1、Study on Non-Tariff Measures Affecting Trade in Goods Reducing Greenhouse Gas Emissions APEC Policy Support UnitMay 2023Prepared by:Carlos Kuriyama and Sylwyn C.Calizo Jr.Asia-Pacific Economic Cooperation Policy Support Unit Asia-Pacific Economic Cooperation Secretariat 35 Heng Mui Keng Terrace Sing

2、apore 119616 Tel:(65)6891-9600 Fax:(65)6891-9690 Email:psugroupapec.org Website:www.apec.org and Deloitte Access Economics Pty Ltd Produced for:Committee on Trade and Investment Asia-Pacific Economic Cooperation APEC#223-SE-01.3 This work is licensed under the Creative Commons Attribution-NonCommerc

3、ial-ShareAlike 3.0 Singapore License.To view a copy of this license,visit http:/creativecommons.org/licenses/by-nc-sa/3.0/sg/.The views expressed in this paper are those of the authors and do not necessarily represent those of the APEC Member Economies.Study on non-tariff measures affecting trade in

4、 goods reducing greenhouse gas emissions iii TABLE OF CONTENTS List of figures iv List of tables iv List of boxes v Key findings vi 1.Introduction.9 1.1 Climate change and APEC 9 1.2 Rationale 10 2.Mapping of non-tariff measures affecting APEC.12 2.1 Analysis based on international trade databases 1

5、3 2.2 Insights based on firm survey and interviews 25 3.Ways forward:Areas of regulatory cooperation and policy recommendations.41 Bibliography.43 Appendices.45 A.1.List of GHG-reducing goods 45 A.2.Share of exported GHG-reducing goods subject to NTMs,by economy 48 A.3.Value of exported GHG-reducing

6、 goods subject to NTMs,by economy 50 A.4.Share of imported GHG-reducing goods subject to NTMs,by economy 52 A.5.Value of imported GHG-reducing goods subject to NTMs,by economy 54 A.6.Survey methodology:sampling and selection process 56 A.7.Survey questionnaire 58 A.8.Sample questions for interviews

7、61 A.9.Burdensome export non-tariff measures,by firm size(percent)62 A.10.Burdensome import non-tariff measures,by firm size(percent)63 A.11.Burdensome export non-tariff measure,by economy 64 A.12.Burdensome import non-tariff measures by economy 65 A.13.Top 5 market pair ranking 66 A.14.Share of fir

8、ms that considered these policies as enablers of trade in goods reducing GHG emissions,by sub-sector(percent)68 Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions iv LIST OF FIGURES Figure 2.1 Goods reducing GHG emissions.13 Figure 2.2 Perspective on domestic and

9、 foreign NTMs.15 Figure 2.3 NTMs incidence on APEC exported GHG-reducing goods,by category.16 Figure 2.4 NTMs incidence on APEC exported GHG-reducing goods,by category and chapter.17 Figure 2.5 NTMs incidence on APEC imported GHG-reducing goods,by category.18 Figure 2.6 NTMs incidence on APEC import

10、ed GHG-reducing goods,by category and chapter.19 Figure 2.7 Number of NTMs affecting APEC GHG-reducing goods,by category.23 Figure 2.8 NTMs incidence on APEC traded GHG-reducing goods,by category and chapter.24 Figure 2.9 Sectors targeted from different points in the supply chain.26 Figure 2.10 Shar

11、e of respondent firms that traded goods reducing GHG emissions between market pairs,by product category(percent).27 Figure 2.11 Share of respondent firms trade orientations(percent).28 Figure 2.12 Share of respondent firms size by number of employees(percent).28 Figure 2.13 Share of firms that faced

12、 burdensome NTMs when importing and exporting.29 Figure 2.14 Share of firms reporting categories of export and import NTMs burdensome(percent).31 Figure 2.15 Why exporters and importers view NTMs as burdensome.32 Figure 2.16 Share of selected burdensome import NTMs faced by small and large firms(per

13、cent).33 Figure 2.17 Share of firms that viewed selected import NTMs as burdensome,by income classification(percent).34 Figure 2.18 Share of firms that agreed and strongly agreed that it has become easier to trade goods reducing GHG emissions,by selected sub-sectors and size(percent).36 Figure 2.19

14、Share of firm use of FTAs in the 2021 calendar year(percent).39 Figure 2.20 Share of firms with reasons why to not use FTAs(percent).40 LIST OF TABLES Table 2.1 UNCTAD NTM classification system.12 Table 2.2 Available NTMs data,by latest year available.14 Table 2.3 List of NTMs available in the WTO I

15、-TIP database.20 Table 2.4 Number of NTM notifications on APEC trade of GHG-reducing goods,by category and type of NTM.21 Table 2.5 Economy As imports of air conditioners and comfort fans(USD million).22 Table 2.6 List of interventions monitored by the GTA database.23 Table 2.7 Operating sector and

16、sub-sector(s)of surveyed firms(percent share).26 Table 2.8 Top 5 procedural obstacles and inefficient trade business environment faced by exporters in Thailand to partner economies(percent).32 Table 2.9 Top 5 procedural obstacles and inefficient trade business environment faced by importers in Thail

17、and(percent).32 Table 2.10 Share of largest and most burdensome origin-destination market pairs of goods reducing GHG emissions,by respondent location(percent).35 Table 2.11 Share of firms that considered these policies as enablers of trade in goods reducing GHG emissions(percent).37 Study on non-ta

18、riff measures affecting trade in goods reducing greenhouse gas emissions v LIST OF BOXES Box 1.1 Transaction costs and NTMs.11 Box 2.1 Examples of TBT measures notified at the TBT Committee on GHG-reducing goods.21 Box 2.2 Case example of a TBT measure affecting trade.22 Box 2.3 Exporters and Import

19、ers Perspectives on NTMs.31 Box 2.4 Environmental Regulation and International Trade in Clean Hydrogen.38 Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions vi KEY FINDINGS Member economies have taken steps to facilitate trade in goods reducing greenhouse gas(GHG

20、)emissions,but more work needs to be done Most firms have said that trading these goods has become easier in the last five years due to reforms and tariff reductions,despite disruptions to supply chains.The experiences of firms with non-tariff measures(NTMs)affecting trade in these goods have receiv

21、ed less attention in previous research on this topic.Firms experience of burdensome NTMs depend on the economy,sector and size of their operation Export and import formalities and quantity restrictions are the most widely recognised barriers to trade in goods reducing GHG emissions,but firm-level ex

22、perience has varied depending on the market and product.The majority of NTMs are experienced by firms on the export-side of trades.Firms trading goods in the renewable energy sector face more burdensome NTMs than firms trading other goods reducing GHG emissions.Bilateral trade relationships signific

23、antly influence firm-level experiences with NTMs.o Firms generally found that NTMs are more burdensome in their largest bilateral trading relationships.o This association was strongest in high income economies.There is a significant difference in the types of burdensome NTMs faced by small-to medium

24、-sized enterprises(SMEs)compared to larger firms.Firms recognised the burden of NTMs primarily through the time delays that they cause,related to associated documentation and procedures.Domestic policy and regulation are essential to both creating new markets and developing existing markets for good

25、s reducing GHG emissions Many environmental goods reducing GHG emissions are relatively new technologies,where international trade flows have not yet matured(e.g.,clean hydrogen).Environmental policies and regulations that are mutually supportive of trade are a central tool in creating demand and ne

26、w markets for these products.Firms note that the costs imposed by the NTMs,while burdensome,are less influential to their trade volumes than domestic policies which spur demand and markets for goods reducing GHG emissions.APEC member economies are recognised by firms as leaders in implementing polic

27、ies to facilitate trade of goods reducing GHG emissions.Most firms make use of free trade agreements(FTAs)when trading goods reducing GHG emissions,although large firms are relatively more likely to do so than small firms.In negotiating new agreements,parties can look to leverage best practice to su

28、pport trade in goods reducing GHG emissions.Firm perspectives also need to be taken into account when designing effective multilateral trade policy Direct responses from firms,gathered systematically through surveys and interviews,can add further detail to publicly available databases that provide s

29、tatistics on the impacts of NTMs on trade.Both types of information complement each other and provide valuable information to policymakers.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions vii A value chain framework for understanding of trade in goods reducing

30、GHG emissions is necessary to interpret the impacts of NTMs in a highly globalised trading system the direct impact of NTMs on the trade of a particular good can have significant flow on effects to other products in these supply chains.POLICY RECOMMENDATIONS A wide range of technologies are required

31、 to support reducing GHG emissions.Efforts to reduce trade-restrictive NTMs should support this diversity and not just cover renewable energy production,but also goods for air pollution control,waste management,resource/energy efficiency,cleaner technologies,among others.In addition,governments need

32、 to put more emphasis on the implementation of NTMs that could enable trade.APEC economies could consider implementing actions from many different angles:In the short run,cooperation could prioritize reducing trade-restrictive NTMs affecting mature technologies that have the greatest potential to re

33、duce emissions.Solar energy,wind energy and green hydrogen production are among the technologies with greater potential to reduce GHG emissions.It is important to continue to monitor the emergence of NTMs in emerging technologies as their trade grows(e.g.,electric vehicles),while implementing polici

34、es to drive demand for those products.Changes to current NTMs restricting trade of goods reducing GHG emissions need to take into account their global value chains.Lowering barriers to trade,not just for the final goods but also to other components in the production process,could improve access to m

35、arkets to upstream suppliers,intermediaries and downstream buyers,thus benefitting multiple APEC economies.While not unique to goods reducing GHG emissions,streamlining processes,reducing paperwork and ineffective customs formalities associated with burdensome NTMs would facilitate greater trade,par

36、ticularly for SMEs.As indicated in this report,these procedures/formalities have been identified as one of the most critical issues affecting several products and billions of dollars in terms of trade.Firm perspectives have to be considered when designing effective trade policies.To take into accoun

37、t the APEC Cross-Cutting Principles on NTMs agreed in 2018,which establishes guidelines for the process to develop NTMs in a transparent and WTO-consistent manner.These principles state that NTMs cannot be more trade-restrictive than necessary to achieve an objective and should preferably focus on o

38、utcomes,rather than mandating prescriptive approaches.Furthermore,this initiative emphasizes that NTMs should be based on international standards,when appropriate,and should not pose unjustified barriers to innovation,among others.Environmental regulations,which could enable trade in goods reducing

39、GHG emissions,should take into account these principles.Diverging technical regulations could represent an impediment to trade.APEC could promote initiatives to align technical regulations and implement conformity assessment procedures to facilitate trade in goods reducing GHG emissions.APEC could t

40、ake a leading role in promoting good regulatory practices in the application of standards for new emerging technologies.Many firms use FTAs to have preferential access to markets and alleviate the impact of trade-restrictive NTMs.The most extensively used FTAs can provide a basis for lessons that ca

41、n be adopted more widely across APEC.Besides FTAs,Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions viii there are new bilateral initiatives that also offer opportunities to increase trade in goods reducing GHG emissions.For example,the new Green Economy Agreeme

