Select Committee on Environmental Audit Minutes of Evidence


Examination of Witnesses (Questions 120-124)

MR GARY CAMPKIN, MR NEIL HARVEY AND MR STEVE BARNETT

20 JULY 2006

  Q120  Joan Walley: I do not understand how if you are rejecting the list system.

  Mr Campkin: Trade liberalisation in and of itself through the NAMA negotiations and, indeed, trade in environmental services through the negotiations on GATS will do that. It goes back to the notion of having an ambitious and balanced conclusion to the round. Within the negotiations itself, the NAMA and within the GATS, we think that will deal with the issue.

  Mr Harvey: Can I say, there is a list system already in place in the WTO for a sector and that is for pharmaceutical ingredients. It was agreed in the Uruguay round that ingredients that go to pharmaceuticals should be zero-rated for duty if they were only used in pharmaceuticals, so for sole use. There is a distinct tariff code for pharmaceutical ingredients, so it is relatively easy to say, "Yes, those ingredients only go to pharmaceuticals". Customs officers do not have an issue in terms of what the chemicals may go into because they are just used for pharmaceuticals. We do not have a problem with the list system if it is run in a very transparent way. It is not clear to us what an environmental good is, no-one has defined it. I will give you another example. If a water treatment plant qualified as an environmental good, the chemicals which the plant relies on to work may not be because they have duel use. They may be used in other sectors which may not have such environmental benefits. How does a customs officer know that a chemical is going to be used in a water treatment plant or in a chemicals complex? He is not going to know that.

  Q121  Joan Walley: If I can move on from pharmaceuticals to fisheries. You argue that trade liberalisation will be good for fisheries. Having been out at the World Summit on Sustainable Development and having met many people from countries all around the world who are very concerned about the impact of trade liberalisation on fisheries and what it could mean to unsustainable levels of extraction for local communities, I am interested in how you justify your comments that trade liberalisation will be good for fisheries.

  Mr Campkin: The comments in our evidence were related to the fact that in many instances there are subsidies given to fisheries industries around the world which encourage unsustainable practices. We believe that through the trade liberalisation negotiations more effective use of resource will be encouraged by trade liberalisation because it will remove the need to provide some of those subsidies and, therefore, will change the practices within the fishing industry.

  Q122  Joan Walley: Are you not afraid that you could end up with large commercial trawlers going in and hoovering up fish supplies and fish stocks? Are you not concerned about the effect that could have on local markets?

  Mr Campkin: I think you raise a particularly important issue. Of course there is concern, but the comments specifically in our paper relate to the subsidies that are provided in some countries to the fishing industry which we believe promote unsustainable practices. It is that which those comments in our paper focus on.

  Q123  Joan Walley: You have not met any processes in respect of the concerns that have been expressed to us which I have just outlined, including from different NGOs?

  Mr Campkin: I cannot offer any other comment on that particular issue.

  Q124  Chairman: Thank you very much for your evidence this morning, it has been very useful. If we have one or two more queries on the timber trade licensing, we may write to you and perhaps we can get a written response to those queries.

  Mr Campkin: I would be very happy to respond to any further questions, Chairman.

  Chairman: Thank you very much. Sorry that we were a bit late starting.





 
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