Tool to counter climate change

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Brazil and Peru had in 2007 proposed to the World Trade Organization (WTO) that biofuels and organic foods be classified as “environmental goods,” thereby qualifying the two countries for deep tariff cuts. This proposal prompted an outcry from the United States, the European Union and other members of the WTO, once again placing the environment at the forefront of the Doha Development Agenda. Many have now been compelled to ask: What does this development mean for the future of Doha? One of Doha’s nine negotiating groups is trade and the environment, and one of its key components is the elimination of trade barriers for environment-related goods and services.

“By negotiating reduced barriers to trade in environmental goods, we are attempting to make these goods cheaper and more readily available to increase the trade in this department,” said Keith Rockwell, chief spokesperson for the WTO.

However, the complexities lie in where to draw the line between environmental and non-environmental goods. “The Japanese say that their washing machines are very efficient in the use of water, so is that an environmental good?” asked Rockwell. “Qataris say that natural gas gives off fewer CO2 emissions than petroleum, so that should be an environmental product as well.”

As the debate pits Brazil and Peru against other WTO members, the question remains: Where to draw the line in determining an environmental good?

Despite the undeniable environmental benefits of ethanol and other biofuels, countries such as the US, the European Union nations and Korea posit that only industrial goods, not farm products, should be considered when assigning the favourable status of “environmental product.” Brazil, on the other hand, responded to critics calling its proposal a means of reconciling the persistent divisions between the WTO members about how to integrate the mandatory component of Doha on trade barriers and environmental goods.

The paradox of reducing trade barriers, however, lies in the increased carbon emissions from the cars, boats and planes needed to ship goods internationally. Approximately one quarter of the world’s energy-related output of greenhouse gases (GHGs) is attributed to the transport sector. Fresh strawberries are out of season during the winter in the US and Britain, yet transporting these fruits from a country such as Kenya would produce substantial CO2 emissions.