Defining Environmental Goods and Services and their Trade and by yaofenjin

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									Defining Environmental Goods and Services and
    their Trade and Sustainable Development
                  Implications

                    A Case Study of Mexico


                           By
                     Enrique Lendo,
  Consultant in Environmental Strategy and Negotiation
                  (www.coesna.com.mx)
             Email: elendo@coesna.com.mx




                            Commissioned by the
     North American Commission for Environmental Cooperation (CEC)
                                   and the
    International Centre for Trade and Sustainable Development (ICTSD)

                                  October 2005



 The views in the paper are those of the author and do not necessarily reflect the
 views of the North American Commission for Environmental Cooperation (CEC)
 or the International Centre for Trade and Sustainable Development (ICTSD).
                                                                                     1
    ANNEX I: ENVIRONMENTAL GOODS AND SERVICES OF TRADE INTEREST TO MEXICO –
                           ILLUSTRATIVE CATEGORIES

Environmental Goods

C. RESOURCE MANAGEMENT


                     TYPE OF GOOD
                                                                TYPE OF CRITERION APPLIED
1. Indoor air pollution control
2. Water supply and sustainable water management
3. Recycled materials
4. Renewable energy plant
5. Heat/energy saving and management
Specific goods in the Mexican market
Refrigerators                                                  -Compulsory Standard - -
                                                               Compulsory and Voluntary labelling
Freezers                                                       - Compulsory standard
Central air conditioners                                       - Compulsory standards
                                                               - Compulsory label
Other air conditioners and heat pumps                          - Compulsory label
Fluorescent balasters                                          - Compulsory label
                                                               - Compulsory standard
Televisions                                                    - Voluntary label
Water heat boilers                                             - Compulsory standard
Other water heater                                             - Compulsory standards
Engines                                                        -Compulsory standard
                                                               -Compulsory label
Residential centrifuge pumps                                   - Compulsory standard
                                                               - Compulsory label
Commercial refrigerators                                       - Comp standard
                                                               - Compulsory label
6. Clean energy and fuels
Specific goods in the Mexican market
Goods and equipment to extract, transform and distribute:      -Compulsory standards
petroleum liquid gas, natural gas, methanol, ethanol,          - Mandatory standards
biomass, biogas and clean gasoline
7. Sustainable agriculture and fisheries
Specific goods in the Mexican market
6.1 Sustainable agriculture1
Coffee                                                         - Voluntary label and Certifications2


1
 Some certification schemes for sustainable agriculture present in the Mexican market are: Organic Crop Improvement
Association, Certimex, Naturland, Quality Assurance International, Bioagricoop, Institute for Market Ecology Control,
Oregon Tilth Certified Organic, EKO (Skal), CADS, Demeter Association. (Comercio Exterior: México como abastecedor
de productos orgánicos, Vol. 53. Nom. 2, February, 2003).


                                                                                                                        2
                     TYPE OF GOOD
                                                                   TYPE OF CRITERION APPLIED
Maize                                                            - Voluntary label and certification
Sesame seeds                                                     - Voluntary label and certification
Vegetables                                                       - Voluntary label and certification
Cactus (maguey)                                                  - Voluntary label and certification
Different herbs                                                  - Voluntary label and certification
Mango                                                            - Voluntary label and certification
Oranges                                                          - Voluntary label and certification
Beans                                                            - Voluntary label and certification
Apples                                                           - Voluntary label and certification
Papaya                                                           - Voluntary label and certification
Avocado                                                          - Voluntary label and certification
Soya beans                                                       - Voluntary label and certification
Bananas                                                          - Voluntary label and certification
Honey                                                            - Voluntary label and certification
Cocoa                                                            - Voluntary label and certification
African palm                                                     - Voluntary label and certification
Vanilla                                                          - Voluntary label and certification
Pine apples                                                      - Voluntary label and certification
Lemon                                                            - Voluntary label and certification
Coconuts                                                         - Voluntary label and certification
Nuts                                                             - Voluntary label and certification
Litchi                                                           - Voluntary label and certification
Honey                                                            - Voluntary label and certification
Milk                                                             - Voluntary label and certification
Cheese                                                           - Voluntary label and certification
Cosmetics                                                        - Voluntary label and certification
6.2 Sustainable fisheries
Yellow fine tuna                                                 - International agreement
                                                                 recommendation3
8. Sustainable forestry4
Specific goods in the Mexican market
Wood                                                             - Voluntary certification and label
Wood products                                                    - Voluntary certification and label
9. Natural risk management
10. Sustainable Biodiversity Management5 and Landscape

2
  Some popular labels and certification schemes for sustainable grown coffee in Mexico are: Fair Trade (Comercio Justo) for
sustainable coffee, and Rain Forest Alliance and Smithsonian Bird Friendly for shade grown coffee. Sustainable coffee also
accounts for the largest grown area within sustainable agricultural products, totalling 70,838 hectares in 2000.
3
  Despite the fact that there are several dolphin-safe certification schemes in the market, Dolphin Safe ADPIC (Agreement
for the International Conservation of Dolphins) is the one recommended by the Mexican Ministry of Agriculture and
Fisheries because it is better tailored to national circumstances.
4
  The majority of sustainable forest management certification undertaken in Mexico has been performed by the Forest
Stewardship Council. As of February 2004, 32 certificates had been granted covering a forest area of 565,327.
5
  The Mexican Law of Wildlife provides guidelines for the sustainable management of wildlife species, including the
establishment of Environmental Management Units (UMAS). UMAS are permits granted by the Mexican Government to
public and private entities, communities and other groups for the establishment of units of sustainable management of flora
and fauna. Within UMAS, wildlife can be managed for: a) extractive use (sport hunting, pets, ornaments, food, raw materials
for industrial use and handicrafts, exhibition and collection, and b) non-extractive: eco-tourism, research, environmental


                                                                                                                         3
                      TYPE OF GOOD
                                                                    TYPE OF CRITERION APPLIED
Specific goods in the Mexican market
9.1 Wild life management
Pets and ornamental fauna                                          - Compulsory management plan
Ornamental flora                                                   - Compulsory management plan
9.2 Hunting for recreational purposes                              - Compulsory management plan
                                                                   - Hunting permit
9.3 Extraction of other biodiversity products
Resins                                                             - Compulsory management plan
Latex                                                              - Compulsory management plan
Chicle                                                             - Compulsory management plan
Rubber                                                             - Compulsory management plan
Inputs for handcrafts                                              - Compulsory management plan
Bamboo                                                             - Compulsory management plan
Natural fibers                                                     - Compulsory management plan
Rattan                                                             - Compulsory management plan
Bromeliads                                                         - Compulsory management plan
11. Eco-tourism
12. Other




education, photography, video and film industry. It is worth noting that a key goal of the UMA Programme is to make
conservation of biodiversity compatible with the economic and social development of different communities and groups
through fostering the establishment of production units of species, products and by-products for marketing and consumption
purposes. Mexico has also signed and ratified the CITES Convention. According to CITES, species included in Appendixes
I and II cannot be traded. There are currently 12 birds, 17 reptiles, and 11 mamals in the Mexican Appendix I and II lists. All
species not included in these CITES Appendixes are subject to international trade under sustainable management conditions
(Mexican Ministry of Environment and Natural Resource, www.semarnat.gob.mx).


                                                                                                                             4
Environmental Services
C. RESOURCE MANAGEMENT


                           TYPE OF SERVICE                            TYPE OF CRITERION APPLIED

         1. Indoor air pollution control
         2. Water supply
         Specific service in the Mexican market
         Bottling
         Engineering
         Project development
         Infrastructure construction
         Construction of water wells
         Sales and distribution
         Maintenance
         Consulting services
         3. Recycled materials
         4. Renewable energy
         5. Heat/energy saving and management
         Specific service in the Mexican market
         Energy saving audits (ESCOS)
         6. Clean energy and fuels
         Specific service in the Mexican market
         Management systems and other services for clean
         energy
         Electricity, transportation and other services provided   - Compulsory standard
         with methanol, ethanol, biomass, biogas, clean
         gasoline
         7. Sustainable agriculture and fisheries
         8. Sustainable forestry
         Specific service in the Mexican market
         Protection of forests and promotion of sustainable
         forestry
         9. Sustainable biodiversity6 management & landscape
         Specific service in the Mexican market
         Ecological and habitat protection
         Natural protected areas management
         Park management
         Research
         Environmental education
         Photography, video and filming
         10. Natural risk management
         11. Sustainable tourism
         Specific service in the Mexican market
         11.1 Sustainable managed tourism services7


6
    See explanation of biodiversity goods above.


                                                                                                  5
                          TYPE OF SERVICE                                   TYPE OF CRITERION APPLIED

       Lodging                                                         - Voluntary certification
       Tourism services                                                - Voluntary certification
       Destination                                                     - Voluntary certification
                                                                       - Compulsory standard
       11.2 Eco-tourism
       12. Other




7
  Mexico launched a comprehensive sustainable tourism plan, which includes the development of certification schemes for
three types of services: hotels, general tourism services and destinations. Currently there are several pilot projects throughout
the country and the goal is to reach international standards and recognition. There is also a National Water Quality
Monitoring Programme for beaches, which includes a certification mechanism through quality/safety assurance flags.


                                                                                                                               6
      ANNEX II: ENVIRONMENT LABELLING AND CERTIFICATION SCHEMES IN MEXICO

The market for environmental labelling and certification schemes in Mexico has grown exponentially over the
last two decades. A recent survey undertaken by the North American Commission for Environmental
Cooperation (CEC) found over 40 major schemes operating in Mexico administered by governmental and non-
governmental authorities and the private sector (CEC, 2004a). The CEC survey also identified three projects to
set voluntary standards for environmental labelling and certification schemes in general, and seven major
initiatives for international standardisation and mutual recognition in which Mexico is currently involved.

Mexican government initiatives have targeted the manufacturing, energy and tourism sectors through voluntary
programmes, and the forest, manufacturing, energy and health sectors through mandatory technical labelling or
marking standards. While Mexico does not have a national environmental label or certification scheme, such as
Blue Angel in Germany or Terra Choice in Canada, there are examples of successful government administrated
labelling and certification schemes, such as the Environmental Audit Programme (EPA) of the Mexican Federal
Attorney for Environmental Protection (PROFEPA) Environmental Audit Programme (EAP) and Mexican
Trusteeship for electric Energy Saving (FIDE) SEAL for energy saving.

The Environmental Audit Programme (EAP) was one of the two policy instruments supporting the creation of the
Mexican Federal Attorney for Environmental Protection (PROFEPA) in 1992. Its goal is to foster the adoption
and implementation of measures to prevent, reduce and mitigate environmental risk and impacts. The purpose of
the EAP is to influence the environmental performance and continuous environmental improvement of Mexican
companies and institutions through marking incentives – “seals of performance”. Certificates and seals constitute
mechanisms of market penetration and prestige, as well as proof of compliance with national environmental
legislation. The programme works through voluntary agreements between PROFEPA and the organisations being
audited.

The PROFEPA-EAP granted 2,700 licenses to use its environmental performance seals after 12 years of
operation in over 20 industries. The main industries participating in the EAP are: automotive and auto parts, pulp
and paper, paint and paper, chemicals, photography, pharmaceutical, electronics, machinery,        food         and
beverages, glass, plastic, steel, aluminium, cooper and iron, transport (mainly airports, trains and ports), energy
(mainly oil, gas and electricity), mining, tourism (mainly hotels), hospitals, environmental services, construction
and real estate and government agencies.

FIDE is a quasi-public organisation created in 1990 to promote energy saving and rational use of energy actions.
The FIDE-SEAL, one of FIDE’s leading programmes, is a voluntary identification programme for energy
efficient electrical products. A license to use the FIDE-SEAL is granted after verifying the efficiency level of a
product. The FIDE-SEAL allows consumers to identify efficient products among a wide range of options in the
marketplace. Both manufacturers and dealers of electrical equipment can apply for a FIDE-SEAL license. FIDE
is currently working with 25 companies and 2,027 models of energy saving products, including electric engines,
lighting equipment, residential electronics, hydraulic pumps, energy saving controls and entertainment
electronics.

Most of the participants involved in the EAP are large companies in the manufacturing sector that are able to
afford the consulting and engineering costs of implementing environmental management systems, as well as the
certification cost of environmental audits. The EAP has certification options for sectors other than manufacturing,
but so far these options have not attracted a large amount of participants. The recently launched sustainable
tourism certification programme might change this trend. The Ministry of Tourism (SECTUR) has decided to use
the PROFEPA seal of environmental performance to initiate this programme.




                                                                                                                 7
While government certification programmes for sustainable tourism and water quality for Mexican beaches are
promising initiatives,8 it is still too early to assess their effectiveness. The fact that PROFEPA (a government
authority) is both setting the standards and granting the certificates raises concerns about the market driven
incentives inherent in the Environmental Audit Programme. One way forward would be to consider an
independent specialized entity with a wide range of products to serve different markets. This entity could build
on FIDE´s expertise in certification and broaden the range of sectors to include tourism, manufacturing, energy,
agriculture, forestry, fisheries and transport. It could also seek recognition in international markets and sound
support and facilitation mechanisms for SMEs – both of which are pending issues for the EAP.

The enactment of the Mexican Federal Law of Meteorology and Standardisation (FLMS) in 1992 and its 1997
amendment updated the regulatory framework necessary for standard setting, as well as labelling and certification
policy making in Mexico. This framework has been used in many cases for the development of voluntary and
mandatory environmental standards.

Mandatory environmental standards are designed and implemented by the Mexican Ministry of Environment and
Natural Resources (SEMARNAT) and by working groups comprising SEMARNAT and other ministries. There
are currently 93 environmental standards in place, eight of which consider either a labelling or marking scheme
for environmental protection or sustainable use of natural resources.

Mandatory environmental standards can be classified into five major groups according to the sectors they target,
namely:

    a) Primary and Natural Resources: Thirty-four standards in this sector regulate emission limits from
       primary sector activities to different environmental media; manage the sustainable use of fauna, flora,
       forests, biodiversity, soil and wetlands; and set the guidelines and specifications for analysing and
       monitoring natural resources. None of the standards address labelling or certification schemes. However,
       four of them refer to marking and packaging of wood and wood products for sustainable management
       and sanitary and phytosanitary purposes.

    b) Manufacturing: Activities in this sector are regulated by 24 standards primarily addressing pollution
       emission limits from manufacturing utilities; the maximum content of certain components in products;
       and the analysis and management of pollutants, mainly hazardous waste. Only one of the standards
       includes labelling requirements.

    c) Energy and Extraction: Activities in this sector embraces nine standards regulating product
       characteristics, mainly for fuels; emission limits of pollutants; and specifications for process and
       production methods. None of the standards require labelling or certification schemes.

    d) Urban Development, Transport and Tourism: Activities are regulated by 21 standards addressing
       emission limits, pollution analysis and management, as well as process and production methods. None of
       these standards refer to labelling or certification schemes.

    e) Multi-sector: There are currently five standards that have been jointly developed by SEMARNAT and
       the Mexican Ministries of Agriculture, Energy, Economy, Transport and Health to address a range of
       issues in diverse sectors, such as land management to prevent agriculture-related fires, energy efficiency,

8
 There are currently over ten sites being monitored under the programme for water quality for Mexican beaches: Los Cabos
and La Paz in Baja California Sur; Mazatlán in the State of Sinalóa; Bahia de Banderas in Nayarit; Puerto Ballarta in
Jalisco; Manzanillo in the State of Colima; Ixtapa Zihuatanejo and Acapulco in Guerrero; Puerto Escondido, Puerto Angel
and Huatulco in Oaxaca; Cancun and the Riviera Maya in Quintana Roo; the Port of Veracruz in the State of Veracruz; and
Madero City in Tamaulipas.


                                                                                                                       8
        noise emission limits and hospital waste management. Two standards are directly related to labelling
        schemes. However, their application has been temporarily suspended due to lack of certification capacity.
        One standard addresses identification procedures for biological-infectious waste through bottling and
        labelling.

The successful experiences with mandatory energy saving standards regarding labelling and certification contrast
with the situation of other environment-related standards. After a decade of operation, the Mexican energy saving
programme has achieved significant resource efficiency and environmental gains. Standardisation has been at the
centre of Mexican energy saving policy. In nine years, 18 instruments have been developed to regulate energy
products used in the agriculture, manufacturing, residential and construction sectors. Most mandatory energy
saving standards requires labelling and certification, none of which are PPM related. Only recently did mandatory
energy saving standards consider environmental conservation as a key goal. Consideration should be given to
transferring capacity for certification in the energy sector to the environmental sector more generally.

In contrast, the privately fostered initiative of the Mexican Institute for Standardisation and Certification (IMNC)
– which is not frequently documented – has the potential to support the development of sound guidelines,
principles and procedures for environmental labelling and certification schemes. This Institute has recently
launched a proposal to set voluntary standards for labelling and certification procedures in Mexico. This proposal
is based on ISO 14000 criteria that have been successful with Mexican exporters in other areas, such as
environmental management systems. While this initiative is to set voluntary standards, the Mexican Federal Law
of Meteorology and Standardisation specifies that voluntary standards can become mandatory after a process of
maturation or when they constitute a point of reference for a standard.

The range of the parties involved in the IMNC environmental labelling standardisation process has broadened
over time. While initially most of the participants came from the private sector, government environmental
authorities are now participating. It would be recommendable to involve government trade authorities as well
given the recent developments in environmental labelling discussions at the WTO.

Driven by the incentive to penetrate markets and an emerging culture of corporate responsibility in a globalising
world, Mexican exporting companies have embraced different types of environmental labelling and certification
schemes. In this respect, three trends stand out. First, the number of certificates and licenses to use environmental
performance seals and logos granted to large (and some medium) Mexican companies has grown exponentially.
For example, ISO 14000 certificates granted to Mexican companies increased from two in 1996 to 146 in 2004.
Second, Mexican exporters generally have adopted more than one scheme depending on the targeted market and
consumer group. The Mexican oil company PEMEX illustrates this finding as it has four comprehensive schemes
in place (see Table 5). To compete in the global market, this large government company has to face the challenge
of responding to a broad constituency, including national regulatory agencies, environmental and social interest
groups, as well as conform to internationally recognized standards. Thirdly, the goals of the schemes being
initiated by the private sector are becoming more complex. While the fist schemes introduced in the Mexican
market in the mid-1990s were based solely on environmental criteria (e.g. ISO 14000 and EAP), some of the
more recent schemes consider broader principles, such as equity, fairness, community outreach and social
responsibility. Nevertheless, environmental certification, to a significant extent, remains a luxury of large
companies. Despite efforts to involve small and medium sized enterprises (SMEs), the main certification
programmes for environmental management systems in Mexico are still too expensive and complicated for
SMEs. More work needs to be done to tailor environmental labelling and certification schemes to meet the needs
and circumstances of SMEs – particularly given their prominence in Mexico.

The CEC survey includes many labelling and certification initiatives in Mexico by NGOs and intergovernmental
organisations (IGOs). Noteworthy is the fact that most of the schemes promoted by NGOs and IGOs in Mexico
are PPM related and that these initiatives generally have not been supported by Mexican government authorities.
Increasingly, non-governmental stakeholders are putting forth initiatives to bridge the gap between small


                                                                                                                   9
producers (mainly of sustainable agriculture and forestry products) and the growing demand for environmentally
friendly products in international markets. The rational behind the proliferation of these schemes in the
agriculture and forestry sectors is the potential for sustainable development gains from market expansion and
trade liberalisation. In order to solidify these gains, labels and certification schemes require recognition. Sectors,
such as organic agriculture and sustainable coffee have proven market potential (primarily export oriented) and
have the potential to contribute to developmental goals in addition to enhancing environmental sustainability.
Annex III illustrates a variety of environmental labelling and certification schemes in the agriculture, forestry and
fisheries sectors promoted by NGOs and IGOs in Mexico.

With respect to concerns surrounding the use of PPM based labelling in the context of international trade, there is
a case to be made that developing countries could achieve significant sustainable development gains from the
market expansion of sustainably produced goods and services from the primary sector. In this respect, the
recently adopted resolution by members of the Agreement on the International Dolphin Conservation Programme
to implement a labelling and certification scheme for the tuna industry in the Eastern Pacific (Dolphin Safe-
AIDCP) based on sound, transparent, feasible and agreed PPM standards is an illustration of this argument.

The CEC survey also identified seven major labelling and certification initiatives that are supported by the
Mexican government and the Mexican private sector. These initiatives will be important for Mexico to achieve its
sustainable development commitments while offering new trading opportunities for its exports.




                                                                                                                   10
    ANNEX III: ENVIRONMENTAL LABELLING AND CERTIFICATION SCHEMES FOR
                    AGRICULTURE, FORESTRY AND FISHERIES
           PROMOTED BY NGOS AND INTERNATIONAL ORGANIZATIONS




 NAME OF THE         DESCRIPTION             POLICY GOAL          PRODUCT/PROCESS/        TYPE OF SCHEME         COVERAGE OF
   SCHEME                                                            INDUSTRY                                    THE SCHEME IN
                                                                                                                    MEXICO

Organic Crop    Organic agriculture      Diverse, depending on Organic                       Voluntary          40, 654 ha
Improvement     certification services   the programme            agricultural                                  covered in 2000
Association     accredited by the        requesting its services. products in general
International   International            For example IFOM´S
                Federation of Organic    goal is the worldwide
                Agricultural             adoption of                                    Independent third-
                Movement and other       ecologically, socially                         party inspection of
                government and non-      and economically                               certified farms with
                government               sound systems that are                         an audit trail track
                programmes               based on the principles                        from consumers to
                                         of Organic Agriculture                         producers

Naturland       Standards for organic    Conservation of the       Coffee, honey,       Voluntary               16,228 members,
                agricultural and         environment and           instant coffee                               42, 805 ha
                livestock products       maintenance of a                                                       covered
                                         natural life by means
                                         of organic farming in
                                         all fields of agriculture
                                                                                        The production units
                                                                                        - farmers, processors
                                                                                        and overseas
                                                                                        members - are
                                                                                        inspected regularly,
                                                                                        but at least once a
                                                                                        year, by appointed
                                                                                        inspectors.

Quality         Organic agriculture      Diverse, depending on Broccoli, carrots,   Voluntary                   12, 463 ha
Assurance       services accredited by   the programme         celery, cucumbers,                               covered in 2000
International   different programmes                           kale, parsley, green
(QAI)                                                          coffee, mango,
                                                               blue corn, papaya,
                                                               pineapple,
                                                               blackberries,
                                                               pergamino coffee,
                                                               molasses, sugar,           The QAI
                                                               sugar cane, raw          Certification
                                                               sugar cane, syrup,      Programme is
                                                               bell peppers, butter designed to certify
                                                               nut squash            every step of the
                                                                                      organic chain of
                                                                                         production




                                                                                                                         11
 NAME OF THE         DESCRIPTION               POLICY GOAL          PRODUCT/PROCESS/       TYPE OF SCHEME        COVERAGE OF
   SCHEME                                                              INDUSTRY                                  THE SCHEME IN
                                                                                                                    MEXICO
Bioagricoop     Organic agriculture        Diverse, depending on Organic products,       Voluntary              10, 000 ha
                services accredited by     the programme         agro-industry,                                 covered in 2000,
                different programmes                             cosmetics,                                     with 18
                                                                 aquaculture and                                inspectors across
                                                                 organic inputs                                 Mexico

                                                                                        Inspection and
                                                                                        quality control of
                                                                                        standards of
                                                                                        products and eco-
                                                                                        friendly processes
                                                                                        (chain quality
                                                                                        control)

Fair Tarde-     General criteria and       Promote the intrinsic,   Currently: coffee, Voluntary                30, 952 ha
Mexico          mechanisms to govern       social, ecological and   cacao, bananas,                             covered in 2000
(Comercio       fair trade certification   cultural values of the   tea, sugar, honey
Justo)          and the application of     products of              and orange juice.
                the Mexican Fair           democratically           Soon to come:
                Trade label                organized Mexican        flowers, foot balls,
                                           small producers          and other fruits.
                                                                                         Certification
                                                                                         performed by
                                                                                         CERTIMEX

Rain Forest     Practices and              Protect ecosystems       Shade grown         Voluntary               2 fincas(farms)
Alliance        standards for              and the people and       Coffee                                      in Chiapias
                commodity crops and        wildlife that lives                                                  Annual volume:
                incentives to meet         within them                                                          2,800 bags
                these standards                                                                                 Annual volume:
                                                                                                                217,000 kg
                                                                                                                1 finca in
                                                                                                                Oaxaca
                                                                                        Certification
                                                                                                                Annual volume:
                                                                                        performed by the
                                                                                                                3,250 bags
                                                                                        Rain Forest Alliance

Smithsonian     Criteria for coffee        Support conservation     Shade grown         Voluntary               650 ha covered
Bird Friendly   grow under rustic and      of forest areas in       coffee                                      as of 2004
                planted shade              general and bird
                                           friendly coffee
                                           production systems in
                                           particular.

