U.S., E.U. Propose Tariff-Free Green Goods

GENEVA, — The European Union and United States could make green goods tariff-free to spur carbon-friendly technology use.

Forty-three goods with environmental benefits have been identified, such as solar panels, according to the Associated Press. The announcement was made a week before the U.N. climate change summit in Bali.

The Associated Press reported that tariff cuts wouldn't include bio-fuels, such as ethanol, which is supported by leading exporter Brazil. U.S. and EU delegates to the World Trade Organization believe that lifting of the tariffs should only pertain to industrial goods.

"By eliminating tariff and non-tariff barriers to environmental goods and services, particularly clean energy technologies, we can lower their costs and increase global access to and use of these important products," said U.S. Trade Representative Susan Schwab in a statement.

The future of the initiative, however, is unclear. Lifting of the tariffs for these goods wold have to be part of a overall agreement in the Doha round of trade liberalization talks that have stalled several times during the last six years. The deal may not be reached until the end of next year at the earliest.