Workshop on Environmental Goods and Services (EGS)

Co-sponsored by Australia, Japan, New Zealand and Singapore

CTI/32/2009T

Agenda
Date and Venue:

Held on 28 July 2009, in the margin of MAG3, at the Grand Copthorne Waterfront Hotel, Singapore


Expected Participants and Speakers:

Members of MAG and any relevant APEC subfora, business including ABAC, and international organizations are invited.


Draft Agenda:
09:00-09:20 Introduction & Overview


  • Scene Setting by Dr. Akihiko Tamura, Ministry of Economy, Trade and Industry (METI), Japan, Convenor of APEC Market Access Group (MAG)

  • Briefing by US, New Zealand or Canada on EGSIE, the new APEC tool for information exchange on environmental goods and services


09:20-10:40 Session 1
Environmental Goods and Developing Economies: Role and Relevance of Developing Economies to Disseminating Environmental Goods

Objective: better understanding and awareness of the linkages between trade in environmental goods and sustainable development, with a focus on the role of trade in environmental goods and climate change, particularly focusing on the role and relevance of developing economies to making environmental goods broadly available and enhancing climate- friendly life styles. The invited business representatives are to demonstrate how much developing economies are involved in value chains of the products concerned.
Moderator: Mr. Komara Djaja, Expert Staff to the Coordinating Ministry for Economic Affairs, Indonesia

  • Presentation by Mr. Mahesh Sugathan, Programme Coordinator, International Centre for Trade and Sustainable Development (ICTSD)

  • Presentation by Mr. Charuek Hengrasmee, President, Electrical and Electronics Institute (EEI), Thailand

  • Presentation by Mr. Tsutomu Namaita, Lead Staffer for Mr. Morimoto, Co-Chair of ABAC Sustainable Development Working Group

(20 minutes presentation & 10 minutes questions)
10:40-11:00 Coffee Break
11:00-12:30 Session 2
Environmental Goods and Technology: Role and Relevance of Technology to Achieving Enhanced Energy Conservation and Efficiency

Objective: better understanding and awareness of the linkages between trade in environmental goods and climate change, particularly focusing on environmental goods which achieve enhanced energy efficiency and conservation, and focusing on technologies critical to the enhanced energy efficiency and conservation.
Moderator: Mr. Martin Harvey, New Zealand High Commissioner to Singapore

  • Presentation by Dr. Rick Bradley, Head of Energy Efficiency and Environment Division, International Energy Agency (IEA)

  • Presentation by Mr. James Masao Toyama, Chairman, Trade Policy Committee, Japan Electronics & Information Technology Industries Association (JEITA)

  • Presentation by Dr. Robert Yie-Zu Hu, Senior Researcher and Deputy General Director, Energy and Environment Research Laboratories, Industrial Technology Research Institute, Chinese Taipei

(20 minutes presentation & 10 minutes questions)
12:30-14:30 Lunch Break
14:30-16:30 Session 3
Facilitation of Business Environment: Establishment of a Common Platform to Eliminate/Moderate Existing Obstacles

Objective: to identify business motivation for the uptake of environmental technologies through establishing international technical standards and other regulatory systems, such as labeling, on a regional and/or global basis.
Moderator: Mr. Peter Govindasamy, Deputy Director, Energy Division, WTO and International Trade Negotiation Division, Ministry of Trade and Industry, Singapore

  • Presentation by Dr. Walter Goode, Director, APEC Regional Economic Integration Section, APEC Branch, Department of Foreign Affairs and Trade, Australia

  • Presentation by Mr. Terry Collins, Energy Efficiency and Conservation Authority (EECA), New Zealand, Chair of Expert Group on Efficiency & Conservation (EGEE&C), APEC Energy Working Group (EWG)

  • Presentation by Mr. Dale Andrew, Head of the Trade Policy Linkages Division , OECD Trade & Agriculture Directorate

(20 minutes presentation & 10 minutes questions)
16:30- Close of Workshop



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