                                                                                        Certification
                                                                                        performed by
                                                                                        Inspectors accredited
                                                                                        by the programme in
                                                                                        Veracruz & Chiapas

Forest          Forest management          Sustainable              Operations          Voluntary               As of February



                                                                                                                          12
 NAME OF THE            DESCRIPTION               POLICY GOAL          PRODUCT/PROCESS/         TYPE OF SCHEME         COVERAGE OF
   SCHEME                                                                 INDUSTRY                                     THE SCHEME IN
                                                                                                                          MEXICO
Stewardship       related standards,     management of forest          managing forest                                2004, 32
Council (FSC)     accreditation and      products and services         land and chain of                              certificates
                  monitoring of                                        custody for raw                                granted covering
                  certification bodies,                                wood and wood                                  565,327 ha
                  support for the                                      products
                  development of local
                  and national standards                                                      Certification by the
                  based on FSC criteria,                                                      Rain Forest Alliance
                  and guidelines for                                                          and the Mexican
                  regional certification                                                      Civil Council for
                                                                                              Sustainable
                                                                                              Silviculture

Agreement on      Standards, guidelines,     Protect dolphins       Yellow Fin Tuna           Mandated by an          In 2004,
the               compliance and             during the commercial                            international           coverage of 56
International     follow-up criteria for     fishing of tuna in the                           intergovernmental       vessels and
Dolphin           fishing                    Eastern Pacific Ocean                            agreement               47,832 tons
Conservation
Programme
(AIDCP)
Dolphin Safe


                                                                                              Onboard monitoring
                                                                                              by AIDCP
                                                                                              designated officials,
                                                                                              monitoring by
                                                                                              representatives from
                                                                                              government,
                                                                                              industry and NGOs
Source: Elaborated by the author with data from the Organic Crop Improvement Association International (www.ocia.org), Naturland
(www.natrland.de), Quality Assurance International (www.qai-inc.com), Bioagricoop (www.bioagricoop.it), Fair Trade-Mexico
(www.comerciojusto.com.mx), Rain Forest Alliance (www.rainforest-alliance.org), Smithsonian Bird Friendly (http://nationalzoo.si.edu),
Forest Stewardship Council (www.fsc.org), Inter-American Tropical Tuna Commission (www.iattc.org), Miguel Angel Gómez Cruz, Laura
Gómez Tovar, Rita Schwentesius, México Como Abastecedor de Productos Orgánicos, Comercio Exterior, México, 2003.




                                                                                                                                 13
               ANNEX IV: SUSTAINABLE FORESTS CERTIFIED IN MEXICO

    Estado       No.     Ejidos, Communities and      Area under        Volume (Aut. m³ rta   Production (m³ roundwood
               predios        other Tenures        Sustainable Forest     average/year)             average/year)
                                                     Management
                                                       (Hectares)

Quintana Roo     6       Noh Bec                        18,000                14,503                   6,089

                         Tres Garantías (SPFQR)         23,195                5,932                    1,858


                         Petcacab (SPFQR)               30,175                4,957                    1,606


                         Caobas (SPFQR)                 18,000                7,769                    3,840


                         Naranjal Poniente               8,750                4,100                    1,045


                         Laguna Kaná                    10,000                2,350                    1,458


Oaxaca           8       Comaltepec (UZACHI)             4,063                2,250                    1,459

                         Capulalpam (UZACHI)             2,674                2,244                    1,552


                         Xiacui (UZACHI)                 1,180                2,235                    1,725


                         La Trinidad (UZACHI)             696                 2,934                    2,235


                         Ixtlán de Juárez                8,082                70,000                  25,000


                         Ixtepeji                       15,036                16,000                  10,472


                         Textitlán                      17,400                30,422                  25,285


                         San Pedro el Alto              18,804                54,000                  48,000


Durango          19      El Centenario                   2,826                6,814                    6,800

                         Echeverría de la Sierra         2,846                5,827                    5,800


                         El Encinal                      4,879                8,546                    7,544


                         Salto de Camellones             5,000                22,567                  11,437


                         San Diego de Tensaenz          16,800                63,393                  43,045


                         La Victoria                     8,267                45,500                  35,000


                         San Esteban                     6,128                23,260                  18,831


                         Pueblo Nuevo                   84,560               118,000                  100,000


                         Cuevecillas y Culebras          5,714                13,005                  13,000




                                                                                                                         14
    Estado          No.     Ejidos, Communities and      Area under        Volume (Aut. m³ rta   Production (m³ roundwood
                  predios        other Tenures        Sustainable Forest     average/year)             average/year)
                                                        Management
                                                          (Hectares)

                            Sierra del Nayar                6,998                15,972                  15,900


                            Vencedores                     19,695                54,440                  51,157


                            Cía. Silvícola                 11,065                36,690                  29,931
                            Chapultepec

                            San Isidro                      3,083                8,246                    8,200


                            Torre de Carpio                 1,396                3,015                    3,000


                            Agustín Melgar                  2,472                4,739                    4,700


                            La Ciudad                       8,829                43,025                  38,400


                            San Pablo                       9,201                43,444                  36,189


                            El Tarahumar                   20,945                39406                   21,549


                            Molinillos                      1,355                3,034                    3,000


Michoacán            1      Nvo. San Juan                   8,449                79,334                  79,334

Chihuahua            2      El Largo                       187,129              429,000                  340,000

                            La Trinidad                    38,440                40,000                  37,266


Guerrero             1      El Balcón                      15,190                45,864                  33,950

                    37                                     647,321             1,372,817                1,075,657

Source: Mexican Civil Council for Sustainable Silviculture, 2004.




                                                                                                                            15
    ANNEX V: METHODOLOGY APPLIED IN THE CURRENT STUDY FOR SUSTAINABILITY
                       IMPACT ASSESSMENT OF EGS TRADE
                  LIBERALISATION AND DEFINITION APPROACHES

The methodology used in this study is based on different approaches available in the literature which were
combined and adapted for the purpose of the study.

General Framework for Sustainability Impact Assessment and Causal Chain Analysis

The general framework to assess the sustainability impacts of trade liberalisation is based on a four step process
(screening, scoping, preliminary assessment and flanking measures) proposed by Kirkpatrick, Lee and Morrissey
(KLM). (See Box 3). The causal chain analysis (CCA) designed by Bisset, Flint, Kirkpatrick, Mitlin and
Westlake (BFKMW) is used to identify the specific cause and effect links between the policy change (trade
liberalisation of the EGS sector) and its economic, social and environmental impacts. Diagrams 1 and 2 present
the general CCA approach and its specific application for the sustainability impacts assessment of EGS
liberalisation. Both the KLM and BFKMW methodological approaches have been adapted to address the main
purpose of this study. Thus, the current study seeks to assess the general sustainable development impacts from
comparable EGS definition/classification approaches as opposed to specific environmental goods and services
categories given a single definition/classification approach. Moreover, the study addresses the sustainability
impacts for the specific case of Mexico given its sustainable development goals and strategies as opposed to
broader goals either defined by international instruments or the literature.

General Framework for Sustainability Impact Assessment and Causal Chain Analysis

Kirkpatrick, Lee and Morrissey undertook a literature review of existing approaches to sustainable development
impact assessments of trade liberalisation in 1999. This review illustrates the wide range of methodologies for
assessing the impacts of trade measures. Economic assessments have used both ex ante and ex post timeframes
and are based on general equilibrium and regression models. Both approaches can assist in identifying broad
relationships between trade policies and economic performance, but do not easily capture variations in individual
country conditions and experiences. These variations are better addressed by case studies. Environmental
assessments have used a variety of methods, including forecasting models, scenario analysis and case studies.
Social assessments have relied on qualitative assessment and quantitative modelling. There have been very few
studies of the regulatory impact of trade measures and the methodology has been quantitative. The assessment
methodologies surveyed by Kirkpatrick, Lee and Morrissey are presented in Table A.




                                                                                                               16
       Table 19: Examples of Appraisal Methods of Potential Use in SIAs

        Economic               Computable General Equilibrium (CGE) and Applied General Equilibrium
        Appraisal Methods      (AGE) models
                               • Regression analysis
                               • Cost-benefit analysis
                               • Case studies
        Environmental          Checklists; matrices; cause-effect diagrams/models; networks; policy evaluation
        Appraisal Methods      techniques, such as extended cost-benefit analysis and multi-criteria analysis;
                               scenario analysis; consultative and participative approaches.
                               Models:
                               • Economic assessment models: CGE and AGE models extended to include a
                                   consideration of environmental effects, e.g. General Equilibrium
                                   Environmental model (GREEN) (a global dynamic AGE model developed
                                   by the OECD); Trade and Environment Equilibrium Analysis (TEQUILA) (a
                                   dynamic, multi-sectoral CGE model developed by the OECD focusing on the
                                   environmental effects of trade liberalisation and induced changes in
                                   production processes); Global Trade Analysis Project (GTAP).
                               • Environment assessment models (identifying correlations between economic
                                   variables and environmental effects)
                               • Simultaneous equation models
        Social Appraisal       Checklists; surveys; matrices; scoring; consultative and participative approaches;
        Methods                stakeholder analysis; social surveys and interviewing methods; cross-country
                               regression analysis; case studies; building on CGE/AGE economic models to
                               include, for example, a social accounting matrix.
        Regulatory             Socio-economic impact analysis; distributional analysis; cost-benefit analysis of
        Appraisal Methods      regulatory competition effects; fiscal analysis; budget-cost analysis; rule-specific
                               analysis; check-lists; static-dynamic framework (OECD Check-List Identifying
                               Regulatory Effects, WWF Regulatory Assessment Products).
        Integrated             Analytical methods: models; scenario analysis; risk analysis; participatory
        Appraisal Methods      methods; dialogue methods; policy exercises; mutual learning methods; expert
                               panels; Delphi methods; focus groups. Various forms of extended cost-benefit
                               analysis and multi-criteria analysis.
        Other Methods          A wide range of consultation and participative methods may be used, in addition
                               to various technical methods, in most of the above categories of appraisal.
                               Additionally, geographic information systems (GIS) have a several potential
                               applications.
        Source: Colin Kirkpatrick, Norman Lee and Oliver Morrissey, WTO New Round; Sustainability Impact Assessment
        Study (Phase One Report),1999.

Box A presents the Kirkpatrick, Lee and Morrissey methodology proposal for integrated sustainable development
assessment of trade liberalisation. Two general approaches are set out for integrated economic, social and
environmental assessment. The first approach ensures that the information from separate economic, social and
environmental dimensions is given equal attention in the appraisal. The second approach relies on a more
ambitious integration of modelling, analysis and participation. The research by KLM resulted in the conclusion
that the most appropriate methodology would vary based on the measures and impact under consideration and the
purpose of the assessment exercise (KLM, 1999).




                                                                                                                      17
        Box 3: Principal Components of the SIA Methodology

        Part A: Listings for use in the Preliminary SIA

        •   List of possible measures for trade policy negotiations.
        •   List of possible scenarios to be analyzed for each measure.
        •   List of country groups for which appraisals are to be undertaken.
        •   List of sustainability impact indicators and significance criteria to be used in appraisals.
        •   List of methods, consultation procedures and information sources for use in appraisals.

        Part B: Stages, methods and procedures in the Preliminary SIA process

        •   Screening: to determine which measures on the proposed trade agenda may be excluded
            from appraisal because they are unlikely to give rise to significant impacts.

        •   Scoping: to determine the terms of reference (TOR) for the appraisal of each measure
            likely to give rise to significant impacts (i.e. which components of the measure should be
            assessed? Which appraisal methods and consultation procedures should be used?).

        •   Preliminary Assessment: to determine the impacts associated with each measure and with
            the trade agreement as a whole that are likely to be of greater, lesser and no significance.

        •   Flanking measures: to determine types of flanking measures which may reduce negative
            impacts and enhance beneficial effects associated with particular measures in the
            proposed trade policy scenario.
        Source: Kirkpatrick, Lee and Morrissey, 1999.

Although the KLM literature review and proposed methodology is useful in terms of the general effects of trade
policy on sustainable development, a more recent study by Bisset, Flint, Kirkpatrick, Mitlin and Westlake
(BFKMW) proposes a methodology for the specific case of environmental services – which is also useful for
environmental goods. The BFKMW methodology builds on the KLM general approach, and recommends adding
a specific Causal Chain Analysis (CCA) for environmental services.

With some adaptations, both the KLM and the BFKMW approaches are useful in the case of Mexico. There are
two main adaptations to these approaches in the current study. First, this study seeks to assess the general
sustainable development impacts from comparable EGS definition/classification approaches, as opposed to
specific environmental goods and services categories given a single definition/classification benchmark. Second,
the current study addresses the sustainable development impacts for the specific case of Mexico given its
sustainable development goals and strategies, as opposed to broader goals either defined by international
instruments or the literature.

The components of a casual chain analysis are presented in Diagram A. This study uses the CCA methodology
(proposed by BFKMW) to identify the significant cause and effect links between the proposed change in trade
measures and their economic, social and environmental impacts. The goal is to distinguish significant cause and
effect links in the chain where the analysis is undertaken in a logical sequence from cause to effect (BFKMW,
2003).




                                                                                                             18
  Diagram 3: Causal Chain Analysis for the Impact of Trade Measures on Development



                                    Trade Measure




                                  Incentives &
                                  Opportunities




                                  Production System




Social Impacts                                       Environmental
                       Economic Impacts                Impacts               Institutional Impacts




  According to the BFKMW model, a change in trade policy will alter the incentive structure and opportunities in
  the markets. The new structure of incentives and market opportunities will induce a change in the economic
  behaviour of producers and consumers. The changes represented in Diagram A do not occur instantaneously or
  simultaneously and the speed of adjustment will vary in different sectors at different stages. The inter-temporal
  segment of the analysis is addressed by differentiating between short-term and long-term impacts. While short-
  term impacts are generally related to adjustment, long-term impacts are associated with general equilibrium
  outcomes in terms of sustainability indicators (BFKMW, 2003).




                                                                                                                19
ANNEX VI: POTENTIAL IMPACT ANALYSIS OF EGS LIBERALISATION UNDER THE OECD CLASSIFICATION IN
RELATION TO MEXICO’S
                                SUSTAINABLE DEVELOPMENT GOALS

This Annex presents a detailed version of a Potential Impact Analysis (PIA) to estimate the likely direction of impacts for each category of EGS under the
traditional and the broad definition/classification approaches in relation to each sustainable development goal and strategy (economic, social and
environmental) considered in the Mexican National Development Plan 2001–2006 (Plan Nacional de Desarrollo (PND)) and its respective National
Environment and Natural Resources Programme 2001–2006 (Programa Nacional de Medio Ambiente y Recursos Naturales (PNMARN)). The economic
dimension of sustainable development includes five goals and 36 strategies; the social dimension embraces six goals and 40 strategies; and the environmental
dimension has six strategic programmes/campaigns and 21 goals.

For example, a liberalisation/tariff reduction of category 1 (air pollution control) of Group A (Pollution Management) has the potential to impact positively
three of the PND economic development goals, three of the PND social development goals and two of the PNMARN environmental strategic programmes.
The results of this exercise are set out in Tables XXX in the main study.

TRADITIONAL OECD DEFINITION/CLASSIFICATION

A. POLLUTION MANAGEMENT
                                                                                          Sustainable Development (SD) = Economic (E) + Social(S) + Environmental (EV)

                                                                                                   Environmental Strategic         Total Potential      Dimensions % of
                                 Economic Development Goals         Social Development Goals
Type of Good or Service                                                                            Programmes/National             Impact                          Total
                                 and Strategies                     and Strategies
                                                                                                   Campaign and Goals
1. Air Pollution Control         Goal 2 - Increase and expand      Goal 1 - Improve education Strategic Programme 1 -              7 National Goals     SD         40
Goods                            competitiveness                   and Welfare                     Halt and reverse pollution      and/or strategic
                                                                                                                                                        E          60
1.1 Air-handling equipment       Strategies:                       Strategies:                     of systems that support         programmes
1.2 Catalytic converters         b) Develop good quality           d) Improve health standards life                                                     S          53
1.3 Chemical recovery systems infrastructure and public services (+)                               Strategies:
                                                                                                                                                        EV         33
1.4 Dust collectors              (+)                                                               a) Halt and reverse water,
1.5. Separators, precipitators   g) Increase foreign direct        Goal 3 - Promote education air and soil pollution to            7 Strategies with    SD         10
1.6 incinerators, scrubbers      investment flows (?)              to develop personal             ensure their conservation       potential positive
                                                                                                                                                        E          5
1.7 Odour control equipment      h) Strengthen domestic market (-) capacity as well as             for future generations (+)      impact (+)
                                                                   individual and collective       c) Ensure compliance with                            S          8
Services                         Goal 3 - Ensure inclusive         initiatives                     environmental laws,
                                                                                                                                                        EV         14.2
Any activity that designs,       development                       Strategies:                     standards and regulations (+)
manages systems or provides      Strategies:                       d) facilitate access o state of                                                    E            6
other services for the treatment a) Integrate micro-entrepreneurs the art technology (+)           Strategic Programme 4 –         2 Strategies with
and/or removal of exhaust        and self-employed workers to the                                  promote sustainable             potential negative S            0
gases and particulate mater      market (-)                        Goal 5 - Achieve social and development                         impact (-)
f     b th t ti          d                                         h        d l           ti


                                                                                                                                                                           20
                                                                                                  Environmental Strategic        Total Potential    Dimensions % of
                                Economic Development Goals         Social Development Goals
Type of Good or Service                                                                           Programmes/National            Impact                        Total
                                and Strategies                     and Strategies
                                                                                                  Campaign and Goals
from both stationary and                                           human development in           Strategies:                                       EV         0
mobile sources.                 Goal 5 - Create the conditions     harmony with nature            Incorporate environmental
                                for sustainable development        Strategies:                    criteria into the decision                        E          3
                                Strategies:                        e) Stop and reverse water, air making process of              1 Strategy with
                                g) Advance in the strategy to      and soil pollution (+)         economic and social            uncertain impact   S          0
                                mitigate green house gas                                          policies at all levels of
                                emissions (+)                                                     government and through all                        EV         0
                                                                                                  sectors (+)
2. Waste Water Management       Goal 2 - Increase and expand       Goal 1 - Improve education Strategic Programme 1-             11 National Goals SD          64
Goods                           competitiveness                    and Welfare                    Halt and reverse pollution     and/or strategic
2.1 Aeration system             Strategies:                        Strategies:                    of systems that support        programmes
2.2 Chemical recovery system    a) Promote sectoral development c) Design and implement           life
2.3 Biological recovery         and competitiveness (+)            programmes to reduce           Strategies:
systems                         b) Develop good quality            poverty, increase accesses to a) Halt and reverse water,
2.4. Gravity sedimentation      infrastructure and public services basic infrastructure and       air and soil pollution to
system                          (+)                                provide development            ensure their conservation
2.5 Oil/water separation        g) Increase foreign direct         opportunities to low income for future generations (+)
system                          investment flows (?)               population (+)                 c) Ensure compliance with
2.6 Screens, strainers          h) Strengthen domestic market (-) d) Improve health standards environmental laws,
2.7 Sewage treatment                                               (+)                            standards and regulations
2.8 Water pollution control,    Goal 3 - Ensure inclusive                                         (+)
wastewater reuse equipment      development                        Goal 2 – Enhance equity        d) Recuperate rivers, lakes,
2.9 Water handling goods and    Strategies:                        and equity opportunities       basins and watersheds from
equipment                       a) Integrate micro-entrepreneurs Strategy:                        polluting sources (+)
                                and self-employed workers to the b) Eliminate discrimination      e) Recuperate and reuse
Services                        market (-)                         and violence towards women wastewater from
Any activity that designs,                                         (+)                            agriculture (+)
operates systems or provides
other services for the          Goal 5 – Create conditions for     Goal 3 - Promote education  Strategic Programme 2 –
collection, treatment, and      sustainable development            to develop personal         Halt and reverse loss of
transport of wastewater and     Strategies:                        capacity as well as         natural capital
cooling water. It includes                                         individual and collective   Strategies:
design, management or other     a) Foster efficient use of water   initiatives                 a) Halt and reverse natural
services for sewage treatment   and energy (+)                     Strategies:                 resource degradation to
systems, wastewater reuse                                                                      preserve the potential
                                                                   d) facilitate access to state of
systems, and water handling                                        the art technology (+)      benefits from their use for
                                                                                                                                                    E          60
systems                                                                                        future generations (+)
                                                                   Goal 5 - Achieve social and Strategic Programme 4 –                              S          50
                                                                   human development in        promote sustainable
                                                                                                                                                    EV         66
                                                                   harmony with nature         development

                                                                                                                                                                       21
                                                                                                  Environmental Strategic         Total Potential    Dimensions % of
                                Economic Development Goals         Social Development Goals
Type of Good or Service                                                                           Programmes/National             Impact                        Total
                                and Strategies                     and Strategies
                                                                                                  Campaign and Goals
                                                                   harmony with nature            development                     16 Strategies with SD         17
                                                                   Strategies:                    Strategies:                     potential positive
                                                                   e) Stop and reverse water, air a) Incorporate                  impact (+)         E          8
                                                                   and soil pollution (+)         environmental criteria into
                                                                                                                                                     S          13
                                                                                                  the decision making
                                                                                                  process of economic and                            EV         28
                                                                                                  social policies at all levels
                                                                                                  of government and through       Strategies with    E          6
                                                                                                  all sectors (+)                 potential negative
                                                                                                  b) Strengthen federalism        impact (-)         S          0
                                                                                                  and ensure integrated
                                                                                                  management of                                      EV         0
                                                                                                  environmental issues with
                                                                                                  the participation of local      1 Strategy with    E          3
                                                                                                  stakeholders (+)                uncertain impact
                                                                                                 Strategic Programme 5 –                             S          0
                                                                                                 National Campaign for
                                                                                                 forests and water                                   EV         0
                                                                                                 Strategies:
                                                                                                 d) Build a national alliance
                                                                                                 for the sanitation and
                                                                                                 recuperation of water
                                                                                                 bodies and forest lands
                                                                                                 throughout the country (+)
3. Waste Management             Goal 2 - Increase and expand       Goal 1 - Improve education Strategic Programme 1 -             8 National Goals   SD         47
Goods                           competitiveness                    and Welfare                   Halt and reverse pollution       and/or strategic
                                                                                                                                                     E          40
3.1 Hazardous waste storage     Strategies:                        Strategies:                   of systems that support          programmes
and treatment equipment         a) Promote sectoral development c) Design and implement          life                                                S          50
3.2 Waste collection            and competitiveness (+)            programmes to reduce          Strategies:
                                                                                                                                                     EV         50
equipment                       b) Develop good quality            poverty, increase accesses to a) Halt and reverse water,
3.3. Waste disposal equipment   infrastructure and public services basic infrastructure and      air and soil pollution to        11 Strategies with SD         11
3.4 Waste handling equipment    (+)                                provide development           ensure their conservation        potential positive
                                                                                                                                                     E          6
3.5 Waste separation            g) Increase foreign direct         opportunities to low income for future generations (+)         impact (+)
equipment                       investment flows (?)               population (?)                c) Ensure compliance with                           S          8
3.6 Recycling equipment         h) Strengthen domestic market (-) d) Improve health standards environmental laws,
                                                                                                                                                     EV         33
3.7 Incineration equipment                                         (+)                           standards and regulations (+)
                                                                                                                                  3 Strategies with E           6
                                Goal 3 - Ensure inclusive                                        d) Recuperate rivers, lakes,
                                                                                                                                  negative impact (-
Services                        development                        Goal 3 - Promote education basins and watersheds from
                                                                                                                                  )                  S          3
Any activity that designs,      Strategies:                        to develop personal           polluting sources (+)
operates systems or provides                                       capacity as well as
                                                                                                                                                                        22
                                                                                                       Environmental Strategic   Total Potential   Dimensions % of
                                Economic Development Goals          Social Development Goals
Type of Good or Service                                                                                Programmes/National       Impact                       Total
                                and Strategies                      and Strategies
                                                                                                       Campaign and Goals
operates systems or provides     a) Integrate micro-entrepreneurs   capacity as well as                                                            EV
services for the collection,     and self-employed workers to the   individual and collective   Strategic Programme 4 –
treatment management,            market (-)                         initiatives                 promote sustainable           2 Strategies with    E          3
transport, storage and recovery                                     Strategies:                 development                   uncertain impact
of hazardous and non-                                                                           Strategies:
                                                                    d) facilitate access to state of                          (?)                  S          3
hazardous solid waste. It                                           the art technology (+)      a) Incorporate
includes management or other                                                                    environmental criteria into
                                                                    e) Support creation of social                                                  EV
services for waste handling                                         enterprises with the        the decision making
(collection, transport,                                             participation of low income process of economic and
separation, sorting and                                                                         social policies at all levels
                                                                    population in rural and urban
disposal), operation of sites,                                      areas(-)                    of government and through
recycling (including collection                                                                 all sectors (+)
of waste and scrap), operation                                   Goal 5 - Achieve social and b) Strengthen federalism
of recycling plants. It includes                                 human development in           and ensure integrated
services for outdoor sweeping                                    harmony with nature            management of
and watering of streets, paths,                                  Strategies:                    environmental issues with
parking lots, etc. Services for                                  e) Stop and reverse water, air the participation of local
treatment of low level nuclear                                   and soil pollution (+)         stakeholders (+)
waste are included. It excludes                                                                 Strategic Programme 6 –
high level nuclear waste. It                                                                    National Campaign for a
excludes services for                                                                           clean Mexico
manufacture of new materials                                                                    Strategies:
or products from recovered                                                                      d) Decrease solid waste
waste or scrap and subsequent                                                                   disposal (+)
use of these materials or                                                                       c) Reduce environmental
products.                                                                                       problems and health risk
                                                                                                associated with waste (+)
4. Remediation and Clean-up   Goal 2 - Increase and expand       Goal 1 - Improve education Strategic Programme 1 -           11 National Goals    SD         64
of Soil, Surface Water and    competitiveness                    and Welfare                    Halt and reverse pollution and/or strategic
Ground Water                  Strategies:                        Strategies:                    of systems that support life programmes
Goods                         b) Develop good quality            c) Design and implement        Strategies:
4.1 Absorbents                infrastructure and public services programmes to reduce           a) Halt and reverse water,
4.2 Clean-up                  (+)                                poverty, increase accesses to air and soil pollution to
4.3 Water treatment equipment g) Increase foreign direct         basic infrastructure and       ensure their conservation                          E          60
                              investment flows (?)               provide development            for future generations (+)
Services                      h) Strengthen domestic market (-) opportunities to low income c) Ensure compliance with                              S          67
Any activity that designs,                                       population (+)                 environmental laws,                                EV         67
manages systems or provides                                                                     standards and regulations (+)



