Jordan Seeks Help in Defining WTO Environmental Goods and

UNCLAS AMMAN 007810 SIPDIS INFO HQEPA WASHDC SENSITIVE SIPDIS State for NEA/ELA, NEA/RA, OES State Pass USTR/Prescott EPA for International/Prather, Medearis E.O. 12958: N/A TAGS: SENV ETRD EAID PREL JO SUBJECT: Jordan Seeks Help in Defining WTO Environmental Goods and Services ¶1. (U) Summary: DAUSTR Jennifer Prescott and Jordanian trade officials discussed ways to define environmental goods and services on the margins of the U.S.-Jordan FTA Joint Committee meetings. Jordan requested technical assistance. End summary. -------------- Potential for Business-to-Business Services -------------- ¶2. (SBU) Prescott met with International Trade Policy Director Maha Ali at the Ministry of Industry and Trade (MOIT) on September 20 to discuss WTO negotiations on environmental goods and services. Ziad Jaradat from MOIT and Ruba Al-Zoubi from the Ministry of Environment also participated. Prescott noted that the U.S. is disappointed that the Doha round is suspended at the moment, but that we find it beneficial to use this time for discussions with FTA partners. On environmental services, Prescott noted that many WTO members don't see the potential for business-to-business environmental services; they expect such services to be primarily government-provided. Prescott passed Ali a matrix of examples of business-to-business environmental services. -------------- USG-Developed Product List -------------- ¶3. (SBU) Prescott said that defining environmental goods is "tricky" because many products have dual or multiple uses, e.g., a filter can be used in a wastewater treatment plant or in a brewery. The USG developed a list of environmental goods in part by asking EPA to go through U.S. laws and regulations to identify key products, technologies and mechanisms needed to comply with U.S. environmental laws. Developing criteria for environmental goods is even tougher, Prescott said. There is really no alternative except to painstakingly go line by line through laws and product lists to identify the relevant products. -------------- Jordan Seeks Advice, Feedback on Process -------------- ¶4. (SBU) Ali said that the Ministry of Industry and Trade lacked feedback from the Ministry of Environment on these environmental goods. All the Jordanian participants said they were very interested in getting USG feedback and advice on developing Jordan's list, since they feel they don't have the necessary expertise in-house. Ruba Al-Zoubi from the Ministry of Environment said that there is a national committee on trade and environment that is "struggling" to define its role. She asked for technical assistance, particularly access to an environmental economist. -------------- USG Favors Expansive View -------------- ¶5. (SBU) Other proposals for environmental goods are even more esoteric and bureaucratic than the product lists, Prescott said. India has proposed tariff relief based on individual projects as opposed to the product itself. Prescott said that the United States favors an expansive view of tariff relief for environmental products, since the basic goal is to facilitate trade and protect the environment. One option that would offer flexibility may be a voluntary plurilateral agreement that would have a core list of universally recognized environmental goods, plus a longer list of optional "complementary" environmental products from which each participating country would select a subset for tariff liberalization. -------------- -------------- Natural Products Need To Be More than Just a Label -------------- -------------- ¶6. (SBU) In response to a question on natural products, such as Dead Sea products, and whether these might be considered environmental goods, Prescott said that the European Union is starting down a slippery slope by seeking tariff relief for eco-labeled products. Labels are fine for consumers, Prescott said, but not as a basis for tariff treatment. Under the EU proposal, the same basic product would have different tariff treatment depending on how it was produced and labeled. Prescott said that the USG has been flexible on defining "natural products," but that ultimately there needs to be a physically distinguishing characteristic. ¶7. (SBU) Ali admitted that environmental goods are difficult to classify, that Jordan had tried to develop a list, but that Jordan lacks expertise in this area. Jordan had not yet developed a position on environmental goods and services, she said, but is very interested in the "natural products" category. She thanked Prescott for the discussion, saying that it had clarified many issues for her. Prescott offered USG assistance in reviewing Jordan's draft list of products and providing technical feedback. ¶8. (U) USTR and EPA cleared this message. RUBINSTEIN