WORLD TRADE
ORGANIZATIONS/CSS/W/38
22 December 2000
(00-5633)
Council for Trade in Services
Special SessionOriginal:  English
COMMUNICATION FROM THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES1/2
GATS 2000:  Environmental Services
The attached communication3 has been received from the delegation of the European
Communities and their Member States with the request that it be circulated to Members of the Council
for Trade in Services.
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I. INTRODUCTION
1. World-wide the environmental services market represents US$ 280 billion and is expected to
grow to US$ 640 billion in 2010 with an annual growth  rate of 8%.  This would place the environment
industry at roughly the same size as the pharmaceuticals or information technologies industries.
Consequently, the demand in environmental services should rise world-wide.
2. Only 48 Members have taken commitments in the environmental sector (mostly OECD
countries). Although few Members covered environment in their schedule, those who did, took
commitments which provide on average for a high level of market opening with all or most sub-
sectors being bound.
3. The EC market for environmental services is substantially open.
4. It is extremely important to highlight the “win-win” dimension of open trade and its inter-
relationship with environmental protection, human health and development. A summary of the main
elements of the “win-win” include trade in capital goods and services being the most direct channel
for transfer of environmental technology; the positive price and efficiency effects for domesticenvironmental budgets; welfare, health and environmental performance gains; provision of incentives
for investment in technological developments and technological cooperation through expansion of
market opportunities; etc.
5. Against this background, our proposals aims at engaging WTO Members in negotiations to
reduce trade barriers to the minimum as well as increase country coverage.
                                                     
1 Hereinafter "The EC".
2 The EC reserve their right to modify this proposal at any time. This proposal does not prejudge EC's
position on other services sectors, nor any possible future offer on this or other sectors. This proposal has to be
read together with the general approach of the EC to the services negotiations.
3 This document should be read in conjunction with S/CSS/W/32.S/CSS/W/38
Page 2
6. The proposed approach is the one highlighted in the EC communication on classification of
environmental services (S/CSC/W/25 dated 28 September 1999). In this Communication the EC
propose to schedule commitments according to a revised classification which preserves the mutually
exclusive nature of W/120 whilst addressing most of its recognised problems (see attached
communication). The proposed classification compri ses of services which can undisputedly be
classified as “purely” environmental and where the services are classified according to the
environmental media (i.e. air water, solid and hazardous waste, noise etc.). The Communication
proposes a new classification for “core” environmental services which better reflect the trade and
sectoral realities. The new classification is also more diversified:  the creation of 7 environmental sub-
sectors (against 3 in the old classification) increases the possibility for Members to take commitments.
7. Due to its purely environmental nature, the proposed classification does not include
conceptual services such as design, engineering, R&D and consulting services which remain classifiedelsewhere in GATS. It is acknowledged that some can have an environmental “end-use”. The EC
propose that these services could be subject to a special “cluster” or “ checklist”, checklist which
could be used as an aide-memoire during the other sectoral negotiations, the result of which should be
scheduled in the relevant GATS sectors other than environment.
II. SCOPE OF THIS PROPOSAL
4/5
8. All sectors and sub-sectors of the “proposed classification” described in the EC
Communication S/CSC/W/25 as modified by job 7612 dated 28 November 2000).  Namely:
6A. Water for human use & wastewater management
6B. Solid/hazardous waste management
6C. Protection of ambient air and climate6D. Remediation and cleanup of soil & water
6E. Noise & vibration abatement
6F. Protection of biodiversity and landscape
6G. Other environmental & ancillary services
9. The proposal also covers all sectors and sub-sectors of the environmental services “cluster” or
“checklist” described in the EC Communication S/CSC/W/25 as modified by job 7612 dated
28 November 2000 (see attached). Namely:
Business services with an environmental component.
R&D with an environmental component.
Consulting, contracting & engineering with an environmental component.
Construction with an environmental component.Distribution with an environmental component.
Transport with an environmental component.
Others with an environmental component.
                                                     
4 The coverage of this proposal is without prejudice to EC's final positions on classification issues and
to EC's classification of their existing commitments. CPCs mentioned refer to Provisional CPC classification.
5 It is understood that the GATS does not cover measures of a Member which limit inputs for the
supply of services. As a consequence, any commitment undertaken in this sub-sector does not preclude a
Member to regulate the supply and demand of natural resources.S/CSS/W/38
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III. PROPOSAL
10. The Council for Trade in Services in Special Session should initiate a debate, whether in the
Council or in a subsidiary body established for the purpose, on broad aims for negotiations in the
environmental services sector .
11. Overall, we believe that WTO Members should aim to substantially reduce barriers to trade in
services.
12. For example, typical obstacles to trade in environmental services include monopolies and
exclusive providers issues, restrictions on legal forms of doing business, equity limitations,
restrictions on foreign investment, unspecified licensing and approval requirements, unspecified
economic needs tests, residency and nationality requirements, restrictions to the movement of key
personnel etc.