                                                                                                                                                                      23
                                                                                                        Environmental Strategic         Total Potential    Dimensions % of
                                  Economic Development Goals           Social Development Goals
Type of Good or Service                                                                                 Programmes/National             Impact                        Total
                                  and Strategies                       and Strategies
                                                                                                        Campaign and Goals
manages systems or provides       Goal 3 - Ensure inclusive            d) Improve health standards      standards and regulations (+)   14 Strategies with SD         14
other services to reduce the      development                          (+)                              d) Recuperate rivers, lakes,    potential positive
quantity of polluting materials   Strategies:                                                           basins and watersheds from      impact (+)
in soil and water, including      a) Integrate micro-entrepreneurs     Goal 2 - Enhance equity          polluting sources (+)                              E          6
surface water, groundwater and    and self-employed workers to the     and equality opportunities
seawater. It includes cleaning-   market (-)                           Strategies:                      Strategic Programme 4 –                            S          15
up systems either in situ or in                                        b) Eliminate discrimination      promote sustainable
                                                                                                        development                                        EV         29
appropriate installations,        Goal 5 – Create the conditions       and violence towards women
emergency response and spills     for sustainable development          (+)                              Strategies:                     2 Strategies with E           6
cleanup systems. Treatment of     Strategies:                                                           a) Incorporate                  potential negative
water and dredging residues       a) Foster efficient use of natural   Goal 3 - Promote education environmental criteria into           impact (-)         S          0
are included.                     resource, specially water and        to develop personal              the decision making
                                  energy (+)                           capacity as well as              process of economic and                            EV         0
                                                                       individual and collective        social policies at all levels
                                                                       initiatives                      of government and through       1 Strategy with    E          3
                                                                       Strategies:                      all sectors (+)                 uncertain impact
                                                                       d) facilitate access to state of Strategic Programme 5 -         (?)                S          0
                                                                       the art technology (+)           National campaign for
                                                                                                        forests and water                                  EV         0
                                                                       Goal 5 - Achieve social and Strategies:
                                                                       human development in             a) Build a national alliance
                                                                       harmony with nature              for the sanitation and
                                                                       Strategies:                      recuperation of water
                                                                       e) Stop and reverse water, air bodies and forests
                                                                       and soil pollution (+)           throughout the country (+)
                                                                       f) stop and reverse erosion
                                                                       processes and increase           Strategic Programme 6 –
                                                                       reforestation (+)                National Campaign for a
                                                                                                        clean Mexico
                                                                                                        Strategies:
                                                                                                        c) Reduce environmental
                                                                                                        problems and health risk
                                                                                                        associated with waste (+)

5. Noise and Vibration            Goal 2 - Increase and expand         Goal 1 - Improve education       Strategic Programme 1-          5 National Goals   SD         29
Abatement                         competitiveness                      and Welfare                      Halt and reverse pollution      and/or strategic
                                  Strategies:                          Strategies:                      of systems that support life    programmes         E          20
Goods                                                                  c) Design and implement          Strategies:                                        S          33
                                                                       programmes to reduce             c) Ensure compliance with



                                                                                                                                                                              24
                                                                                                        Environmental Strategic         Total Potential      Dimensions % of
                                  Economic Development Goals           Social Development Goals
Type of Good or Service                                                                                 Programmes/National             Impact                          Total
                                  and Strategies                       and Strategies
                                                                                                        Campaign and Goals
5.1 Mufflers, silencers           b) Develop good quality              poverty, increase accesses to environmental laws,                                     EV         33
5.2 Noise deadening material      infrastructure and public services   basic infrastructure and         standards and regulations
5.3 Vibration control systems     (?)                                  provide development              (+)                             4 Strategies with    SD         4
5.4 Highway barriers                                                   opportunities to low income Strategic Programme 4 –              potential positive
                                                                                                                                        impact (+)           E          0
                                  g) Increase foreign direct           population (?)                   promote sustainable
Services                          investment flows (?)                 d) Improve health standards development                                               S          5
                                                                       (+)                              Strategies:
Any activity that designs,                                                                              a) Incorporate                                       EV         10
manages systems or provides                                            Goal 3 - Promote education environmental criteria into
other services to reduce or                                            to develop personal              the decision making             2 Strategies with E             0
eliminate the emission of noise                                        capacity as well as              process of economic and         potential negative
and vibration both at source                                           individual and collective        social policies at all levels   impact (-)         S            0
and dispersed. It includes                                             initiatives                      of government and through
designing, management or                                               Strategies:                      all sectors (+)                                      EV         0
other services for acoustic and                                        d) facilitate access to state of
soundproof screens and street                                          the art technology (+)
covering.                                                                                                                               1 strategy with      E          6
                                                                                                                                        Uncertain impact
                                                                                                                                        (?)                  S          3

                                                                                                                                                             EV         0

6. Environmental Monitoring,   Goal 2 - Increase and expand            Goal 1 - Improve education       Strategic Programme 1-          11 National Goals SD            64
Analysis an Assessment         competitiveness                         and Welfare                      Halt and reverse pollution      and/or strategic
                               Strategies:                             Strategies:                      of systems that support         programmes
Goods                          b) Develop good quality                 h) Direct scientific and         life                                              E             60
                               infrastructure and public services      technological activities to      Strategies:
6.1 measuring and monitoring (+)                                       address the basic needs of       b) Ensure integrated                                 S          67
equipment                      d) Foster an advantageous               population (including            management of water, air
6.2 Sapling systems            integration of the country into the     nutrition, health, education,    and land (+)                                         EV         67
6.3 Process and control        international environment and the       poverty alleviation and          c) Ensure compliance with
equipment                      new economy(+)                          environmental quality)(+)        environmental laws,             16 Strategies with SD           16
6.4 Data acquisition equipment e) promote and take advantage of                                         standards and regulations       potential positive
6.5 Other instruments,         information technology means(+)         Goal 2 - Enhance equity          (+)                             impact (+)         E            14
machines                       g) Increase foreign direct              and equality opportunities
                               investment flows (?)                    Strategies:                 Strategic Programme 2 -                                   S          13
Services                       h) Strengthen domestic market (-)       b) Eliminate discrimination Halt and reverse loss of
                                                                       and violence towards women natural capital                                            EV         29
                                                                       (+)


                                                                                                                                                                                25
                                                                                                           Environmental Strategic         Total Potential   Dimensions % of
                                  Economic Development Goals            Social Development Goals
Type of Good or Service                                                                                    Programmes/National             Impact                       Total
                                  and Strategies                        and Strategies
                                                                                                           Campaign and Goals
Analytical services, data         Goal 3 - Ensure inclusive             (+)                                Strategies:                     2 strategies with E          6
collection, analysis and          development                                                              b) Ensure approaches for        potential negative
assessment                        Strategies:                           Goal 3 - Promote education         natural resource use that       impact (-)         S         0
                                  a) Integrate micro-entrepreneurs      to develop personal capacity       incorporate processes for
Includes any activity that        and self-employed workers to the      as well as individual and          their conservation (+)
designs, manages systems or       market (-)                            collective initiatives                                                               EV         0
provides other services to                                              Strategies:                        Strategic Programme 3 -
sample, measure, and record       Goal 5 – Create the conditions        c) Strengthen scientific           Preserve ecosystems and 1 Strategy with           E          3
various characteristics of        for sustainable development           research and technological         biodiversity                 uncertain impact
environmental media. It           Strategies:                           innovation to support human        Strategies:                  (?)                  S          0
includes monitoring sites, both   c) Strengthen research and            resource development(+)            a) Integrate and consolidate
operating singly and in           technology innovation to support      d) Facilitate access to state of   instruments and means for
networks, and covering one or     sustainable development through       the art technology (+)             biodiversity conservation                         EV         0
more environmental medium.        clean technologies and production                                        (+)
Health, safety, toxicology        processes (+)                         Goal 5 - Achieve social and
studies, and analytical           d) Foster environmental               human development in               Strategic Programme 4 –
labouratory services are          protection and sustainable            harmony with nature                promote sustainable
included. Water stations are      development through education,        Strategies:                        development
excluded.                         communication and social              e) Strengthen scientific and       Strategies:
                                  participation (+)                     technological research to          a) Incorporate
                                                                        better understand sustainable      environmental criteria into
                                                                        development (+)                    the decision making
                                                                                                           process of economic and
                                                                                                           social policies at all levels
                                                                                                           of government and through
                                                                                                           all sectors (+)
                                                                                                           b) Ensure compliance with
                                                                                                           legal environmental
                                                                                                           instruments by involving
                                                                                                           society in their
                                                                                                           understanding and
                                                                                                           vigilance (+)
7. Environmental R&D              Goal 2 - Increase and expand          Goal 1 - Improve education         Strategic Programme 1-          11 National Goals SD         70
                                  competitiveness                       and Welfare                        Halt and reverse pollution      and /or strategic
Any systematic and creative       Strategies:                           Strategies:                        of systems that support         programmes with E            60
activity concerned with the       a) Foster an advantageous                                                life                            potential
generation, advancement,          integration of the country into the   h) Direct scientific and           Strategies:                     positiveimpact    S          50
dissemination and application     international environment and the     technological activities to        a) Halt and reverse water,      (+)
of scientific and technological   new economy (+)                       address the basic needs of         air and soil pollution to                         EV         100
knowledge to reduce or            e) Promote the use and take           population (including              ensure their conservation

                                                                                                                                                                                26
                                                                                                       Environmental Strategic        Total Potential    Dimensions % of
                                Economic Development Goals          Social Development Goals
Type of Good or Service                                                                                Programmes/National            Impact                        Total
                                and Strategies                      and Strategies
                                                                                                       Campaign and Goals
eliminate emissions in all      advantage of information            nutrition, health, education,      for future generations (+)     15 Strategies with SD         15
environmental media and to      technology means (?)                poverty alleviation and            c) Ensure compliance with      potential positive
improve environmental           i) Strengthen domestic market (-)   environmental quality)(+)          environmental laws,            impact (+)         E          6
quality. Non-technological                                                                             standards and regulations
research to improve knowledge   Goal 3 - Ensure inclusive           Goal 3 - Promote education         (+)                                               S          12
on ecosystems and the impact    development                         to develop personal capacity                                                         EV         40
of human activities on the      Strategies:                         as well as individual and          Strategic Programme 2 -
environment.                    a) Integrate micro-entrepreneurs    collective initiatives             Halt and reverse loss of       2 strategies with E           5
                                and self-employed workers to the    Strategies:                        natural capital                potential negative
                                market (-)                          c) Strengthen scientific           Strategies:                    impact (-)         S          0
                                                                    research and technological         b) Ensure approaches for
                                Goal 5 – Create the conditions      innovation to support human        natural resource use that                         EV         0
                                for sustainable development         resource development (+)           incorporate processes for      1 Strategy with    E          3
                                Strategies:                         d) Facilitate access to state of   their conservation (+)         uncertain impact
                                c) Strengthen research and          the art technology (+)                                            (?)                S          0
                                technology innovation to support                                       Strategic Programme 3 -
                                sustainable development through Goal 5 - Achieve social and            Preserve ecosystems and                           EV         0
                                clean technologies and production human development in                 biodiversity
                                processes (+)                     harmony with nature                  Strategies:
                                                                  Strategies:                          a) Integrate and consolidate
                                                                  e) Strengthen scientific and         instruments and means for
                                                                  technological research to            biodiversity conservation




                                                                                                                                                                            27
                                                                                     Environmental Strategic Total Potential   Dimensions % of
                          Economic Development Goals   Social Development Goals
Type of Good or Service                                                              Programmes/National           Impact                 Total
                          and Strategies               and Strategies
                                                                                     Campaign and Goals
                                                       technological research to     biodiversity conservation
                                                       better understand sustainable (+)
                                                       development (+)
                                                       c) Create new ways of         Strategic Programme 4 –
                                                       interconnection with the      Promote sustainable
                                                       environment and foster        development
                                                       sustainable production and    Strategies:
                                                       consumption processes (+)     a) Incorporate
                                                                                     environmental criteria into
                                                                                     the decision making
                                                                                     process of economic and
                                                                                     social policies at all levels
                                                                                     of government and through
                                                                                     all sectors (+)
                                                                                     b) Ensure compliance with
                                                                                     legal environmental
                                                                                     instruments by involving
                                                                                     society in their
                                                                                     understanding and
                                                                                     vigilance (+)

                                                                                   Strategic Programme 5 -
                                                                                   National campaign for
                                                                                   forests and water
                                                                                   Strategies:
                                                                                    a) Make the national
                                                                                   economy and public
                                                                                   policies, as well as market
                                                                                   mechanisms work towards
                                                                                   natural resource rescue (+)

                                                                                   Strategic Programme 6 -
                                                                                   National campaign for a
                                                                                   Clean Mexico
                                                                                   Strategies:
                                                                                   c) Reduce environmental
                                                                                   problems associated to
                                                                                   waste (+)



                                                                                                                                                  28
                                                                                                     Environmental Strategic         Total Potential   Dimensions % of
                                 Economic Development Goals          Social Development Goals
Type of Good or Service                                                                              Programmes/National             Impact                       Total
                                 and Strategies                      and Strategies
                                                                                                     Campaign and Goals
8. Environmental Contracting     Goal 2 - Increase and expand       Goal 1 - Improve education Strategic Programme 1-                10 National Goals SD         60
and Engineering                  competitiveness                    and Welfare                      Halt and reverse pollution      and/or strategic
                                 Strategies:                        Strategies:                      of systems that support         programmes
                                 a) Promote sectoral development                                     life
Any activity that investigates   and competitiveness (+)            c) Design and implement          Strategies:
feasibility, designs and         b) Develop good quality            programmes to reduce             a) Halt and reverse water,
manages environmental            infrastructure and public services poverty, increase accesses to air and soil pollution to
projects that are not included   (+)                                basic infrastructure and         ensure their conservation
elsewhere. It includes           g) Increase foreign direct         provide development              for future generations (+)
multidisciplinary                investment flows (+)               opportunities to low income c) Ensure compliance with
environmental contracting and    h) Strengthen domestic market (-) population (?)                    environmental laws,
engineering. Environmental                                                                           standards and regulations
management consulting, other     Goal 3 - Ensure inclusive          h) Direct scientific and         (+)
environmental consulting         development                        technological activities to
services and environmental       Strategies                         address the basic needs of       Strategic Programme 2 -
audit services are included.     c) Promote development and         population (including            Halt and reverse loss of
                                 improvement in welfare of rural    nutrition, health, education, natural capital
                                 population through investment,     poverty alleviation and          Strategies:
                                 integration of chains of           environmental quality)(+)
                                 production, capacity-building and                                   a) Halt and reverse natural
                                 technology transfer (?)                                             resources degradation to
                                                                    Goal 3 - Promote education preserve the potential
                                 Goal 4 - Promote balanced          to develop personal capacity benefits from their use to
                                 economic growth                    as well as individual and        future generations (+)
                                 Strategies:                        collective initiatives           b) Ensure approaches for
                                 a) Strengthen regional economies Strategies:                        natural resource use that
                                 (?)                                                                 incorporate processes for
                                 b) Support urban development of c) Strengthen scientific            their conservation (+)
                                 locally designed urban             research and technological       Strategic Programme 4 –
                                 development plans (?)              innovation to support human Promote sustainable
                                 f) Develop the northern and        resource development(+)          development
                                 southern region according to their                                  Strategies:
                                 economic potential and their       d) Facilitate access to state of a) Incorporate                                    E          80
                                 particular natural characteristics the art technology (+)           environmental criteria into
                                 (?)                                                                 the decision making                               S          50
                                                                    Goal 5 - Achieve social and process of economic and
                                 Goal 5 – Create the conditions     human development in             social policies at all levels
                                 for sustainable development        harmony with nature              of government and through                         EV         50
                                 Strategies:                        Strategies:                      all sectors (+)                 15 Strategies with SD        16
                                 c) Strengthen research and                                                                          potential positive

                                                                                                                                                                          29
                                                                                              Environmental Strategic   Total Potential     Dimensions % of
                          Economic Development Goals          Social Development Goals
Type of Good or Service                                                                       Programmes/National       Impact                         Total
                          and Strategies                      and Strategies
                                                                                              Campaign and Goals
                          technology innovation to support    e) Strengthen scientific and                              impact (+)          E          14
                          sustainable development through     technological research to
                          clean technologies and production   better understand sustainable                                                 S          13
                          processes (+)                       development (+)
                          d) Foster environmental                                                                                           EV         24
                          protection and sustainable use of   c) Create new ways of
                          natural resources through           interconnection with the                                  1 strategy with    E           3
                          education, training,                environment and foster                                    potential negative
                          communication and social            sustainable production and                                impact (-)         S           0
                          participation (+)                   consumption processes (+)
                                                                                                                                            EV         0

                                                                                                                        5 strategies with   E          14
                                                                                                                        uncertain impact
                                                                                                                        (?)                 S          3

                                                                                                                                            EV         0




                                                                                                                                                               30
                                                                                                        Environmental Strategic      Total Potential   Dimensions % of
                                    Economic Development Goals          Social Development Goals
Type of Good or Service                                                                                 Programmes/National          Impact                       Total
                                    and Strategies                      and Strategies
                                                                                                        Campaign and Goals
9. Education, Training,             Goal 2 - Increase and expand        Goal 1 - Improve education      Strategic Programme 1 -      12 National Goals SD         71
Information                         competitiveness                     and Welfare                     Halt and reverse pollution   and/or strategic
                                    Strategies:                         Strategies:                     of systems that support      programmes
Any activity that provides          a) Promote sectoral development                                     life
environmental education or          and competitiveness (+)             a) Provide good quality         Strategies:
training or disseminates                                                education tailored to the       a) Halt and reverse water,
environmental information and       Goal 3 - Ensure inclusive           needs of the Mexican            air and soil pollution to
which is executed by                development                         population (+)                  ensure their conservation
specialized institutions or other   Strategies:                                                         for future generations (+)
specialized suppliers. It           c) Promote development and          h) Direct scientific and        c) Ensure compliance with
includes education, training        improvement in welfare of rural     technological activities to     environmental laws,
and information management          population through investment,      address the basic needs of      standards and regulations
for the general public and other    integration of chains of            population (including           (+)
specific environmental work-        production, capacity-building and   nutrition, health, education,
place education and training.       technology transfer (+)             poverty alleviation and    Strategic Programme 2 -
The activities of the general                                           environmental quality)(+)  Halt and reverse loss of
educational system are              Goal 5 – Create the conditions                                 natural capital
excluded.                           for sustainable development       Goal 3 - Promote education Strategies:
                                    Strategies:                       to develop personal capacity a) Halt and reverse natural
                                    c) Strengthen research and        as well as individual and    resource degradation to
                                    technology innovation to support collective initiatives        preserve the potential
                                    sustainable development through Strategies:                    benefits from their use to
                                    clean technologies and production                              future generations (+)
                                    processes (+)                     a) Enhance adult education   b) Ensure approaches for
                                    d) Foster environmental           (+)                          natural resource use that
                                    protection and sustainable use of                              incorporate processes for
                                    natural resources through         c) Strengthen scientific     their conservation(+)
                                    education, training,              research and technological   c) Ensure co-responsible
                                    communication and social          innovation to support human participation of social
                                    participation (+)                 resource development(+)      groups and individuals in
                                                                                                   the conservation and use of                         E          50
                                                                      f) Foster the knowledge of   natural resource and the
                                                                      culture and diversity        environment (+)                                     S          50
                                                                      throughout the Mexican
                                                                      population (+)               Strategic Programme 4 –                             EV         83
                                                                                                   Promote sustainable
                                                                      Goal 5 - Achieve social and development                  25 Strategies with      SD         23
                                                                      human development in         Strategies:                 potential positive
                                                                                                                               impact (+)              E          11
                                                                      harmony with nature          a) Incorporate
                                                                                                       i         l i i i

                                                                                                                                                                          31
                                                                                     Environmental Strategic Total Potential   Dimensions % of
                          Economic Development Goals   Social Development Goals
Type of Good or Service                                                              Programmes/National           Impact                 Total
                          and Strategies               and Strategies
                                                                                     Campaign and Goals
                                                       Strategies:                   environmental criteria into               S          20
                                                       c) Promote environmental      the decision making
                                                       culture in the decision       process of economic and                   EV         60
                                                       making process (+)            social policies at all levels
                                                       e) Strengthen scientific and  of government and through
                                                       technological research to     all sectors (+)
                                                       better understand sustainable c) Ensure compliance with
                                                       development (+)               the legal environmental
                                                       c) Create new ways of         instruments by involving
                                                       interconnection with the      society in their
                                                       environment and foster        understanding and
                                                       sustainable production and    vigilance (+)
                                                       consumption processes (+)




                                                                                                                                                  32
                                                                                    Environmental Strategic        Total Potential   Dimensions % of
                          Economic Development Goals   Social Development Goals
Type of Good or Service                                                             Programmes/National            Impact                       Total
                          and Strategies               and Strategies
                                                                                    Campaign and Goals
                                                       Goal 6 - Enhance the         Programme Strategy 5 –
                                                       responsive capacity of the   National campaign for
                                                       government                   forests and water
                                                       Strategies:                  Strategies:
                                                       a) Promote education         a) Build a national alliance
                                                       federalism by involving      for the sanitation and
                                                       communities in education     recuperation of water
                                                       policy-making and            bodies and forest
                                                       implementation (+)           throughout the country (+)
                                                                                    b) Make the national
                                                                                    economy and public
                                                                                    policies, as well as market
                                                                                    mechanisms work towards
                                                                                    natural resource rescue (+)
                                                                                    Promote a new
                                                                                    environmental culture
                                                                                    throughout the population
                                                                                    to achieve sustainable
                                                                                    development (+)

                                                                                    Strategic Programme 6 -
                                                                                    National campaign for a
                                                                                    Clean Mexico
                                                                                    Strategies:
                                                                                    a) Decrease solid waste
                                                                                    disposal (+)
                                                                                    c) Reduce environmental
                                                                                    problems associated to
                                                                                    waste (+)




                                                                                                                                                        33
                                                                                                    Environmental Strategic      Total Potential   Dimensions % of
                                   Economic Development Goals       Social Development Goals
Type of Good or Service                                                                             Programmes/National          Impact                       Total
                                   and Strategies                   and Strategies
                                                                                                    Campaign and Goals




10. Construction and               Goal 1 - Achieve sound           Goal 1 - Improve education      Strategic Programme 1 -      13 National Goals SD         76
Installation                       macroeconomic environment        and Welfare                     Halt and reverse pollution   and/or strategic
Any activity for the               Strategies:                      Strategies:                     of systems that support      programmes        E          80
construction and installation of   i) Promote productivity in the                                   life
facilities for: air pollution      public sector (+)                c) Design and implement         Strategies:                                    S          67
control; wastewater                                                 programmes to reduce            a) Halt and reverse water,                     EV         67
management; solid waste            Goal 2 - Increase and expand     poverty, increase accesses to   air and soil pollution to
management; remediation and        competitiveness                  basic infrastructure and        guarantee their              15 Strategies with SD        12
cleanup of soil, water and                                          provide development             conservation for future      potential positive


