A few slides on A few slides onTTIPTTIPpreferential andpreferential and differential treatment ofdifferential treatment of goods in support of policygoods in support of policy coherence and sustainablecoherence and sustainable development developmentby Burghard Ilge, Both ENDSBrussels 15 July 2015The role of import tariffs forpolicy coherence for sustainable developmentShort contribution on the effect of TTIP on: poorest countries more sustainable production methodsCoherence with e.g.:Lisbon treaty (Art. 21, Art. 191, Art. 208)International agreements and consensuses reached (such as WSSD & WTO)Effect of TTIP on poorest countries % of population living on < US$ 2 per day (Pew Research Center, 8 July 2015) TTIP will lead to preference erosionwill undermine the objective of GSP systems of EU & USAimpact on Least Developed Countries LDCsand countries in Sub Sahara Africa (SSA)Trade diversion will have serious impact on Africa 40% of Africas exports are destined either for the US or EU market.African exports are highly concentrated: textiles, clothingand footwear, where present European and American tariffs are typically more than 10 %; specific agricultural products such as fish, bananas and sugarThe higher the current existing protection in the US & EU markets, the greater the scope for hurting African exporters through TTIP+(99,8 %)-(98 %)product coverage-(27/48)+ (44/48)country coverageEBA (EU) AGOA (US) GSP for SSAWe need a new better[EU-US harmonized] preference schemee.g. by taking the best features of bothmutual recognition of origin regimes across preference giversaccepting an import eligible in one market as eligible in the otherWTO and improvement of preferentialRoO for LDCs(Annex F)WTO Hong Kong Ministerial Declaration"Decision on Measures in Favour of Least-Developed Countries"Developed country Members shall, and developing country Members declaring themselves in a position to do so should: ensure that preferential rules of origin applicable to imports from LDCs are transparent and simple, and contribute to facilitating market access".See also WTO Bali package : WT/MIN(13)/42, WT/L/917, 11 Dec 2013Effect of TTIP on more sustainable production methodsThe cost of the European environmental, health and animal welfare rules are estimated [to be] 5.1% of the total cost of poultry meat [on farm level].The cost of health, environmental, and housing requirements amount to over 15% of the cost of eggs. In particular, the elimination of battery cages in 2012, has led to a doubling of the housing costs relative to countries outside the EU.Letter of Ministry of economic affairs to the Dutch parliamentProduction costs of broiler meat in the USA are only 78% of costs in the EU. Why? Environment: e.g. No measures taken to limit NH3emission Food safety: lower feed cost (Meat-and-bone-meal, growth promoters [antibiotics] & GMOs) Animal welfare: e.g. No regulation on bird densities and other reasons (e.g. cost of labour, cost of energy ...)Food safety and animal health (SPS measures) are important part of most of trade agreementsbut the environment, animal welfare and labourconditions are not (high) on the agendaHow to deal with differences in internalization of environmental costs (and other non trade concerns) a) Eliminate tariff => competitive advantage for free ridersb) Exclude tariff on sensitive products like: eggs, poultry, [], concrete and cement products, []How long is the list ?Could it be amended in the future ? c) Set up a process to determine the differencesin environmental costs to allow fair anti dumping measureto prevent unfair competition and to make adjustments in the future possible.ConclusionTTIP will have to be coherent with our obligations and ambitions for sustainable development and poverty eradication.How to mitigate negative effect of preference erosion for our GSP systems ?(mutual recognition of existing preference regimes + improved RoO for LDCs)How to prevent that tariff eliminationundermines efforts aiming at more sustainable production processes ?(set up process to acknowledge cost difference in production requirements and to mitigate unfair cost advantages)Thank YouBurghard IlgeEmail:bi@bothends.orgTwitter:@bibothendsWebsite:www.bothends.orgAdditional slidesLisbon treatyArt. 108.1[] Union development cooperation policy shall have as its primaryobjective the reduction and, in the long term, the eradication of poverty. The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries.Lisbon treatyArt. 191.2 Union policy on the environment shall [] be based on [] the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source and that the polluter should pay.WT/MIN(13)/42WT/L/91711 December 2013Decides as follows: 1.1. With a view to facilitating market access for LDCs provided under non-reciprocal preferential trade arrangements for LDCs, Members should endeavour to develop or build on their individual rules of origin arrangements applicable to imports from LDCs in accordance with the following guidelines.[]A.1.7. Cumulation should be considered as a feature of non-reciprocal preferential trade arrangements. [...] For example, such arrangements may allow bilateral cumulation (i.e. cumulation with the respective preference-granting country) as well as cumulation with other LDCs. Other possibilities include cumulation among GSP beneficiaries of a given preference-granting country and/or among developing country Members forming part of a regional group as defined by the preference-granting country.Plan of Implementation of the World Summit on Sustainable DevelopmentWSSD[] All countries should take action, with developedcountries taking the lead, [...](b) Adopt and implement policies and measures aimedat promoting sustainable patterns of production and consumption, applying, inter alia, the polluter-pays principle described in principle 16 of the Rio Declaration on Environment and Development;