On the eve of this weekend’s G20 trade ministers meeting in Shanghai, China, the National Association of Manufacturers (NAM) joined more than 40 global associations in a letter urging China to demonstrate leadership that results in the conclusion of a commercially meaningful international agreement that would eliminate tariffs on a wide range of environmental goods and technologies. As this year’s host of the G20, China has a golden opportunity to lead the successful conclusion this year of the Environmental Goods Agreement (EGA), an agreement being negotiated under the umbrella of the World Trade Organization and a high priority for the global business community.
An ambitious EGA would eliminate tariffs on a wide range of environmental goods and technologies, an industry that accounts for nearly $1 trillion in annual global trade. Such an agreement would promote economic growth, improve environmental outcomes and advance innovation not only in China, but also in the United States.
The EGA would boost manufacturing and support our broad environmental goals as a country, supporting jobs and growth throughout the supply chain. It would also be an important catalyst to increased development of and trade and innovation in new environmental technologies around the world. It will improve the environment, from providing cleaner water to reducing pollution. At the same time, it will support the growth of the manufacturing industries that produce and utilize these technologies. In the United States, such technologies are manufactured throughout the country, providing good-paying jobs.
A rock-solid commitment this weekend by trade ministers from China, the United States and other G20 economies participating in the G20 discussions in Shanghai—Australia, Canada, European Union countries (France, Germany, Italy and the United Kingdom), Japan, South Korea and Turkey—would provide key momentum as EGA talks intensify in the run-up to September’s G20 Summit in Hangzhou, China.