42、nt between Australia and Singapore include a mechanism to identify and address non-tariff barriers and a strong collaboration in standards and conformance(e.g.,through the mutual recognition of certification and conformity assessment procedures in relation to the green economy).The list of environme

43、ntal products designed to reduce GHG emissions can be optimized and improved.Any product not conducive to reducing GHG emissions should not be part of this list.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 9 1.INTRODUCTION 1.1 CLIMATE CHANGE AND APEC Global

44、 warming and climate change have been increasingly part of both domestic and international discussions ever since environmental challenges were mainstreamed into public consciousness around the 1970s.However,actions failed to keep pace with the discussions,having serious implications on environmenta

45、l degradation.In fact,global carbon dioxide(CO2)emissions stood at just six billion metric tons(MT)in 1950 but quickly expanded to 15 billion MT in 1970 and 37 billion MT estimated in 20191.The accumulation of CO2 emissions and other greenhouse gases(GHGs)led to global warming that,in turn,raises me

46、an sea levels,strengthens storms,and creates harsher extreme temperature events(e.g.,heatwaves),among others.Everyone is affected.In fact,APEC alone has already been hit by a total of 4,363 disasters,of which meteorological and hydrological events jointly accounted for 78 percent.2 Total damages fro

47、m 1989 to 2021 were estimated at USD 3.7 trillion(constant 2021 prices).These damages translate to losses that could have otherwise been used to improve households standard of living,fund government programs(e.g.,health,infrastructure,and environmental restoration),or pursue other objectives such as

48、 the empowerment of vulnerable populations.Despite the gravity of the situation,it was only in 2015 that 196 Parties agreed to legally bind themselves to jointly address worsening climate change.The Paris Agreement calls for achieving a balance between anthropogenic emissions by sources and removals

49、 by sinks of GHGs in the second half of this century in order to limit global temperature rise to well below 2C.In other words,signatories to the agreement across government,business and civil society have committed to reducing GHGs emitted through human activity and cancelling out the remainder by

50、removing GHG emissions from the atmosphere with carbon sinks.Achieving the goals of the Paris Agreement,however,requires investment,planning,and above all else timely action.Under the Glasgow Climate Pact,the international community agreed to phase down unabated coal power and to phase out inefficie

51、nt fossil fuel subsidies,among others(Fransen et al.,2022).This alludes to a stronger call towards the clean energy transition ultimately leading to carbon neutrality by 2050.Incidentally,only six APEC economies(Canada;Chile;Japan;Korea;New Zealand;and Russia)legalized its net zero emissions target,

52、as of January 2023.3 Other economies institutionalized it through policy documents while the rest either made pledges or remain in discussion.1 APEC Policy Support Unit(PSU)calculations based on Our World in Data(https:/ourworldindata.org/grapher/annual-co2-emissions-per-country?facet=none&country=O

53、WID_WRL).CO2 emissions are from fossil fuels and industry(excluding land use changes).2 APEC PSU calculations based on the Emergency Events Database or EM-DAT(https:/www.emdat.be/).EM-DAT defines disasters as having fulfilled any of the following:(1)10 or more people deaths;(2)100 or more people aff

54、ected/injured/homeless;(3)declaration by an economy of a state of emergency and/or an appeal for international assistance.3 APEC PSU compilation based on the Net Zero Tracker Net Zero Scorecard(https:/ on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 10 1.2 RATIONALE

55、 International trade is integral to achieving these goals at the lowest possible cost.Trade encourages the widespread adoption of products and technologies that contribute to emission reductions by making these products and technologies more accessible across a broader range of markets.One way of ad

56、vancing the clean energy transition is by facilitating and accelerating the widespread use of products and technologies that contribute to the reduction of GHG emissions.This underscores the importance of liberalizing international trade,which includes not just the elimination of tariffs but also no

57、n-tariff measures(NTMs).Indeed,this could encourage the utilization of existing products and the development of new technologies that reduce GHG emissions.Given the role of trade in achieving the objectives of the Paris Agreement,APEC has devoted significant resources to measuring,facilitating and p

58、romoting trade in environmental goods reducing GHG emissions.In 2012,the 21 APEC member economies endorsed a list of 54 environmental goods and agreed to reduce tariffs on these goods to five percent or less by the end of 2020(APEC,2012).These goods include a number of air pollution control and rene

59、wable energy goods relevant to achieving carbon neutrality.A review of this list released in October 2021 found that 19 of the 21 APEC member economies had already met this target(Kuriyama,2021).4 Ten years on from the original list and following growth and innovation in markets for environmental go

60、ods,APEC has examined the trade of new and emerging environmental goods to consider approaches to updating the 2012 list(The Australian APEC Study Centre at RMIT University et al.,2021).There is also progress in identifying a reference list of environmental services that was agreed upon by APEC econ

61、omies in 2021(APEC,2021a).Indeed,APEC has been involved in seeking solutions to the worsening climate change situation.Part of this effort,for example,is a policy dialogue held virtually on September 2021 that discussed possible approaches to address the trade-related policies affecting products and

62、 technologies contributing to GHG emissions reduction(APEC,2021b).Reforms to date have focused on tariff measures.It can be challenging to isolate the net economic effects of NTMs because(a)their costs are often not directly observed(i.e.,increasing time spent on compliance rather than a direct mone

63、tary fee),and(b)they could be implemented to advance desirable public policy objectives in areas like health,safety and the environment(The Australian APEC Study Centre at RMIT University et al.,2021).Consequently,a deeper understanding of NTMs would benefit decisions about their reform.Although NTM

64、s are reported through the United Nations Conference on Trade and Development(UNCTAD)Trade Analysis Information Systems(TRAINS)and the World Trade Organization(WTO)Integrated Trade Intelligence Portal(I-TIP)databases,the validity and quality of this information could be enhanced by seeking primary i

65、nput from firms.Evidence that trade policy globally does not encourage the trade of goods reducing GHG emissions reinforces the case for inquiry into NTMs.In fact,current global trade policy settings subsidise and encourage the trade of goods increasing GHG emissions.Recent estimates show 4 However,

66、it is important to mention that the data shown in the October 2021 review does not incorporate recent tariff reductions in Indonesia to meet the target set in the APEC List of Environmental Goods.In addition,in the case of Chile,it has a universal six percent import most favoured nation(MFN)tariff d

67、uty,but due to Chiles comprehensive network of free trade agreements(FTAs),its applied average tariff is low,at around one percent.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 11 an implicit subsidy of between USD 550 billion to USD 800 billion per year tow

68、ards CO2 emissions in traded goods(Shapiro,2020).The study identified NTMs specifically as a functionally higher barrier to trade on low-emissions goods than on high-emissions goods.This report advances the discussions of the aforementioned policy dialogue organized in September 2021 by identifying

69、NTMs affecting trade in goods reducing GHG emissions.This is conducted in two complementary ways:(1)through desk-research,analysing trade databases with information on NTMs,and(2)by collecting firm-level perspectives on the nature and scale of the effects of NTMs in trade in goods reducing GHG emiss

70、ions,via online surveys and interviews targeting firms that trade in these goods.The responses to the survey and interviews inform policy recommendations that aim to minimize inhibitive NTMs and improve the design of measures to facilitate trade in goods reducing GHG emissions.This report also offer

71、s concrete areas for regulatory cooperation related to trade and climate change to assist in outlining priority areas for further work within APEC and beyond.Through this exploratory work,APEC economies will be able to gain a clearer picture of the options for policy cooperation and other ways forwa

72、rd.Box 1.1 Transaction costs and NTMs The global value chains(GVCs)for many goods reducing GHG emissions are interconnected and highly specialised,it is important that firms can transact easily across borders.Consequently,the transaction costs of NTMs can pose direct and indirect impediments to trad

73、ing these goods.Transaction costs are not limited to pecuniary costs of fees,but can also include the administrative,bargaining and search costs involved in an exchange.A sizeable empirical literature has attempted to translate these NTM-related transaction costs into a comparable,monetary value.Mos

74、t quantitative studies convert the vast range of NTMs into an ad valorem tariff equivalent(AVE).One of the most cited econometric estimates finds that core NTMs impose a 12 percent AVE(Kee et al.,2008).Another study found that a halving of the AVE of NTMs(from 10 percent to 5 percent)would increase

75、international trade by 2 percent to 3 percent(Hoekman and Nicita,2011;UNCTAD,2013)has reported that NTMs are twice as trade restrictive as tariffs.Consequently,the impact of NTMs on goods that reduce GHG emissions is especially relevant.It also means that the direct approach adopted in this study un

76、derestimates the benefits of reducing trade-restrictive NTMs.Reductions in the transaction costs of NTMs are likely to yield indirect benefits across the value chain.If the transaction costs of NTMs are lower for exporters of raw materials,the cost of inputs for manufacturing economies will decrease

77、,and the benefits will flow through to downstream consumers.In this sense,the direct approach adopted in this study,where firms only report on the NTMs that directly affect them,understates their full economic effects.In reality,reducing the NTMs that firms find burdensome will likely yield flow-on

78、benefits across their highly globalised and specialised value chains.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 12 2.MAPPING OF NON-TARIFF MEASURES AFFECTING APEC This report mapped the NTMs affecting APEC using two methods:(1)through the analysis of inte

79、rnational trade databases;and(2)by gaining insights from firm survey and interviews.NTMs are defined,according to UNCTAD(2019),as policy measures,other than ordinary customs tariffs that potentially have an effect on international trade in goods such as changing quantities traded,or prices or both.I

80、n this sense,the UNCTAD Multi-Agency Support Team(MAST)has created a classification system that organizes NTMs into chapters(Table 2.1).Table 2.1 UNCTAD NTM classification system Category Chapter Description Imports Technical measures A Sanitary and phytosanitary(SPS)measures B Technical barriers to

81、 trade(TBT)C Pre-shipment inspection and other formalities Non-technical measures D Contingent trade-protective measures E Non-automatic licensing quotas,prohibitions,and quantity-control measures and other restrictions not including SPS measures or measures relating to TBT F Price-control measures

82、including additional taxes and charges G Finance measures H Measures affecting competition I Trade-related investment measures J Distribution restrictions K Restrictions on post-sales services L Subsidies and other forms of support,excluding exports subsidies under P7 M Government procurement restri

83、ctions N Intellectual property O Rules of origin Exports P Export-related measures:-P1 Export measures related to sanitary and phytosanitary measures and technical barriers to trade-P2 Export formalities-P3 Export licences,export quotas,export prohibition and other restrictions other than SPS or TBT

84、-P4 Export price-control measures-P5 State trading enterprises,for exporting;other selective export channels-P6 Export-support measures-P7 Measures on re-export-P8 Exports on measures not elsewhere specified Source:Adapted from UNCTAD(2019).The goods reducing GHG emissions included in the analysis a

