Why new tariff codes are necessary to improve trade and combat climate change

A key issue in the fight against climate change and for environmental protection is how to facilitate market access to environmental products (agricultural and non-agricultural ones). The world trading system has an alternative mechanism that can be very useful in that respect: the Harmonysed System (HS), which establishes common classification for goods, facilitating the negotiation process. The creation of new tariff codes for environmental products under HS will help to renovate the trade system as some products will be banned from many countries or charged high tariffs (e.g. plastics), an incentive for countries to opt for environmentally friendly products (e.g. biodegradables). The private sector is expected to become more sustainable and small and medium enterprises should be able to increase their sales in the short run.