India's trade in environmental goods: an analysis in context of non-tariff measures and WTO doha round negotiations
Student name: Mr Himanshu Khushwaha
Guide: Dr Poornima Varma
Year of completion: 2013
Host Organisation: Centre for WTO Studies, IIFT, New Delhi
Supervisor (Host Organisation): Dr Murali Kallummal
Abstract: The Present Study tries to analyse the export performance of India under three different lists
(OECD, APEC and WTO) of Environmental Goods (EGs), to answer the question which list is
best for India in terms of trade. Secondly an attempt is made to find out which list is most
suitable for the purposes of negotiations in the current scenario. By suitability, we mean the one
which has the least embedded NTMs (SPS and TBT).This is because NTMs have replaced tariffs
and are being used as a policy instruments to discourage market access. Finally, an attempt is
made to find out whether liberalisation of Environmental Goods will lead to an indirect
liberalisation of the 14 Sectoral proposals under the Non Agricultural Market Access (NAMA) -
as stated in the draft mandate for negotiations (TN/MA/W/103/Rev.3, 2008).
The empirical data indicates that WTO list is better for India with only the world as a trade
partner. However with Group of Friends Nation (GFN) (also the proponent’s countries of
market access on EGs) it runs a trade deficit under all three lists. The number of goods in which
India have Revealed comparative advantage has increased over the years under all three lists.
The study uses Inventory method, shows that it is the WTO list which is heavily embedded with
NTMs, when we take into account for the number of notification made by GFN in the form of
SPS and TBT. Also the export to GFN has declined over the years highlighting the possibility of
India diversifying its market to Non-GFN Countries. The study also indicates some level of
global supply chain integration happening in the environmental goods sector; with India being a
part of this whole supply chain integration. This was done by way of importing mainly from
developed countries and assembling it in the India and exporting to diverse set of countries
having both developed and developing countries (classic examples are solar, wind energy etc.).
Results from the 14 Sectoral analysis shows that if tariffs on EGs are brought down to zero in the
Bali Ministerial conference to be held in Indonesia in December 2013, then it would lead to
Indirect partial liberalization of these 14 sectors, which would be beneficial to the proponents of
these sectors-16 countries which includes the countries which are also the proponents of EGs