85、re those where the main purpose of the good is to:1.Directly reduce GHG emissions through the displacement of an activity that would have otherwise produced GHG emissions.Examples could include products and technologies that:enable energy to be generated from renewable or zero emission sources(e.g.,

86、solar panels,wind turbines and component parts)displacing the combustion of fossil fuels.are more energy efficient(e.g.,LED lightbulbs,heat pumps),thus decreasing demand for fossil fuel combustion.enable renewable energy to be stored(e.g.,batteries,zero emission hydrogen).control air pollution or fi

87、lter harmful GHGs(e.g.,catalytic converters,incinerators,carbon capture and sequestration).Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 13 2.Directly remove GHGs from the atmosphere.This could either by done through:technological solutions products that ass

88、ist in the capture and storage of GHGs from the atmosphere(e.g.,biomass carbon removal and storage and direct air carbon capture and storage).nature-based solutions products that enable afforestation,reforestation,restoration of coastal and marine habitats or those that support the creation of natur

89、al GHG sinks.It is important to emphasise that this analysis is not limited to products in the current APEC List of Environmental Goods because the products of interest were in scope if they met the definition above.In effect,this could include a subset of APEC Environmental Goods,as well as interme

90、diate parts that do not directly contribute to GHG emissions reduction but are essential components in GVCs for these products(Figure 2.1).5 Figure 2.1 Goods reducing GHG emissions Source:Deloitte Access Economics.Services contribute to the value chains of these products,and indeed many firms produc

91、e services alongside the goods that they trade.NTMs that affect the services that support the trade of goods reducing GHG emissions will therefore indirectly affect trade of in-scope products.Nevertheless,the impact of NTMs on these services are considered out of scope for this project,which is focu

92、sed specifically on goods.2.1 ANALYSIS BASED ON INTERNATIONAL TRADE DATABASES Three international trade databases are utilized in this study,namely:(1)the UNCTAD TRAINS;(2)the WTO I-TIP;and(3)the Global Trade Alert(GTA).Each of these databases 5 Due to limited resources,this study only includes some

93、 intermediate products,for example,HS 730820-iron and steel,structures and parts thereof,towers and lattice masts,which are important components for GHG-reducing goods or infrastructure associated to those goods.However,data limitations can make a comprehensive analysis on these goods challenging be

94、cause those goods could be used on many different activities,and customs authorities do not typically identify whether they will be used for a GHG-reducing,a GHG-increasing,or a GHG-neutral purpose.Notwithstanding,a separate and comprehensive study exploring the impact of NTMs on these dual use inte

95、rmediate goods could provide more insights to policymakers on additional effective ways to facilitate the production of GHG-reducing goods.APEC List of Environmental GoodsGoods contributing to GHG emissions reductionsGoods within global value chainsIn-scope goodsStudy on non-tariff measures affectin

96、g trade in goods reducing greenhouse gas emissions 14 provides different insights and the NTMs analysis benefit from complementing insights from each other.For example,UNCTAD TRAINS can identify the percentage of goods affected by at least one NTM,but it cannot provide detailed information on the st

97、ringency of the NTMs.Meanwhile,the WTO I-TIP can provide this detailed information but has a restricted coverage on the incidence or frequency of NTMs affecting traded goods.In addition,the discussion in this section is based on NTMs affecting a total of 69 goods(HS 6-digit level)6 that reduce GHG e

98、missions(henceforth,GHG-reducing goods).These are further grouped into four categories,namely:(1)air pollution control;(2)cleaner alternatives;(3)renewable energy;and(4)waste management.Appendix A.1 provides the list of goods under each of these categories.2.1.1 UNCTAD Trade Analysis Information Sys

99、tem(TRAINS)The UNCTAD TRAINS database allows to calculate(1)the percentage of traded goods affected by at least one NTM(frequency index);and(2)the percentage of trade value subject to at least one NTM(coverage ratio).However,neither of these two indicators accounts for stringency.In addition,the dat

100、abase only includes“de jure”information(i.e.,those NTMs based on the examination of regulations and procedures),but it does not take into account the“de facto”situation regarding the actual implementation of those NTMs.The analysis in this section used reported trade data from the United Nations Com

101、trade database and on the aforementioned NTMs data from UNCTAD TRAINS.Since the list of traded goods can vary across years,trade values were based on the average of trade from 2013 to 2021.7 Meanwhile,the reported NTMs data was built using the latest available year for each economy,owing to unavaila

102、bility of annual data for most economies(Table 2.2).Table 2.2 Available NTMs data,by latest year available Year Economies Count 2012 Afghanistan;Burkina Faso;Cote dIvoire;Guinea;Nepal;Senegal 6 2013 Gambia;Nigeria 2 2014 Benin;Cape Verde;Ghana;Liberia;Mali;Niger;Palestinian Territory,Occupied;Togo 8

103、 2015 United Arab Emirates;Bahrain;Bahamas;Barbados;Switzerland;Cameroon;Dominica;Ethiopia(excludes Eritrea);Grenada;Guyana;Jamaica;Kuwait;Mauritania;Oman;Suriname;Trinidad and Tobago 16 2016 Antigua and Barbuda;Australia;China;Algeria;Hong Kong,China;Israel;Jordan;Japan;Korea;Lebanon;Sri Lanka;Moro

104、cco;New Zealand;Pakistan;Papua New Guinea;Qatar;Russia;Saudi Arabia;Tunisia;Turkey 20 2017 Bangladesh;Botswana;Canada;India;Kazakhstan;Kyrgyzstan;Mauritius;Uganda;Zimbabwe 9 2018 Argentina;Bolivia;Brazil;Brunei Darussalam;Chile;Colombia;Costa Rica;Cuba;Ecuador;European Union(Austria;Belgium;Bulgaria

105、;Croatia;Cyprus;Czechia;Denmark;Estonia;Finland;France;Germany;Greece;Hungary;Ireland;Italy;Latvia;Lithuania;Luxembourg;Malta;Netherlands;Poland;Portugal;Romania;Slovakia;Slovenia;Spain;Sweden;and the United Kingdom);Guatemala;Honduras;Indonesia;Cambodia;Lao PDR;Mexico;Myanmar;Malaysia;Nicaragua;Pan

106、ama;Peru;the Philippines;Paraguay;Singapore;El Salvador;Thailand;Tajikistan;Uruguay;United States;Venezuela;Viet Nam;58 Total 119 Note:Reported NTMs data for Chinese Taipei is unavailable.APEC economies in bold.Source:APEC Policy Support Unit(PSU)compilation based on UNCTAD TRAINS(downloaded 9 June

107、2022).6 The Harmonized Commodity Description and Coding Systems(HS)is an international nomenclature for the classification of products that was developed by the World Customs Organization in 1988.The HS system contains 21 Sections that further categorizes products into Chapters(2-digit level),Headin

108、gs(4-digit level),and Sub-headings(6-digit level).The HS is particularly useful for analyzing international trade because it provides a common nomenclature for all economies albeit limited to just the 6-digit level.For more information about the HS,see:https:/unstats.un.org/unsd/tradekb/Knowledgebas

109、e/50018/Harmonized-Commodity-Description-and-Coding-Systems-HS.7 Trade for Chinese Taipei was based on reported data for“Other Asia,nes”.Trade for Papua New Guinea was based on reported data by other economies(i.e.,mirrored data)since Papua New Guinea as a reporter was not available.Study on non-tar

110、iff measures affecting trade in goods reducing greenhouse gas emissions 15 Since the analysis perspective is on how APECs trade is affected by NTMs,the consolidated database naturally includes both domestic NTMs(applied by the reporting economy itself)and foreign NTMs(applied by partner economies),a

111、s shown in Figure 2.2.In this regard,a trade transaction needs to consider those NTMs present in both exporting and importing side.For example,reporting economy imports need to consider those NTMs implemented by the importing side,as well as those export-related NTMs implemented by their partners.Fi

112、gure 2.2 Perspective on domestic and foreign NTMs Source:Authors rendition.Some data caveats have to be considered when looking at the figures.First,the frequency of NTMs is reported in percentage terms,as NTMs are identified by economy pairs for each of the 69 GHG-reducing goods considered in the s

113、tudy.For example,an economy could trade one of the GHG-reducing goods to 10 economies,but not all those bilateral transactions will be affected by NTMs.If only 2 of the 10 economy pairs trading this product were affected by NTMs,the frequency indicator would take a value of 20 percent.The reason beh

114、ind this is that NTMs are applied differently by each economy,which implies that each product-economy pair has a unique combination of NTMs.This is also the reason why percentage shares are more intuitive at illustrating the incidence of NTMs compared to using the actual number of NTMs.Second,produc

115、ts in this analysis were aggregated at the HS 6-digit level,even when NTMs are typically applied at more disaggregated levels(e.g.,8-digit level).This aggregation harmonizes products across different economies,which enables a comparative analysis.However,this aggregation has an important implication

116、 on trade values.For example,an NTM could be applied to product 2203.00.11 but not to product 2203.00.05.Ideally,only the trade value for product 2203.00.11 should be counted.However,aggregating both products to 6-digits(i.e.,2203.00)makes this separation difficult(some economies also do not have tr

117、ade data beyond the HS 6-digit level).Instead,the analysis counts the entire trade value of product 2203.00 as affected by at least one NTM,thereby including the trade value of product 2203.00.05 in the process.In other words,this analysis could overestimate the actual trade value of products subjec

118、t to NTMs.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 16 APEC Exports For brevity,only the APEC aggregate will be discussed in this section,although tables showing the incidence of NTMs for each APEC economy are available in Appendices A.2.to A.5.Figure 2.

