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Trade Links – Issue 9

INFO 586 March 2011

Welcome

Welcome to the first edition of Trade Links for 2011. Trade Links is a quarterly newsletter from the Ministry for the Environment on our international trade and environment activities, and global environmental cooperation.

New Zealand’s free trade agreements increasingly include parallel arrangements for countries to work together on broader environmental matters. These arrangements (in the form of Environmental Cooperation Agreements) provide a platform for New Zealand to engage with our trade partners in ways that recognise the close connections between trade and the environment. Cooperation activities range from research and policy to encouraging commercial opportunities. If you are interested in environmental activities with one of our partner countries, please contact us.

In this issue:

What’s hot

Philippines

Preparations are underway to identify and implement a programme of cooperation. We are keen to hear whether you are currently involved or interested in environment related activities in the Philippines. New Zealand’s Environment Cooperation Agreement with the Philippines is linked to the ASEAN (Association of Southeast Asian Nations), , Australia and NZ Free Trade Agreement (AANZFTA).

Hong Kong

The New Zealand – Hong Kong, China Closer Economic Partnership Agreement entered into force on 1 January 2011. Environmental cooperation areas haven’t been confirmed yet. The Ministry’s current thinking on potential cooperation areas with Hong Kong is that they will be similar to our ECA with mainland China such as water pollution, invasive species and biodiversity and chemicals management.

Cooperation activities

2010 was an exciting year for New Zealand’s environment cooperation programmes with Chile and China.

Pictured: Participants of the Sino New Zealand Invasive Species Workshops in Kunming, China December 2010.

Chile

Environmental cooperation with Chile is linked to the Trans-Pacific Environment Strategic Economic Partnership Agreement.

Geothermal energy

The New Zealand Embassy in Santiago, in cooperation with the Chilean Ministry of Energy, hosted a seminar in November titled "Geothermal: the New Zealand Experience and its relevance for Chile".  "Geothermal: the New Zealand Experience and its relevance for Chile". Key themes of the seminar were access and value of geothermal energy for the heating and electricity markets in New Zealand, lessons learned from New Zealand and international projects on geothermal energy development and environmental and sustainable benefits from geothermal development.

The seminar took place under the framework of the Joint Declaration on Energy Cooperation issued by Energy Ministers Ricardo Raineri and Hon Gerry Brownlee in June 2010 and in the context of the Trans-Pacific Partnership (TPP).

The New Zealand presenters included representatives from Mighty River Power, GNS Science, Auckland University Institute of Earth Science and Engineering, and Mike Underhill, the CEO of EECA. Mr Underhill was also invited by  Chile to give the key note address at the Centre for Renewable Energy's International Conference on Renewable Energy Investments hosted on 9 November 2010 in Santiago, Chile.

Wave energy project

New Zealand’s experience of developing marine energy may provide useful lessons for Chile, according to a New Zealand marine energy expert, Garry Venus. Garry, from Chatham Islands Marine Energy Ltd, gave a videolink presentation to the first Chilean Marine Energy Seminar in November in Valparaiso, Chile.

Chile has abundant marine resources, with a long coastline fronted by strong waves from the Pacific Ocean, giving it great marine energy potential. A number of strong parallels exist between the Chatham Islands and the Juan Fernandez Archipelago where a wave energy project is underway. Both rely on diesel-fuelled electricity generation, are of a similar physical size, have small populations, and appear to have similar wave resources. An initial assessment concluded that a wave power plant based on the Chatham Island’s model could be suitable for installation on the Robinson Crusoe Island, subject to confirmation of site specific wave energy data.

We are working with the Chilean Government on options to progress this as a cooperation project between Chile and New Zealand.

China

Work under the New Zealand-China Environment Cooperation Agreement continues at pace. The key areas of cooperation are water pollution, chemicals management and invasive species and biodiversity. MfE has been working closely with other government agencies to ensure that cooperative activities complement and support New Zealand's wider goals in China.

In December 2010 the Second Coordinators' Meeting was held in Beijing. Overall Coordinators felt that good progress had been made over the past 12 months. The challenge over the next 12 months is to maintain this momentum and to further develop concrete activities. Coordinators also agreed that they would like to see a greater effort to develop cooperative activities on water management.