                                                                                                                                                                      34
                                                                                                    Environmental Strategic     Total Potential      Dimensions % of
                                 Economic Development Goals           Social Development Goals
Type of Good or Service                                                                             Programmes/National         Impact                          Total
                                 and Strategies                       and Strategies
                                                                                                    Campaign and Goals
cleanup of soil, water and       Strategies:                          provide development           conservation for future     potential positive   E          11
groundwater; noise and           a) Promote sectoral development      opportunities to low income   generations (+)             impact (+)
vibration abatement;             and competitiveness (+)              population (+)                b) Ensure compliance with                        S          10
environmental monitoring,        b) Develop good quality                                            environmental laws,
analysis and assessment; other   infrastructure and public services   d) Improve health standards   standards and regulations                        EV         19
environmental facilities.        (+)                                  (+)                           (+)                       1 Strategy with    E              6
                                 g) Increase foreign direct                                                                   potential negative
                                 investment (?)                    e) Integrate rural population d) Recuperate rivers, lakes, impact (-)         S              0
                                 h) Strengthen domestic market (-) into the development          basins and watersheds from
                                                                   strategy by (among others)    polluting sources (?)                           EV             0
                                 Goal 3 - Ensure inclusive         taking advantage of                                                           E              11
                                 development                       technology development and Strategic Programme 2 –         9 Strategies with
                                 Strategies:                       sustainable use of natural    Halt and reverse loss of     uncertain impact S                8
                                 c) Promote rural development and resources (?)                  natural capital              (?)
                                 improvement in welfare of rural                                 Strategies:                                     EV
                                 population through investment,    Goal 2 – Enhance equity and
                                 integration of chains of          equity opportunities          a) Halt and reverse natural
                                 production, capacity-building and Strategy:                     resource degradation to
                                 technology transfer (?)                                         preserve the potential




                                                                                                                                                                        35
                                                                                           Environmental Strategic Total Potential   Dimensions % of
                          Economic Development Goals          Social Development Goals
Type of Good or Service                                                                    Programmes/National         Impact                   Total
                          and Strategies                      and Strategies
                                                                                           Campaign and Goals
                          technology transfer (?)                                          preserve the potential
                                                              b) Eliminate discrimination  benefits from their use for
                          Goal 4 – Promote balanced           and violence towards women future generations (+)
                          regional development                (+)
                          Strategies:                                                      b) Ensure approaches for
                          a) Strengthen regional economies    Goal 3 - Promote education natural resource use that
                          (?)                                 to develop personal capacity incorporate processes for
                          d) Create sustainable               as well as individual and    their conservation,
                          development centers to              collective initiatives       protection and development
                          discourage regional migration (?)   Strategies:                  (?)
                          f) Develop northern and southern
                          regions according to their          d) Facilitate access to state of
                          economic potential and their        the art technology (+)           Strategic Programme 4 –
                          particular natural and social                                        promote sustainable
                          characteristics (?)                 Goal 5 - Achieve social and development
                                                              human development in             Strategies:
                          Goal 5 – Create conditions for      harmony with nature
                          sustainable development             Strategies:                      a) Incorporate
                          Strategies:                                                          environmental criteria into
                          a) Foster efficient use of water    a) Harmonise growth and          the decision making
                          and energy (+)                      territorial distribution with    process of economic and
                                                              sustainable development (?) social policies at all levels
                                                                                               of government and through
                                                              e) Stop and reverse water, air all sectors (+)
                                                              and soil pollution (+)
                                                                                               Strategic Programme 5 -
                                                              f) Stop and reverse erosion      National campaign for
                                                              processes and increase           forests and water
                                                              reforestation (+)                Strategies:

                                                                                              b) Make the national
                                                                                              economy and public
                                                                                              policies, as well as market
                                                                                              mechanisms work towards
                                                                                              natural resources rescue (+)




                                                                                                                                                        36
B. CLEANER TECHNOLOGIES AND PRODUCTS

                                                                                              Sustainable Development (SD) = Economic (E)+Social (S) + Environmental(EV)

                                                                                                      Environmental Strategic
                                Economic Development Goals            Social Development Goals
TYPE OF GOOD/SERVICE                                                                                  Programmes/National          Total Potential      Dimension   %
                                and Strategies                        and Strategies
                                                                                                      Campaign and Goals           Impact               s           of Total
1. Cleaner/Resource-Efficient   Goal 2 - Increase and expand          Goal 1 - Improve education      Strategic Programme 1-       11 National Goals    SD          67
Technologies and Processes      competitiveness                       and Welfare                     Halt and reverse pollution   and/or strategic
                                Strategies:                           Strategies:                     of systems that support      programmes           E           60
Electrochemical apparatus/                                                                            life
Plant                           a) Promote sectoral development       d) improve health standards     Strategies:                                       S           50
                                and competitiveness (+)               (+)
                                                                                                                                                        EV          83
Extended cooking (pulp)                                                                               a) Halt and reverse water,
                                b) Develop good quality               h) Direct scientific and        air and soil pollution to
                                                                                                                                   22 Strategies with   SD          23
Oxygen delignification          infrastructure and public services    technological activities to     ensure their conservation
                                                                                                                                   potential positive
                                (+)                                   address the basic needs of      for future generations (+)                        E           14
                                                                                                                                   impact (+)
Ultrasonic cleaning                                                   population (including
                                g) Strengthen domestic market (-)     nutrition, health, education,                                                     S           18
Fluidized bed combustion                                              poverty alleviation and         c)Ensure compliance with
                                d) Foster an advantageous             environmental quality)(+)       environmental laws,                               EV          43
                                integration of the country into the                                   standards and regulations
                                international environment and the                                     (+)                                               E           6
                                new economy(+)                        Goal 3 - Promote education                                   2 Strategies with
                                                                      to develop personal capacity    d) Recuperate rivers,        potential negative   S           0
                                Goal 3 - Ensure inclusive             as well as individual and       lakes, basins and            Impact (-)
                                development                           collective initiatives          watersheds from polluting
                                Strategies:                           Strategies:                     sources (+)                                       EV          0

                                a) Integrate micro-entrepreneurs   c) Strengthen scientific         e) Recuperate and reuse
                                and self-employed workers to the   research and technological       wastewater from
                                market (-)                         innovation to support human agriculture use (+)
                                                                   resource development(+)
                                                                                                    Strategic programme 2-
                                Goal 5 – Create the conditions for d) Facilitate access to state of halt and reverse loss of
                                sustainable development            the art technology (+)           natural capital
                                Strategies:                                                         Strategies:




                                                                                                                                                                           37
                                                                                                      Environmental Strategic
                                Economic Development Goals           Social Development Goals
TYPE OF GOOD/SERVICE                                                                                  Programmes/National             Total Potential     Dimension   %
                                and Strategies                       and Strategies
                                                                                                      Campaign and Goals              Impact              s           of Total
                                a) Foster efficient use of natural   Goal 5 - Achieve social and
                                resources, specially water and       human development in             B) Ensure approaches for
                                energy (+)                           harmony with nature              natural resource use that
                                c) Strengthen research and           Strategies:                      incorporate processes for
                                technology innovation to support     e) Strengthen scientific and     their conservation (+)
                                sustainable development through      technological research to
                                clean technologies and production    better understand sustainable    Strategic Programme 4 –
                                processes (+)                        development (+)                  promote sustainable
                                                                     c) Create new ways of            development
                                                                     interconnection with the         Strategies:
                                                                     environment and foster           a) Incorporate
                                                                     sustainable production and       environmental criteria into
                                                                     consumption processes (+)        the decision making
                                                                     e) Stop and reverse water, air   process of economic and
                                                                     and soil pollution (+)           social policies at all levels
                                                                                                      of government and
                                                                                                      through all sectors (+)

                                                                                                      National campaign for
                                                                                                      forests and water –5
                                                                                                      Strategies:
                                                                                                      a) Make the national
                                                                                                      economy and public
                                                                                                      policies, as well as market
                                                                                                      mechanisms work towards
                                                                                                      natural resource rescue (+)

                                                                                                      National campaign for a
                                                                                                      clean Mexico – 6
                                                                                                      Strategies:
                                                                                                      a) Decrease solid waste
                                                                                                      disposal (+)
                                                                                                      c) reduce environmental
                                                                                                      problems associated to
                                                                                                      waste (+)
2. Cleaner/Resource-Efficient   Goal 2 - Increase and expand         Goal 1 - Improve education       Strategic Programme 1-          11 National Goals   SD          67
Products                        competitiveness                      and Welfare                      Halt and reverse pollution      and/or strategic
                                Strategies:                          Strategies:                      of systems that support         programmes          E           60
CFC substitutes                                                                                       life


                                                                                                                                                                             38
                                                                                                     Environmental Strategic
                                Economic Development Goals            Social Development Goals
TYPE OF GOOD/SERVICE                                                                                 Programmes/National          Total Potential      Dimension   %
                                and Strategies                        and Strategies
                                                                                                     Campaign and Goals           Impact               s           of Total
                                a) Promote sectoral development       d) improve health standards    Strategies:                                       S           50
Hydrogen peroxide               and competitiveness (+)               (+)
                                                                                                     a) Halt and reverse water,                        EV          83
Peat replacement (e.g. bark)                                                                         air and soil pollution to
                                g) Strengthen domestic market (-)     Goal 3 - Promote education     ensure their conservation
Water-base adhesives                                                  to develop personal capacity   for future generations (+)   20 Strategies with   SD          21
                                d) Foster an advantageous             as well as individual and                                   potential positive
Paints nad vanishes, in         integration of the country into the   collective initiatives                                      impact (+)           E           11
aqueous medium, acrylic or      international environment and the     Strategies:                    c)Ensure compliance with
vinyl                           new economy(+)                                                       environmental laws,                               S           15
                                                                      c) Strengthen scientific       standards and regulations
Other paints and vanishes, in                                         research and technological     (+)
aqueous medium                  Goal 3 - Ensure inclusive             innovation to support human                                                      EV          43
                                development                           resource development(+)          d) Recuperate rivers,
Duble-hulled oil tankers        Strategies:                                                            lakes, basins and         2 Strategies with     E           6
                                                                      d) Facilitate access to state of watersheds from polluting potential negative
Low-noise compressors           a) Integrate micro-entrepreneurs      the art technology (+)           sources (+)               impact
                                and self-employed workers to the                                                                                       S           0
                                market (-)                         Goal 5 - Achieve social and       e) Recuperate and reuse
                                                                   human development in              wastewater from
                                                                                                                                                       EV          0
                                                                   harmony with nature               agriculture use (+)
                                Goal 5 – Create the conditions for Strategies:
                                sustainable development                                              Strategic programme 2-
                                Strategies:                        e) Strengthen scientific and      halt and reverse loss of
                                                                   technological research to         natural capital
                                a) Foster efficient use of natural better understand sustainable     Strategies:
                                resources, specially water and     development (+)
                                energy (+)                                                           B) Ensure approaches for
                                                                   c) Create new ways of             natural resource use that
                                c) Strengthen research and         interconnection with the          incorporate processes for




                                                                                                                                                                          39
                                                                                          Environmental Strategic
                       Economic Development Goals         Social Development Goals
TYPE OF GOOD/SERVICE                                                                      Programmes/National             Total Potential   Dimension   %
                       and Strategies                     and Strategies
                                                                                          Campaign and Goals              Impact            s           of Total
                       technology innovation to support environment and foster            their conservation (+)
                       sustainable development through sustainable production and
                       clean technologies and production consumption processes (+)        Strategic Programme 4 –
                       processes (+)                                                      promote sustainable
                                                         e) Stop and reverse water, air   development
                                                         and soil pollution (+)           Strategies:
                                                                                          a) Incorporate
                                                                                          environmental criteria into
                                                                                          the decision making
                                                                                          process of economic and
                                                                                          social policies at all levels
                                                                                          of government and
                                                                                          through all sectors (+)

                                                                                          National campaign for
                                                                                          forests and water –5
                                                                                          Strategies:
                                                                                          b) Make the national
                                                                                          economy and public
                                                                                          policies, as well as market
                                                                                          mechanisms work towards
                                                                                          natural resource rescue (+)

                                                                                          National campaign for a
                                                                                          clean Mexico – 6
                                                                                          Strategies:
                                                                                          a) Decrease solid waste
                                                                                          disposal (+)
                                                                                          c) reduce environmental
                                                                                          problems associated to
                                                                                          waste (+)




                                                                                                                                                               40
C. RESOURCE MANAGEMENT

                                                                                  Sustainable Development (SD) = Economic (E)+Social (S) + Environmental(EV)

                                                                                                 Environmental Strategic
                                  Economic Development Goals   Social Development Goals
TYPE OF GOOD/SERVICE                                                                             Programmes/National         Total Potential      Dimensions %
                                  and Strategies               and Strategies
                                                                                                 Campaign and Goals          Impact                          of Total
1. Indoor Air Pollution Control                                Goal 1 - Improve education        Strategic Programme         5 National Goals     SD         67
                                                               and Welfare                       1- Halt and reverse         and/or strategic     E          60
                                                               Strategies:                       pollution of systems that   programmes
                                                                                                 support life
                                                               d) Improve health standards       Strategies:                                      S           50
                                                               (+)
                                                                                                 a) Halt and reverse
                                                               f) Promote and implement          water, air and soil                              EV          83
                                                               housing and urban                 pollution to ensure their
                                                               development public policies       conservation for future
                                                               as and engine to development      generations (+)             8 Strategies with    SD          21
                                                               (+)                                                           potential positive
                                                                                                 c)Ensure compliance         impact (+)
                                                                                                                                                  E           11
                                                               Goal 3 - Promote education        with environmental
                                                               to develop personal capacity      laws, standards and
                                                               as well as individual and         regulations (+)                                  S           15
                                                               collective initiatives
                                                               Strategies:                       Strategic Programme 4
                                                                                                                                                  EV          43
                                                                                                 – promote sustainable
                                                               d) facilitate access o state of   development
                                                               the art technology (+)            Strategies:

                                                               Goal 5 - Achieve social and    a) Incorporate
                                                               human development in           environmental criteria
                                                               harmony with nature            into the decision making
                                                               Strategies:                    process of economic and
                                                                                              social policies at all
                                                               e) Stop and reverse water, air levels of government
                                                               and soil pollution (+)         and through all sectors
                                                                                              (+)

                                                                                                 c) Ensure compliance
                                                                                                 with legal environmental




                                                                                                                                                                   41
                                                                                                      Environmental Strategic
                                 Economic Development Goals           Social Development Goals
TYPE OF GOOD/SERVICE                                                                                  Programmes/National         Total Potential   Dimensions %
                                 and Strategies                       and Strategies
                                                                                                      Campaign and Goals          Impact                       of Total
                                                                                                      with legal environmental
                                                                                                      instruments by involving
                                                                                                      society in their
                                                                                                      compliance and
                                                                                                      vigilance (+)
2. Water Supply                  Goal 1 - Achieve sound               Goal 1 - Improve education      Strategic Programme         13 National Goals SD          76
                                 macroeconomic environment            and Welfare                     1- Halt and reverse         and/or strategic
2.1 Potable water treatment      Strategies:                          Strategies:                     pollution of systems that   programmes         E          100
2.2 Water purification systems                                                                        support life                12 Strategies with
2.3 Potable water supply and     i) Promote productivity in the       c) Design and implement         Strategies:                 potential positive S          67
distribution                     public sector (+)                    programmes to reduce                                        impact (+)
                                                                      poverty, increase accesses to   d) Recuperate rivers,                          EV         67
                                 Goal 2 - Increase and expand         basic infrastructure and        lakes, basins and
                                 competitiveness                      provide development             watersheds from             12 Strategies with SD         12
                                 Strategies:                          opportunities to low income     polluting sources (?)       potential positive
                                                                      population (+)                                              impact (+)         E          11
                                 a) Promote sectoral development
                                 and competitiveness (+)              d) Improve health standards     Strategic Programme 2
                                                                                                                                                    S           10
                                                                      (+)                             – Halt and reverse loss
                                 b) Develop good quality                                              of natural capital
                                 infrastructure and public services   e) Integrate rural population   Strategies:                                   EV          19
                                 (+)                                  into the development strategy                       2 Strategies with         E           6
                                                                      by (among others) taking  a) Halt and reverse       potential negative
                                 g) Strengthen domestic market (-)    advantage of technology   natural resource          impact (-)                S           0
                                                                                                degradation to preserve
                                                                      development and sustainable
                                 Goal 3 - Ensure inclusive                                      the potential benefits
                                                                      use of natural resources (?)                                                  EV          0
                                 development                                                    from their use for future
                                 Strategies:                       Goal 2 – Enhance equity and generations (+)            8 Strategies with         E           11
                                                                   equity opportunities                                   uncertain impact
                                 a) Integrate micro-entrepreneurs  Strategy:                    b) Ensure approaches      (?)                       S           5
                                 and self-employed workers to the                               for natural resource use
                                 market (-)                        b) Eliminate discrimination  that incorporate                                    EV          10
                                                                   and violence towards women processes for their
                                 c) Promote rural development and (+)                           conservation, protection
                                 improvement in welfare of rural                                and development (?)
                                 population through investment,    Goal 3 - Promote education
                                 integration of chains of          to develop personal capacity Strategic Programme 4
                                 production, capacity-building and as well as individual and    – promote sustainable
                                 technology transfer (?)           collective initiatives       development


                                                                                                                                                                      42
                                                                                           Environmental Strategic
                        Economic Development Goals          Social Development Goals
TYPE OF GOOD/SERVICE                                                                       Programmes/National     Total Potential       Dimensions %
                        and Strategies                      and Strategies
                                                                                           Campaign and Goals      Impact                           of Total
                                                            Strategies:                    Strategies:
                        Goal 4 – Promote balanced
                        regional development              d) facilitate access to state of a) Incorporate
                        Strategies:                       the art technology (+)           environmental criteria
                                                                                           into the decision making
                        a) Strengthen regional economies Goal 5 - Achieve social and process of economic and
                        (?)                               human development in             social policies at all
                                                          harmony with nature              levels of government
                        d) Create sustainable development Strategies:                      and through all sectors
                        centers to discourage regional                                     (+)
                        migration (?)                     a) harmonise growth and
                                                          territorial distribution with    b) Strengthen federalism
                                                          sustainable development (?) and ensure integrated
                        f) Develop northern and southern                                   management of
                        regions according to their        f) Stop and reverse erosion      environmental issues
                        economic potential and their      processes and increase           with the participation of
                        particular natural and social     reforestation (?)                local stakeholders (+)
                        characteristics (?)
                                                                                           Strategic Programme 5
                        Goal 5 – Create conditions for                                     - National campaign for
                        sustainable development                                            forests and water
                        Strategies:                                                        Strategies:
                                                                                           b) Make the national
                        a) Foster efficient use of water                                   economy and public
                        and energy (+)                                                     policies, as well as
                                                                                           market mechanisms
                                                                                           work towards natural
                                                                                           resources rescue (+)


3. Recycled Materials   Goal 1 - Achieve sound              Goal 1 - Improve education     Strategic Programme 11 National Goals SD                  65
                        macroeconomic environment           and Welfare                    1- Halt and reverse       and/or strategic E              80
                        Strategies:                         Strategies:                    pollution of systems that programmes
                                                                                           support life                               S              33
                        i) Promote productivity in the      b) Design and implement        Strategies:
                        public sector (?)                   programmes to reduce
                                                            poverty, increase access to    a) Halt and reverse                           EV          83
                        Goal 2 - Increase and expand        basic infrastructure and       water, air and soil         12 Strategies with SD         12
                        competitiveness                     provide development            pollution to ensure their   potential positive
                                                            opportunities to low income    conservation for future

                                                                                                                                                          43
                                                                                          Environmental Strategic
                       Economic Development Goals           Social Development Goals
TYPE OF GOOD/SERVICE                                                                      Programmes/National     Total Potential       Dimensions %
                       and Strategies                       and Strategies
                                                                                          Campaign and Goals      Impact                           of Total
                       Strategies:                          opportunities to low income   conservation for future impact (+)            E          6
                                                            population (-)                generations (+)
                       a) Promote sectoral development                                                                                  S           5
                       and competitiveness (+)              Goal 5 - Achieve social and
                                                            human development in          c)Ensure compliance
                       g) Strengthen domestic market (-)    harmony with nature           with environmental                            EV          43
                                                            Strategies:                   laws, standards and        3 Strategies with E            6
                       Goal 3 - Ensure inclusive                                          regulations (+)            potential negative
                       development                                                                                   impact (-)
                       Strategies:                          c) Create new ways of         Strategic programme                           S           3
                                                            interconnection with the      2- halt and reverse loss
                       a) Integrate micro-entrepreneurs     environment and foster        of natural capital                            EV          0
                       and self-employed workers to the     sustainable production and    Strategies:
                       market (-)                           consumption processes (+)
                                                                                         a) Halt and reverse        2 Strategies with   E           6
                                                          e) Stop and reverse water, air natural resources          uncertain impact
                       Goal 5 – Create the conditions for and soil pollution (+)         degradation to preserve (?)                    S           0
                       sustainable development                                           the potential benefits for
                       Strategies:                                                       future generations (+)                         EV          0

                       a) Foster efficient use of natural                                 b) Ensure approaches
                       resources, specially water and                                     for natural resource use
                       energy (+)                                                         that incorporate
                                                                                          processes for their




                                                                                                                                                         44
                                                                               Environmental Strategic
                       Economic Development Goals   Social Development Goals
TYPE OF GOOD/SERVICE                                                           Programmes/National     Total Potential   Dimensions %
                       and Strategies               and Strategies
                                                                               Campaign and Goals      Impact                       of Total




                                                                                                                                          45
                                                                                               Environmental Strategic
                            Economic Development Goals         Social Development Goals
TYPE OF GOOD/SERVICE                                                                           Programmes/National         Total Potential   Dimensions %
                            and Strategies                     and Strategies
                                                                                               Campaign and Goals          Impact                       of Total
4. Renewable Energy Plant   Goal 1 - Achieve sound             Goal 1 - Improve education      Strategic Programme         11 National Goals SD         65
                            macroeconomic environment          and Welfare                     1- Halt and reverse         and/or strategic
4.1 Solar                   Strategies:                        Strategies:                     pollution of systems that   programmes        E          100
4.2 Wind                                                                                       support life
4.3 Tidal                   i) Promote productivity in the     c) Design and implement         Strategies:                                    S         50
4.4 Geothermal              public sector (+)                  programmes to reduce
4.5 Other                                                      poverty, increase accesses to   a) Halt and reverse                            EV        50
                            Goal 2 - Increase and expand       basic infrastructure and        water, air and soil
                            competitiveness                    provide development             pollution to guaranty       14 Strategies with SD        14
                            Strategies:                        opportunities to low income     their conservation for      potential positive
                                                               population (+)                  the future generations      impact (+)         E         17
                                                                                               (+)
                            a) Promote sectoral development    d) Improve health standards                                                    S         10
                            and competitiveness (+)            (+)                              Strategic Programme 2
                                                                                                – Halt and reverse loss                       EV        19
                            b) Develop good quality            e) Integrate rural population of natural capital                               E         3
                            infrastructure and public services into the development strategy Strategies:                 1 Strategies with
                            (+)                                by (among others) taking                                  potential negative
                                                               advantage of technology          a) Halt and reverse                           S         0
                                                                                                                         impact (-)
                            g) Strengthen domestic market (-) development and sustainable natural resource
                                                               use of natural resources (?)     degradation to preserve                       EV        0
                            Goal 3 - Ensure inclusive                                           the potential benefits
                            development                        Goal 3 - Promote education from their use for future
                            Strategies:                        to develop personal capacity generations (+)              8 Strategies with    E         11
                                                               as well as individual and                                 uncertain impact
                            c) Promote rural development and collective initiatives             b) Ensure approaches     (?)                  S         8
                            improvement in welfare of rural    Strategies:                      for natural resource use
                            population through investment,                                      that incorporate                              EV        5
                            integration of chains of           d) facilitate access to state of processes for their
                            production, capacity-building and the art technology (+)            conservation, protection
                            technology transfer (?)                                             and development (?)
                                                               e) support the creation of
                            Goal 4 – Promote balanced          social enterprises with the      Strategic Programme 4
                            regional development               participation of low income – promote sustainable
                                                               population in urban and rural development




                                                                                                                                                              46
                                                                                             Environmental Strategic
                            Economic Development Goals         Social Development Goals
TYPE OF GOOD/SERVICE                                                                         Programmes/National     Total Potential        Dimensions %
                            and Strategies                     and Strategies
                                                                                             Campaign and Goals      Impact                            of Total
                            Strategies:                        population in urban and rural development
                                                               areas (?)                     Strategies:
                            a) Strengthen regional economies
                            (?)                               Goal 5 - Achieve social and      a) Incorporate
                                                              human development in             environmental criteria
                            d) Create sustainable development harmony with nature              into the decision making
                            centers to discourage regional    Strategies:                      process of economic and
                            migration (?)                                                      social policies at all
                                                              a) harmonise growth and          levels of government
                            f) Develop northern and southern territorial distribution with     and through all sectors
                            regions according to their        sustainable development (?)      (+)
                            economic potential and their
                            particular natural and social     e) Stop and reverse water, air   b) Strengthen federalism
                            characteristics (?)               and soil pollution (+)           and ensure integrated
                                                                                               management of
                            Goal 5 – Create conditions for                                     environmental issues
                            sustainable development                                            with the participation of
                            Strategies:                                                        local stakeholders (+)