119、3(a)shows that 66.7 percent of GHG-reducing goods exported by APEC economies are subject to at least one type of NTM.Meanwhile,63.1 percent of the products are subject to domestic NTMs(i.e.,export-related measures)and 10.3 percent of the products are affected by foreign NTMs(i.e.,import-related meas

120、ures).Across APEC,these affected exports are valued at around USD 209.9 billion,of which almost all are exports affected by domestic NTMs Figure 2.3(b).Probing deeper into each category,goods classified as cleaner alternatives were the most affected by NTMs(67.2 percent),followed by renewable energy

121、 products(66.8 percent).Noticeably,the affected exports of renewable energy goods were comparatively larger than those of the rest of the categories,comprising about USD 136.3 billion,followed by cleaner alternatives(USD 36.9 billion),air pollution control goods(USD 23.6 billion),and waste managemen

122、t goods(USD 13.0 billion).Figure 2.3 NTMs incidence on APEC exported GHG-reducing goods,by category Note:NTM data is the latest year available for each economy.Trade data is the average of trade during the period 20132021.NTMs data for Chinese Taipei is not available.The sum of trade affected by dom

123、estic NTMs and foreign NTMs will exceed the total,as some products are affected by NTMs imposed by both the exporting and importing side.Source:APEC PSU calculations using data from WITS(https:/wits.worldbank.org/),downloaded 9 June 2022.Among the types of NTMs affecting APEC exports from the import

124、ing side,price-control measures were the most extensive ones,affecting about 3.0 percent of exported GHG-reducing goods Figure 2.4(a).This is followed by non-automatic licenses,quotas,and prohibitions(2.6 percent)and competition measures(2.5 percent).Non-automatic licenses,quotas,and prohibitions,ho

125、wever,affected the largest value of products,reaching a total of USD 5.4 billion Figure 2.4(b).In comparison,price-control measures and competition measures affected USD 2.7 billion and USD 4.2 billion worth of exports,respectively.Among individual product categories,price-control measures were the

126、most extensive in air pollution control goods(3.6 percent),waste management goods(3.1 percent),and renewable 10.4 10.2 8.8 11.5 10.3 62.5 63.2 64.3 62.5 63.1 66.2 66.8 67.2 66.5 66.7 Waste management goodsRenewable energy goodsCleaner alternativesAir pollution control goodsAll categories(a)Share of

127、goods subject to NTMs(percent)TotalDomesticForeign0.8 9.1 2.0 1.7 13.6 12.9 135.0 36.6 23.3 207.7 13.0 136.3 36.9 23.6 209.9 Waste management goodsRenewable energy goodsCleaner alternativesAir pollution control goodsAll categories(b)Value of goods subject to NTMs(USD billion)TotalDomesticForeignStud

128、y on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 17 energy goods(2.9 percent).Regarding cleaner alternatives,non-automatic licenses,quotas,and prohibitions were more extensive instead(2.3 percent).In terms of affected value,both air pollution control goods and rene

129、wable energy goods were affected the most by non-automatic licenses,quotas,and prohibitions,with USD 0.6 billion and USD 3.9 billion worth of exports,respectively.Surprisingly,TBT measures affected cleaner alternatives the most(USD 0.7 billion)despite affecting only 1.1 percent of traded cleaner alt

130、ernatives.Meanwhile,waste management goods were largely affected by competition measures(USD 0.4 billion).Figure 2.4 NTMs incidence on APEC exported GHG-reducing goods,by category and chapter (A)SPS measures;(B)TBT measures;(C)Pre-shipment inspection and other formalities;(E)non-automatic licensing,

131、quotas,prohibitions and quantity-control measures other than for SPS or TBT reasons;(F)price-control measures including additional taxes and charges;(G)finance measures;(H)measures affecting competition;(I)trade-related investment measures;and(J)distribution restrictions.Note:NTM data is the latest

132、year available for each economy.Trade data is the average of trade during the period 20132021.NTMs data for Chinese Taipei is not available.The sum of trade affected by domestic NTMs and foreign NTMs will exceed the total,as some products are affected by NTMs imposed by both the exporting and import

133、ing side.Values marked as“-“are zero.Source:APEC PSU calculations using data from WITS(https:/wits.worldbank.org/),downloaded 9 June 2022.-2.6 2.5 2.2 2.6 2.5 1.7 1.7 1.5 1.5 1.6 3.1 2.9 2.1 3.6 3.0 2.6 2.6 2.3 3.1 2.6 0.8 0.7 0.3 0.9 0.7 0.8 1.1 1.1 1.6 1.1-0.1-0.1Waste management goodsRenewable en

134、ergy goodsCleaner alternativesAir pollution control goodsAll categories(a)Share of goods subject to NTMs(percent)ABCEFGHIJ-0.4 2.8 0.5 0.5 4.2 0.1 0.4 0.1 0.1 0.6 0.2 1.9 0.1 0.5 2.7 0.2 3.9 0.6 0.6 5.4 0.1 0.8 0.2 0.2 1.4 0.10.50.70.11.3-0.1-0.1Waste management goodsRenewable energy goodsCleaner al

135、ternativesAir pollution control goodsAll categories(b)Value of goods subject to NTMs(USD billion)ABCEFGHIJStudy on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 18 APEC Imports NTMs were found to be relatively more extensive on APEC imports compared to APEC exports.I

136、n fact,around 84.7 percent of imports were subject to at least one type of NTM Figure 2.5(a).The majority of these affected products(84.4 percent)were also dominated by domestic NTMs(i.e.,those implemented by the importing side).Affected imports reached about USD 245.9 billion,of which practically a

137、ll were subjected to import-related NTMs Figure 2.5(b).On the contrary,imports affected by foreign NTMs(i.e.,export-related measures)were valued at just USD 0.6 billion.Looking at each product category,air pollution control goods had the most extensive incidence of NTMs(88.8 percent)comparatively hi

138、gher than waste management goods(84.5 percent),renewable energy goods(84.1 percent),and cleaner alternatives(82.4 percent).Import-related NTMs also dominated all of these product categories.In terms of value,imports of renewable energy goods were the most affected(USD 151.8 billion),followed by clea

139、ner alternatives(USD 43.8 billion),air pollution control goods(USD 34.1 billion),and waste management goods(USD 16.3 billion).Yet again,the value of imports affected by export-related NTMs was relatively negligible.Figure 2.5 NTMs incidence on APEC imported GHG-reducing goods,by category Note:NTM da

140、ta is the latest year available for each economy.Trade data is the average of trade during the period 20132021.NTMs data for Chinese Taipei is not available.The sum of trade affected by domestic NTMs and foreign NTMs will exceed the total,as some products are affected by NTMs imposed by both the exp

141、orting and importing side.Source:APEC PSU calculations using data from WITS(https:/wits.worldbank.org/),downloaded 9 June 2022.Among the types of NTMs affecting APEC imports from the importing side,Figure 2.6(a)shows that TBT measures were the most extensive on GHG-reducing goods(68.7 percent).This

142、is followed by price-control measures(56.0 percent)and non-automatic licenses,quotas,and prohibitions(38.5 percent).Trade-related investment measures and distribution restrictions were implemented into a remarkably small percentage of goods(less than 0.4 percent).In terms of value,TBT measures affec

143、ted the largest amount of imports,reaching a total of USD 219.3 billion Figure 2.6(b),followed by non-automatic licensees,quotas,and prohibitions(USD 130.1 billion)and price-control measures(USD 128.6 billion).2.2 2.2 1.8 2.7 2.3 84.1 83.7 82.1 88.6 84.4 84.5 84.1 82.4 88.8 84.7 Waste management goo

144、dsRenewable energy goodsCleaner alternativesAir pollution control goodsAll categories(a)Share of goods subject to NTMs(percent)TotalDomesticForeign0.10.40.10.10.616.3 151.7 43.8 34.1 245.9 16.3 151.8 43.8 34.1 245.9 Waste management goodsRenewable energy goodsCleaner alternativesAir pollution contro

145、l goodsAll categories(b)Value of goods subject to NTMs(USD billion)TotalDomesticForeignStudy on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 19 Unsurprisingly,TBT measures were the most extensive type of NTM across all individual product categories,followed by price

146、-control measures and non-automatic licenses,quotas,and prohibitions.Interestingly,non-automatic licenses,quotas,and prohibitions were proportionately more extensive in air pollution control goods(46.6 percent)compared to the other product categories(at most 38.8 percent).It is also worth noting tha

147、t cleaner alternatives were affected by trade-related investment measures,albeit only on a small percentage of these goods(2.3 percent).In terms of import values,TBT measures affected the largest amount of imports,ranging from USD 136.9 billion(renewable energy goods)to USD 13.3 billion(waste manage

148、ment goods).After TBT measures,price-control measures and non-automatic licenses,quotas,and prohibitions were the next two NTM categories affecting imports of all product categories.Figure 2.6 NTMs incidence on APEC imported GHG-reducing goods,by category and chapter (A)SPS measures;(B)TBT measures;

149、(C)Pre-shipment inspection and other formalities;(E)non-automatic licensing,quotas,prohibitions and quantity-control measures other than for SPS or TBT reasons;(F)price-control measures including additional taxes and charges;(G)finance measures;(H)measures affecting competition;(I)trade-related inve

150、stment measures;and(J)distribution restrictions.Note:NTM data is the latest year available for each economy.Trade data is the average of trade during the period 20132021.NTMs data for Chinese Taipei is not available.The sum of trade affected by domestic NTMs and foreign NTMs will exceed the total,as

151、 some products are affected by NTMs imposed by both the exporting and importing side.Values marked as“-“are zero.Source:APEC PSU calculations using data from WITS(https:/wits.worldbank.org/),downloaded 9 June 2022.-0.1-0.1-0.3 2.3-0.4 8.6 11.6 10.4 11.4 11.0 7.6 9.0 7.9 9.1 8.7 54.2 57.2 53.2 55.5 5

152、6.0 37.0 38.8 27.2 46.6 38.5 16.9 21.1 23.0 19.1 20.3 68.3 69.5 65.7 68.6 68.7 14.4 11.8 12.3 11.5 12.2 Waste management goodsRenewable energy goodsCleaner alternativesAir pollution control goodsAll categories(a)Share of goods subject to NTMs(percent)ABCEFGHIJ-0.1-0.1-0.1 3.4-3.5 0.8 9.6 1.1 2.9 14.

153、4 0.8 6.3 0.9 0.8 8.8 9.2 82.3 18.5 18.7 128.6 6.9 77.9 28.4 16.8 130.1 2.1 21.1 13.7 5.4 42.4 13.3 136.9 43.1 25.9 219.3 4.2 16.2 6.7 2.8 30.0 Waste management goodsRenewable energy goodsCleaner alternativesAir pollution control goodsAll categories(b)Value of goods subject to NTMs(USD billion)ABCEF

154、GHIJStudy on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 20 2.1.2 WTO Integrated Trade Intelligence Portal The WTO I-TIP database contains information on nine categories of NTMs,8 which can be divided into categories and chapters following the UNCTAD NTM classifica

155、tion system,and two categories of specific trade concerns(STCs)(Table 2.3).Entries in the WTO I-TIP are based on formal notifications to the WTO or concerns raised in WTO committees,which means that the database may underestimate the actual number of NTMs currently in force at any given time.9 For e

156、xample,the WTO has acknowledged that notifications for subsidies are delayed for more than half of WTO membership(WTO,2022).In addition,HS codes in some of the databases measures(16.5 percent)are interpreted codes made by the WTO.This interpretation is necessary because some policies do not clearly

157、identify specific HS codes wherein the NTM would apply.Table 2.3 List of NTMs available in the WTO I-TIP database#Category Chapter Measure 1 Technical measures A SPS measures(regular and emergency)2 B TBT measures(regular)3 Non-technical measures D Anti-dumping 4 D Countervailing duties 5 D Safeguar

158、ds 6 D Special safeguards 7 E Quantitative restrictions 8 E Tariff-rate quotas 9 Export-related measures P Export subsidies 10 Specific Trade Concerns STC SPS 11 STC TBT Source:APEC PSU compilation based on the WTO I-TIP database(https:/i-tip.wto.org/goods/default.aspx).Table 2.4 shows that a total

