Study on Non-Tariff Measures Affecting Trade in Goods Reducing Greenhouse Gas Emissions

Global warming and climate change have been increasingly part of both domestic and international discussions since the 1970s. But actions failed to keep pace with the discussions. It was only in 2015 that 196 Parties agreed, through the Paris Agreement, to legally bind themselves to jointly address the worsening climate change situation. Achieving the goals of the Paris Agreement requires investment, planning, and timely action. One way to achieve this goal is through international trade, which can encourage the widespread adoption of products and technologies that contribute to greenhouse gas (GHG) emissions reductions. This underscores the importance of liberalizing international trade, which includes not just the elimination of tariffs but also non-tariff measures (NTMs).

This report finds that APEC member economies have taken steps to facilitate trade in these GHG-reducing goods, but more work needs to be done. Among NTMs, export and import formalities and quantity restrictions were found to be the most widely recognized barriers to trade in these goods. Firms also note that the costs imposed by NTMs, while burdensome, are less influential to their trade volumes than domestic policies. Across all these, firm-level experience has varied, indicating the importance of considering firms' perspectives when designing effective multilateral trade policy. This report provides policy recommendations to help facilitate further the trade in GHG-reducing goods.