Agreement on Climate Change, Trade and Sustainability

Agreement on Climate Change, Trade and Sustainability

Members of the Agreement on Climate Change, Trade and Sustainability
Type	Trade agreement
Negotiators	4   Costa Rica   Iceland   New Zealand    Switzerland

The Agreement on Climate Change, Trade and Sustainability (ACCTS) is a proposed trade agreement between Costa Rica, Iceland, New Zealand and Switzerland. The deal will eliminate tariffs on hundreds of environmental goods and services alongside carbon emission reduction commitments. ^[1] Negotiations concluded on the 2nd July 2024 ^[2] and the agreement was signed on 15 November 2024 following legal verification. ^[3]

History

ACCTS was first proposed in 2019 by New Zealand and negotiations started between New Zealand, Fiji, Costa Rica, Iceland and Norway. ^[4] Switzerland joined negotiations in 2020. ^[5] In 2021, the United Kingdom indicated they would not join the agreement in order to maintain their fossil fuel subsidies. ^[6] New Zealand, Costa Rica, Iceland and Switzerland finished negotiations in July 2024 following fifteen rounds. Norway continues to consider joining. ^[3]

Provisions

ACCTS includes provisions for:

• The removal of tariffs on 300 environmental goods including low energy light bulbs, rechargeable batteries, wool and wood products. ^[3]
• Reform, reduction and elimination of fossil fuel subsidies. ^[7]
• Consistent voluntary eco-labelling guidelines. ^[3]

Membership

Current

The following countries have signed ACCTS following legal review: ^[8]

•   Costa Rica
•   Iceland
•   New Zealand
•    Switzerland

Potential

The following countries have voiced interest in joining in the future:

•   Norway ^[9]
•   Sweden ^[2]

ACCTS is open to all World Trade Organization members to join. ^[10]

See also

• Paris Agreement
• Politics of climate change

References

1. "Tariffs removed on key wool and wood products in trade deal". RNZ . 2024-07-03. Retrieved 2024-09-10.
2. "Agreement on Climate Change and Trade". Kommerskollegium. Retrieved 2024-09-10.
3. Trade, New Zealand Ministry of Foreign Affairs and. "Timelines". New Zealand Ministry of Foreign Affairs and Trade. Retrieved 2024-09-10.
4. Benson, Emily; Duncan, Elizabeth (2022-08-30). "Small Country, Big Climate Agenda: New Zealand's Approach to Climate and Trade". Centre for Strategic and International Studies.
5. "Update: New Zealand with Costa Rica, Fiji, Iceland, Norway and Switzerland - Agreement on Climate Change, Trade and Sustainability (ACCTS)". WITA. Retrieved 2024-09-10.
6. "UK refuses to join trade pact to end fossil fuel subsidies, eliminate tariffs on green goods". POLITICO. 2021-11-11. Retrieved 2024-09-10.
7. Trade, New Zealand Ministry of Foreign Affairs and. "Fossil fuel subsidy reform (FFSR)". New Zealand Ministry of Foreign Affairs and Trade. Retrieved 2024-09-10.
8. "Joint Ministerial Statement on Conclusion of Negotiations for the Agreement on Climate Change, Trade and Sustainability" (PDF). New Zealand Government. 2024-07-02. Retrieved 2024-09-11.
9. Affairs, Ministry of Foreign (2024-07-02). "Statement from Minister of Foreign Affairs Espen Barth Eide on the Announcement of the Conclusion of Negotiations for the Agreement on Climate Change, Trade and Sustainability". Government.no. Retrieved 2024-09-10.
10. Reinsch, William Alan (2024-08-12). "A Small Sign of Life on the Climate-Trade Front". Centre for Strategic and International Studies.