159、of 906 NTMs affecting APEC trade of GHG-reducing goods remain in force as of June 2022.Around 74.5 percent of these NTMs are technical measures on SPS(3.1 percent)and TBT(70.1 percent)reasons.Box 2.1 provides some examples of these TBT measures.It is worth emphasizing that these WTO notifications of

160、 technical measures do not necessarily provide an indication of trade protectionism,as many of these notifications are not about the implementation of measures that could represent a barrier to trade.In fact,many of these SPS and TBT notifications could actually be the opposite of a barrier to trade

161、,as they reflect transparency by informing on new protocols that provide additional information to agents,thereby facilitating trade.In order to explore possible barriers to trade,it is important to examine the STCs reported by economies in WTO committees instead.For example,Table 2.4 shows that 16

162、STCs affecting APEC trade of GHG-reducing goods were notified to the WTO SPS and TBT Committees.Most of these STCs were notified to the TBT Committee and renewable energy goods had the greatest number of notified STCs,reaching a total of 13.Box 2.2 provides one example of how trade can possibly be a

163、ffected by NTMs.8 Technically,the WTO I-TIP database also includes a tenth option for state trading enterprises(Ch.H and Ch.P).However,this measure was excluded from the analysis since not all members regularly submit their bi-annual notifications.9 As of June 2022,there are a total of 13,338 notifi

164、ed measures affecting APEC economies(all products).Among these,2,915 measures do not have either an economy-provided HS code or a WTO-interpreted HS code and are,therefore,excluded from the analysis.In effect,the final database contains a total of 10,423 notified measures.Study on non-tariff measure

165、s affecting trade in goods reducing greenhouse gas emissions 21 Table 2.4 Number of NTM notifications on APEC trade of GHG-reducing goods,by category and type of NTM Category A B D E P STC Total All categories 28 635 85 137 5 16 906 Air pollution control goods 0 102 5 52 0 2 161 Cleaner alternatives

166、 1 207 4 71 0 6 289 Renewable energy goods 22 493 52 115 5 13 700 Waste management goods 5 98 26 63 0 2 194(A)SPS measures;(B)TBT measures;(D)contingent trade-protective measures;(E)non-automatic licensing,quotas,prohibitions and quantity-control measures other than for SPS or TBT reasons;(P)export-

167、related measures;and(STC)specific trade concerns.Note:Measures in force as of June 2022.The sum of individual categories will exceed total as some NTMs affect more than one type of product.Source:APEC PSU calculations based on data from the WTO I-TIP database(https:/i-tip.wto.org/goods/default.aspx)

168、,downloaded 14 August 2022.Box 2.1 Examples of TBT measures notified at the TBT Committee on GHG-reducing goods 1.Greenhouse and energy standards for air conditioners,heat pumps,and other similar products This NTM applies to air conditioners and heat pumps(HS 841510 and HS 841861)and other similar p

169、roducts such as gas water heaters(HS 841911 and HS 841919).Under the Greenhouse and Energy Minimum Standards(GEMS)Act 2012,the Australian government can set mandatory minimum efficiency performance standards and energy rating label requirements for electrical equipment and appliance products.These r

170、equirements are set out in legislative instruments called GEMS determinations.2.Standards for liquefied anhydrous ammonia This NTM applies to liquefied anhydrous ammonia(HS 281410).This measure applied by China specifies the requirements,test methods,inspection rules,marking,package,transportation,s

171、torage,and safety requirements for liquefied anhydrous ammonia.3.Control of air pollution from new motor vehicles and new motor vehicle engines,including heavy-duty vehicles and engine standards,onboard diagnostic requirements,and rule motor This NTM applies to motor vehicles(HS 8703;HS 8704).In 200

172、1,the US Environmental Protection Agency(EPA)finalized a new,major program for highway heavy-duty engines.That program,the Clean Diesel Trucks and Buses program,resulted in the introduction of advanced emissions control systems such as catalyzed diesel particulate filters(DPF)and catalysts capable o

173、f reducing harmful nitrogen oxide(NOX)emissions.This required that these advanced emissions control systems be monitored for malfunctions via an onboard diagnostic system(OBD),similar to those systems that have been required on passenger cars since the mid-1990s.This required manufacturers to instal

174、l OBD systems that monitor the functioning of emission control components and alert the vehicle operator to any detected need for emission related repair.This also required that manufacturers to make available to the service and repair industry the information necessary to perform repair and mainten

175、ance service on OBD systems and other emission related engine components and revise certain existing OBD requirements for diesel engines used in heavy-duty vehicles under 14,000 pounds.Source:APEC PSU compilation based on data from the WTO I-TIP database(https:/i-tip.wto.org/goods/default.aspx),down

176、loaded 14 August 2022.The report does not prejudge whether these NTMs in this box are trade-restrictive or not.In some cases,it is possible that NTMs could be associated to an increase of trade as they could increase transparency by providing information to producers and consumers,and create a marke

177、t for goods reducing GHG emissions.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 22 Non-technical measures,meanwhile,comprised 24.5 percent of total NTMs in force,of which non-automatic licenses,quotas,and prohibitions were the more prominent(15.1 percent of

178、 total NTMs).Contingent measures such as anti-dumping and countervailing duties were relatively extensive,accounting for 6.8 percent and 2.5 percent of total NTMs,respectively.No safeguards affecting GHG-reducing goods remained in force.Export-related measures,particularly export subsidies,were smal

179、l(0.6 percent of total NTMs).Renewable energy goods were the product category subjected to most NTMs(700 measures),being TBT measures around of these.In the case of waste management goods,53.1 percent of their NTMs were technical and 13.4 percent of their NTMs were related to trade remedies,which is

180、 a relatively higher share compared to the other product categories,considering that trade remedies only represented 1.4 percent of the NTMs affecting cleaner alternatives and 7.4 percent of the NTMs affecting renewable energy goods.Meanwhile,non-automatic licenses,quotas,and prohibitions were most

181、extensive on both waste management goods(32.5 percent)and air pollution control goods(32.3 percent).In comparison,this type of measures was relatively smaller on renewable energy goods(16.4 percent).Notably,export-related measures(Ch.P)were present only for renewable energy goods.2.1.3 Global Trade

182、Alert Since November 2008,the GTA database has independently monitored different discriminatory interventions and policies affecting trade.A total of nine interventions are tracked by the GTA database(Table 2.6),which enables the identification of measures related to TBT measures;contingent measures

183、;non-automatic licenses,quotas,and prohibitions;price-control measures;finance measures;trade-related investment measures;subsidies;government procurement restrictions;restrictions related to intellectual property;and export-related measures.Box 2.2 Case example of a TBT measure affecting trade In e

184、arly 2011,Economy A notified the WTO that it will be implementing revised technical specifications for air conditioners and comfort fans,aligned with combating climate change.The new requirements would enter into force in 2012.Following this notification,Economy B raised concerns first in late 2011

185、and second in early 2012.One possible reason for Economy Bs concern is because trade with Economy A could be adversely affected by the new technical specifications.In fact,Table 2.5 shows that Economy As global imports of air conditioners and comfort fans fell by 16.4 percent between 2011 and 2012 w

186、hile imports from Economy B dropped by 11.5 percent during the same period.This would echo similar examples provided by a 2014 APEC Policy Support Unit(PSU)report(Kuriyama et al.,2014).Table 2.5 Economy As imports of air conditioners and comfort fans(USD million)Product Origin 2010 2011 2012 Variati

187、on(2011-12)Air conditioners and comfort fans(HS 8415)From World 11,010.69 12,755.37 10,658.40 -16.4%From Economy B 1,369.12 1,750.49 1,549.98 -11.5%Total Imports(all products)From World 5,144,443.45 6,040,934.24 5,629,862.27 -6.8%From Economy B 413,893.91 449,268.93 407,021.35 -9.4%Source:APEC PSU c

188、alculations using data from WITS(https:/wits.worldbank.org/),downloaded 6 December 2022.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 23 These measures are also evaluated and categorized into three levels:red;amber;and green(Evenett and Fritz,2022).Red inter

189、ventions are those that almost certainly discriminates against foreign commercial interests while amber interventions likely involve discrimination against foreign commercial interests.Green interventions,meanwhile,liberalizes on a non-discriminatory basis or improves the transparency of a relevant

190、policy.Table 2.6 List of interventions monitored by the GTA database#Intervention Examples 1 Capital controls and exchange rate policy Control on personal transactions;controls on commercial transactions and investment instruments;controls on credit operations;competitive devaluation;repatriation an

191、d surrender requirements;and trade payment measures 2 Export and import policy instruments Bans;licensing requirements;quotas;subsidies;tariff-quotas;taxes;tax incentives;internal taxation of imports;foreign customer rule;trade balancing measures;trade finance;and trade payment measures 3 Foreign in

192、vestment policy Entry and ownership rules;financial incentives;and other treatment and operations 4 Labor force migration policy Labor market access;post-migration treatment 5 Localization policy Local labor;local operations;and local sourcing 6 Public procurement policy Access;localization requirem

193、ents;preference margin 7 Subsidies and aid Bailouts;financial assistance in foreign markets;financial grants;in-kind grants;interest payment subsidy;production subsidy;loans;tax or social insurance reliefs 8 Trade defense instruments Anti-circumvention;anti-dumping;anti-subsidy;and safeguards 9 Othe

194、r instruments Intellectual property protection;SPS measures;and TBT measures Source:APEC PSU compilation based on the GTA database(https:/www.globaltradealert.org/)As of September 2022,a total of 11,373 NTMs remain in force across APEC traded GHG-reducing goods,of which only 1,401 NTMs(12.3 percent)

195、are green(Figure 2.7).This implies that a significant proportion of evaluated NTMs were likely discriminatory(84.5 percent are red interventions while 3.2 percent are amber interventions).Among the individual categories,renewable energy goods experienced the greatest number of NTMs at 8,714 measures

196、,of which 84.2 percent are red interventions.Other product categories experienced comparatively less NTMs,although red interventions were similarly dominant.Figure 2.7 Number of NTMs affecting APEC GHG-reducing goods,by category and level of intervention Note:Measures in force as of September 2022.S

197、ource:APEC PSU calculations using data from the GTA database(https:/www.globaltradealert.org/),downloaded 26 September 2022.11,373 1,974 2,238 8,714 1,373 -2,000 4,000 6,000 8,000 10,000 12,000 14,000All categoriesAir pollution controlgoodsCleaner alternativesRenewable energygoodsWaste managementgoo

198、dsRedAmberGreenStudy on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 24 Among red and amber interventions,subsidies were noticeably greater compared to all other types of NTMs Figure 2.8(a),comprising 42.8 percent of total red and amber interventions.This is followe

199、d by export-related measures at 32.9 percent,trade-related investment measures at 12.4 percent,and government procurement restrictions at 4.5 percent.Among the individual categories,subsidies remained the most extensive NTM for both cleaner alternatives and renewable energy goods,but not for air pol

200、lution control goods and waste management goods,which saw more prominent export-related measures.Interestingly,only renewable energy goods had a significantly higher share of trade-related investment measures,whereas only waste management goods had a relatively prominent presence of contingent trade

201、-protective measures compared to other categories.Figure 2.8 NTMs incidence on APEC traded GHG-reducing goods,by category and chapter (B)TBT measures;(D)contingent trade-protective measures;(E)non-automatic licensing,quotas,prohibitions,and quantity-control measures other than for SPS or TBT reasons

202、;(F)price-control measures including additional taxes and charges;(G)finance measures;(I)trade-related investment measures;(L)subsidies,excluding export subsidies under P7;(M)government procurement restrictions;(N)intellectual property;and(P)export-related measures.Note:Measures in force as of Septe

203、mber 2022.Values marked as“-“are zero.Source:APEC PSU calculations using data from the GTA database(https:/www.globaltradealert.org/),downloaded 26 September 2022.61.4 35.7 19.7 55.8 32.9-1.5 5.0 6.0 1.8 4.5 20.2 36.4 65.0 29.3 42.8 1.7 15.8 1.6 1.6 12.4 2.5 0.7 1.6 1.7 0.6 2.8 1.2 2.0 2.1 1.2 4.9 4

204、.2 3.1 7.3 4.0 4.9 1.1 0.9 0.3 1.5-Waste management goodsRenewable energy goodsCleaner alternativesAir pollution control goodsAll categories(a)Red and amber interventions(percent share to total red and amber interventions)BDEFGILMNP18.8 12.6 25.3 14.4 15.7-6.5 9.0 11.8 3.6 8.5 17.0 9.3 15.2 16.4 10.

