Over a year ago, U.S. Customs and Border Protection (CBP) launched its Green Trade Strategy, using four pillars that will certainly mold the future enforcement of imports to combat climate change. The race is on with the U.S. and many other developed countries aiming to achieve net-zero greenhouse gas emissions by 2050. As countries work to reduce emissions, we expect the CBP Green Trade Strategy will expand further to encompass more robust 'green' enforcement of importations.

Four Pillars of CBPs Green Trade Strategy 

1. Incentivize Green Trade
2. Strengthen Environmental Enforcement Posture
3. Accelerate Green Innovation
4. Improve Climate Resilience and Resource Efficiency

"Recent studies have estimated that global supply chains may account for as much as 80 percent of the world’s total carbon emissions." Source: Green Trade Strategy | U.S. Customs and Border Protection (cbp.gov) 

During CBPs inaugural Green Trade Innovation and Incentives Forum, government and industry leaders shared ideas on the potential future of green trade. Three interesting ideas illustrate how importing may change: 

1. Carbon taxes on carbon-intensive goods like iron, steel, cement, aluminum, and fertilizers. In October 2023, this tax will be a reality in the EU. 
2. Modernized tariff classifications with lower duties or duty-free treatment for environmentally friendly goods. These could be goods made of recycled products or organic, used, or repaired.
3. Trade agreements incorporating environmental provisions. 

Presently, U.S. Customs collaborates with partner government agencies to enforce laws and regulations that prevent importing goods related to environmental crimes, including illegal plant trafficking, timber harvesting, and fishing. 

Simultaneously, the U.S. Trade Representative actively integrates green trade measures into negotiations and agreements with other countries. Examples of these efforts include: 

• Combatting illegal logging in Vietnam. 
• Enforcing environmental provisions in the U.S.-Mexico-Canada Agreement (USMCA). 
• Making it a key negotiation topic in the Indo-Pacific Economic Framework (IPEF).  

Looking ahead, it is crucial to recognize the significance of this topic, even if the target year of 2050 may seem distant. Trade compliance is poised to become increasingly complex as new green regulations come into play and are rigorously enforced at the border. Importers will face the pressing need to demonstrate the environmental credentials of their goods to access the associated monetary benefits. Consequently, traceability will emerge as a prominent concern in the realm of import trade.  

 Read more on CBP Green Trade Strategy, The Long-Term Strategy of the United States, Pathways to Net-Zero Greenhouse Gas Emissions by 2050 (whitehouse.gov)