The formal signing of the ACCTS by New Zealand, Costa Rica, Switzerland, and Iceland was welcomed by the Wood Processors and Manufacturers Association. Source: Timberbiz
“The ACCTS is significant as it is the first trade agreement of its kind dedicated to trade and climate issues hence demonstrating a fresh approach to global trade negotiations,” said WPMA Chief Executive, Mark Ross.
“The agreement eliminates tariffs on 316 environmental goods, including 34 wood products such as sawn timber, pulp, and panels for construction.”
New Zealand exports over NZ$2.4 billion of wood products worldwide and has a leading story to tell around our sustainable and renewable forests fitting strongly with the core goals of ACCTS.
“By capturing atmospheric carbon, wood has an important role to play within the global carbon cycle and our fight against climate change,” said Mr Ross.
Particularly important is the fact that this agreement opens new opportunities for New Zealand wood product exporters. Being designed as an open plurilateral agreement means that other core trading partners will be encouraged to join ACCTS over time thus growing our export markets for environmental and sustainable goods.
The ACCTS was conceived out of the idea that the policy levers needed to drive the transition to low-emissions, climate-resilient and sustainable economies must and can include trade policy, rules and architecture.
It is a ground-breaking trade agreement bringing together the interrelated elements of climate change, sustainability and trade. It will include ambitious and environmentally credible lists on environmental goods and services, removing tariffs on over 300 environmental goods and including more than 100 environmental and environmentally related services, facilitating market access and providing greater certainty for suppliers on a non-discriminatory basis.
At the same time, the ACCTS supports Parties’ shared commitments to uphold the objectives of the United Nations Framework Convention on Climate Change and goals of the Paris Agreement, to achieve net zero emissions and promote sustainable development.
The ACCTS includes innovative principles-based guidelines for voluntary eco-labelling programmes to better support consumers to choose products based on their environmental credentials, promote trade in sustainable products and avoid the inadvertent creation of barriers to trade.
New Zealand, Costa Rica, Switzerland, and Iceland may well have started something that not only could lead to a larger trade and climate agreement but also provides a lesson in decisiveness that all countries should take to heart.
More detail on ACCTS can be found at https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-concluded-but-not-in-force/agreement-on-climate-change-trade-and-sustainability-accts?m=367484#search:QUNDVFM=
