More needs to be done to increase trade in environmental goods

News

Many regional trade agreements (RTAs) contain specific environmental goods provisions aimed to promote, facilitate or otherwise support trade in climate- and environmentally friendly goods. However, these agreements do not lead to increased trade in environmental goods.

Several countries include provisions in their RTAs aimed at reducing trade barriers for environmental goods. The goal is to facilitate or otherwise increase international trade in environmentally friendly goods, such as solar panels, wind turbines or electric cars.

The National Board of Trade has analysed data on trade flows together with 700 RTAs. The conclusion is that RTAs with environmental goods provisions have no effect on trade flows in environmental goods.

– For these specific environmental goods provisions to have an effect, the goals need to be clearer and easier to evaluate. In addition, obstacles to peripheral services, the content of the goods and technical regulations linked to environmental goods need to be removed, says trade policy adviser Erik Merkus.

Read the full interview and download here:
The Role of Trade in the Green Transition