European Union, United States Eye Green Goods Tax Pact In Climate Fight

The European Union and the United States are holding talks on forging a pact with OECD countries and China to eliminate duties on green goods as part of incentives to Beijing in a potential global climate deal.

EU diplomats told Reuters that under a plan being discussed by Brussels and Washington, the 30 nations in the Organization for Economic Cooperation and Development and China would agree a global pact to phase out import tariffs on goods such as wind turbines, renewables and green technologies.

But any deal is unlikely to include environmentally friendly hybrid cars, the diplomats said.

"The talks are entering an advanced stage. Brussels and Washington hope this could be one of the incentives needed to get China on board in the lead up to the Copenhagen climate change talks," one EU diplomat told Reuters.

A spokeswoman for the U.S. Trade Representative's office said the United States and the EU had been pushing within the Doha round of world trade talks since November 2007 for a deal to cut tariffs on environmental goods "and continue to work closely in pushing for concrete progress."

"We remain eager to move ahead with negotiations to eliminate tariff barriers on climate-friendly technologies and spur momentum on a larger WTO Doha package on environmental goods and services," said USTR spokeswoman Carol Guthrie.

U.S. businesses such as United Technologies Corp and General Electric Co, that are frustrated with the slow pace of the Doha round, have urged the Obama administration to consider alternative paths to reach a deal to boost trade in environmental goods and services.

China is on course to become the world's largest producer of wind turbines in the world this year and is a major manufacturer of solar products.

Source : REUTERS