                            a) Foster efficient use of water
                            and energy (+)

                            f) continue the development and
                            implementation of a national
                            sustainable development strategy
                            (+)

                            g) Advance in the strategy to
                            mitigate green house gas
                            emissions (+)
5. Heat/energy saving and   Goal 1 - Achieve sound             Goal 1 - Improve education      Strategic Programme 9 National Goals         SD          53
management                  macroeconomic environment          and Welfare                     1- Halt and reverse       and/or strategic
                            Strategies:                        Strategies:                     pollution of systems that programmes
                                                                                               support life                                 E           60
                            i) Promote productivity in the                                     Strategies:
                            public sector (+)                  d) Improve health standards                                                  S           50
                                                               (+)                             a) Halt and reverse
                            Goal 2 - Increase and expand                                       water, air and soil                          EV          50
                            competitiveness                                                    pollution to guaranty


                                                                                                                                                             47
                                                                                             Environmental Strategic
                       Economic Development Goals           Social Development Goals
TYPE OF GOOD/SERVICE                                                                         Programmes/National         Total Potential   Dimensions %
                       and Strategies                       and Strategies
                                                                                             Campaign and Goals          Impact                       of Total
                       competitiveness                      f) Promote and implement         pollution to guaranty                         SD         18
                       Strategies:                          housing and urban                their conservation for      17 Strategies with
                                                            development policies as and      the future generations      potential positive E          14
                                                            engine to development (+)        (+)                         impact (+)
                       a) Promote sectoral development                                                                                      S          13
                       and competitiveness (+)              Goal 3 - Promote education       b) Ensure compliance
                                                                                                                                           EV          29
                                                            to develop personal capacity     with environmental
                       b) Develop good quality              as well as individual and        laws, standards and
                       infrastructure and public services   collective initiatives           regulations (+)
                       (+)                                  Strategies:
                       Goal 5 – Create conditions for                                        Strategic Programme 2
                       sustainable development              d) facilitate access to state of – Halt and reverse loss
                       Strategies:                          the art technology (+)           of natural capital
                                                                                             Strategies:
                       a) Foster efficient use of water
                       and energy (+)                       Goal 5 - Achieve social and      a) Halt and reverse
                                                            human development in             natural resource
                       f) continue the development and      harmony with nature              degradation to preserve
                       implementation of a national         Strategies:                      the potential benefits
                       sustainable development strategy                                      from their use for future
                       (+)                                  a) Create new ways of            generations (+)
                                                            interconnection with the
                       g) Advance in the strategy to        environment and foster           b) Ensure approaches
                       mitigate green house gas             sustainable production and       for natural resource use
                       emissions (+)                        consumption processes (+)        that incorporate
                                                                                             processes for their
                                                            e) stop and reverse water, air   conservation, protection
                                                               d    l ll i ( )                 dd l            ( )




                                                                                                                                                            48
                                                                                                   Environmental Strategic
                                 Economic Development Goals         Social Development Goals
TYPE OF GOOD/SERVICE                                                                               Programmes/National     Total Potential    Dimensions %
                                 and Strategies                     and Strategies
                                                                                                   Campaign and Goals      Impact                        of Total
                                                                    and soul pollution (+)         and development (+)

                                                                                                   Strategic Programme 4
                                                                                                   – promote sustainable
                                                                                                   development
                                                                                                   Strategies:
                                                                                                   a) Incorporate
                                                                                                   environmental criteria
                                                                                                   into the decision making
                                                                                                   process of economic and
                                                                                                   social policies at all
                                                                                                   levels of government
                                                                                                   and through all sectors
                                                                                                   (+)
                                                                                                   b) Ensure compliance
                                                                                                   with legal environmental
                                                                                                   standards by involving
                                                                                                   society in their
                                                                                                   understanding and
                                                                                                   vigilance(+)




6. Sustainable Agriculture and   Goal 2 - Increase and expand       Goal 1 - Improve education     Strategic Programme 11 National Goals SD               65
Fisheries                        competitiveness                    and Welfare                    1- Halt and reverse       and/or strategic
                                 Strategies:                        Strategies:                    pollution of systems that programmes         E         80
                                                                                                   support life                                 S         50
                                 a) Promote sectoral development   c) Design and implement         Strategies:
                                 and competitiveness (+)           programmes to reduce                                                         EV        67
                                                                   poverty, increase accesses to   a) Halt and reverse       13 Strategies with SD        13
                                 g) Strengthen domestic market (?) basic infrastructure and        water, air and soil       potential positive
                                                                   provide development             pollution to guaranty     impact (+)         E         8
                                                                         t iti t l i               th i           ti f

                                                                                                                                                               49
                                                                                       Environmental Strategic
                       Economic Development Goals        Social Development Goals
TYPE OF GOOD/SERVICE                                                                   Programmes/National     Total Potential      Dimensions %
                       and Strategies                    and Strategies
                                                                                       Campaign and Goals      Impact                          of Total
                       Goal 3 - Ensure inclusive         opportunities to low income their conservation for                         S          5
                       development                       population (?)                the future generations
                       Strategies:                                                     (+)                                          EV          38
                                                         d) Improve health standards                           10 Strategies with   E           11
                       c) Promote rural development and (+)                            c) Ensure compliance    uncertain impact
                       improvement in welfare of rural                                 with environmental      (?)                  S           13
                       population through investment,    e) Integrate rural population laws, standards and
                       integration of chains of          into the development strategy regulations (+)                              EV          5
                       production, capacity-building and by (among others) taking
                       technology transfer (?)           advantage of technology       d) Recuperate rivers,
                                                         development and sustainable lakes, basins and
                       Goal 4 – Promote balanced         use of natural resources (?)  watersheds from
                       regional development                                            polluting sources(+)
                       Strategies:                       Goal 3 - Promote education
                                                         to develop personal capacity f) Recuperate and reuse
                       a) Strengthen regional economies as well as individual and      water from agricultural
                       (?)                               collective initiatives        use (+)
                                                         Strategies:
                       d) Create sustainable development                               Strategic Programme 2




                                                                                                                                                     50
                                                                               Environmental Strategic
                       Economic Development Goals   Social Development Goals
TYPE OF GOOD/SERVICE                                                           Programmes/National     Total Potential   Dimensions %
                       and Strategies               and Strategies
                                                                               Campaign and Goals      Impact                       of Total




                                                                                                                                          51
                                                                                            Environmental Strategic
                          Economic Development Goals         Social Development Goals
TYPE OF GOOD/SERVICE                                                                        Programmes/National         Total Potential   Dimensions %
                          and Strategies                     and Strategies
                                                                                            Campaign and Goals          Impact                       of Total
7. Sustainable Forestry   Goal 2 - Increase and expand       Goal 1 - Improve education     Strategic Programme         12 National Goals SD         71
                          competitiveness                    and Welfare                    1- Halt and reverse         and/or strategic
                          Strategies:                        Strategies:                    pollution of systems that   programmes        E          80
                                                                                            support life
                          a) Promote sectoral development   c) Design and implement         Strategies:                                   S          50
                          and competitiveness (+)           programmes to reduce
                                                            poverty, increase accesses to   a) Halt and reverse                           EV         83
                          g) Strengthen domestic market (?) basic infrastructure and        water, air and soil
                                                            provide development             pollution to guaranty       14 Strategies with SD        14
                          Goal 3 - Ensure inclusive         opportunities to low income     their conservation for      potential positive
                          development                       population (?)                  the future generations      impact (+)         E         8
                          Strategies:                                                       (+)
                                                            e) Integrate rural population
                                                                                                                                          S          5
                          c) Promote rural development and into the development strategy    c) Ensure compliance
                          improvement in welfare of rural   by (among others) taking        with environmental
                          population through investment,    advantage of technology         laws, standards and                           EV         43
                          integration of chains of          development and sustainable     regulations (+)
                          production, capacity-building and use of natural resources (?)                                11 Strategies with E         11
                          technology transfer (?)                                           d) Recuperate rivers,       uncertain impact
                                                                                            lakes, basins and           (?)                S         13
                          Goal 4 – Promote balanced          Goal 3 - Promote education     watersheds from                               EV         10
                          regional development               to develop personal capacity   polluting sources (+)                         SD
                          Strategies:                        as well as individual and
                                                             collective initiatives           Strategic Programme 2
                          a) Strengthen regional economies   Strategies:                      – Halt and reverse loss
                          (?)                                                                 of natural capital
                                                             d) Facilitate access to state of Strategies:
                                                             the art technology (?)




                                                                                                                                                           52
                                                                               Environmental Strategic
                       Economic Development Goals   Social Development Goals
TYPE OF GOOD/SERVICE                                                           Programmes/National     Total Potential   Dimensions %
                       and Strategies               and Strategies
                                                                               Campaign and Goals      Impact                       of Total




                                                                                                                                          53
                                                                                                  Environmental Strategic
                             Economic Development Goals           Social Development Goals
TYPE OF GOOD/SERVICE                                                                              Programmes/National         Total Potential   Dimensions %
                             and Strategies                       and Strategies
                                                                                                  Campaign and Goals          Impact                       of Total
8. Natural Risk Management                                        Goal 1 - Improve education      Strategic Programme         12 National Goals SD         70
                             Goal 3 - Ensure inclusive            and Welfare                     1- Halt and reverse         and/or strategic
                             development                          Strategies:                     pollution of systems that   programmes        E          8060
                             Strategies:                                                          support life
                                                                  c) Design and implement         Strategies:                                   S          5050
                             d) Foster the creation and           programmes to reduce            c) Ensure compliance
                                                                                                                                                EV         8383
                             development of productive            poverty, increase accesses to   with environmental
                             projects with benefits to            basic infrastructure and        laws, standards and         14 Strategies with SD        14
                             vulnerable groups in indigenous      provide development             regulations (+)             potential positive
                             communities                          opportunities to low income                                 impact (+)         E         811
                                                                  population (+)                  Strategic Programme 2
                             Goal 4 – Promote balanced                                            – Halt and reverse loss                       S          515
                             regional development                 d) Improve health standards     of natural capital
                             Strategies:                                                          Strategies:                                   EV         43
                                                                  h) Direct scientific and        a) Halt and reverse
                             a) Strengthen regional economies     technological activities to     natural resource
                             (+)                                  address the basic needs of      degradation to preserve
                                                                  population including            the potential benefits
                             Goal 5 – Create conditions for       nutrition, health, education,   from their use for future
                             sustainable development              poverty and environmental       generations (+)
                             Strategies:                          quality(+)                      b) Ensure approaches
                                                                                                  for natural resource use
                             a) Foster efficient use of natural   Goal 4-Strengthen cohesion      that incorporate
                             resources specially water and        and social capital              processes for their
                             energy (+)                           Strategies:                     conservation, protection
                                                                                                  and development (+)
                             c) Strengthen research and           d) Integrate vulnerable
                             technology innovation to support     population into the             Strategic Programme 3
                             sustainable development through      development strategy (+)        - Preserve ecosystems
                             clean technologies and production                                    and biodiversity
                             processes (+)                        Goal 5 - Achieve social and     Strategies:
                                                                  human development in            a) Integrate and
                                                                  harmony with nature             consolidate instruments
                                                                  Strategies:                     and means for
                                                                                                  biodiversity
                                                                                                  conservation (+)




                                                                                                                                                                  54
                                                                               Environmental Strategic
                       Economic Development Goals   Social Development Goals
TYPE OF GOOD/SERVICE                                                           Programmes/National     Total Potential   Dimensions %
                       and Strategies               and Strategies
                                                                               Campaign and Goals      Impact                       of Total




                                                                                                                                          55
                                                                                           Environmental Strategic
                       Economic Development Goals          Social Development Goals
TYPE OF GOOD/SERVICE                                                                       Programmes/National         Total Potential    Dimensions %
                       and Strategies                      and Strategies
                                                                                           Campaign and Goals          Impact                        of Total
9. Eco-Tourism         Goal 2 - Increase and expand        Goal 1 - Improve education      Strategic Programme         13 National Goals SD          76
                       competitiveness                     and Welfare                     1- Halt and reverse         and/or strategic
                       Strategies:                         Strategies:                     pollution of systems that   programmes
                                                                                           support life                16 Strategies with
                       a) Promote sectoral development   c) Design and implement           Strategies:                 potential positive
                       and competitiveness (+)           programmes to reduce              c) Ensure compliance        impact (+)
                                                         poverty, increase accesses to     with environmental
                       g) Strengthen domestic market (+) basic infrastructure and          laws, standards and
                                                         provide development               regulations (+)
                       Goal 3 - Ensure inclusive         opportunities to low income
                       development                       population (+)                    Strategic Programme 2
                       Strategies:                                                         – Halt and reverse loss
                                                         g) Integrate rural population     of natural capital
                       a) Integrate micro-entrepreneurs  into the development strategy     Strategies:
                       and self employed workers to the by (among others) taking           a) Halt and reverse
                       market(+)                         advantage of technology           natural resource
                                                         development and sustainable       degradation to preserve
                       c) Promote rural development and use of natural resources (+)       the potential benefits
                       improvement in welfare of rural                                     from their use for future
                       population through investment,    Goal 2 - Enhance equity and       generations (+)
                       integration of chains of          equality opportunities            b) Ensure approaches
                       production, capacity-building and Strategies:                       for natural resource use
                       technology transfer (+)                                             that incorporate
                                                         f) Incentive the participation    processes for their
                       Foster the creation and           of indigenous people in           conservation, protection
                       development of productive         national development (+)          and development (+)
                       projects with benefits to                                           c) Ensure co responsible
                       vulnerable groups in indigenous   Goal 3 - Promote education        participation of social
                       communities (+)                   to develop personal capacity      groups and individuals
                                                         as well as individual and         in the conservation and
                       Goal 4 – Promote balanced         collective initiatives            use of natural resources
                       regional development              Strategies:                       and the environment (+)
                       Strategies:
                                                                                           Strategic programme 3
                       a) Strengthen regional economies    e) Support the creation of      - Preserve ecosystems
                       (+)                                 social enterprises with the     and biodiversity
                                                           participation of low income     Strategies:
                       c) Support the development of       population in urban and rural   a) Integrate and
                       local, state and regional tourist   areas (?)                       consolidate instruments                       E           80
                       industries (+)                                                      and means for

                                                                                                                                                           56
                                                                                            Environmental Strategic
                       Economic Development Goals           Social Development Goals
TYPE OF GOOD/SERVICE                                                                        Programmes/National        Total Potential    Dimensions %
                       and Strategies                       and Strategies
                                                                                            Campaign and Goals         Impact                        of Total
                                                         f) Foster the knowledge of         biodiversity                                  S          100
                       d) Create sustainable development culture and diversity              conservation (+)
                       centers to discourage regional    throughout the Mexican             b) Ensure co-responsible                      EV          83
                       migration (+)                     population (+)                     participation of all
                                                                                            sectors in the             16 Strategies with SD          16
                                                                                            conservation of            potential positive
                                                                                                                       impact (+)         E           31
                                                            Goal 4-Strengthen cohesion      biodiversity(+)
                                                            and social capital              c) Ensure approaches for                      S           25
                                                                                            the use of natural
                                                            c) Promote the participation    resources and                                 EV          60
                                                            of civil societies in the       environmental services
                       Goal 5 – Create conditions for       development of public           that guarantee the         1 Strategy with    E           0
                       sustainable development              policies (+)                    preservation of species,   uncertain impact
                       Strategies:                                                          genetic biodiversity and   (?)                S           3
                                                            d) Integrate vulnerable         conservation of
                       a) Foster efficient use of natural   population into the             ecosystems and their                          EV          0
                       resources specially water and        development strategy. (+)       inherent ecological
                       energy (+)                                                           process (+)
                                                            Goal 5 - Achieve social and
                       d) Foster environmental protection   human development in            Strategic Programme 4
                       and sustainable use of natural       harmony with nature             – promote sustainable
                       resources through education          Strategies:                     development
                       training , communication and                                         Strategies:
                       social participation (+)             a) Harmonise growth and         a) Incorporate
                                                            territorial distribution with   environmental criteria
                       f) Continue the development and      sustainable development (+)     into the decision making
                       implementation of a national                                         process of economic and
                       sustainable development strategy     d) Create new ways of           social policies at all
                       (+)                                  interconnection with the        levels of government
                                                            environment and foster          and through all sectors
                                                            sustainable production and      (+)




                                                                                                                                                           57
                                                                                                                      Environmental Strategic
                                        Economic Development Goals                Social Development Goals
TYPE OF GOOD/SERVICE                                                                                                  Programmes/National      Total Potential             Dimensions %
                                        and Strategies                            and Strategies
                                                                                                                      Campaign and Goals       Impact                                 of Total
                                                                                  consumption processes (+)           c) Ensure compliance
                                                                                                                      with legal environmental
                                                                                  Goal 6- Enhance the                 instruments by involving
                                                                                  responsive capacity of the          society in their
                                                                                  government                          understanding and
                                                                                  Strategies                          vigilance (+)

                                                                                  a) Promote education         National campaign for
                                                                                  federalism by involving      forests and water –5
                                                                                  communities in education     Strategies:
                                                                                  policy-making and            a) Build a national
                                                                                  implementation (+)           alliance for the
                                                                                                               sanitation and
                                                                                  g) Promote effective schemes recuperation of water
                                                                                  to support unemployed        bodies and forest land
                                                                                  people (+)                   throughout the country
                                                                                                               (+)
                                                                                                               towards natural resource
                                                                                                               rescue (+)

                                                                                                                      b) Make the national
                                                                                                                      economy and public
                                                                                                                      policies, as well as
                                                                                                                      market mechanisms
                                                                                                                      work
                                                                                                                      c) Promote a new
                                                                                                                      environmental culture
                                                                                                                      throughout the
                                                                                                                      population to achieve
                                                                                                                      sustainable
                                                                                                                      development.(+)
10. Other
* Indicates that the S code appears previously in a different sub-class.
Source: OECD, drawing on detailed breakdown presented in Annex 7. HS commodity codes are drawn from Word Customs organization (1996), Harmonised Commodity Description and Coding System, Explanatory
notes, Second edition, Brussels. See also presentation and discussion in OECD (1999), COM/TD/ENV(98)37/FINAL.




                                                                                                                                                                                                   58
BROAD OECD DEFINITION/CLASSIFICATION

ENVIRONMENTAL GOODS AND SERVICES

The following examines the potential impact of liberalisation under an expanded broad OECD classification approach in relation to Mexico’s sustainable
development goals including EGS of export interest to Mexico.

C. RESOURCE MANAGEMENT


                                                                                         Environmental Strategic       Total Potential
                            Economic Development Goals      Social Development Goals                                                     Dimensio    %
Type of Good or Service                                                                   Programmes/National             Impact
                                  and Strategies                  and Strategies                                                            ns       of
                                                                                          Campaign and Goals
                                                                                                                                                    Total
2. Water Supply and        Goal 1 - Achieve sound           Goal 1 - Improve education Strategic Programme          15 National Goals      SD        80
Sustainable Water          macroeconomic environment        and Welfare                 1- Halt and reverse         and/or strategic
Management                 Strategies:                      Strategies:                 pollution of systems that   programmes              E       100
2.1 Potable water                                                                       support life
treatment                  i) Promote productivity in the   c) Design and implement     Strategies:                                         S        33
2.2 Water purification     public sector (+)                programmes to reduce
systems                                                     poverty, increase accesses  b) Ensure integrated                               EV        83
2.3 Potable water supply   Goal 2 - Increase and expand     to basic infrastructure and management of water,        37 Strategies with     SD        40
and distribution           competitiveness                  provide development         air and land(+)             potential positive
                           Strategies:                      opportunities to low income                             impact (+)              E        28
                                                            population (+)              c Ensure compliance
                           a) Promote sectoral                                          with environmental                                  S        28
                           development and                  d) Improve health standards laws, standards and
                           competitiveness (+)              (+)                         regulations(+)                                     EV        78
                                                                                                                    2 Strategies with       E        6
                           b) Develop good quality          e) Integrate rural           d) Recuperate rivers,
                                                                                                                    potential negative
                           infrastructure and public        population into the          lakes, basins and
                                                                                                                    impact (-)              S        0
                           services (+)                     development strategy by      watersheds from
                                                            (among others) taking        polluting sources(+)
                           g) Strengthen domestic market    advantage of technology                                                        EV        0
                           (-)                              development and              e) Ensure a culture of
                                                            sustainable use of natural   rainwater infiltration
                           Goal 3 - Ensure inclusive        resources (+)                and storage(+)
                           development
                           Strategies:                      Goal 2 – Enhance equity      Strategic Programme 2
                                                            and equity opportunities     – Halt and reverse loss
                           a) Integrate micro-entrepreneurs Strategy:                    of natural capital
                           and self employed workers to


                                                                                                                                                            59
                                                                                             Environmental Strategic     Total Potential
                           Economic Development Goals         Social Development Goals                                                     Dimensio    %
Type of Good or Service                                                                       Programmes/National           Impact
                                 and Strategies                     and Strategies                                                            ns       of
                                                                                              Campaign and Goals
                                                                                                                                                      Total
                          and self-employed workers to                                       Strategies:
                          the market (-)                      b) Eliminate discrimination
                                                              and violence towards           a) Halt and reverse
                          c) Promote rural development        women (+)                      natural resource
                          and improvement in welfare of                                      degradation to preserve
                          rural population through            c) Incentive the               the potential benefits
                          investment, integration of chains   participation of indigenous    from their use for future
                          of production, capacity-building    population in national         generations (+)
                          and technology transfer (+)         development(+)
                                                                                             b) Ensure approaches
                          d) Foster the creation and          Goal 3 - Promote education     for natural resource use
                          development of productive           to develop personal capacity   that incorporate
                          projects with benefits to           as well as individual and      processes for their
                          vulnerable groups in indigenous     collective initiatives         conservation, protection
                          communities (+)                     Strategies:                    and development (+)




                                                                                                                                                              60
                                                                                           Environmental Strategic   Total Potential
                           Economic Development Goals       Social Development Goals                                                   Dimensio    %
Type of Good or Service                                                                     Programmes/National         Impact
                                 and Strategies                   and Strategies                                                          ns       of
                                                                                            Campaign and Goals
                                                                                                                                                  Total
                          Goal 4 – Promote balanced        d) facilitate access to state c) Ensure co responsible
                          regional development             of the art technology (+)     participation of
                          Strategies:                                                    individual in the
                          a) Strengthen regional           Goal 4-Strengthen cohesion conservation and use of
                          economies (+)                    and social capital            natural resources and
                          d) Create sustainable                                          the environment (+)
                          development centers to           c) Promote the participation
                          discourage regional migration    of civil society in the       Strategic programme
                          (+)                              development strategy(+)       3- preserve ecosystems
                          f) Develop northern and                                        and biodiversity
                          southern regions according to    Goal 5 - Achieve social and
                          their economic potential and     human development in          a) integrate and
                          their particular natural and     harmony with nature           consolidate instruments
                          social characteristics (+)       Strategies:                   and means for
                                                                                         biodiversity
                          Goal 5 – Create conditions for A) Harmonise growth and         conservation(+)
                          sustainable development          territorial distribution with
                          Strategies:                      sustainable development (+) b) Ensure co-
                          a) Foster efficient use of water                               responsible
                          and energy (+)                   b) Promote environmental      participation of all
                          b) Promote comprehensive and culture in the decision           sectors in the
                          decentralized environmental      making process(+)             conservation of
                          policies(+)                                                    biodiversity(+)
                                                           f) Stop and reverse erosion
                                                           processes and increase        c) Ensure approaches
                                                           reforestation (+)             for the use of natural
                                                                                         resources and
                                                           Goal 6- Enhance the           environmental services
                                                           responsive capacity of the    that guarantee the
                                                           government                    preservation of species,
                                                           Strategies:                   genetic biodiversity and,
                                                                                         conservation of
                                                           e) Regularize rural property ecosystems and their
                                                           through assuring legal        inherent ecological
                                                           certainty in lad rights(+)    process(+)
                                                                                         Strategic Programme 4
                                                                                           promote sustainable



                                                                                                                                                          61
                                                                                  Environmental Strategic   Total Potential
                          Economic Development Goals   Social Development Goals                                               Dimensio    %
Type of Good or Service                                                            Programmes/National         Impact
                                and Strategies               and Strategies                                                      ns       of
                                                                                   Campaign and Goals
                                                                                                                                         Total




