Tariffs should be
scrapped for 'green goods' like solar powered
stoves, water saving showers and wind turbine parts, Gareth Thomas
argued today.
Speaking at the World Trade Organisation (WTO) in Geneva, the
Minister for Trade and Development said the move would encourage
the widespread use of environmentally-friendly low-carbon
products. At present, applied tariffs on these products can be as
high as 27 per cent.
Low carbon production is the most cost effective way to produce
energy and could help to reduce poverty in some of the world’s
poorest countries, as well as allowing people to work, trade and
live in a more environmentally-friendly way.
Minister for Trade and Development Gareth Thomas today said:
“Low carbon technology has huge untapped potential
in many developing countries and could offer massive
environmental and financial benefits. For too long,
the opportunities for green growth in developing countries have
been held back by restrictive import taxes.
“If we really want to promote green
technologies then we all have to do our bit
to get trade flowing freely. As we approach the
Copenhagen summit, rich and poor countries alike need to take
urgent steps to reduce or remove the tariffs that green
imports are subjected to.”
The move is not without precedent. In 1997, after the Uruguay
Round on trade, tariffs on IT goods were abolished in order to get
the sector moving. As a result of this, by 2005, members of the
agreement made up 97 per cent of the world trade in IT products.
A similar strategy on green goods would make a crucial difference
to the distribution of products like wind turbine parts and solar
powered cookers.
Notes to Editors
Over 30 members of the WTO have no commitment at all to set
tariff levels in key products such as wind turbine masts or solar
powered cookers. Very small numbers have committed to applying no
tariffs at all on a number of these products.
Some developed countries are still applying tariffs of up to 27%
on wind turbine masts for example, and a significant number of
developing countries have very high tariffs on these products.
Contacts:
James Fulker.
Phone: 020 70230533
j-fulker@dfid.gov.uk