KUALA LUMPUR, Sept 22 — There is a fine line between the green initiative toward sustainability and green protectionism, said Ambassador Syahril Syazli Ghazali, Malaysia’s permanent representative to the World Trade Organization (WTO).
While any initiative towards sustainability should be applauded, Syahril defined ‘green protectionism’ as contentious measures such as quotas, taxes, subsidies and stringent requirements imposed for various sustainability reasons that lead to unfair trade practices and unfair competition, as well as import restrictions.
"Malaysia and other developing countries acknowledge developed countries’ rights to introduce and implement green policies such as the European Union’s (EU) Green Deal and Carbon Border Adjustment Mechanism (CBAM) and the United States’ Inflation Reduction Act (IRA),” he said.
Syahril said this during the high-level panel session ‘Avoiding green protectionism: how to address barriers to an inclusive green transition’ at the recent WTO Public Forum 2023.
Nevertheless, the ambassador, one of the speakers during the session, stressed the importance of such measures to be consistent with members’ WTO commitments and should not lead to unnecessary burdens to trading partners.
According to Syahril, unilateral actions such as the green protectionism initiative negatively influence countries, particularly developing countries and least developed countries (LDCs), causing conflicts between these countries (developed and developing) on environmental issues.
"Only with broad and on-going participation can the green transition be implemented smoothly. What was vital, however, was to objectively examine the worth of all opinions and input obtained during stakeholder interactions and incorporate them where possible, rather than being hyperbole or viewing it solely as a method to display good regulatory processes.
"In summary, it is critical to promote more cooperation and inclusivity in the international trade regime,” he said.
While recognising the importance of policy space for countries to provide financial and technical assistance, particularly to new industries or sectors, the ambassador strongly believed that an exchange of information or outreach session while developing such measures should take place as soon as possible.
He said this opportunity to interact and discuss would enable the collection of ideas and feedback or concerns about the proposed actions before their implementation.
In wrapping up his interventions during the session, Syahril said that given the varying levels of readiness and technical capabilities among EU trading partners, specific attention must be integrated to provide for flexibility (gradual/ longer transition) for key groups such as small and medium enterprises (SMEs) to meet the responsibilities.
He also stressed the need to recognise that environmental measures and policies are already in place or being established by developing countries with the same goals as developed countries.
He said that technical assistance, experience sharing and capacity building are crucial in establishing a level playing field, especially to enhance developing countries’ capacities and capabilities, as well as in facilitating policy compliance and adaptation.
In this context, the ambassador expressed gratitude to the EU for carrying out a three-year project worth three million euros (RM14.98 million) beginning in 2021 to improve Malaysia’s business and investment environment.
This year’s forum saw 630 speakers, 3,400 participants, 134 sessions and 13 exhibitors that reflected and examined the contribution of trade to a greener and more sustainable future, as well as deliberated on trade facilitation elements to the environmental goods, services and technologies.
The forum, held from Sept 12-15, 2023, was divided into three sub-themes — the role of the services sector in sustainable trade, inclusive policies for the advancement of green trade, and digitalisation as a tool for greening supply chains. — Bernama