13. This list is not exhaustive, and other restrictions are also maintained by WTO Members.
1. Schedule of commitments
(a) Modes 1, 2 and 3
− Commit all modes for all subsectors without restrictions (i.e. none) taking
into account the specificities of how the provision of these services isorganised
(b) Mode 4:  The EC schedule includes, inter alia , temporary movement of intra-
corporate transferees as well as contractual service suppliers (i.e. the service is supplied, on
the basis of a contract, by an employee of a company not established in the Member's
territory). The EC propose that, on this basis, further discussions are held on how to improve
and facilitate the temporary movement of natural persons for the provision of specificservices.
2. For reference:  horizontal proposals and the environmental services sector
14. The EC reserve their right to present a formal proposal concerning horizontal commitments
listed by WTO Members. At this stage, some horizontal commitments can already be underlined as
particularly affecting the environment sector:  unspecified approval requirements, unspecifiedeconomic needs tests, certain limitations on the purchase or rental of  real estate, restrictions on equity
holdings, residency requirements, certain tax and subsidy measure.S/CSS/W/38
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7612
Committee on Specific Commitments 28 November 2000
COMMUNICATION FROM THE EUROPEAN COMMUNITIES
AND THEIR MEMBER STATES
Informal Paper
The following communication has been received from the delegation of the European
Communities and their Member States with the request that it be circulated to the Members of the
Committee on Specific Commitments.
_______________S/CSS/W/38
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I. INTRODUCTORY NOTE
1. Delegates will find herewith a revised version of the environmental classification and cluster
annex of the EU WTO Communication on “Classification issues in the environmental sector”,
Committee on Specific Commitments, 28 September 1999. This is a stocktaking document amending
Job No. 4348 dated 10 July 2000 and mirroring as much as possible discussions, suggestions andcomments from several delegations. This paper is meant to clarify the discussion and prepare the next
steps. Please note that there might still be some outstanding issues with some WTO Members.
2. The document has been amended in the following manner so to gather support from
Members:
a) In sub-sector 6A, water services are described as “Water collection, purification and
distribution services through mains, except steam & hot water” (i.e. same language as
in CPC provisional 94101, taking into account the exclusion of steam and hot waterdescribed in CPC provisional 88700). Reference to CPC provisional 713 is irrelevant
and therefore has been deleted.
b) In sub-sector 6B, “Services related to recycling services on a fee or contract basis”
now reads “Services related to recycling on a fee or contract basis”. This sub-sector
has been moved to Cluster under “Business Services with an environmentalcomponent”. Examples in this sub-sector now include plastic, paper, glass and
batteries. As a consequence, reference to CPC revision 1 86932 has been added.
c) In 6G “Other environmental & ancillary services”, “Repair services of machinery &
equipment” has been moved to cluster. Th e reference to “Operation and maintenance”
has been deleted. “Public awareness programmes” has been moved to cluster in“Others”.S/CSS/W/38
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ENVIRONMENTAL SERVICES6CONSOLIDATED LIST November  2000
CLASSES AND SERVICES EXAMPLES/DESCRIPTIONS PROVISIONAL
CPCCPC
VERSION 1.0
6A) WATER FOR HUMAN USE & WASTEWATER MANAGEMENT
Water collection, purification and distribution
services through mains, except steam & hot water- potable water treatment, purification and
distribution including monitoringpart of 18000 69210, 86223, part of
94900
Waste Water Services - removal, treatment and disposal of household,
commercial and industrial sewage and other wastewaters including tank emptying & cleaning,monitoring, removal and treatment of solid wastes9401, 94010 9411, 94110, 94120
6B) SOLID/HAZARDOUS WASTE MANAGEMENT
Refuse disposal services - hazardous & non-hazardous waste collection,
treatment and disposal (incineration, composting,
landfill)94020 94211, 94212, 94221,
94222
Sanitation & similar services - sweeping & snow removal
- other sanitation services94030 94310, 94390
6C) PROTECTION OF AMBIENT AIR AND CLIMATE
Services to reduce exhaust gases and other
emissions and improve air quality- services at power stations or industrial complexes to
remove air pollutants- monitoring of mobile emissions and implementation
of control systems or reduction programmes94040 part of 94900
                                                     
1For the whole classification, unless otherwise indicated in a Me mber's schedule, the classification covers the provision of the  service to industrial