Water management

The New Zealand Coordinator, Guy Beatson, gave a lecture at the Chinese Research Academy of Environmental Science on New Zealand’s water issues and evolving management approach. Water pollution, particularly in rural areas, is a major issue for both China and New Zealand. Coordinators agreed that water pollution is an area in which they would like to do more under the Cooperation Agreement. Over the next 12 months MfE will seek to increase efforts in this area, building on initial activities undertaken in partnership with AgResearch, Scion, NIWA, Waikato University, Environment Bay of Plenty and others. We are keen to hear whether you are currently involved or interested in water management related activities in China and see value in working with us under the ECA. Contact Lesley Woudberg for more information.

Chemicals management

New Zealand increasingly sources chemicals from China so we are interested in strengthening cooperation in the wider area of chemicals management. Senior ERMA Scientist Peter Dawson has been working with the United Nations Institute for Training and Research (UNITAR) and Chinese counterparts on implementing the Global Harmonised System of Classification and Labelling Chemicals (GHS) in China. This is a long term project but has the potential to significantly reduce compliance costs on chemicals imported from China. China has also indicated interest in phyto and bio-remediation research trials that have been undertaken in New Zealand and in contaminated site remediation and mechano-chemical destruction technology developed by New Zealand company Environmental Decontamination Limited (EDL). The Mechano-chemical destruction technology which achieve the destruction of toxic materials and stabilisation of heavy metals by initiating chemical reactions in a process which does not release gas or waste materials and is highly transportable. EDL is working with Chinese authorities and international funding agencies to undertake a pilot project in China.

Invasive species management

A Sino-New Zealand invasive species workshop was held in Kunming, following on from two workshops held in New Zealand earlier in the year. Representatives from Landcare Research and Biosecurity New Zealand gave presentations. The Chinese Research Academy of Environmental Science and Landcare Research are working to develop cooperation on invasive species as well as develop a closer relationship between the two organisations.

East Asia Summit

The Ministry for the Environment participated the recent East Asia Summit Environment Ministerial meeting held in October 2010. The EAS is regional grouping led by the Association of South East Asian Nations (ASEAN). In addition to the ten ASEAN countries the EAS also includes ASEAN’s regional partners of China, Japan, Korea, India, Australia and New Zealand. As well as particiapting in the main EAS meeting, the MfE team took the opportunity to meet seperately with a range of countries to discuss opportunities to progress bilateral cooperation, receive an update on domestic green growth policies and discuss climate markets.

Negotiations

India

The third round of negotiations for the New Zealand-India Free Trade Agreement (FTA) was held in Wellington in October 2010. In the first two rounds, each side outlined what they sought from the FTA and discussions on legal text of the agreement began. This round was an opportunity to get into more detail about the outcomes we seek from the agreement.

Both sides continued discussions on their respective approaches and positions on environmental provisions in FTAs. These discussions will continue with the Indian Ministry of Environment and Forests. The next round of negotiations was held in 7 – 11 March 2011 in Delhi.  The next round of negotiations is scheduled for late May 2011 in Wellington, New Zealand.  More information.

Expanded Trans-Pacific Partnership

Negotiations are ongoing between members of the existing members of the Trans Pacific Strategic Economic Partnership New Zealand, Brunei, Chile and Singapore and five new members: Australia, Peru, the United States of America, Malaysia and Vietnam. In October 2010 the third round of negotiations for an expanded Trans-Pacific Free Trade Agreement were held in Brunei. The negotiations are looking at how other Pacific Rim countries can join in the future.

Trade and environment provisions issues are an important part of the negotiations, including how trade rules can address global and regional environmental challenges. Discussions including environment and trade provisions continued in December 2010 in Auckland and in Santiago, Chile in February 2011.

The sixth round of negotiations will be held in Singapore, from 28 March to 1 April 2011.  More information.

Russia Belarus Kazakhstan

At the APEC summit on 13 November 2010, Prime Minister John Key announced that negotiations on a Free Trade Agreement with Russia, Belarus and Kazakhstan will start in mid 2011. More information.

Current Environment Agreements

New Zealand’s free trade agreements include parallel arrangements for countries to work together on broader environmental matters. These arrangements, in the form of Environmental Cooperation Agreements, provide a platform for New Zealand to engage with our trade partners in ways that recognise the close connections between trade and the environment:

Contacting us

We welcome your comments and queries, and encourage you to pass this newsletter on to others with an interest in international trade and environment cooperation activities. 
Please contact us:

Or email us at: trade.environment@mfe.govt.nz

The first eight issues of Trade Links included information on cooperative activities and trade negotiations.
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