The Philippines is open to tackling the possibility of expanding the Asia-Pacific Economic Cooperation (Apec) List of Environmental Goods, a move seen to improve trade in green technologies and other related products in the region.
Trade Secretary Ramon M. Lopez, in an interview with the BusinessMirror, said that adding more items to the said list is “worth exploring” amid the urgent calls to address the climate crisis while promoting sustainability.
“The Philippines may be able to agree to commence exploratory discussions for an expanded Apec EG [Environmental Goods] list,” he said.
Endorsed in 2012, the Apec list of EG seeks to bring down tariff rates of 54 goods to 5 percent or less by the end of last year. Among these are solar panels, wind turbines, bamboo flooring, and environmental monitoring, analysis and assessment equipment.
The Department of Trade and Industry (DTI) chief, however, stressed that the said list should be used only for reference purposes because Apec is a non-binding and non-negotiating forum.
“Any other discussions that will involve greater commitments, such as tariff reduction or liberalization, should be undertaken in the WTO [World Trade Organization] where negotiations bear legal binding commitments,” Lopez explained.
He noted that some Apec economies have proposed to include renewable-energy (RE) sources and energy storage and integration, among others, in the EG list.
“In terms of the products to be included, this is something that the Philippine interagency process will need to further consider,” he explained. “The initiative will provide the opportunity for the Philippines to nominate additional environmental goods where the country has export potential.”
The trade chief said that the Philippines is doing its part in producing environmental goods and components locally, even expecting to ramp up production as the market expands.
Of the 54 items on the list, Lopez, citing government data, noted that the country’s production includes environmental goods in RE and clean technology; environmental monitoring, analysis and assessment equipment; and management of solid and hazardous waste and recycling systems.
Carlos Kuriyama, a senior analyst at the Apec Policy Support Unit, recently suggested the need to add new products to the list to boost environmental protection and resource management.
“Exploring an expansion of the list makes sense. On the one hand, technology is changing faster than ever and new environmental products are appearing. On the other hand, developing economies could benefit more by taking a global value chain approach to environmental goods,” he explained.
The senior analyst said that developing countries could take part in the global value chain for environmental goods by supplying components, such as steel, copper, silica and molten salt for developing concentrated solar power systems.
The Apec EG list has allowed an increase in trading of said products. The exports and imports of these 54 items improved by 5.7 percent and 13.5 percent between 2012 and 2019, respectively.
“International trade allows lower-cost access to environmental technologies and promotes competition to spur the development of environmental goods and services,” Kuriyama said.
“In addition, international trade could empower communities that produce those goods, and benefit communities that need to utilize those goods to address issues of environmental degradation.”