services for the delivery of environmental goods what .... kerneis - a perspective from...

« The voice of the European Service Industries for

International Trade Negotiations in Services »

« The voice of the European Service Industries for International Trade Negotiations in Services »

Services for the Delivery of Environmental Goods – What Implications for Trade Negotiations?

A workshop organised by ICTSD and the Danish Ministry of Business and Growth

“A perspective from the

European Services Forum"

Pascal Kerneis – Managing Director

European Services Forum - Brussels



• Insurance

• Banking

• Business services: IT & Computer; consulting, advertising, after-sales services, News Agencies

• Professional services:

Legal services,

Accountants,

Architects,

Engineers, etc.

• Construction services

• Distribution services

• Postal & Express Delivery

• Audio-visual services

• Energy related services

• Environmental services

• Telecommunication services

• Tourism

• Air Transport

• Maritime Transport

For more information, see www.esf.be

ESF Membership covers a large range of services sectors and Horizontal federations:

• BUSINESSEUROPE • Confederation of Danish Industries (DI) • Confederation of Finnish Industries (EK) • Confederation of Swedish Enterprises (SN) • Irish Business and Employers

Confederation (IBEC • Confederation of French Enterprises

(MEDEF)

&



Size of global trade – Export of goods and services

15 237

3 695

(including intra EU) Bio US$ - 2010

World Exports ofGoods

World Export ofServices(79%)

Source: WTO ITS 2011 Total: 18 932 Bio US$

(21%)



But if we use the trade in value-added (TiVA) indicators, the share of services is 45% of the total world trade ! (more

than 50% in the EU countries)

Source: OECD-WTO TiVA database - 2012



EU Services Exports and Imports per sectors (2010 - € 1 000 million)

40%



1) Environmental Services in the

Global Value Chain



Embodied services Essential components of the supply chain of trade in

environmental goods

Source: Study of Swedish National Board of Trade: “Servicification - Everyone is in services” June 2012



Embedded Services in the products Essential elements of

creation of value added and benefits for the environmental

goods !



(After sales services,

Maintenance & Repair, etc.)

(Advertising)

(Distribution services)

(Transport services: sea, air, road, etc.)

(Engineering)

(Certification & Testing)

(Outsourcing)

The GVC Smiley is of course

also valid for the

Environmental Goods!



10

EU services inputs in EU manufacturing

10



2) Consequence on Trade Policy:

TISA or/an EGA?



TISA = 23 “Real Goods Friends of Services” (RGFS) in Geneva - (22 + 1(28) = 50):

Australia, Canada, Chile, Colombia, Costa Rica, European Union (27), Hong Kong, Israel, Japan, Liechtenstein,Mexico, New Zealand, Norway, Panama, Pakistan, Paraguay, Peru, South Korea, Switzerland, Taiwan, Turkey, and United States.

EGA = Group of 14 (13 + 1(28) = 41: Australia; Canada; China; Costa Rica; European Union; Hong Kong; Japan; New Zealand; Norway; South Korea; Singapore; Switzerland; Taiwan; and United States.

== 12 Countries participate to both negotiations!

PLURILATERAL « TRADE IN SERVICES AGREEMENT- TISA V/S

ENVIRONMENTAL GOODS AGREEMENT - WHICH COUNTRIES ?



Unfortunately, the current negotiating system for the

environmental services will not be of great help in the

EGA negotiations!



European Commission Proposal for new Classification of Environmental Services in 1999! (1)

ENVIRONMENTAL SERVICES CONSOLIDATED LIST Sept. 30, 1998

CLASSES AND SERVICES

EXAMPLES/DESCRIPTIONS

PROVISIONAL

CPC

CPC

VERSION 1.0

ENVIRONMENTAL R&D

Environmental R&D services

85101, 85103, 85109, 85202, 85300, 8530

81110, 81130, 81190, 81220, 81300, 8130

ENVIRONMENTAL CONSULTING, CONTRACTING & ENGINEERING

Design & Engineering

867

83131, 832, 833

Education, Training and Technical Assistance

- training courses on environmental protection or operation & maintenance of environmental facilities - training sessions for employees and/or contractors for performing proper sampling

924, 929

929

Environmental consulting services and environmental legal services

- environment consulting services - related consulting services for tourism, transport, fishing, sustainable land use - design and legal services, e.g. feasibility studies & design of sewage treatment facilities

867, 86729

83131

Integrated engineering services

86732

83312

Project management services

e.g. supervision of construction of sewage treatment facilities

No apparent categories

83322, 83323, 83329



ENVIRONMENTAL SERVICES CONSOLIDATED LIST Sept. 30, 1998

CLASSES AND SERVICES

EXAMPLES/DESCRIPTIONS

PROVISIONAL

CPC

CPC

VERSION 1.0

ANALYTICAL SERVICES, DATA COLLECTION, ANALYSIS AND ASSESSMENT

Composition & purity testing & analysis services

- includes accredited environmental testing services - includes both field and laboratory testing

86761

83561

Modelling

- computer simulations of movement of pollutants through air, water, or soil - software development for engineering programs

7544, 8672

83139, 8339

Monitoring & testing

- monitoring of air and water quality

8672, 8676, 9409

8313, 8339, 8351

Subsurface & surface surveying services

- mapping - use of global positioning systems (GPS)

86752, 86753

83520, 83530

CONSTRUCTION

Septic system installation services

- installing septic tanks and disposal fields

51620*, 9401, 9409

54342

Construction services

- laying of sewers - laying of water pipelines - construction of treatment plants - construction of landfills

51340*, 51350*, 511, 512, 513, 514, 515, 516, 517, 518

54241, 54251, 541, 542, 543, 544, 545, 546, 547, 548

Installation services of other goods

- installation of equipment used in sewage treatment facilities

88590*

86590

Insulation services

51650, 5165

54650, 5465

TRANSPORT

Land transportation under various modes

- movement of waste material by rail or road

7112, 7123, 7139

6412, 6423, 6439

Water transportation under various modes - movement of waste material by barge or ship 721, 722 651, 652

OTHERS

Urban planning services 86741 83221

(2)



What is the link with the production of environmental goods and EGA?

• Most of the environmental goods that will be covered by EGA involve services that are embedded in the products (services around the products)

• However, some of these services are not systematically open :

– Need for joint venture to open distribution network, logistic services, maintenance & repair, after-sales services: Special Mode 3 commitments for environmental related goods listed in EGA???

– Difficulties for getting experts and engineers moving along with the product

Special Mode 4 commitments for EGA – movement of high skilled people ???)



Main questions? • New Classification of environmental services:

Still of interest?

• But completely outdated!

• Need for new classification for environmental services?

– In TISA?

– In EGA?

• How to integrate negotiations on environmental services in EFA?, or

• How to reconcile the two set of talks?



Pascal KERNEIS

Managing Director

European Services Forum – ESF

168, Avenue de Cortenbergh

B – 1000 – BRUSSELS

Tel: + 32 2 230 75 14

Fax: + 32 2 320 61 68

Email: [email protected]

Website: www.esf.be

Thank you for ATTENTION !

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