Letter on Environmental Goods and Services Agreement (EGSA)
Subcommittee on Trade Promotion and Negotiations approved text,
not yet approved by the entire Council
Dear Mr. President:
Our nation faces important challenges of energy security and climate change. There is
almost universal agreement that we must address these challenges, even if differences in
how to address them are not yet settled. One approach we can all agree on, however, is
the tremendous opportunity for U.S. leadership in energy and environmental goods and
services.
A recent World Bank study on climate change and clean energy technologies, as noted
recently in your 2008 Trade Policy Agenda report, suggests that eliminating tariffs and
non-tariff barriers to key environmental technologies could boost trade in these products
by an additional 7-14 percent. A corresponding increase in the use of such technologies
and services would not only make an important contribution to global efforts to address
climate change and energy security, but also positively affect U.S. exports and economic
growth. Put simply, this is an all-around win for jobs, exports, energy security and the
environment.
The example set by the Information Technology Agreement (ITA) is illustrative of the
multifaceted benefits trade liberalization can engender. Since the initial concluding of
the ITA in late 1996, world exports of ITA products have more than doubled. Current
ITA participants now number 70 and represent an impressive 97 percent of world trade in
information technology products. And greater adoption of information and
communications technologies has yielded productivity enhancements and economic
impacts far beyond the immediate value of IT trade itself. A strong Environmental
Goods and Services Agreement (EGSA) could yield even greater and more widespread
benefits around the globe.
Accordingly, we urge you to continue your administration’s strong support for the U.S.-
EU EGSA proposal that has been tabled as part of th