Environmental Goods Agreement (EGA)
Between 2014 and 2016, a group of 18 participants representing 46 WTO members engaged in negotiations on an Environmental Goods Agreement (EGA). The aim of the talks was to eliminate tariffs on a wide range of environmental goods that can help contribute to climate and environmental protection. These included products used to generate clean and renewable energy, improve energy and resource efficiency, control air pollution, manage waste, treat wastewater, monitor environmental quality, and mitigate noise pollution. Although the negotiations made substantial progress, participants were ultimately unable to reach a final agreement.
Overview and history of the negotiations
- EGA launch in 2014
The EGA negotiations were launched on 8 July 2014 at the WTO in Geneva. Fourteen WTO members initiated the process. These economies accounted for nearly 90% of global trade in environmental goods. The talks built on a 2012 APEC forum initiative, which identified 54 environmental goods for tariff reduction to 5% or less by the end of 2015. EGA participants sought to expand and deepen this list, liberalizing trade in a broader range of products.
Relevant news items:
https://www.wto.org/english/news_e/news14_e/envir_08jul14_e.htm
https://www.wto.org/audio/envir_08jul14.mp3
- Progress and expanding participation (2014–2015)
By late 2015, the number of EGA participants had increased to 18, encompassing 46 WTO members. Collectively, they identified around 450 environmental goods for potential inclusion in the Agreement. Products under consideration covered key areas such as renewable energy generation, energy efficiency, air pollution control, and waste management. If agreed, the tariff concessions would be offered to all WTO members on a most-favoured-nation (MFN) basis. Progress in the negotiations was reported by EGA participants to the Committee on Trade and Environment.
On 14 December 2015, Andrew Robb, Australia's Minister for Trade and Investment and chair of the EGA negotiations at that time, issued a statement highlighting "considerable progress" and "a high degree of convergence in many areas" among participants. Former WTO Director-General Roberto Azevêdo welcomed this momentum, emphasizing the EGA's potential to support the objectives of the newly adopted Paris Agreement on climate change.Relevant news item:
https://www.wto.org/english/news_e/news15_e/envir_14dec15_e.htm
- Ministerial meeting in 2016
The most intensive phase of negotiations took place in 2016. Ministers and senior officials met in Geneva in December 2016 to try to finalize the Agreement. Despite constructive talks and continued political will, the group was not able to bridge remaining gaps. As a result, the Agreement was not concluded. In a statement following the meeting, former Director-General Roberto Azevêdo praised the good faith shown by all parties. He noted that the EGA was "not the usual kind of trade agreement" but one "focused on protecting a common global good: the environment". Although the EGA negotiations did not result in a finalized agreement, the process provided a forum for extensive technical discussions and prepared the groundwork for discussions and work on the link between trade and the environment.
Relevant news item:
https://www.wto.org/english/news_e/news16_e/ega_04dec16_e.htm
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