205、8-0.7 2.1-0.9 2.1 2.0 1.7 1.5 1.8 24.6 12.0 9.7 29.7 14.6 31.1 54.4 34.2 31.8 47.0-2.6 0.7-Waste management goodsRenewable energy goodsCleaner alternativesAir pollution control goodsAll categories(b)Green interventions(percent share to total green interventions)BDEFGILMNPStudy on non-tariff measures

206、 affecting trade in goods reducing greenhouse gas emissions 25 Among green interventions,non-automatic licensing,quotas,and prohibitions was the most dominant,reaching a percentage share of 47.0 percent Figure 2.8(b).Examples would include the elimination of automatic import licensing requirements,w

207、eakening of import restrictions,or release of new information for transparency.This is followed by export-related measures(e.g.,reduced export taxes)at 15.7 percent,price-control measures(e.g.,elimination of tariffs and taxes)at 14.6 percent,subsidies(e.g.,suspension of tax refunds)at 10.8 percent,a

208、nd government procurement restrictions(e.g.,waiver or exemption from minimum local content requirements)at 8.5 percent.Among the individual categories,non-automatic licensing,quotas,and prohibitions remained the most dominant,comprising around 31.1 percent(waste management goods)to 54.4 percent(rene

209、wable energy goods)of total green interventions.Meanwhile,price-control measures were the second most dominant for both air pollution control goods and waste management goods,whereas export-related measures were the second most dominant for cleaner alternatives and renewable energy goods.It is worth

210、 noting that only air pollution control goods had contingent trade-protective measures(e.g.,removal of import inspection obligation on certain products).2.2 INSIGHTS BASED ON FIRM SURVEY AND INTERVIEWS 2.2.1 Introduction Firm perspectives and experiences with NTMs affecting trade in goods reducing G

211、HG emissions were gathered through primary research.This section outlines the findings of the survey and series of follow-up interviews as the primary sources of this information.Firms are the unit of analysis.They were deemed within scope if they imported or exported goods reducing GHG emissions,bu

212、t the analysis takes a value chain approach in accordance with the recommendations of the scoping study prepared for the APEC Market Access Group in 2021 to identify new and emerging environmental goods and consider approaches to updating the current APEC List of Environmental Goods,endorsed in 2012

213、(The Australian APEC Study Centre at RMIT University et al.,2021).As such,survey and interview targets were not limited to one part of the value chain,and instead covered firms from upstream,midstream and downstream components to ensure that both final products and essential intermediate goods were

214、in scope.As shown in Figure 2.9,the sectoral composition of surveyed firms reflected this goal:Mining,agriculture and forestry firms captured the upstream components of the value chain.These sectors provide the inputs necessary for goods reducing GHG emissions Manufacturing firms captured the midstr

215、eam components of the value chain,as they transform inputs from upstream into goods sold downstream Wholesale trade and construction firms captured downstream components of the value chain that use goods reducing GHG emissions Transportation and storage services firms move these goods throughout the

216、 value chain.They consequently enable trade in goods reducing GHG emissions and interact with many NTM-related procedures at the border.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 26 Figure 2.9 Sectors targeted from different points in the supply chain Sou

217、rce:Deloitte Access Economics.The survey received 200 responses from firms in six APEC economies.Due to limited resources available,the survey and interviews could not cover all APEC economies but provide a glimpse of the type of NTMs that are mostly considered as barriers to trade,as well as those

218、measures that are considered by firms to be enablers to trade.The survey questionnaire was developed by Deloitte Access Economics and delivered online with the support of Rakuten Insight.Information on the survey and its approach can be found in Appendix A.6.Survey responses were complemented by fol

219、low-up interviews sought to validate and expand on survey findings.Deloitte Access Economics leveraged its global network of Deloitte professionals to deliver a targeted series of interviews of industry stakeholders across the relevant value chains.2.2.2 Firm Characteristics To support the interpret

220、ation of the survey findings,a series of descriptive statistics are provided on the firms that were analysed through the survey.The sample of firms was drawn from six APEC member economies that capture diversity across regions,trade orientation,emissions intensity and NTM coverage.Appendix A.6 detai

221、ls the sampling and selection process.The scoping process described earlier in this chapter supported a definition of and reference point for representativeness.Given the value chain approach to understanding trade in environmental goods reducing GHG emissions,firms across multiple sectors were cons

222、idered in scope.The majority of firms operate in the manufacturing sector(66 percent).Of these manufacturing firms,half were involved in producing manufactured goods related to renewable energies and technologies,while energy-efficient technologies,emissions removal products and transportation input

223、s were also widely nominated as focuses of firms within the category(Table 2.7).Table 2.7 Operating sector and sub-sector(s)of surveyed firms(percent share)Notes:n=200.Firms in the manufacturing sector were asked to identify their sub-sector.The shares add to greater than 100 percent because firms w

224、ere able to identify as belonging to multiple sub-sectors.Source:Deloitte Access Economics.Sector Share Sub-sector Share Manufacturing 66 Renewable energies and technologies 50 Cleaner and more resource efficient products and technologies 38 Products and technologies that remove emissions from the a

225、tmosphere 28 Transportation equipment 27 Air pollution control 24 Waste management 21 Others 9 Mining,agriculture and forestry 10 Transportation and storage services 12 Wholesale trade and construction 12 Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 27 A di

226、verse range of products could be considered to meeting the definition of environmental goods reducing GHG emissions.Firms were asked to identify their NTM experiences at the origin and destination level(referred to as market pairs).Solar energy was the most-traded category of good among market pairs

227、(Figure 2.10),in line with research that shows that products related to renewable energy production are the most traded goods that reduce GHG emissions(Kuriyama,2021).Given the focus in many economies on decarbonising their electricity and energy sectors,high rates of trade in essential intermediate

228、 components in these sectors including batteries and generators are also represented in the sample.10 It is important to also note that the findings from the survey are more robust for mature goods markets,such as renewable energy components.Emerging technologies,such as green hydrogen,are not yet w

229、idely traded and are therefore not as readily observable through the survey.Well-designed NTMs could prove an important policy consideration in enabling their growth.Figure 2.10 Share of respondent firms that traded goods reducing GHG emissions between market pairs,by product category(percent)Notes:

230、n=200 firms.A list of products based on the list in Appendix A.1 were presented to firms to select from.Free text responses were also accepted and recoded into the categories above where applicable.Source:Deloitte Access Economics.Most firms both import and export environmental goods reducing GHG em

231、issions(Figure 2.11).Each of the sectors from which firms were sampled tend to be reliant on intermediate goods,many of which must be imported from economies with a relevant comparative advantage.These are subsequently used as inputs to produce goods that firms then export.Further,the dominance of t

232、wo-way traders is reflective of liberalisation in the APEC region,which has helped to globalise supply chains.10 Generators:often used in conjunction with boilers and turbines in electricity generation from renewable sources.Hence,this product is within scope of this project given that it can direct

233、ly reduce GHG emissions through the displacement of an activity that would have otherwise produce GHG emissions.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 28 Figure 2.11 Share of respondent firms trade orientations(percent)Notes:n=200 firms Source:Deloitt

234、e Access Economics.Most firms in the sample(79 percent)employed over 200 staff(Figure 2.12).The transportation costs involved in acquiring intermediate goods could dissuade smaller firms from being involved in the value chain of goods reducing GHG emissions.Small firms may lack the scale to minimise

235、 the per unit cost of these goods,thus leaving the market to large firms who can leverage economies of scale to decrease unit costs.Among manufacturing firms,this number was even higher,with 84 percent of firms employing 200 people or more.This was driven by firms focused on renewable energies,trans

236、portation equipment,air pollution control and cleaner and more resource efficient products and technologies.The sampling of SMEs was relevant in understanding whether NTMs affect these firms differently(see page 33 and Appendices A.9 and A.10 for further details on how NTMs affect SMEs and large fir

237、ms differently).Figure 2.12 Share of respondent firms size by number of employees(percent)Notes:n=200 firms,of which there are n=132 manufacturing firms Source:Deloitte Access Economics.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 29 2.2.3 Non-Tariff Measur

238、es:Barriers and Enablers to Trade Barriers to trade Overview of NTMs as a barrier to trade Economies can impose NTMs on goods for a variety of reasons.For example,some governments may wish to impose NTMs to protect emerging and strategic industries.Alternatively,governments may wish to introduce NTM

239、s to build confidence in product quality or to achieve better health,safety or environmental outcomes.Trade can be unnecessarily limited where the government design or implementation of NTMs do not seek to minimise impacts on trade in meeting legitimate policy outcomes.Nonetheless,the need to comply

240、 with these NTMs impose financial and time costs on firms.Results from the survey indicate that the lack of consistency of NTMs across borders,the frequency with which measures changed,and the level of detail required in reporting all affect the time required to comply with NTMs and thus the extent

241、to which firms view NTMs as burdensome.11 As seen from Figure 2.13,firms trading in goods reducing GHG emissions can face NTMs at the origins and destinations of their transactions.For example,a majority of firms,especially firms in Australia;China;and Thailand reported that they faced burdensome ex

242、port NTMs when exporting goods reducing GHG emissions.Similarly,most firms in Australia;Mexico;and Thailand encountered burdensome NTMs at the origin market when seeking to import goods.Notably,most firms in Singapore and the United States reported that they did not face burdensome export NTMs when