                                                                                                                                                 62
                                                                                             Environmental Strategic       Total Potential
                           Economic Development Goals          Social Development Goals                                                        Dimensio    %
Type of Good or Service                                                                       Programmes/National             Impact
                                 and Strategies                      and Strategies                                                               ns       of
                                                                                              Campaign and Goals
                                                                                                                                                          Total
6. Clean Energy and Fuels Goal 2 - Increase and expand         Goal 1 - Improve education Strategic Programme           9 National Goals         SD        53
                          competitiveness                      and Welfare                 1- Halt and reverse          and/or strategic
Goods and equipment to    Strategies:                          Strategies:                 pollution of systems that    programmes                E        60
extract, transform and                                                                     support life                                           S        50
distribute: petroleum     b) Develop good quality              c) Design and implement     Strategies:
liquid gas, natural gas,  infrastructure and public            programmes to reduce                                                              EV        50
methanol, ethanol,        services (+)                         poverty, increase accesses  a) Halt and reverse          19 Strategies with       SD        20
biomass, biogas and clean                                      to basic infrastructure and water, air and soil          potential positive
gasoline                  g) Increase foreign direct           provide development         pollution to ensure their    impact (+)                E        17
                          investment flows (?)                 opportunities to low income conservation for future
                                                               population (+)              generations (+)                                        S        20
                          h) Strengthen domestic market                                                                                          EV        24
                          (-)                                  d) Improve health standards c)Ensure compliance
                                                               (+)                           with environmental         1 Strategy with           E        3
                          Goal 4- Promote balanced                                           laws, standards and        potential negative
                          regional development                 h) Direct scientific and      regulations (+)            impact (-)                S        0
                          Strategies:                          technological activities to
                                                               address the basic needs of    Strategic Programme                                 EV        0
                          f) Develop the northern and          population (including         2- Halt and reverse loss
                                                                                                                        1 Strategy with           E        3
                          southern regions according to        nutrition, health, education, of natural capital
                                                                                                                        uncertain impact (?)
                          their economic potential and         poverty and environmental Strategy:                                                S        0
                          their particular natural and         quality(+)
                          social characteristics (+)                                         a) Halt and reverse                                 EV        0
                                                               Goal 3 - Promote education natural resource
                          Goal 5 - Create the conditions       to develop personal capacity degradation to preserve
                          for sustainable development          as well as individual and     the potential benefits
                          Strategy:                            collective initiatives        from their use to future
                                                               Strategies:                   generations (+)
                          a) Foster efficient use of natural
                          resources specially water and




                                                                                                                                                                  63
                                                                                          Environmental Strategic      Total Potential
                           Economic Development Goals       Social Development Goals                                                     Dimensio    %
Type of Good or Service                                                                    Programmes/National            Impact
                                 and Strategies                   and Strategies                                                            ns       of
                                                                                           Campaign and Goals
                                                                                                                                                    Total
                          resources specially water and    d) Facilitate access o state b) Ensure approaches
                          energy (+)                       of the art technology (+)    for natural resource use
                                                                                        that incorporate process
                          c) Strengthen research and      Goal 5 - Achieve social and for their conservation,
                          technology innovation o support human development in          protection and
                          sustainable development         harmony with nature           development (+)
                          through clean technologies and Strategies:
                          productive processes (+)                                      Strategic Programme 4
                                                          <a) Harmonise growth and – promote sustainable
                          f) continue the development and territorial distribution with development
                          implementation of a national    sustainable development (+) Strategies:
                          sustainable development
                          strategy (+)                    e) Stop and reverse water,    a) Incorporate
                                                          air and soil pollution (+)    environmental criteria
                          g) Advance in the strategy to                                 into the decision making
                          mitigate green house gas        d) Create new ways of         process of economic and
                          emissions (+)                   interconnection with the      social policies at all
                                                          environment and foster        levels of government
                                                          sustainable development       and through all sectors
                                                          production and consumption (+)
                                                          processes (+)

                                                           e) Stop and reverse water,
                                                           air and soil pollution (+)




7. Sustainable Agriculture Goal 2 - Increase and expand    Goal 1 - Improve education Strategic Programme           14 National Goals    SD         82
and Fisheries              competitiveness                 and Welfare                1 Halt and reverse            and/or strategic


                                                                                                                                                            64
                                                                                               Environmental Strategic      Total Potential
                                 Economic Development Goals       Social Development Goals                                                      Dimensio      %
Type of Good or Service                                                                         Programmes/National            Impact
                                       and Strategies                   and Strategies                                                             ns         of
                                                                                                Campaign and Goals
                                                                                                                                                             Total
and Fisheries                   competitiveness                  and Welfare                   1- Halt and reverse       and/or strategic       E           80
                                Strategies:                      Strategies:                   pollution of systems that programmes
Any activity that produces                                                                     support life                                     S           100
equipment, technology or        a) Promote sectoral              c) Design and implement       Strategies:                                      EV          67
specific materials,             development and                  programmes to reduce
designs, constructs or          competitiveness (+)              poverty, increase accesses    a) Halt and reverse       39 Strategies with          SD       40
installs, manages or                                             to basic infrastructure and   water, air and soil       potential positive
                                                                                                                         impact (+)                  E        33
provides other services for     g) Strengthen domestic market    provide development           pollution to guaranty
systems which reduce the        (?)                              opportunities to low income   their conservation for                                S        38
environmental impact of                                          population (+)                the future generations
agriculture and fishery         Goal 3 - Ensure inclusive                                      (+)                                                   EV       62
activities. It includes         development                     d) Improve health standards                              1 Strategy with             E           3
biotechnology applied to        Strategies:                     (+)                           c) Ensure compliance       uncertain impact (?)
agriculture and fishery                                                                       with environmental
                                                                                                                                                      S          0
activities. In addition, this   a) Integrate micro-             g) Integrate rural population laws, standards and
class embraces products         entrepreneurs and self-employed into the development          regulations (+)                                        EV          0
derived from sustainable        workers to the market (+)       strategy by (among others)
agriculture and livestock                                       taking advantage of           d) Recuperate rivers,
management, including           b) Establish institutions to    technology development        lakes, basins and
ecological farming9and          finance low income              and sustainable use of        watersheds from
conservation agriculture10.     entrepreneurs(+)                natural resources (+)         polluting sources(+)




9
  Holistic management systems are designed to enhance biodiversity, biological cycles and biological activity of soils. This type of production is based on reduced use of
inputs and the exclusion of chemical synthesis.
10
  Thise type of agriculture enhances conservation and efficient use of natural resources through an integrated use of land, water and biological resources combined with
external inputs (FAO, 2002, Conservation Agriculture – matching production with sustainability, www.fao.org).


                                                                                                                                                                             65
                                                                                            Environmental Strategic     Total Potential
                           Economic Development Goals         Social Development Goals                                                    Dimensio    %
Type of Good or Service                                                                      Programmes/National           Impact
                                 and Strategies                     and Strategies                                                           ns       of
                                                                                             Campaign and Goals
                                                                                                                                                     Total
                          c) Promote rural development        Goal 2 – Enhance equity       f) Recuperate and reuse
                          and improvement in welfare of       and equity opportunities      water from agricultural
                          rural population through            Strategy:                     use (+)
                          investment, integration of chains
                          of production, capacity-building    c) Incentive the              Strategic Programme 2
                          and technology transfer (+)         participation of indigenous   – Halt and reverse loss
                                                              population in national        of natural capital
                          d) Foster the creation and          development(+)                Strategies:
                          development of productive
                          projects with benefits to        Goal 3 - Promote education       a) Halt and reverse
                          vulnerable groups in indigenous to develop personal capacity      natural resource
                          communities (+)                  as well as individual and        degradation to preserve
                                                           collective initiatives           the potential benefits
                          Goal 4 – Promote balanced        Strategies:                      from their use for future
                          regional development                                              generations (+)
                          Strategies:                      e)Support the creation of
                                                           social enterprises with the      b) Ensure approaches
                          a) Strengthen regional           participation of low income      for natural resource use
                          economies (+)                    population in rural and          that incorporate
                                                           urban areas (+)                  processes for their
                          d) Create sustainable                                             conservation, protection
                          development centers to           Goal 4-Strengthen cohesion       and development (+)
                          discourage regional migration    and social capital
                          (+)                                                               c) Ensure responsible
                                                           c) Promote the participation     participation of social
                          f) Develop northern and          of civil society in the          groups and individuals
                          southern regions according to    development of public            in the conservation and
                          their economic potential and     policies (+)                     use of natural resources
                          their particular natural and                                      and the environment
                          social characteristics (+)                                        (+).
                                                           i) Integrate vulnerable          Strategic Programme 4
                          Goal 5 – Create conditions for   population into the              – promote sustainable
                          sustainable development          development strategy(+)          development
                          Strategies:                                                       Strategies:
                                                           Goal 5 - Achieve social and
                          a) Foster efficient use of water human development in             a) Incorporate
                          and energy (+)                   harmony with nature              environmental criteria



                                                                                                                                                             66
                                                                                  Environmental Strategic   Total Potential
                          Economic Development Goals   Social Development Goals                                               Dimensio    %
Type of Good or Service                                                            Programmes/National         Impact
                                and Strategies               and Strategies                                                      ns       of
                                                                                   Campaign and Goals
                                                                                                                                         Total




                                                                                                                                                 67
                                                                                          Environmental Strategic        Total Potential
                            Economic Development Goals        Social Development Goals                                                       Dimensio    %
Type of Good or Service                                                                    Programmes/National              Impact
                                  and Strategies                    and Strategies                                                              ns       of
                                                                                           Campaign and Goals
                                                                                                                                                        Total
8. Sustainable Forestry     Goal 2 - Increase and expand     Goal 1 - Improve education Strategic Programme           15 National Goals        SD        88
                            competitiveness                  and Welfare                  1- Halt and reverse         and/or strategic
Any activity that produces Strategies:                       Strategies:                  pollution of systems that   programmes                E        60
equipment, technology, or                                                                 support life
specific materials,         a) Promote sectoral              c) Design and implement      Strategies:                                           S       100
designs, constructs or      development and                  programmes to reduce
installs, manages or        competitiveness (+)              poverty, increase accesses   a) Halt and reverse                                  EV        67
provides other services for                                  to basic infrastructure and  water, air and soil
programmes and projects g) Strengthen domestic market        provide development          pollution to guaranty
                                                                                                                                               SD        40
for reforestation and       (?)                              opportunities to low income their conservation for       39 Strategies with
forest management on a                                       population (+)               the future generations      potential positive        E        80
long term sustainable       Goal 3 - Ensure inclusive                                     (+)                         impact (+)
basis. It also includes     development                      g) Integrate rural                                                                 S       100
wood species extracted      Strategies:                      population into the          c) Ensure compliance
using sustainable                                            development strategy by      with environmental                                   EV        67
management practices        a) Integrate micro-              (among others) taking        laws, standards and
from virgin or forested     entrepreneurs and self-employed  advantage of technology      regulations (+)             1 Strategy with           E        3
and reforested plantations, workers to the market (+)        development and                                          uncertain impact (?)
for marketing purposes as                                    sustainable use of natural   d) Recuperate rivers,                                 S        0
wood by-products or raw b) Establish institutions to         resources (+)                lakes, basins and
materials.                  finance low income                                            watersheds from                                      EV        5
                            entrepreneurs(+)                 Goal 2 – Enhance equity      polluting sources (+)
                                                             and equity opportunities
                           c) Promote rural development      Strategy:                    Strategic Programme 2 –
                           and improvement in welfare of                                  Halt and reverse loss of
                           rural population through          c) Incentive the             natural capital
                           investment, integration of chains participation of indigenous Strategies:
                           of production, capacity-building population in national
                           and technology transfer (+)       development(+)               a) Halt and reverse
                                                                                          natural resource
                           d) Foster the creation and        Goal 3 - Promote education degradation to preserve
                           development of productive         to develop personal capacity the potential benefits
                           projects with benefits to         as well as individual and    from their use for future




                                                                                                                                                                68
                                                                                          Environmental Strategic    Total Potential
                           Economic Development Goals        Social Development Goals                                                  Dimensio    %
Type of Good or Service                                                                    Programmes/National          Impact
                                 and Strategies                    and Strategies                                                         ns       of
                                                                                           Campaign and Goals
                                                                                                                                                  Total
                          vulnerable groups in indigenous collective initiatives          generations (+)
                          communities (+)                 Strategies:
                                                                                          b) Ensure approaches
                          Goal 4 – Promote balanced         e)Support the creation of     for natural resource use
                          regional development              social enterprises with the   that incorporate
                          Strategies:                       participation of low income   processes for their
                                                            population in rural and       conservation, protection
                          a) Strengthen regional            urban areas (+)               and development (+)
                          economies (+)
                                                            Goal 4-Strengthen cohesion c) Ensure co-responsible
                          d) Create sustainable             and social capital           participation of social
                          development centers to                                         groups and individual in
                          discourage regional migration     c) Promote the participation the conservation and use
                          (+)                               of civil society in the      of natural resources and
                                                            development of public        the environment (+)
                          f) Develop northern and           policies (+)
                          southern regions according to                                  Strategic programme
                          their economic potential heir     i) Integrate vulnerable      3- Preserve ecosystems
                          particular natural and social     population into the          and biodiversity
                          characteristics (+)               development strategy(+)      Strategies:
                                                                                         a) Integrate and
                          Goal 5 – Create conditions for    Goal 5 - Achieve social and consolidate instruments
                          sustainable development           human development in         and means for
                          Strategies:                       harmony with nature          biodiversity
                                                            Strategies:                  conservation (+)




                                                                                                                                                          69
                                                                                  Environmental Strategic   Total Potential
                          Economic Development Goals   Social Development Goals                                               Dimensio    %
Type of Good or Service                                                            Programmes/National         Impact
                                and Strategies               and Strategies                                                      ns       of
                                                                                   Campaign and Goals
                                                                                                                                         Total




                                                                                                                                                 70
                                                                                                Environmental Strategic        Total Potential
                               Economic Development Goals         Social Development Goals                                                         Dimensio    %
Type of Good or Service                                                                          Programmes/National              Impact
                                     and Strategies                     and Strategies                                                                ns       of
                                                                                                 Campaign and Goals
                                                                                                                                                              Total
9. Sustainable                Goal 2 - Increase and expand        Goal 1 - Improve education Strategic Programme            15 National Goals        SD        88
Biodiversity and              competitiveness                     and Welfare                   1- Halt and reverse         and/or strategic
Landscape Management          Strategies:                         Strategies:                   pollution of systems that   programmes                E        80
                                                                                                support life
                              a) Promote sectoral                 c) Design and implement       Strategies:                                           S       100
It includes all biological    development and                     programmes to reduce          c) Ensure compliance
materials (excluding wood     competitiveness (+)                 poverty, increase accesses    with environmental                                   EV        88
products) sustainably                                             to basic infrastructure and   laws, standards and
extracted from natural        Goal 3 - Ensure inclusive           provide development           regulations (+)             40 Strategies with       SD        41
ecosystems for human use      development                         opportunities to low income d) Recuperate rivers,         potential positive
including species, resins     Strategies:                         population (+)                lakes, basins and           impact (+)
rubber, latex, chicle,                                                                          watersheds from
                                                                                                                                                      E        33
ornamental plants,            a) Integrate micro-entrepreneurs    g) Integrate rural population polluting sources (+)
wildlife fauna (products      and self-employed workers to        into the development                                                                S        40
and live animals), and raw    the market (+)                      strategy by (among others) Strategic Programme 2
materials like bamboo,                                            taking advantage of           – Halt and reverse loss                              EV        62
natural fibers, rattan and    b) Establish institutions to        technology development        of natural capital
bromeliads.It also            finance low income                  and sustainable use of        Strategies:                 1 Strategy with           E
includes the provision of     entrepreneurs(+)                    natural resources (+)         a) Halt and reverse         uncertain impact (?)
servicesfor the                                                                                 natural resource                                      S
conservation and              c) Promote rural development        Goal 2 – Enhance equity       degradation to preserve
sustainable management        and improvement in welfare of       and equity opportunities      the potential benefits                               EV
of biological diversity and   rural population through            Strategy:                     from their use for future
landscape, management         investment, integration of chains                                 generations (+)
and surveillance of parks     of production, capacity-building    c) Incentive the              b) Ensure approaches
and natural protected         and technology transfer (+)         participation of indigenous for natural resource use
areas                                                             population in national        that incorporate
                              d) Foster the creation and          development(+)                processes for their
                              development of productive                                         conservation, protection
                              projects with benefits to           Goal 3 - Promote education and development (+)
                              vulnerable groups in indigenous     to develop personal capacity c) Ensure co-responsible
                              communities (+)                     as well as individual and     participation of all
                                                                  collective initiatives        groups and individuals
                              Goal 4 – Promote balanced           Strategies:                   in the conservation and
                              regional development                                              use of natural resources
                              Strategies:                         e)Support the creation of     and the environment (+)




                                                                                                                                                                      71
                                                                                            Environmental Strategic    Total Potential
                           Economic Development Goals         Social Development Goals                                                   Dimensio    %
Type of Good or Service                                                                      Programmes/National          Impact
                                 and Strategies                     and Strategies                                                          ns       of
                                                                                             Campaign and Goals
                                                                                                                                                    Total
                                                              social enterprises with the
                          a) Strengthen regional              participation of low income   Strategic Programme 3
                          economies (+)                       population in rural and       - Preserve ecosystems
                                                              urban areas (+)               and biodiversity
                          c) Support the development of                                     Strategies:
                          local, state and regional tourist   f) foster knowledge of        a) Integrate and
                          industries (+)                      cultural diversity throughout consolidate instruments
                                                              the Mexican population (+) and means for
                          d) Create sustainable                                             biodiversity
                          development centers to                                            conservation (+)
                          discourage regional migration                                     b) Ensure co-responsible
                          (+)                                                               participation of all
                                                                                            sectors in the
                          f) Develop northern and             Goal 4-Strengthen cohesion conservation of
                          southern regions according to       and social capital            biodiversity (+)
                          their economic potential and                                      c) Ensure approaches for
                          their particular natural and        c) Promote the participation the use of natural
                          social characteristics (+)          of civil society in the       resources and
                                                              development of public         environmental services
                          Goal 5 – Create conditions for      policies (+)                  that guarantee the
                          sustainable development                                           preservation of species,
                          Strategies:                         i) Integrate vulnerable       genetic biodiversity and
                                                              population into the           conservation of
                          a) Foster efficient use of water    development strategy(+)       ecosystems and their
                          and energy (+)                                                    inherent ecological
                                                                                            process (?)




                                                                                                                                                            72
                                                                                  Environmental Strategic   Total Potential
                          Economic Development Goals   Social Development Goals                                               Dimensio    %
Type of Good or Service                                                            Programmes/National         Impact
                                and Strategies               and Strategies                                                      ns       of
                                                                                   Campaign and Goals
                                                                                                                                         Total




                                                                                                                                                 73
                                                                                            Environmental Strategic     Total Potential
                             Economic Development Goals        Social Development Goals                                                   Dimensio    %
Type of Good or Service                                                                      Programmes/National           Impact
                                   and Strategies                    and Strategies                                                          ns       of
                                                                                             Campaign and Goals
                                                                                                                                                     Total
10.Sustainable Tourism      Goal 2 - Increase and expand     Goal 1 - Improve education Strategic Programme                                 SD        76
                            competitiveness                  and Welfare                    1- Halt and reverse
Any activity that designs,  Strategies:                      Strategies:                    pollution of systems that                        E        80
constructs, installs,                                                                       support life
manages or provides other a) Promote sectoral                c) Design and implement        Strategies:                                      S       100
services for tourism that  development and                   programmes to reduce           a) Halt and reverse
involves protection and    competitiveness (+)               poverty, increase accesses     water, air and soil                             EV        83
management of natural                                        to basic infrastructure and    pollution to guarantee
and cultural heritage, or  b) Develop good quality           provide development            their conservation for
                                                                                                                                            SD        24
educationof the natural    infrastructure and public         opportunities to low income future generations (+).
environment, and that do services (+)                        population (+)                 c) Ensure compliance                             E        30
not damage or degrade the                                                                   with environmental
natural environment. It    g) Increase foreign direct        f) Promote and implement       laws, standards and                              S        33
also includes the          investment flows (?)              housing and urban              regulations (+)
provision of different                                       development public policies                                                    EV        67
tourism services following h) Strengthen domestic market     as engine to development       Recuperate river, lake,
environmental and          (?)                               (+)                            basins and watersheds                            E        8
sustainable development                                                                     from polluting sources
criterion.                 Goal 3 - Ensure inclusive         g) Integrate rural population (+)                                               S        0
                           development                       into the development
                           Strategies:                       strategy by (among others) Strategic Programme 2                               EV        0
                                                             taking advantage of            – Halt and reverse loss
                           a) Integrate micro-entrepreneurs technology development          of natural capital
                           and self employed workers to      and sustainable use of         Strategies:
                           the market (?)                    natural resources (+)          a) Halt and reverse
                                                                                            natural resource
                           b) Establish institutions to      Goal 2 - Enhance equity        degradation to preserve
                           finance low income                and equality opportunities     the potential benefits
                           entrepreneurs (+)                 Strategies:                    from their use for future
                                                                                            generations (+)
                           c) Promote rural development      f) Incentive the participation b) Ensure approaches
                           and improvement in welfare of of indigenous people in            for natural resource use
                           rural population through          national development           that incorporate
                           investment, integration of chains                                processes for their
                           of production capacity building                                  conservation protection




                                                                                                                                                             74
                                                                                           Environmental Strategic    Total Potential
                           Economic Development Goals       Social Development Goals                                                    Dimensio    %
Type of Good or Service                                                                     Programmes/National          Impact
                                 and Strategies                   and Strategies                                                           ns       of
                                                                                            Campaign and Goals
                                                                                                                                                   Total
                          of production, capacity-building Goal 3 - Promote education      conservation, protection
                          and technology transfer (+)       to develop personal capacity   and development (+)
                                                            as well as individual and      c) Ensure co responsible
                          Foster the creation and           collective initiatives         participation of social
                          development of productive         Strategies:                    groups and individuals
                          projects with benefits to                                        in the conservation and
                          vulnerable groups in indigenous e) Support the creation of       use of natural resources
                          communities                       social enterprises with the    and the environment (+)
                                                            participation of low income
                          Goal 4 – Promote balanced         population in urban and     Strategic Programme 3
                          regional development              rural areas (?)             - Preserve ecosystems
                          Strategies:                                                   and biodiversity
                                                            f) Foster the knowledge of  Strategies:
                          a) Strengthen regional            culture and diversity       a) Integrate and
                          economies (+)                     throughout the Mexican      consolidate instruments
                                                            population (+)              and means for
                          c) Support the development of                                 biodiversity
                          local, state and regional tourist Goal 4-Strengthen cohesion  conservation (+)
                          industries                        and social capital          b) Ensure co-responsible
                                                                                        participation of all
                          d) Create sustainable            c) Promote the participation sectors in the
                          development centers to           of civil societies in the    conservation of
                          discourage regional migration    development of public        biodiversity(+)
                          (+)                              policies (+)                 c) Ensure approaches for
                                                                                        the use of natural
                          Goal 5 – Create conditions for   d) Integrate vulnerable      resources and
                          sustainable development          population into the          environmental services
                          Strategies:                      development strategy. (+)    that guarantee the
                                                                                        preservation of species,
                                                                                        genetic biodiversity and




                                                                                                                                                           75
                                                                                  Environmental Strategic   Total Potential
                          Economic Development Goals   Social Development Goals                                               Dimensio    %
Type of Good or Service                                                            Programmes/National         Impact
                                and Strategies               and Strategies                                                      ns       of
                                                                                   Campaign and Goals
                                                                                                                                         Total




                                                                                                                                                 76
                                                                                  Environmental Strategic   Total Potential
                          Economic Development Goals   Social Development Goals                                               Dimensio    %
Type of Good or Service                                                            Programmes/National         Impact
                                and Strategies               and Strategies                                                      ns       of
                                                                                   Campaign and Goals
                                                                                                                                         Total
11. Other




                                                                                                                                                 77
                       ANNEX VII : TARIFF AND NON-TARIFF BARRIERS TO TRADE
                             IN ENVIRONMENTAL GOODS AND SERVICES
                                   OF EXPORT INTEREST TO MEXICO

Preferential Market Access in the Framework of Free Trade Agreements

Over the past decade, Mexico has been granted preferential access to 41 markets worldwide due to an aggressive
policy of promoting free trade agreements (FTAs). This policy has contributed to a four-fold increase in Mexican
exports between 1990 and 2003, with an increase in value from 40.7 to 164.7 billion dollars).11 It has also
permitted the diversification of the destination markets for Mexican products, historically dependent on the North
American region, mainly the US. However, the FTAs have widened the gap between bound tariff rates
committed at the WTO, on the one hand, and preferential tariffs accorded to Mexico’s FTA partners, on the
other. Table A presents the free trade agreements signed by Mexico over the last 10 years.

                                  Table A: Free Trade Agreements Signed by Mexico


                Agreement                    Year                            Countries

North American Free Trade                    1994     •     United States
Agreement (NAFTA)                                     •     Canada
Free Trade Agreement with the                2001     •     Austria             •        Holland
European Union (EU)                                   •     Germany             •        Italy
                                                      •     Belgium             •        Ireland
                                                      •     Denmark             •        Luxemburg
                                                      •     Spain               •        Portugal
                                                      •     Finland             •        United Kingdom
                                                      •     France              •        Sweden
                                                      •     Greece
Free Trade Agreement with the                2001     •     Iceland
European Free Trade Association                       •     Norway
(EFTA)                                                •     Switzerland
                                                      •     Liechtenstein
Free Trade Agreement with the G3             1995     •     Colombia
                                                      •     Venezuela
Free Trade Agreement with the                2001     •     Honduras
Northern Triangle                                     •     El Salvador
                                                      •     Guatemala
Free Trade Agreement with Japan              2005     •     Japan

Other Preferential Agreements                2002     •     Israel
                                             2002     •     Uruguay
                                             1999     •     Chile
                                             1998     •     Nicaragua
                                             1995     •     Bolivia
                                             1995
                                                      •     Costa Rica
Source: Secretaría de Economía, 2004.