and commercial establishments, households and the general public and other users.S/CSS/W/38
Page 7ENVIRONMENTAL SERVICES6CONSOLIDATED LIST November  2000
CLASSES AND SERVICES EXAMPLES/DESCRIPTIONS PROVISIONAL
CPCCPC
VERSION 1.0
6D) REMEDIATION AND CLEANUP OF SOIL & WATER
Treatment, remediation of contaminated/polluted
soil and water- cleaning-up systems in situ or
mobile, emergency response, clean-up and longerterm abatement from spillsand natural disasters
- rehabilitation programmes (e.g. recovery of mining
sites) including monitoringpart of 94060 part of 94900
6E) NOISE & VIBRATION ABATEMENT
Noise abatement services - monitoring programmes, installation of noise
reduction systems and screens94050 part of 94900
6F) PROTECTION OF BIODIVERSITY AND LANDSCAPE
Nature & landscape protection services - ecology and habitat protection
- protection of forests and promoting sustainable
forestrypart of 94060 part of 94900
6G) OTHER ENVIRONMENTAL & ANCILLARY SERVICES
Other services not classified elsewhere -  other environmental protection services
- services related to environmental impact assessmentpart of  94090 part of 94900S/CSS/W/38
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 ENVIRONMENTAL RELATED SUB-SECTORS WHICH COULD BE SUBJECT TO A “CLUSTER” NEGOTIATION,
TOGETHER WITH THE SERVICES IN THE ENVIRONMENT CLASSIFICATION
ENVIRONMENTAL SERVICES CONSOLIDATED LIST November 2000
CLASSES AND SERVICES EXAMPLES/DESCRIPTIONS PROVISIONAL
CPCCPC
VERSION 1.0
BUSINESS SERVICES WITH AN ENVIRONMENTAL COMPONENT
Architectural services 861
Services related to recycling on a fee or contract
basis- Services related to recycling of, for example plastic,
paper, glass, batteries, aluminium and steel88493 86931, 86932
R&D WITH AN ENVIRONMENTAL COMPONENT
Environmental R&D services85101, 85103, 85109,
85202, 85300, 853081110, 81130, 81190,
81220, 81300, 8130
CONSULTING, CONTRACTING & ENGINEERIN G WITH AN ENVIRONM ENTAL COMPONENT
Design & Engineering - e.g. feasibility studies and design of waste water
treatment plants867 83131, 832, 833
Education, Training and Technical Assistance- training courses on environmental protection or
operation & maintenance of environmental facilities- training sessions for employees and/or contractorsfor performing proper sampling924, 929 929
Consulting services - environment consulting services
- related consulting services for tourism, transport,
fishing, sustainable land use867, 86729
865083131
8312, 83119
Integrated engineering services 86732 83312
Project management services e.g. supervision of construction of sewage treatment
facilities86729 83322, 83323, 83329S/CSS/W/38
Page 9ENVIRONMENTAL SERVICES CONSOLIDATED LIST November 2000
CLASSES AND SERVICES EXAMPLES/DESCRIPTIONS PROVISIONAL
CPCCPC
VERSION 1.0
Composition & purity testing & analysis services - includes accredited environmental testing services
- includes both field and laboratory testing86761 83561
Modelling- computer simulations of movement of pollutants
through air, water, or soil
- software development for engineering programs8424
867283142
83139, 8339
Monitoring & testing - monitoring of air and water quality 8672, 8676, 9490 8313, 8339, 8356
Subsurface & surface surveying services - mapping
- use of global positioning systems (GPS)86752, 86753 83520, 83530
CONSTRUCTION WITH AN
ENVIRONMENTAL COMPONENT
Septic system installation services - installing septic tanks and disposal fields 51620* 54342
Construction services - laying of sewers
- laying of water pipelines- construction of treatment plants- construction of landfills51340*, 51350*, 511,
512, 513, 514, 515,516, 517, 51854241, 54251, 541,
542, 543, 544, 545,546, 547, 548
Installation services of other goods - installation of equipment used in sewage treatment
facilities88590* 86590
Insulation services 51650, 5165 54650, 5465S/CSS/W/38
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ENVIRONMENTAL SERVICES CONSOLIDATED LIST November 2000
CLASSES AND SERVICES EXAMPLES/DESCRIPTIONS PROVISIONAL
CPCCPC
VERSION 1.0
DISTRIBUTION WITH AN
ENVIRONMENTAL COMPONENT
Wholesale & retail trade services of waste, scrap,and other material for recycling- sale of paper for recycling
- sale of aluminium cans for recycling62278, 62113; 63299 61195, 61295, 62495,
62595
Storage - hazardous & non-hazardous waste storage
- operation of disposal site7422 6722
TRANSPORT WITH AN
ENVIRONMENTAL COMPONENT
Land transportation under various modes - movement of waste material by rail or road 7112, 7123, 7139 6412, 6423
Water transportation under various modes - movement of waste material by barge or ship 721, 722 651, 652
OTHERS WITH AN ENVIRONMENTALCOMPONENT
Repair services of machinery & equipment - repair of various environmental equipment &
facilities, e.g. water treatment plants, wastewatertreatment plants, sanitary land fills88620 87159
Urban planning services 86741 83221
Others - public awareness programmes
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