243、exporting or at the origin market when seeking to import goods.On the other hand,most firms,particularly those in China;Singapore;and the United States,reported that they did not face burdensome import NTMs,either when importing goods or at destination markets when exporting goods that reduce GHG em

244、issions.This was not observed by most firms in Australia and Thailand.Figure 2.13 Share of firms that faced burdensome NTMs when importing and exporting Burdensome NTMs when importing Burdensome NTMs at origin markets when seeking to import 11 Burdensome had a particular meaning in the survey:a seri

245、ous impediment to trade in goods that reduce GHG emissions.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 30 Burdensome NTMs when exporting Burdensome NTMs at destination markets when seeking to export Firm has faced burdensome NTMs Firm has not faced burdens

246、ome NTMs Notes:n=163 exporting firms;n=161 importing firms Source:Deloitte Access Economics.Prevalence of NTMs by type A common view among both importers and exporters of goods reducing GHG emissions is that formalities and quantity control measures are most burdensome to their firm.These respective

247、ly rank first and second as barriers to trade for exporters(Figure 2.14),and apply to all sub-sectors within the manufacturing sector and sub-sectors.Firms identified a wide range of examples of export and import formalities,including:Burdensome documentation and bureaucracy(including an increasing

248、need to document supply chain transactions);Varying approaches to carbon/GHG measurement;Numerous and/or repeated customs declarations procedures;Ambiguity in inspections processes causing delays;and Lack of clarity on the timing and process for verifying certifications.Study on non-tariff measures

249、affecting trade in goods reducing greenhouse gas emissions 31 Figure 2.14 Share of firms reporting categories of export and import NTMs burdensome(percent)Notes:n=1,828 burdensome export market pairs and n=1,501 burdensome import market pairs;each market pair has at least one APEC member economy.The

250、se NTMs are presented here using shortened labels,but map to UNCTAD MAST classifications(although some categories have been combined.Export and import sanitary and phytosanitary measures come under technical barriers to trade.Import distribution restrictions and restrictions on post-sales services h

251、ave been combined into distribution and post-sales restrictions).The summation of the labels may not add to 100 percent because firms could select multiple NTMs.Source:Deloitte Access Economics.Further details on why exporters and importers in a specific economy view NTMs more broadly as burdensome

252、can be found in Box 2.3.Box 2.3 Exporters and Importers Perspectives on NTMs In 2013,the International Trade Centre(ITC),working with Thailands Ministry of Commerce,conducted a survey to elicit the views of the Thai business community regarding NTMs.Surveys were distributed to firms of various sizes

253、 and sectors(not just limited to goods that reduce GHG emissions),and were typically targeted at general managers or the companys employees responsible for the export and import process.The majority of Thai exporters and importers view NTMs as burdensome due in part to procedural obstacles(Figure 2.

254、15).In addition,most of the reported export(76 percent)and import(98 percent)procedural obstacles occurred in Thailand rather than the trading economy.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 32 Figure 2.15 Why exporters and importers view NTMs as burde

255、nsome Exporters Importers Notes:n=862 exporters and n=40 importers Source:ITC NTM Survey on NTMs in Thailand More specifically,delays in obtaining relevant documents,certification or approval from concerned authorities is the most frequent procedural obstacle that hinder the export process,accountin

256、g for 29 percent of all procedural obstacles in Thailand and 28 percent in partner economies(Table 2.8).High fees and charges and the need to submit many different kinds of documents to authorities in the export process were also cited by a greater share of Thai exporters.Notably,these procedural ob

257、stacles were also the most commonly cited by exporters involved in cited by companies involved in manufacturing trade.Table 2.8 Top 5 procedural obstacles and inefficient trade business environment faced by exporters in Thailand to partner economies(percent)Procedural obstacles faced by exporters Pe

258、rcentage share in Thailand Percentage share in partner economies Delays related to reported regulation 29 28 Unusually high fees and charges for reported certification/regulation 20 35 Large number of different documents 20 12 Numerous administrative windows/organisations involved,redundant document

259、s 8 1 Arbitrary behaviour of officials with regards to report regulation and classification and valuation of product 6 3 Notes:n=1,179 export-related procedural obstacles lodged in Thailand,of which n=897 are experienced in Thailand and n=282 are experienced in partner economies;Top 5 procedural obs

260、tacles is based on the total number of procedural obstacles experienced in Thailand Source:ITC NTM Survey on NTMs in Thailand As seen in Table 2.9,Thai importers faced similar procedural obstacles during the import process to their export counterparts.By far,the arbitrary behaviour of officials is t

261、he most common procedural obstacle faced by Thai importers followed by delay related to reported regulation and high fees and charges for reported certificate/regulation.Table 2.9 Top 5 procedural obstacles and inefficient trade business environment faced by importers in Thailand(percent)Procedural

262、obstacles faced by importers Percentage share Arbitrary behaviour of officials regarding classification and valuation of the reported product 34 Delay related to reported regulation 22 High fees and charges for reported certificate/regulation 15 Large number of different documents 7(Tied)Selected re

263、gulations change frequently;Documentation is difficult to fill out;Informal payment 4 Notes:n=47 import-related POs lodged in Thailand Source:ITC NTM Survey on NTMs in Thailand Therefore,the results of the NTM survey highlight the fact that the domestic trade environment,particularly at the procedur

264、al level,are impediments to trade.This increases the need for reforms in customs procedures,particularly in regards to transparency and standardisation of procedures.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 33 While formalities and quantity control meas

265、ures also rank first and second among all importers,importers of goods reducing GHG emissions across all manufacturing sub-sectors also view contingent trade-protective measures designed to counteract the adverse domestic industrial effects of imports as burdensome to their firm.While there are grow

266、ing efforts to harmonise technical regulations across a range of goods reducing GHG emissions,technical barriers to trade were perceived as burdensome by the fourth largest share of importing and exporting firms.While robust technical regulations are important for market confidence and product quali

267、ty given the technological complexity of many goods that reduce GHG emissions,consultations with industry stakeholders highlighted that the dispersion of technical regulations in products such as solar panels resulted in confusing customs regulation for firms.Therefore,harmonisation,mutual recogniti

268、on and equivalence across jurisdictions could help facilitate trade in goods reducing GHG emissions.Firms experience of NTMs by size Analysis also investigated whether firms perceptions of the burden associated with NTMs was affected by their size.Among respondent firms who exported goods reducing G

269、HG emissions,size did not have a substantial effect on the perception of burdensome NTMs.A full list of the share of firms that viewed export NTMs as burdensome is provided in Appendix A.9.Among importers,however,analysis revealed the size of the firm resulted in differences in firms experience of N

270、TMs.These differences were less prevalent among NTMs that were frequently cited as burdensome,and more pronounced among less commonly reported NTMs.Differences were greater among less frequently reported NTMs than they were among the most burdensome measures(Figure 2.16).More small firms viewed pric

271、e control measures and intellectual property as burdensome than large firms.A greater share of large firms,meanwhile,perceived trade-related investment measures and distribution and post-sales services as more burdensome.In addition,there were also a number of small firms who identified the impact o

272、f higher fixed costs to paperwork and compliance as limiting their ability to export their products.Figure 2.16 Share of selected burdensome import NTMs faced by small and large firms(percent)Notes:n=200 firms,of which 157 are large and 43 are small.Small firms are those with less than 200 employees

273、 while large firms have 200 employees or more.A full list of the share of respondents that viewed import NTMs as burdensome by firm size can be found in Appendix A.10.Source:Deloitte Access Economics.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 34 Firms exp

274、erience of NTMs differ by location Firms experience with NTMs also varies by the location of import or export.Grouping member economies by their World Bank income classifications(Hamadeh et al.,2022),firms trading in high income economies and upper middle-income economies had broadly similar perspec

275、tives on burdensome NTMs.Nonetheless,among exporters,it was notable that firms in Thailand were more likely to view formalities as burdensome,while firms in Singapore were twice as likely to view export subsidies as a serious impediment to trade on market pairs deemed burdensome compared to firms in

276、 other surveyed economies.A full list of the share of respondents that viewed export NTMs as burdensome at the member economy level can be found in Appendix A.11.As seen in Figure 2.17,a larger share of importing firms in high income economies viewed contingent trade-protective measures,quantity and

277、 price controls as burdensome while firms in upper middle-income economies were more likely to view formalities,technical barriers and intellectual property as burdensome,especially firms in Thailand.Figure 2.17 Share of firms that viewed selected import NTMs as burdensome,by income classification(p

278、ercent)Notes:n=200 firms;High income economies covers Australia;Singapore;and the United States while upper middle-income economies cover China;Mexico;and Thailand.A full list of the share of respondents that viewed import NTMs as burdensome by economy can be found in Appendix A.12.Source:Deloitte A

279、ccess Economics.Experiences of NTMs by market pair Table 2.10 summarises the top three market pairs by value of goods traded by firms located in each specific economy included in this survey(top five market pair rankings in Appendix A.13).It should be noted that these rates are not necessarily repre

280、sentative of the true extent of NTM barriers imposed between these market pairs,but simply highlight the diversity of experiences faced by firms in this survey.Based on the data below,the most valuable trade took place within the APEC region,often between two APEC member economies that are geographi

281、cally close together.In addition,each respondent locations largest market pairs in environmental goods were generally reflective of their largest trading partners across the broader economy.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 35 Table 2.10 Share of

282、 largest and most burdensome origin-destination market pairs of goods reducing GHG emissions,by respondent location(percent)Notes:n=200;For each economy above,the top 3 market pairs that were the most commonly cited as burdensome by respondents were listed.However,for Australia;Mexico;and the United

283、 States,there were several market pairs with the same share of respondents in that economy that listed the market pair as burdensome.For a fuller list of the most traded and most burdensome market pairs,please see Appendix A.13.Source:Deloitte Access Economics.Study on non-tariff measures affecting

284、trade in goods reducing greenhouse gas emissions 36 Experiences of NTM barriers to trade over time There is a broad consensus among respondent firms that trading goods reducing GHG emissions has become easier over the past five years(Figure 2.18).In fact,74 percent of firms agreed or strongly agreed

285、 that trade in these goods has become easier,with the number rising to 76 percent when the question was localised to the APEC region.The consensus is stronger among firms focused on renewable energy wherein 85 percent agreed that trade has become easier globally,while 83 percent agreed that it has b

286、ecome easier within APEC.Such strong consensus was also observed among firms that are focused on cleaner and more resource efficient technologies and air pollution control.This may reflect the reductions in tariffs within APEC or other NTMs.Nonetheless,it does appear that some more work needs to be

287、done,particularly amongst small firms(67 percent),who were relatively less likely than large firms(78 percent)to find that trade in goods reducing GHG emissions has become easier in the APEC region over the past five years.Figure 2.18 Share of firms that agreed and strongly agreed that it has become