11
     Secretary of the Economy, 2004.


                                                                                                               78
Environmental Goods

It is likely that the bulk of the demand for environmental goods of export interest to Mexico from a potential
reduction of tariff and non-tariff barriers will come from developed countries which are willing to pay price
premiums for products from the sustainable agriculture, fisheries and forestry sectors.

Mexico has signed four free trade agreements with developed countries (NAFTA, Mexico-EU FTA, Mexico-
EFTA-FTA, and most recently, Mexico-Japan FTA). In general, these FTAs have reduced the tariffs of some
sectors and either set new rules for non-tariff trade barriers or reaffirmed WTO rules.

NAFTA provides Mexico with market niches that have significant export potential in areas such as agriculture,
food and beverages, automotive products, construction, electrical products, printing, machinery, metal, mineral
products, furniture, chemical products and textiles. Most merchandise trade among NAFTA partners was
liberalized between 1994 and 1998 and full liberalisation for a small number of products, including beans, maize
and milk, should take place by 2008. In the context of the Mexico-EU FTA, all import duties for Mexican
industrial goods were eliminated in 2003 and tariffs for most agricultural and fisheries products are to be
eliminated by 2008. Tariff quotas apply for certain Mexican agricultural and fisheries products entering the EU.
Under the EFTA FTA, Mexican industrial goods enter EFTA countries duty free and some agricultural goods,
including bananas, orange juice and other tropical fruits, table grapes, honey for industrial use, green coffee, beer
and tequila have preferential access. For all other products, Mexico signed separate agricultural agreements with
each EFTA Member.

Tariffs: Table B includes a comparison between most favoured nation (MFN) tariffs and FTA tariffs for the
agricultural, fisheries and forestry sectors, which, as identified in the study, represent key areas for further
development of exports of Mexican environmental. According to Table B, the FTAs offer better tariff
opportunities than the WTO MFN status for environmental goods of export interest to Mexico. Tariffs tend to be
lower for wood and fisheries products than for agricultural products. The current average tariff structures for
Mexican agricultural, fisheries and forestry goods entering the EU and some EFTA countries are difficult to
calculate due to a complex reduction schedule included in their liberalisation lists. However, the section on
specific tariff and non tariff barriers by country below includes a summary of the current situation.

Non-tariff barriers (NTBs): The section below on “Tariff and Non-tariff Barriers” to trade in goods by country
provides information on some NTBs in Mexico´s trading partners. While subsidies for agricultural products tend
to be significant in the US and the EU, the extent to which these measures affect environmental goods of export
interest to Mexico is not straightforward. In any event, several commodities that are subsidized by the EU
(processed fruit and vegetables, such as citrus fruit, tomatoes, as well as certain raw fruit, vegetables and honey)
are more similar to the potential list of environmental goods of export interest to Mexico, than the heavily
supported commodities by the US (i.e. sugar, rice, milk and wheat). The EU also applies subsidies to support its
fisheries sector and Norway applies subsidies to support its fisheries and forestry sectors. In addition, NTBs, such
as technical regulations, sanitary and phytosanitary measures as well as environmental regulations could have an
impact on environmental goods of export interest to Mexico in the agricultural, fisheries and forestry sectors.
Some of these NTBs include: mandatory and voluntary labelling and certification schemes (some of them PPM-
related), residue tolerance levels on agricultural products, prior inform consent mechanisms, phytosanitary
certificates, verification systems for safety and quality and import licensing or prohibitions for certain goods.




                                                                                                                  79
                                                    Table B:
              Tariffs for Mexican agricultural, fisheries and wood products in selected developed
                            countries: comparison between WTO MFN and FTAs

              Country                   Goods                   WTO MFN                             FTA
                                                                 Tariff                             Tariff
        United States              Agricultural                   4.6                                2.7
                                    Fisheries                     2.2                                 0
                                  Wood and wood                   3.9                                0.2
                                    products
        Canada                     Agricultural                       7.7                           4.9
                                    Fisheries                         3.7                            0
                                  Wood products                      4.2                             0
        European Union             Agricultural                      16.1               58.6 percent of products are
                                                                                                duty free12
                                    Fisheries                         9.8                          2.57
                                  Wood and wood                       2.6                            0
                                    products
        Norway                     Agricultural                      38.7                           9.3913

                                    Fisheries                          0                               0
                                  Wood and wood                        0                               0
                                    products
        Iceland                    Agricultural                      66.0              16 percent of goods are duty
                                                                                                  free14
                                       Fisheries                       0                             0

                                  Wood and wood                      11.6                           N/A15
                                     products
        Switzerland and        Agricultural                          34.3                           16.916
        Liechtenstein          Fisheries                              0.2                            0.2
                               Wood and wood                         2.6                            N/A17
                               products
        Sources: WTO, Trade Policy Reviews of the United States (2003), Canada (2003), the European Union (2002), Norway
        (2000), Iceland (2000) and Switzerland and Liechtenstein (2000); North American Free Trade Agreement; EU-Mexico
        FTA; EFTA- Mexico FTA.

12
   See the section on Tariff and Non-tariff Barriers by country for a summary of the tariff structure applied to Mexican
agricultural products.
13
   This is based only on products included in the liberalisation list in Mexico’s Agriculture Agreement with Norway (see
below). It is worth noting that some chapters not included in the list of this agreement, such as 01 (live animals) and 02
(meat edible offload), have average MFN rates of 215.9 and 181.2 percent respectively.
14
   See the section on Tariff and Non-tariff Barriers for specific sub-sectors.
15
   Wood and wood products were not included in the Agricultural Agreement between Mexico and Iceland.
16
   This is based only on products included in the liberalisation list of Mexico’s Agriculture Agreement with Switzerland and
Liechtenstein. These countries granted duty free tariffs in 25 percent of their tariff lines for agricultural products. See the
section on Tariff and Non-tariff Barriers by country for details. It is worth noting that some chapters not included in this
agreement, such as 01 (live animals) and 02 (meat and edible offload), have average MFN rates of 52.1 and 15.5 percent
respectively.
17
   Wood and wood products were not included in the list of Mexico’s Agricultural Agreement with Switzerland and
Liechtenstein.


                                                                                                                           80
Environmental Services

This study illustrates that sustainable tourism is the sector with the potential for high sustainable development
impacts from trade liberalisation. It is likely that most of the gains from trade liberalisation will be attained by an
increase in the consumption of sustainable tourism services in Mexico (Mode 2 of the GATS), as well as an
increase in the establishment of Mexican tour operators in other countries (Mode 3). All the agreements signed
by Mexico with developed countries include provisions for the liberalisation of trade in the services sector.
However, none of these agreements explicitly calls for (or provides specific provisions for) liberalisation of
tourism services.

The provisions for trade in services addressed by NAFTA refer to five general processes and modes of supply:
a) production, distribution, marketing, sale and provision of the service; b) purchasing, use and payment of a
service; c) access to distribution and transport systems related to the provision of services; d) commercial
presence of services providers of one Party in the territory of another Party; and e) bails and other financial
guarantees, as a condition to provide the service. NAFTA Parties agreed upon four basic provisions for trade in
services: a) National Treatment; b) MFN; c) best level of treatment;18 and d) commercial presence. NAFTA’s
general provisions do not apply to financial services (there is a specific chapter in NAFTA on this sector), air
transport services, government procurement and subsidies or grants provided by government entities. In addition,
Parties to the NAFTA have included a number of reservations to the general provisions mentioned above, none of
which is related to the tourism sector. In this regard, the basic provisions for liberalisation of trade in services
apply to the tourism sector within NAFTA. The only section in which tourism services are explicitly mentioned
within the text of NAFTA is Chapter XVI, which sets the rules for temporary entry of business visitors.
According to Appendix 1603.A.1 of that chapter, tourist personnel (travel and excursion agents, tourist guides or
trip operators) and tourist bus operators (crossing the territory between the Parties to provide a tourist service) are
considered business visitors providing general services. These service providers are free to enter the territory of
any NAFTA Party as long as they comply with visa requirements and if the main source of income from their
activity is generated in a territory different from the territory of the Party they are visiting.

The provisions for trade in services included in the FTAs with the EU and EFTA are similar. Both Agreements
provide provisions for progressive and reciprocal liberalisation in conformity with Article V of GATS. Both
address four modes of supply subject to liberalisation: a) cross-border; b) consumption abroad; c) commercial
presence; and d) presence of natural persons. Both include the same general provision for liberalisation of trade
in services: a) market access; b) MFN treatment; c) national treatment; d) right to regulate; and e) mutual
recognition. These general provisions do not apply to air and maritime transportation services; financial services;
government procurement; and subsidies. While liberalisation of trade in the tourism sub-sector is not explicitly
mentioned in either Agreement, Parties are to submit their liberalisation schedules three years after the entry into
force of the Agreement. To date, the liberalisation schedules have not been made publicly available. It is likely
that the liberalisation process in both Agreements will follow the same patterns and deadlines as the WTO Doha
process, including the consideration of commitments in the tourism sub-sector. The only difference between the
EU and EFTA FTAs with Mexico regarding tourism consists of the inclusion of a chapter on co-operation on
tourism issues, which is a feature of the Mexico-EU FTA. Article 25 of the Mexico-EU FTA refers to co-
operation in the tourism sector between the Parties, including information exchange and the establishment of best
practices in order to guarantee balanced and sustainable development in this sector.

Table C presents the commitments made by Mexico’s trading partners in tourism and travel related services at the
WTO within the Doha process. While the texts of the FTAs that Mexico has signed with developed countries do
not provide a straightforward perspective on the main barriers to trade in the tourism sub-sector, the offers

18
   Article 1204 of NAFTA states: “each Party will grant service providers of any other Party to the agreement the best
treatment required by Articles 1203 (National Treatment) and 1203 (Most Favoured Nation)”.



                                                                                                                         81
presented at the WTO by these countries give some insights in this area. According to these offers, the main
barriers to trade in tourism services include: requirements to obtain authorization; licenses or permits to market or
supply a service; establishment of full commercial presence (in specific territories); legal requirements for the
constitution of a company; limitations on the number of concessions to operate; licenses to operate; definitions of
personnel, agents and operators permitted to enter; and limits on the time length or number of entrants per visit.

                                                   Table C
                            Liberalisation commitments of selected WTO Members
                                     in tourism and travel related services

Modes of Supply:    1) Cross border     2) Consumption      3) Commercial                 4) Presence of natural
                    supply              abroad              presence                      persons
     Tourism Services               Limitations on market Access                       Limitations on national
                                                                                             treatment
United States
 Travel Agents and Tour        1) None                                             1) None
 Operators Services            2) None                                             2) None
                               3) Official tourism offices with diplomatic or      3) None
                               official status are not permitted to operate on a   4) None
                               commercial basis in the United States or to act
                               as agents or principals in commercial
                               transactions
                               4) Unbound, except as indicated in the
                               horizontal section: a) entry for service sales
                               persons are limited to a ninety-day period; b)
                               entry for intra-corporate transfers (managers,
                               executives and specialists) are limited to a
                               three-year period that may be extended up to
                               two additional years; c) personal engaged in
                               establishments should present proof of
                               acquisition of physical premises for the entity
                               that shall commence its business operations
                               within one year of the date of entry of that
                               person.
 Tour Guide Services           1) None                                             1) None
                               2) None                                             2) None
                               3) The number of concessions                        3) None
                               available for commercial                            4) None
                               operations in federal, state and
                               local facilities is limited
                               4) Unbound, except as
                               indicated in the horizontal section (see above)
Canada
Travel Agencies and Tour      1) None, other than:                                 1) None, other than
Operators Services            Travel agencies and travel wholesalers               Travel agents and wholesalers
(CPC 7471)                    (Ontario): Services must be supplied through a       (Ontario): Residency
                              commercial presence.                                 requirement.
                              Travel agencies (Québec): Services must be           2) None
                              supplied through a commercial presence.              3) None, other than:
                              2) None                                              Travel agencies (British



                                                                                                                   82
                                                Table C
                         Liberalisation commitments of selected WTO Members
                                  in tourism and travel related services

Modes of Supply:   1) Cross border     2) Consumption      3) Commercial              4) Presence of natural
                   supply              abroad              presence                   persons
    Tourism Services               Limitations on market Access                   Limitations on national
                                                                                         treatment
                           3) None                                           Columbia): At least one of the
                           4) Unbound except as indicated in the             partners in a partnership or one
                           horizontal section: a) Business visitors are      of the directors of a corporation
                           permitted entry and stay for a period of up to    must be ordinarily resident in the
                           six months with the possibility of extensions; b) province.
                           .Intra-Corporate transferees (executives,         4) Unbound except for measures
                           managers, specialists): work permits are          affecting the temporary entry and
                           required, entry and stay, including extensions,   stay of natural persons who
                           may not exceed five years.                        qualify in one of the categories
                                                                             included in the market access
                                                                             column.
                                                                             Québec: Benefits from the
                                                                             Ministry of Industry, Trade,
                                                                             Science and Technology
                                                                             Programs for (a) Scientists in
                                                                             Business and (b) Strategic
                                                                             Employment are limited to
                                                                             permanent residents.

                                                                             Benefits from the Ministry of
                                                                             Industry, Trade, Science and
                                                                             Technology Assistance Program
                                                                             for Studies on Strategic
                                                                             Development in Business are
                                                                             limited to consultants resident in
                                                                             Québec.
European Communities and its Member States
(A: Austria, B: Belgium, I: Italy, D: Germany, IRL: Ireland, DK: Denmark; L: Luxembourg, E: Spain, NL: The
Netherlands, F: France, FIN: Finland, P: Portugal, GR: Greece, S: Sweden, UK: United Kingdom)
Travel Agencies and Tour 1) None                                              1) None
Operators                     2) None                                         2) None
Services(including tour       3) B: Authorization for non-EC incorporated 3) None
managers) (CPC 7471)                  companies to act as travel agencies is
                                      possible only if the company has a
                                      permanent base in Belgium (siège
                                      d'opérations permanent)
                                 P: Requirement of constitution of a
                                      commercial company having its
                                      corporate base in Portugal.
                              FIN: Licence of the National Consumer
                              Administration is required.




                                                                                                             83
                                                  Table C
                           Liberalisation commitments of selected WTO Members
                                    in tourism and travel related services

Modes of Supply:   1) Cross border     2) Consumption      3) Commercial              4) Presence of natural
                   supply              abroad              presence                   persons
    Tourism Services               Limitations on market Access                    Limitations on national
                                                                                         treatment
                           4) Intra-corporate transfer (ICT) and business
                           visitors (BV) Unbound except as indicated in the
                           horizontal section (persons entering have to be
                           employed for at least a year preceding the date
                           of admission, transfers most be to an
                           establishment, entry is limited to a 90 day
                           period) and subject to the following specific
                           limitations:
                               GR: For travel agencies: access limited to
                                    two persons per entity.
                               FIN: Licence of the National Consumer
                                    Administration is required
                                   Contractual Services Suppliers (CSS)-       CSS-EJP:         Unbound except
                                    Employees of juridical persons (EJP):      for A, B, D, DK, I, FIN, IRL, S
                                    Unbound except for A, B, D, DK, I,         where: Unbound except as
                                    FIN, IRL, S where: as indicated in the     indicated in the horizontal
                                    horizontal section but without             section
                                    application of a numerical ceiling and
                                    subject to the following specific
                                    limitations:
                               A, B, D, DK, FIN, I, IRL, S: Unbound            CSS-I, P: Unbound
                                    except for tour managers (persons
                                    whose function is to accompany a tour
                                    group of a minimum of 10 persons,
                                    without acting as guides in specific
                                    locations)
Tourist Guide Services (CP 1) Unbound                                          1) None
7472)                      2) None                                             2) None
                           3) None                                             3) None
                           4) ICT and BV: Unbound except as indicated in       4) ICT and BV: All Member
                           the horizontal section and subject to the                   States except FIN:
                           following specific limitations:                             Unbound except as
                               E, I: The right to exercise the profession is           indicated in the horizontal
                                     reserved for the local organizations of           section
                                     tourist guides.                              FIN: None
                               GR, E, F, I, P: Access to the activity is
                                     subject to condition of nationality.

Norway
Travel Agencies and Tour    1) None                                            1) None
Operators Services          2) None                                            2) None
(CPC 7471)                  3) None                                            3) None



                                                                                                               84
                                                  Table C
                           Liberalisation commitments of selected WTO Members
                                    in tourism and travel related services

Modes of Supply:   1) Cross border     2) Consumption      3) Commercial                   4) Presence of natural
                   supply              abroad              presence                        persons
    Tourism Services               Limitations on market Access                        Limitations on national
                                                                                              treatment
                            4) Unbound except as indicated in the                 4) Unbound except as indicated
                            horizontal section                                    in the horizontal section

Tourist Guide Services      1) None                                               1) None
(CPC 7472)                  2) None                                               2) None
                            3) None                                               3) None
                            4) Unbound except as indicated in the                 4) Unbound except as indicated
                            horizontal section a) Managers and executives,        in the horizontal section
                            specialists as intra-corporate transferees,
                            provided that the service supplier is the
                            corporation to which these are attached.
                            Temporary entry, stay and work limited to a
                            four year period; b) Business visitors.
                            temporary entry, stay and work limited to a
                            three month period; c) Temporary presence of
                            natural persons providing services without
                            being employed by a juridical person who has
                            commercial presence in Norway shall be
                            limited to three months in any twelve-month
                            period or for the duration of the contract,
                            whatever is less. The commitment relates only
                            to the service activity which is the subject of the
                            contract. It does not entitle to exercise the
                            profession as such.
Liechtenstein
Travel Agencies and Tour    1) None                                               1) None
Operators Services          2) None                                               2) None
(CPC 7471)                  3) None                                               3) None
                            4) Unbound except as indicated in Part I              4) Unbound except as indicated in
                            Essential persons transferred to Liechtenstein        Part I
                            within a specific business or company (intra-
                            corporate transferees) are considered as
                            essential those persons defined in detail
                            below who are employees of a business or
                            company (hereafter enterprise) providing
                            services in Liechtenstein through a branch or
                            subsidiary established in Liechtenstein and who
                            have been beforehand employees of their
                            enterprise outside Liechtenstein for a period of
                            not less than one year immediately preceding
                            their application for admission:




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                                                      Table C
                               Liberalisation commitments of selected WTO Members
                                        in tourism and travel related services

Modes of Supply:    1) Cross border     2) Consumption      3) Commercial                          4) Presence of natural
                    supply              abroad              presence                               persons
     Tourism Services               Limitations on market Access                                Limitations on national
                                                                                                      treatment
                                  Executives and senior managers would not
                                  directly perform tasks related to the actual
                                  provision of services of the enterprise.
                                  Specialists: highly qualified persons who, within
                                  an enterprise, are essential for the provision of a
                                  specific service by reason of their knowledge at
                                  an advanced level of expertise in the field of
                                  services, research equipment, techniques or
                                  management of the enterprise.
Tourist Guide Services           1) Unbound due to lack of technical feasibility           1) Unbound due to lack of
(CPC 7472)                       2) None                                                   technical feasibility
                                 3) None                                                   2) None
                                 4) Unbound except as indicated in Part I (see             3) None
                                 above)                                                    4)Unbound except as indicated in
                                                                                           Part I
Iceland
Travel Agencies and Tour         1) None                                                   1) None
Operators Services               2) None                                                   2) None
(CPC 7471)                       3) Deposits or liability insurance to cover loss          3) None
                                 caused to clients due to bankruptcy                       4) Condition of licenses is one
                                 4) Unbound except as indicated in the                     year, previous residency of the
                                 horizontal section. The temporary entry of the            manager.
                                 following service providers as intra-corporate
                                 transferees, which Iceland shall permit without
                                 requiring compliance with labour market tests:
                                 executives, specialists and service sellers.
Tourist Guide Services           1) None                                                   1) None
(CPC 7472)                       2) None                                                   2) None
                                 3) None                                                   3) None
                                 4) Unbound except as indicated in the                     4) The right to exercise the
                                 horizontal section (see above).                           profession is reserved for
                                                                                           resident tourist guides. Non-
                                                                                           resident tourist guides may be
                                                                                           granted temporary work permit
                                                                                           on ad hoc basis.
Source: Offers presented by the US, Canada, the EU, Norway, Liechtenstein and Iceland to the WTO.




                                                                                                                             86
Tariff and Non-tariff Measures to Trade in Goods by Country19

UNITED STATES

Tariff Barriers: The average US tariffs for Mexican agricultural, fisheries and wood exports are 2.7, 0.2 and 0
percent respectively.

Non-tariff Barriers

Dispute Settlement in Antidumping and Countervailing Duty Matters in the NAFTA: Between 1996 and
2001, 26 investigations were initiated with Mexico (or Mexican Producers as a petitioner); Mexico has been a
defendant in 11 cases, involving mostly steel products, but also agriculture.

Subsidies: Government direct payments to US agricultural producers were estimated to have reached $19.6
billion in 2003. Total support estimates, which provide an indicator of overall government support to agriculture
including transfers to producers, budgetary transfers to consumers and general services provided to agriculture
(e.g. marketing, promotion and infrastructure) were approximately US$99 billion in 1999 and 90 billion in 2002.
The most heavily supported commodities were sugar, rice, milk and wheat.

Technical regulations: For the period 1995-2003, the US submitted 83 notifications related to labelling of which
six have raised specific trade concerns by other WTO Members.20 Most notifications have been related to
transport and traffic safety, food and drugs and agriculture.

Sanitary and Phytosanitary Measures: The US is the WTO Member with the largest number of notifications in
the area of sanitary and phytosanitary (SPS) measures. Between January 1995 and October 2003, the US made
760 notifications, mostly related to residue tolerance levels for various chemicals used in foods. In February
2003, the US first notified the proposed registration and prior import notice of the Public Health Security and
Bioterrorism Preparedness and Response Act. In April 2003, 16 WTO Members expressed concern over this
proposed measure at the WTO SPS Committee.

Environmental regulations: Many of the US notifications submitted to the TBT and SPS Committees have been
put forward by the US Environmental Protection Agency (EPA) concerning pesticides, chemical content and
labelling guidelines. The US applies trade measures in some instances to enforce environmental provisions,
notably those governing the use of marine resources. In 1991, a ban under the Marine Mammal Protection Act
(MMPA) was placed on tuna from countries failing to protect dolphins when fishing in the Eastern Pacific
Ocean. At that time, the US dolphin safe certification and labelling requirements were identified as non-tariff
barriers and raised as trade concerns by Mexico and others under the General Agreement on Tariffs and Trade
(GATT). In another notable case, a 1989 US import ban on shrimp harvested in a manner considered by the US
to pose a danger to sea turtles was brought before the WTO Dispute Settlement Body by four Asian countries in
1996. The WTO Appellate Body ultimately found that the ban was provisionally justified under Article XX (g) of
GATT 1994, but was applied in a discriminatory manner.

CANADA



19
   The information on non-tariff measures is based on the Trade Policy Reviews (TPR) undertaken by the WTO. Time
periods between subsections within a country and between countries may differ according to the year the TPR was
performed or the information submitted by the country to the WTO.
20
   WTO, G/TBT/W/184, 4 October, 2002.


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Tariff Barriers: The average Canadian tariffs for Mexican agricultural, fisheries and wood exports are 4.9, 0
and 0 percent respectively.

Non-tariff Barriers

Agricultural Subsidies: In 1999, (the first Canadian notification to the WTO) support provided to producers
amounted to CAN$3.8 billion (US$2.9 billion); CAN$1.75 billion (US$1.3 billion) was notified under the
“Green Box” and CAN$2 billion (US$1.52 billion) as trade distorting under the “Amber Box”. Canada’s farm
support is low in absolute terms in comparison with other OECD members (0.7 percent of GDP). Federal and
provincial government expenditures in support of the agri-food sector amounted to CAN$6.2 billion (US$4.71
billion) in 2001/02. Canada’s “safety net” programmes, including the Net Income Stabilization Account, crop
insurance and income stabilization programmes at the provincial levels reached approximately CAN$2.5 billion
(US$1.9 billion) in 2001/02.

Technical Regulations: Canada maintains technical regulations in areas such as construction, chemicals,
pharmaceuticals, energy, food, transport equipment, telecommunications, the environment and others. In the
period 2000 to mid-2002, Canada made 64 notifications to the WTO Committee on Technical Barriers to Trade
(TBT) (26 in 2000, 25 in 2001 and 23 in the first half of 2002). Most of these measures were related to health,
safety or environmental issues and concerned mainly food, drugs, tobacco, chemical substances, motor vehicles,
telecommunications equipment and services. Since the WTO came into force, Canada has been involved in six
disputes under the TBT Agreement as a complainant. Five of these disputes also involved the SPS Agreement.

