The Potential for an Environmental Goods and Services Agreement

Speakers:

· Evan Giesemann, Tax Policy Advisor & Staff Director (Sen. Carper, DE)

· Abe Friedman, Senior Policy Advisor (Rep. DelBene, WA-01)

ALI hosted senior Congressional staff, companies, and think tanks to discuss possibilities for using trade to advance U.S. climate goals and, specifically, the prospects for an agreement reducing trade barriers on environmental goods and services. Participants noted the Resolution to Open New Markets for American Clean Energy Products, Create Jobs, Reduce Emissions issued by Representatives DelBene and Brady in December 2022 and which endorses such an agreement. An environmental goods and services agreement would be a win-win for both boosting environmental goals and creating green jobs. It was agreed that unlike the last time during the Obama Administration that there was a negotiation of such an agreement, this time the agreement should be expanded to include services and should be outside of the WTO with like-minded countries. Participants acknowledged the reality of China’s dominance in the environmental goods market, especially in solar and battery production, as well as the political dynamics in the new Congress that could impact what goes into such an agreement and what countries should be considered. Finally, the importance of addressing issues of forced labor in a new effort to conclude an environmental goods and services agreement was discussed.