Wyden Leads Bipartisan Group Urging USTR to Push for Lower Tariffs on Green Goods

Washington, D.C. – In anticipation of the upcoming World Trade Organization (WTO) Ministerial meeting, U.S. Senators Ron Wyden (D-Ore.), Mike Crapo (R- Idaho), John Kerry (D-Mass.) and Debbie Stabenow (D-Mich.) wrote a letter to Ron Kirk, the United States Trade Representative urging him to support an agreement between several nations to lower or eliminate import tariffs on goods that contribute to greenhouse gas emission reductions and other sustainable environmental practices as part of the WTO negotiations.Wyden is the chair of the Senate Finance committee’s subcommittee on International Trade, Customs, and Global Competitiveness.

“Eliminating these tariffs will develop large, sustainable export markets to goods that are designed and manufactured in the U.S., whether they are solar panels from Oregon, organic insulation produced in Idaho, hybrid engines from Michigan, or advanced batteries from Massachusetts,” the Senators wrote in the letter to Kirk.

The letter asks Trade Rep. Kirk to work with other responsible nations to lower import tariffs on environmental goods in order to improve the nation’s ability to export next-generation technologies and to create “large sustainable markets to goods that are designed and manufactured in the U.S.” The Senators called for an agreement known as a plurilateral agreement, which involves negotiating tariffs of these goods between trade partners that are faithful to international commitments on trade, investment, labor, and the environment. Lowering these tariffs will create economic opportunities for American companies and will support the market for green goods.

“Our long-standing domestic effort to promote the deployment of renewable energy technology and energy efficiency has positioned U.S. innovators and producers with an opportunity to take advantage of increasing foreign demand for these products,” the Senators continued in the letter. “We cannot let this opportunity pass us by.” 

 

A copy of the letter is available here as well as below:

 

November 19, 2009

 

The Honorable Ron Kirk

United States Trade Representative

600 17^th Street, NW

Washington, DC 20508

 

Dear Ambassador Kirk:

 

We are strong supporters of successfully concluding a comprehensive Environmental Goods and Services Agreement (EGSA) within the Doha Development Round of World Trade Organization (WTO) negotiations and encourage you to take the opportunity that the upcoming WTO Ministerial and other forums provide to seek to advance these negotiations, including through a plurilateral agreement. 

 

As our trading partners seek to rapidly reduce their own emissions of greenhouse gases and their demand for products that facilitate these efforts grow exponentially, there is a significant opportunity for American innovators and producers to take advantage of these growing foreign markets.  The immediate benefits to the environment and to economic growth if trade in these technologies is liberalized are significant in part because these U.S.-produced green goods face disproportionately high tariffs in foreign markets.  Eliminating these tariffs will develop large, sustainable export markets to goods that are designed and manufactured in the U.S., whether they are solar panels from Oregon, organic insulation produced in Idaho, hybrid engines from Michigan, or advanced batteries from Massachusetts.  Our long-standing domestic effort to promote the deployment of renewable energy technology and energy efficiency has positioned U.S. innovators and producers with an opportunity to take advantage of increasing foreign demand for these products.  We cannot let this opportunity pass us by.  

 

A quick conclusion and implementation of a plurilateral agreement on environmental goods, with countries that are appropriate to seek such an agreement, is a means by which we can kick-start export-led economic growth that will put Americans back to work in good-paying jobs.  We believe that this type of initiative, targeted at trade partners that are faithful to their international commitments on trade, investment, labor, and the environment, would have bipartisan support in Congress. We welcome a further discussion with you as you prepare for the Ministerial and other venues where this issue may be addressed.

 

Sincerely,