The European Union and United States could make green goods tariff-free to spur carbon-friendly technology use.
Forty-three goods, such as solar panels and other goods with environmental benefits have been identified, according to the Associated Press. The announcement was made a week before the U.N. climate change summit in Bali.
The Associated Press reported that tariff cuts wouldn't include bio-fuels, such as ethanol, which is supported by leading exporter Brazil. U.S. and EU delegates to the World Trade Organization believe that lifting of the tariffs should only pertain to industrial goods.
U.S. Trade Representative Susan Schwab said in a statement :"By eliminating tariff and non-tariff barriers to environmental goods and services, particularly clean energy technologies, we can lower their costs and increase global access to and use of these important products”
However, the future of this initiative is unclear. Lifting the tariffs for these goods would have to be part of a overall agreement in the Doha round of trade liberalization talks that have stalled several times during the last six years.
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