Sanitary and Phytosanitary Measures: A total of 62 notifications were submitted by Canada to the SPS
Committee between 2000 and mid-2002. Most of these notifications refer to proposed amendments to food and
drug regulations, many of which establish new maximum residue levels for various chemicals contained in edible
fruit, vegetables, beans and cereals. Other notifications refer to the approval of the use of certain enzymes for
food production or certain pesticides or herbicides.

Environmental Regulations: The main environmental regulation in Canada is the Canadian Environmental
Protection Act (CEPA). The CEPA requires that the import or manufacture of any new substance is subject to a
notification and assessment procedure specified in the New Substances Notification Regulations (NSN). The
NSN applies to chemicals, polymers, and inanimate and animate products of biotechnology. The environmental
measures notified by Canada to the WTO include six under the TBT Agreement, several under the Agreement on
Agriculture and one under the Subsidies and Countervailing Measures (SCM) Agreement. Canada supports the
use of voluntary labelling schemes to provide consumers with information about a particular product or service.

EUROPEAN UNION

Tariff Barriers: The average EU tariffs for Mexican fisheries and wood exports are 2.57 and 0 percent
respectively. In addition, 58.6 percent of products enter duty free, while the rest have a complex tariff structure
which can be summarized as follows:

    •   Chapter 01 (Live animals): duties go from 35 to 117 € /100kg.
    •   Chapter 02 (Meat and edible offal): about one third have an average duty of €17.39/100kg and the rest
        are liberalized.
    •   Chapter 03 (Fish and crustaceans, molluscs and other aquatic invertebrates): the average tariff is 2.57
        percent.
    •   Chapter 04 (Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere
        specified or included): the tariff reduction schedule was not specified in the EU list.
    •   Chapter 05 (Products of animal origin, not elsewhere specified or included): all lines are duty free.



                                                                                                                  88
    •   Chapter 06 (Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage):
        except for some cut flowers, most tariff lines are duty free.
    •   Chapter 07 (Edible vegetables and certain roots and tubers): duties go from 1 to 2 percent, or, in some
        cases, 3.7 or 9.46€/100kg.
    •   Chapter 08 (Edible fruit and nuts; peel of citrus fruit or melons): the average tariff is 4.27 percent.
    •   Chapter 09 (Coffee, tea, mate and species): tariffs are basically liberalized except in the case of sweet
        peppers where the current tariff is 5.7 percent.
    •   Chapter 10 (Cereals): most tariffs were not specified in the EU list.
    •   Chapter 11 (Products of the milling industry; malt; starches; insulin; wheat gluten): the majority of tariffs
        were not defined and the available tariffs are 3 percent and 21.3€/100kg on average.
    •   Chapter 12 (Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal
        plants; straw and fodder.): most tariffs lines are duty free.
    •   Chapter 13 (Lac, gums, resins, and other vegetables and saps and extracts): all tariffs are duty free.
    •   Chapter 14 (Vegetable plaiting materials; vegetable products not elsewhere specified or included): all
        tariffs are duty free.
    •   Chapter 15 (Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or
        vegetable waxes): most tariffs are duty free, the remaining are 2.5 percent and €62/100kg.
    •   Chapter 16 (Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates): most
        tariffs were not specified in the list and the rest are 6.5 percent on average.
    •   Chapter 17 (Sugar and sugar confectionery): none of the tariffs were specified in the list.
    •   Chapter 18 (Cocoa and cocoa preparations): most tariffs were not specified in the list.
    •   Chapter 19 (Preparations of cereals, flour, starch or milk; pastry cooks' products): the majority of tariffs
        were not specified in the list.
    •   Chapter 20 (Preparations of vegetables, fruit, nuts or other parts of plants): many tariffs are undefined
        and the average tariff for the remaining ones is 6.05 percent and 24 € /100kg.
    •   Chapter 21 (Miscellaneous edible preparations): most tariff lines are either duty free or not specified.
    •   Chapter 22 (Beverages, sprits and vinegar): in most cases, tariff concessions do not apply because the
        products are protected by denominations in the Community.
    •   Chapter 23 (Residues and waste from the food industries and prepared animal fodder): about half of the
        tariffs are liberalized and half are 362 €/t on average.
    •   Chapter 24 (Tobacco and manufactured tobacco substitutes): most tariff lines are duty free and the
        remaining ones are 2.39/100kg.

Non-Tariff Barriers

Agricultural subsidies: The main mechanisms of support through the Common Agricultural Policy (CAP) are
guaranteed common prices and Common Market Organizations (CMOs) for 18 product categories. The amount
spent on the CAP was €40.4 billion in 2000 (US$48.9 billion). Expenditure is channelled mainly through the
European Agricultural Guarantee and Guidance Fund (EAGGF). Appropriations for the EAGGF in 2001 were
€44 billion (US$52.8 billion), from which France received the largest share in overall EU agricultural production,
followed by Germany. According to OECD estimates, government interventions in relation to CAP prices
declined to US$90.2 billion in 2000 from US$114.9 in 1999. In absolute terms, the EU provided more support to
its producers in 2000 than any other OECD member, ahead of Japan (US$59.9 billion) and the United States
(US$49.8 billion).

Technical regulations: In order for a product to be placed on the market of a Member State, it must comply with
the relevant regulations to meet health, safety, and environmental standards, among other objectives. Regulatory
activities in harmonized and non-harmonized areas are subject, where appropriate, to the obligations assumed by
the EU and its Member States under the WTO TBT and SPS Agreements. In 2000 and 2001, the EU and its
Member States notified 148 and 110 measures respectively to the TBT Committee. For the period 1995-2001, the


                                                                                                                  89
EU and its Member States notified 1,402 technical regulations to the WTO. The EU has been involved in a long-
standing dispute settlement proceeding at the WTO on hormone-treated beef and one on aflatoxin, which affects
in particular, the trade interests of exporters of cereals, dried fruit and nuts.

Sanitary and phytosanitary measures: A new framework for food law, adopted by the EU in 2002, harmonized
the concepts, principles and procedures to be used by Members States starting in 2005; all existing food safety
laws are to be reviewed by 2007. Scientific evidence is to underpin the food safety policy, with the precautionary
principle to be used where appropriate. In the case of genetically modified organisms (GMOs), recent changes to
EU legislation provide for mandatory labelling and tighten authorization procedures, which are to be time-bound.

Environmental regulations: A voluntary European eco-label scheme has been in place since 1992, and was
revised in 2000.21 There are two major mandatory directives for sustainable waste management: one for vehicles
and another for electronic and electrical equipment, both of which are applied to domestic production and
imports. With regard to multilateral environmental agreements related to trade, the EU applies the notification
and Prior Informed Consent (PIC) procedures established by the United Nations Environmental Programme
(UNEP) and the Food and Agriculture Organisation (FAO). The EU also applies trade regulations pursuant to the
Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES). The European
Commission has implemented a series of trade measures related to multilateral resource management and
conservation agreements, such as the International Commission for the Conservation of Atlantic Tunas (ICCAT)
and the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR). The measures
include bans on imports of Atlantic Blue Fin tuna and swordfish.

Common Fisheries Policy (CAP): The objectives of the CAP include: to protect and conserve marine resources
for rational and responsible exploitation, to provide a fair income for producers, to stabilize markets and to ensure
non discrimination. The Financial Instruments for Fisheries Guidance (FIFG) is the leading form of financial
assistance to this sector. The 2000-2006 budget for the FIFG was €3.7 billion (US$4.4 billion). The Common
Market Organisations (CMO) for fisheries and aquaculture products comprise: common marketing standards for
fresh products on quality, grades, packaging and labelling of both Community and imported fisheries products.
Supply side instruments of the CMO include price support systems, which set minimum prices below which fish
products cannot be sold; and rules for trade with non-Community countries. Price support in 2000 was €9.5
million (US$11.4).

NORWAY

Tariff Barriers: The average Norwegian tariffs for Mexican fisheries and wood exports were both zero percent.
Agricultural products have the following tariff structure:

       •   Chapters 01 (Live animals), 02 (Meat and edible offal) and 03 (Fish and crustaceans, mollusks and other
           aquatic invertebrates): there are no tariff lines included in the liberalisation list.
       •   Chapter 04 (Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere
           specified): only one line out of 36 is listed with a tariff duty of 21 percent.
       •   Chapter 05 (Products of animal origin, not elsewhere specified or included): 14 lines out of 35 are duty
           free.
       •   Chapter 06 (Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage): 23
           tariff lines out of 54 are duty free, the rest have an average of 40.6 percent or are not specified in the list.
       •   Chapter 07 (Edible vegetable and certain roots and tubers): 40 tariff lines out of 145 are duty free, the
           rest have an average rate of 4.43 percent or are not specified.



21
     Companies from developing countries and SMEs benefit from a 25 percent reduction in fees.


                                                                                                                        90
    •   Chapter 08 (Edible fruit and nuts; peels of citrus fruit or melons): 48 tariff lines out of 111 are duty free,
        the rest are have an average rate of 5.9 percent or are not specified.
    •   Chapter 09 (Coffee, tea, maté and spices): 28 tariff lines out of 34 are duty free, the rest are not specified.
    •   Chapter 10 (Cereals): there are no tariff lines included in the list.
    •   Chapter 11 (Products of the milling industry; malt; starches; insulin; wheat gluten): only one tariff line
        out of 61 is included in the list (this tariff is duty free). The rest are not specified.
    •   Chapter 12 (Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal
        plants; straw and fodder): 7 tariffs out of 78 are duty free, the rest are not specified.
    •   Chapter 13 (Lac; gums, resins and other vegetable saps and extracts): all tariff lines are duty free.
    •   Chapter 14 (Vegetable plaiting materials; vegetable products not elsewhere specified or included): there
        are no tariff lines included in the list.
    •   Chapter 15 (Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or
        vegetable waxes): 10 tariff lines out of 123 are included in the list, the rest have an average tariff of 10
        percent or are not included in the list.
    •   Chapter 16 (Preparations of meat, fish or crustaceans, molluscs or other aquatic invertebrates): there are
        no tariff lines included in the list.
    •   Chapter 17 (Sugars and sugar confectionery): 11 tariff lines out of 36 are included in the list; the rest
        have an average tariff of 1.06 percent or are not specified in the list.
    •   Chapter 18 (Cocoa and cocoa preparations): 6 tariff lines out of 16 are duty free the rest are not included
        in the list.
    •   Chapter 19 (Preparations of cereals, flour, starch or milk; pastry cooks' products): none of the tariffs are
        included in the list.
    •   Chapter 20 (Preparations of vegetables, fruit, nuts or other parts of plants) 52 tariff lines out of 101 are
        duty free, the rest of the lines have an average tariff of 1 percent or are not included in the list.
    •   Chapter 21 (Miscellaneous edible preparations): all tariff lines are duty free.
    •   Chapter 22 (Beverages, spirits and vinegar): there are no tariff lines included in the list.
    •   Chapter 23 (Residues and waste from the food industries; prepared animal fodder): there are no tariff
        lines included in the list.
    •   Chapter 24 (Tobacco and manufactured tobacco substitutes): all tariff lines are duty free.

Non-Tariff Barriers

Agricultural subsidies: In 1998, the aggregate measure of support (AMS) notified to the WTO by Norway
totalled NKr10.9 billion (about US$1.3 million dollars), which accounted for approximately 88 percent of its
agricultural GDP. Most of the AMS is composed of implicit transfers (revenue foregone), achieved by fixing
target prices and maintaining high levels of protection in the sector. There is also support in the form of
deficiency payments. The prices of wheat, barley and oats are fixed at fragmented levels. Administered prices are
about two to four times the external reference price established in accordance with the WTO Agreement on
Agriculture. Milk received the highest support per unit of production, followed by different types of meat. To
receive support, certain environmental criteria must be met.

The forestry sector is assisted through several schemes administered by the Ministry of Agriculture through the
National Forest Service. Total outlays under the different programs were NKr300.9 million in 1998, and
NKr298.7 million in 1999, which represents approximately 15 percent of the forestry and logging industry's
GDP. The subsidies for Forest Management Planning programmes makes grants available to all types of forest
land and owners to stimulate forest management planning and promote sustainable forestry.

Technical regulations: Through the European Economic Area (EEA), Norway is integrated into the European
Community single market and must apply commensurate internal legislation, including technical regulations.
However, for health and environmental reasons, Norway maintains stricter regulations than the EU with respect


                                                                                                                    91
to cadmium content in pesticides and phosphorous fertilizers. Between 1995 and 2002, Norway made 42
notifications regarding technical regulations to the WTO TBT Committee most of which related to
telecommunications equipment. A number of regulations addressed environmental concerns, while others were
related to GMOs.

Sanitary and phytosanitary measures: New regulations on the import of plants and parts of plants were issued
in 1998 under the framework of the Plant Diseases Act. Consignments of plants, including fruit and vegetables,
are required to be accompanied by phytosanitary certificates issued by the plant inspection authorities of the
exporting country, in accordance with FAO standards. Plant inspection is subject to a corresponding fee of 0.8
percent of the value of the inspected imports. In 1996, Norway made three notifications to the WTO SPS
Committee all of which related to the import of potatoes.

Environmental regulations: Norway participates in a voluntary eco-labelling scheme administered by the
Norwegian Foundation, Eco-labelling Norway. The Nordic eco-label, the Swan, is a voluntary scheme which was
approved in 1989 and is open to products from any country. The Ministry of Environment regulates a number of
technical regulations that address environmental goals to target manufactures, and the import and export of CFCs
and halons, carbon tetrachloride and methyl chloroform. Norwegian authorities carry out random checks to
ensure compliance with the rules on documentation and labelling.

Fisheries policy: Through the EEA, Norway has adopted EU regulations on animal health and safety and quality
related to production and marketing of seafood. Norway has an exemption from EEA rules for the import and
export of live salmon, roe and milt. Since 1999, Norway has also applied the EU border control regime for live
fish and fisheries products originating in countries outside the EEA. The verification system covers both food
safety and quality aspects. Commercial standards are developed and supervised by the seafood industry.
However, the processing, selling or export of raw fish or related products may be prohibited by Royal Decree,
unless the fish have been sold first-hand by the intermediary or with the consent of an approved fishermen's sales
organization, which sets the minimum price for each species and ensures that price decisions are respected. In
terms of subsidies, the government supports fisheries through a number of programmes. As an estimate of the
support received by the sector in 1998, government financial transfers associated with Norway's marine fisheries
policies were NKr193 million (US$24.7 million). Most support payments were made in the form of cost reducing
transfers, particularly to reduce transport costs, subsidise interest rates and support investment.

SWITZERLAND AND LIECHTENSTEIN

Tariff Barriers: The average Swiss-Liechtenstein tariffs for Mexican fisheries and wood exports are 0.2 and 2.6
percent respectively. Agricultural products have the following tariff structure:

    •   Chapters 01 (Live animals), 02 (Meat and edible offal) and 03 (Fish and crustaceans, mollusks and other
        aquatic invertebrates): there are no tariff lines included in the liberalisation list.
    •   Chapter 04 (Dairy produce; birds’ eggs; natural honey; edible products of animal origin, not elsewhere
        specified): 3 tariff lines out of 62 are duty free, 3 more have an average rate of 14.3 percent, the rest are
        not included in the list.
    •   Chapter 05 (Products of animal origin, not elsewhere specified or included): 22 tariffs out of 31 are duty
        free, the rest are not included in the list.
    •   Chapter 06 (live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage): 16
        tariff lines out of 49 are duty free, the rest are not included in the list.
    •   Chapter 07 (Edible vegetable and certain roots and tubers): 64 tariff lines out of 227 are duty free, 8
        tariff lines have an average rate of 6 percent, the rest are not included in the list.
    •   Chapter 08 (Edible fruit and nuts; peels of citrus fruit or melons): 59 tariff lines out of 112 are duty free,
        12 tariff lines have average rate of 6 percent, the rest are not included in the list.



                                                                                                                   92
    •   Chapter 09 (Coffee, tea, maté and spices): 20 tariff lines out of 38 are duty free, the rest are not included
        in the list.
    •   Chapter 10 (Cereals): there are no tariff lines included in the liberalisation list.
    •   Chapter 11 (Products of the milling industry; malt; starches; insulin; wheat gluten): there are no tariff
        lines included in the liberalisation list.
    •   Chapter 12 (Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal
        plants; straw and fodder): 29 tariff lines out of 198 are duty free, the rest are not included in the list.
    •   Chapter 13 (Lac; gums, resins and other vegetable saps and extracts): 17 tariff lines out of 18 are duty
        free, the other one has a rate of 26 percent.
    •   Chapter 14 (Vegetable plaiting materials; vegetable products, not elsewhere specified or included):10
        tariff lines out of 12 are duty free, the rest are not included in the list.
    •   Chapter 15 (Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or
        vegetable waxes): 6 tariff lines out of 170 are duty free, the rest are not included in the list.
    •   Chapter 16 (Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates): 2
        tariff lines out of 43 are duty free, the rest are not included in the list.
    •   Chapter 17 (Sugars and sugar confectionery): 2 tariff lines out of 51 are duty free, 5 tariff lines have an
        average rate of 33.4 percent, the rest are not included in the list.
    •   Chapter 18 (Cocoa and cocoa preparations): 6 tariff lines out of 35 are duty free.
    •   Chapter 19 (Preparations of cereals, flour, starch or milk; pastry cooks' products): 3 tariff lines out of 88
        are free, 2 have an average rate of 18.25 percent, the rest are not included in the list.
    •   Chapter 20 (Preparations of vegetables, fruit, nuts or other parts of plants): 25 tariff lines out of 126 are
        free, 22 have an average tariff rate of 14.98 percent, the rest are not included in the list.
    •   Chapter 21 (Miscellaneous edible preparations): 10 tariff lines out of 46 are duty free, the rest are not
        included in the list.
    •   Chapter 22 (Beverages, spirits and vinegar): 19 tariff lines out of 58 are duty free, the rest are not
        included in the list.
    •   Chapter 23 (Residues and waste from the food industries; prepared animal fodder): 27 tariff lines out of
        69 are duty free, the rest are not included in the list.
    •   Chapter 24 (Tobacco and manufactured tobacco substitutes): 3 tariff lines out of 15 are duty free, the rest
        are not included in the list.

Non-Tariff Barriers

Agricultural subsidies: Switzerland and Liechtenstein have reduced their total aggregated measures of support
(AMS) to agriculture from around SFr4.3 billion (US3.4 billion) in 1995 to SFr3.3 billion (US2.6 billion) in 1998
and to SFr2.9 (US2.2 billion) billion in 1999. Duty and tax exemptions and refunds are available for certain
products and services. For example, under the price compensation scheme for processed agricultural products,
contributions are granted by the Swiss Confederation to reduce the price of final goods and costs of inputs used
for their production. The Confederation also grants subsidies in the form of direct payments to agricultural
production and interest subsidies.

Technical regulations: Swiss technical regulations have been aligned with those of its major trading partners
(mainly the EU) in 18 areas, including machinery, electrical equipment, electromagnetic compatibility, medical
devices, pharmaceutical products, telecommunications, equipment, motor vehicles and tractors. Differences still
exist in technical regulations for health, safety and environmental considerations. In February 2000,
approximately 87 percent (65 percent in 1996) of the 10,945 standards in force in the customs territory
corresponded to international standards

Sanitary and phytosanitary measures: Three regimes (prohibition, authorization, and phytosanitary
certificates) apply to imports of plants, plant products and other related items into Switzerland and Liechtenstein.


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Differences in implementation of the regimes exist based on the origin of imports: imports from the European
and Mediterranean Plant Protection Organization (EPPO) members are distinguished from those of non-member
countries. Imports of forest reproductive material, especially certain varieties of trees deemed important for Swiss
or Liechtenstein forestry (11 varieties of conifers and 31 varieties of leaf-bearing trees) and forest plants are
subject to authorization by the Federal Directorate of Forestry.

Environmental regulations: Import prohibitions apply to ozone depleting substances. Carbon- -zinc batteries
containing more than 0.01 percent mercury and more than 0.015 percent cadmium (by weight), and alkali-
manganese batteries/accumulators containing more than 0.025 percent mercury are prohibited from import into
Switzerland and Liechtenstein. Under the 1983 Federal Law relating to the Protection of the Environment (as
amended up to 1997), certain taxes are collected on volatile organic compounds and extra light heating oils for
environmental protection.




                                                                                                                 94
ICELAND

Tariff Barriers: The average Icelandic tariffs for Mexican fisheries and wood exports are 0 and 11.6 percent
respectively. Agricultural products have the following tariff structure:

   •   Chapters 01 (Live animals), 02 (Meat and edible offal) and 03 (Fish and crustaceans, mollusks and other
       aquatic invertebrates): there are no tariff lines included in the liberalisation list.
   •   Chapter 04 (Dairy produce; birds´ eggs; natural honey; edible products of animal origin, not elsewhere
       specified): 1 tariff line out of 78 is duty free, the rest are not include in the list.
   •   Chapter 05 (Products of animal origin, not elsewhere specified or included): 1 tariff line out of 39 is duty
       free, the rest are not included in the list.
   •   Chapter 06 (live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage): no
       tariff lines are included in the list.
   •   Chapter 07 (Edible vegetable and certain roots and tubers): 31 tariff lines out of 108 are duty free, the
       rest are not included in the list.
   •   Chapter 08 (Edible fruit and nuts; peel of citrus fruit or melons): one tariff line out of 63 is duty free, the
       rest are not included in the list.
   •   Chapter 09 (Coffee, tea, maté and spices): 1 tariff line out of 37 is duty free, the rest are not included in
       the list.
   •   Chapter 10 (Cereals): 5 tariff lines out of 31 are duty free, the rest are not included in the list.
   •   Chapter 11 (Products of the milling industry; malt; starches; insulin; wheat gluten): 5 tariff lines out of 69
       are duty free, the rest are not included in the list.
   •   Chapter 12 (Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal
       plants; straw and fodder): 13 tariff lines out of 60 are duty free, the rest are not included in the list.
   •   Chapter 13 (Lac; gums, resins and other vegetable saps and extracts): 1 tariff line out of 17 is duty free,
       the rest are not included in the list.
   •   Chapter 14 (Vegetable plaiting materials; vegetable products, not elsewhere specified or included): no
       tariff lines are included in the list.
   •   Chapter 15 (Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or
       vegetable waxes): 19 tariff lines out of 104 are duty free, the rest are not included in the list.
   •   Chapter 16 (Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates): no
       tariff lines are included in the list.
   •   Chapter 17 (Sugars and sugar confectionery): 3 tariff lines out of 48 are duty free, the rest are not include
       in the list.
   •   Chapter 18 (Cocoa and cocoa preparations): 13 tariff lines out of 48 are duty free, 17 tariff lines have an
       average duty of 59.41Kr/kg, the rest are not included in the list.
   •   Chapter 19 (Preparations of cereals, flour, starch or milk; pastry cooks' products): no tariff lines are
       included in the list.
   •   Chapter 20 (Preparations of vegetables, fruit, nuts or other parts of plants): 23 tariff lines out of 44 are
       duty free.
   •   Chapter 21 (Miscellaneous edible preparations): 26 tariff lines out of 98 are duty free.
   •   Chapter 22 (Beverages, spirits and vinegar): 15 tariff lines out of 179 are duty free, 3 have an average
       duty of 42kr/kg, the rest are not included in the list.
   •   Chapter 23 (Residues and waste from the food industries; prepared animal fodder): no tariff lines are
       included in the list.
   •   Chapter 24 (Tobacco and manufactured tobacco substitutes): no tariff lines are included in the list.

Non-tariff Barriers




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Agricultural subsidies: The Agricultural Agreements Programme is the major support scheme for the Icelandic
agricultural sector. It is aimed at achieving self-sufficiency; increasing efficiency; securing an equitable income
for farmers and integrating environmental issues with agricultural policy. The products eligible for support
include milk, sheep meat and wool. Support to producers of sheep meat and milk consists of direct payments.
Outlays under these programmes accounted for ISK5.1 billion (US$70.83 million) in 1998.

Technical regulations: There were approximately 1,200 technical regulations and 8,857 standards in Iceland in
1999 of which approximately 37.2 percent are equivalent to international standards (either ISO or IEC). Most
Icelandic standards are EEA standards, with only a few specific to Iceland. Technical regulations cover a wide
range of products, including motor vehicles, household appliances, construction material and equipment, textiles,
foodstuffs, medicine, fertilizers, cosmetics, telecommunications and data processing equipment, toys, tobacco,
spirituous drinks and medical devices.

Sanitary and phytosanitary measures: The import of plants and plant products is subject to certification
requirements and may be restricted by the Minister of Agriculture to protect Icelandic flora against new diseases
and pests. The import of harmful organisms and plants, plant consignments, coniferous trees from countries
outside the European continent, and most soil, compost, raw or cut tree bark and manure is prohibited.

Environmental regulations: Iceland participates in various European eco-labelling schemes. While Iceland has
a number of laws concerning the environment, there is currently no comprehensive legislation on the
environment. Import licenses are required for hydrochlorofluorocarbons (HCFCs) and other ozone depleting
substances are banned.




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