288、 easier to trade goods reducing GHG emissions,by selected sub-sectors and size(percent)Notes:n=200 firms,of which 157 are large and 43 are small.Small firms are those with less than 200 employees while large firms have 200 employees or more.Source:Deloitte Access Economics.Survey respondents and int

289、erviews with stakeholders identified the disruptions of the pandemic and geopolitical tensions within and outside the APEC region as reasons for NTMs recently becoming more burdensome.Enablers of trade Firms have found that environmental regulation is the strongest enabler of trade in goods reducing

290、 GHG emissions(Table 2.11).Environmental regulation that creates incentives to decarbonise has facilitated trade of these goods,especially for firms focused on air pollution control with more than 80 percent of respondents in this sub-sector finding that environmental Study on non-tariff measures af

291、fecting trade in goods reducing greenhouse gas emissions 37 regulation has facilitated trade by creating demand for their products.Transparency,as well as alignments of technical regulation and conformity assessments,have also streamlined compliance processes to facilitate trade.In addition,it is no

292、table that sub-sectors with products and technologies that can help other sectors decarbonise(e.g.,cleaner and more resource efficient technologies,air pollution control)are more likely to view efforts to promote research and development as key to facilitating trade compared to the wider sample.Furt

293、her details on sub-sectors views on the strongest enablers of trade is provided in Appendix A.14.Table 2.11 Share of firms that considered these policies as enablers of trade in goods reducing GHG emissions(percent)Policy All respondents Small firms Large firms Implementation of environmental regula

294、tions 62 65 61 Promotion of research and development 50 35 54 Greater transparency of domestic measures 48 37 50 Alignment of technical regulations and conformity assessment procedures 41 19 46 Strengthening supply chain resilience 40 30 43 Facilitation of patent procedures 36 28 38 None of the abov

295、e 2 2 1 Notes:n=200 firms,of which 157 are large and 43 are small.Small firms are those with less than 200 employees while large firms have 200 employees or more Source:Deloitte Access Economics.However,the view that government policies have enabled trade in goods reducing GHG emissions is mainly he

296、ld by larger firms,with a similar proportion of small and large firms viewing the implementation of environmental regulation as helping them facilitate trade.In all other policy areas,the share of small firms that viewed these policies as enablers of trade is notably less than large firms.More widel

297、y,consultations with stakeholders throughout the value chain suggest that government policies and regulations that can create demand and develop the market for goods reducing GHG emissions are more important than policies that can help facilitate trade in the long run.Interviews with stakeholders id

298、entified that the maturity of the market for a particular good reducing GHG emissions influenced how significant NTMs were in affecting their trade.The use of domestic regulation and interventions could be especially beneficial in emerging industries or the commercialisation of new technologies,wher

299、e government policies can help create incentives for switching away from emissions-intensive substitute products.For many firms and products that are not widely traded,NTMs were not necessarily the main barrier to trade domestic regulation or carbon pricing would be required to create the market in

300、the first place.An example of how environmental regulation could help an emerging industry can be seen in Box 2.4.In high income markets,a range of government policies could directly or indirectly increase trade of goods that reduce GHG emissions.It should be noted that while such policies may only

301、affect firms in a particular industry,they could have wider implications throughout the value chains of goods reducing GHG emissions.For example,government incentives for firms in Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 38 emissions-intensive industrie

302、s to switch to lower carbon alternatives can help increase demand and consequently trade for goods reducing GHG emissions and its related inputs.Alternatively,policies that help develop industries involved in the value chain of goods reducing GHG emissions can help facilitate trade.Box 2.4 Environme

303、ntal Regulation and International Trade in Clean Hydrogen Clean hydrogen12 is a good example of an emerging industry where government measures can support the creation of a market for international trade.Clean hydrogen is expected to facilitate decarbonisation in hard-to-abate industries,like aviati

304、on,steel and shipping.Despite this,it is not yet traded because production costs exceed those of its emissions-intensive competitors.As a result,there is a role for government to stimulate demand in order to create a market for trading clean hydrogen.Consultations with stakeholders identified contra

305、cts for difference and regulatory standardisation as two means of advancing this objective.Contracts for difference help to match buyers and sellers in a market.They pay out the difference between buyers maximum willingness to pay and sellers minimum sale price thereby bridging the gap between buyer

306、s and sellers.Germanys H2Global is a contract for difference mechanism for clean hydrogen trade which has committed EUR 900 million to matching energy consumers with hydrogen producers and subsidising the difference(BMWK,2021).Through this,the German government stimulates demand to create a market t

307、hat would not otherwise exist.This gives investors the confidence that the upfront costs of investments will be recoverable(H2Global Stiftung,2022).Regulatory standardisation can enable trade in clean hydrogen by helping to reduce uncertainty.Disagreement over this definition has inhibited the clean

308、 hydrogen trade.Some proponents of stricter definitions argue that hydrogen producers should demonstrate that their product uses additional renewable electricity,not that which is required by the grid(Parkes,2022).Critics counter that this stricter definition would stifle industry growth(Hydrogen Eu

309、rope,2022).Disagreement creates uncertainty for investors,who know that green certification will lead to increased demand.As such,a consensus on the definition of clean hydrogen or establishing criteria to consider when hydrogen could be considered as clean could improve the tradability of clean hyd

310、rogen by enshrining consistent credentialing across markets.Likewise,policies that could directly reduce trading costs could make firms throughout the value chain more willing and able to trade.One stakeholder noted that Viet Nams recent decisions to introduce import tax relief for firms involved in

311、 solar energy and the temporary lowering of the value-added tax from 10 percent to 8 percent have played a role in influencing them to expand their presence in this economy.In contrast,another stakeholder highlighted that NTMs were not used to facilitate trade in goods reducing GHG emissions more th

312、an any other types of goods.They recognised that in some products,the government has used NTMs in ways that limit imports to protect fossil fuel-based generators.Through the issuing of green bonds,financial institutions can also play a crucial role in helping to increase demand for renewable energy

313、projects and,consequently,facilitate trade.In asset-heavy products such as solar power generation projects,with high capital expenditure and an environment where interest rates are increasing,financial instruments,such as green bonds that can help firms obtain intermediate inputs without paying all

314、of the upfront costs,can increase the demand for such products and,consequently,the viability for renewable energy projects.12 There are a range of standards and definitions on what constitutes clean,green and low-emissions hydrogen.Clean hydrogen is used here because it aligns with this studys defi

315、nition of environmental goods.Clean hydrogen tends captures a broader range of hydrogen products than other definitions,which reflects the broad approach to environmental goods adopted for this report.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 39 FTAs can

316、 also help facilitate trade in goods reducing GHG emissions.Most firms(73 percent)used FTAs to export or import these goods,with uptake relatively higher among firms focused on transportation equipment and air pollution control than other manufacturing firms(Figure 2.19).The usefulness of FTAs to fi

317、rms was reinforced during stakeholder interviews,with one firm noting that the high number of FTAs that Singapore has with key partners has influenced their decision to be based in the economy.13 Another stakeholder based in Mexico raised that without FTAs,they would expect NTM reforms for goods red

318、ucing GHG emissions to move much more slowly in certain economies.The most utilised FTAs were not necessarily those with the largest share of market pairs.For example,firms based in Canada;Mexico;and the United States were more likely to utilise the United States-Mexico-Canada Agreement alongside Au

319、stralias agreements with China and Japan.Smaller firms(63 percent)are less likely to utilise FTAs compared to larger firms(76 percent).Consultations with industry stakeholders also suggest that increasing the scope of FTAs to cover green sectors could be another ground for bilateral and multilateral

320、 cooperation.A blueprint for how economies can work together to facilitate trade in goods reducing GHG emissions can be seen in the Singapore-Australia Green Economy Agreement.This Agreement will see both economies embark on 17 joint initiatives,which include promoting business engagements and resea

321、rch collaborations in areas such as green and transition finance,carbon markets,decarbonisation and technology,standards and conformance and skills and capabilities.Both economies have also jointly developed a non-exhaustive list of 372 environmental goods and 155 environmental services and will see

322、k to cut tariff and non-tariff barriers facing these goods(Zhang,2022).It is hoped that this Agreement could be used as a framework that other APEC economies could use to further increase trade in these goods.Figure 2.19 Share of firm use of FTAs in the 2021 calendar year(percent)Notes:n=200 firms,o

323、f which 157 are large and 43 are small.Small firms are those with less than 200 employees while large firms have 200 employees or more.Source:Deloitte Access Economics.13 According to data from the Asian Development Bank,Singapore has signed 45 FTAs,the highest when compared against other economies

324、in the Asia-Pacific region.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 40 Among firms that did not use FTAs,the costs of utilization,unawareness of the agreements and the pre-existence of low or zero-tariffs affecting goods are commonly cited reasons for n

325、onparticipation(Figure 2.20).Figure 2.20 Share of firms with reasons why to not use FTAs(percent)Notes:n=54 firms Source:Deloitte Access Economics.Study on non-tariff measures affecting trade in goods reducing greenhouse gas emissions 41 3.WAYS FORWARD:AREAS OF REGULATORY COOPERATION AND POLICY RECO

326、MMENDATIONS The report findings through the analysis of trade databases and firm survey and interviews show that NTMs could either represent a barrier of trade in goods reducing GHG emissions.Many of the findings analysing trade databases have been corroborated by firms through the survey and interv

327、iews.In fact,all these sources show that most of the NTMs affecting trade are related to import and export formalities(for example,licensing procedures),quantity or price-control measures,contingency trade-protective measures and technical requirements.However,the survey findings and interviews also

328、 noted that NTMs could be enablers of trade in goods reducing GHG emissions.Domestic policy and regulations are essential to create new markets and develop existing markets for goods reducing GHG emissions.In fact,most of the firms acknowledge that environmental regulations play a big role in encour

329、aging trade relating to those goods.In addition,a significant percentage of firms acknowledged that measures on transparency of domestic measures and alignment of technical regulations and conformity assessment procedures could facilitate more trade as well.What could be done to create momentum and

330、contribute positively to climate change alleviation and mitigation by encouraging trade in goods to reduce GHG emissions?A wide range of technologies are required to support reducing GHG emissions.Efforts to reduce trade-restrictive NTMs should support this diversity and not just cover renewable ene

331、rgy production,but also goods for air pollution control,waste management,resource/energy efficiency,cleaner technologies,among others.In addition,governments need to put more emphasis on the implementation of NTMs that could enable trade.APEC economies could consider implementing actions from many d

332、ifferent angles:In the short run,cooperation could prioritize reducing trade-restrictive NTMs affecting mature technologies that have the greatest potential to reduce emissions.According to a report by PwC,solar energy,wind energy and green hydrogen production are among the technologies with greater

333、 potential to reduce GHG emissions(PwC,2021).It is important to continue to monitor the emergence of NTMs in emerging technologies as their trade grows(e.g.,electric vehicles),while implementing policies to drive demand for those products.Changes to current NTMs restricting trade of goods reducing GHG emissions need to take into account their global value chains.Lowering barriers to trade,not just