RESTRICTED
WORLD TRADE WT/CTE/W/30
22May1996
ORGANIZATION(96-1952)
Original: English Committee onTrade andEnvironment
RESULTS OFTHE FOURTH SESSION OF
THE COMMISSION ONSUSTAINABLE DEVELOPMENT
Note bytheSecretariat
1. TheUnited Nations Commission onSustainable Development (CSD), thebody established
tofollow-up theresults oftheUNConference onEnvironment andDevelopment (UNCED) and
Agenda 21,helditsfourth session from 18April to3May1996 inNewYork. ThisNote
up-dates reports onprevious sessions oftheCSD made inWT/CTE/W/7, L/7500 andTRE/W/14.
2. Following themulti-year thematic programme ofwork, thefourth session oftheCSD took
upthefollowing cross-sectoral issues: trade, environment andsustainable development (chapter 2
ofAgenda 21),combating poverty (chapter 3),changing consumption andproduction patterns
(chapter 4),anddemographic dynamics andsustainability (chapter 5).Alsodiscussed were
financial resources andmechanisms (chapter 33); sectoral issues concerning theprotection ofthe
atmosphere (chapter 9),andprotection ofoceans (chapter 17); andtheprogress report oftheAd
HocIntergovernmental Panel onForests.
3. TheReport oftheUNSecretary-General ontrade, environment andsustainable
development wasprepared bytheUNCTAD Secretariat initscapacity astheCSD'staskmanager
fortrade andenvironment (E/CN.17/1996/8 andAdd.1). TheCSD Decision onTrade and
Environment, adopted atthehigh-level segment, isattached asanAnnex tothisNote. The
Chairman 'sSummary ofthehigh-level segment, convened atMinisterial level, made thefollowing
references totrade andenvironment:
"30. Intheareaoftrade, environment andsustainable development, participants
inthehigh-level segment called onGovernments toensure appropriate
coordination between trade andenvironment officials atthenational and
international levels inorder toensure themutual support oftrade andenvironment
policies, including those resulting from multilateral environmental agreements.
31. Inthatconnection, theytooknoteofthework oftheWTO Committee on
Trade andEnvironment andlooked forward toasubstantive report ontheresults
ofitsdeliberations, andlooked totheWTO Ministerial meeting inSingapore to
continue theimportant work oftheCommittee onTrade andEnvironment.
32. Participants recognized thatthelinkbetween environmental policies and
competitiveness iscomplex. They noted that,although sofarthere wasno
available evidence tosuggest thatenvironmental policy generally hasasignificant
detrimental effect oncompetitiveness, further study isrequired ofthepotential
impacts ofenvironmental policies oncompetitiveness andonmarket access, in
particular fordeveloping countries.WT/CTE/W/30
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33. Participants encouraged theUNCTAD IXconference inMidRand tomake
arrangements tocontinue UNCTAD 'sanalytical work andconsensus-building
activities intheareaoftrade, environment, andsustainable development, andto
provide focused technical cooperation todeveloping countries andcountries with
economies intransition."
4. Progress inimplementing thecommitments contained inAgenda 21willbereviewed ata
Special Session oftheUNGeneral Assembly inJune1997. Inthisregard, resolution 50/95 ofthe
General Assembly invites theWTO toprovide areport ofitswork ontrade, environment and
sustainable development totheSpecial Session. TheSpecial Session willnotattempt to
renegotiate Agenda 21,orother intergovernmental agreements inthefieldofsustainable
development, butwillconcentrate ontheirfurther implementation. Itwillfocus ontheneed:
(a)torevitalize andenergize commitment totheconcept ofsustainable development; (b)to
frankly recognize failures tomeetcertain goals andidentify reasons forfailure; (c)toboost
implementation oftheRiocommitments through means including theidentification ofinnovative
approaches tocooperation andfinancial assistance, andthrough concrete proposals foraction;
(d)todefine priorities fortheperiod beyond 1997, inparticular concerning those issues of
Agenda 21where progress canbemade; and(e)toraisetheprofile ofissues thatwere not
sufficiently addressed inRio,orwhere significant developments havetaken place since Rio,
including changing consumption andproduction patterns, renewable energy andtransport, urban
issues, andriskmanagement.WT/CTE/W/30
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ANNEX
COMMISSION ONSUSTAINABLE DEVELOPMENT
Fourth Session
18April -3May1996
Decision Submitted bytheChairman andadopted bytheCSD
Trade, Environment andSustainable Development1
(Chapter 2ofAgenda 21)
1. TheCommission tooknoteoftheSecretary-General 'sreport ontrade, environment and
sustainable development (E/CN.17/1996/8 andAdd.1) andwelcomed withappreciation the
analysis contained therein.
2. TheCommission reiterated alldecisions taken onissues related totrade, environment and
sustainable development atitssecond andthirdsessions.
3. Inregard totrade measures inmultilateral environmental agreements, (MEAs) the
Commission:
(a) callsongovernments toensure appropriate coordination between trade and
environment officials atthenational levelandtotakeappropriate steps atnational and
international levels inorder toensure themutual supportiveness oftrade andenvironment
policies insupport ofsustainable development andlooks totheWTO toaddress the
relationship between WTO provisions andtrade measures forenvironmental purposes,
including those pursuant tomultilateral environment agreements;
(b) recognizes thatpositive measures, suchasimproved market access, capacity-
building improved access tofinance, access toandtransfer oftechnology, taking into
account therelationship between trade related agreements andtechnology, areeffective
instruments toassist developing countries tomeetmultilaterally agreed targets inkeeping
withtheprinciple ofcommon butdifferentiated responsibilities;
(c) notes thattrade measures can,incertain cases, playaroleinachieving the
objectives ofMEAs, while safeguarding anon-discriminatory andequitable multilateral
trading system; notes thatpositive measures should beemployed, asappropriate, to
reduce orobviate thenecessity fortrade measures tosecure compliance withMEAs;
stresses alsothattheuseoftrade measures should notdeter theconsideration ofother
options which maybemore effective. Allmeasures should uphold Principles 7,11and
12oftheRioDeclaration;
(d) recognizes thatthedifferent trade provisions inMEAs mayhavedifferent
objectives andthattheymayinvolve wider economic anddevelopmental issues; invites
UNCTAD andUNEP, jointly andincooperation withWTO, inaccordance withtheir
respective mandates andcompetencies, toundertake further analysis ontheissue oftrade
andenvironment, including policy instruments inMEAs, inparticular positive measures,
1Recommendations withrespect toUNCTAD should bearinmind theoutcome ofUNCTAD IXbeing heldconcurrently.WT/CTE/W/30
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taking intoaccount thespecific context ofeachMEA, withaviewtopromoting
sustainable development;
(e) recalls theinvitation, made initsthirdsession, toUNCTAD andUNEP, in
cooperation withUNDP, international financial institutions (IFIs), andother relevant
bodies, programmes andorganizations toexamine theeffects oftrade measures inMEAs
ontheachievement ofenvironmental goals andontrade andcompetitiveness ofdeveloping
countries andcountries witheconomies intransition, andhowpositive measures canassist
those countries inmeeting theirobligations under theagreements.
4. Inregard toenvironmental policies andcompetitiveness, theCommission:
(a) recognizes thelinkbetween environmental policies andcompetitiveness isa
complex oneandnotes thatthere isnoavailable evidence tosuggest thatenvironmental
policy generally hasasignificant detrimental impact oncompetitiveness. Efforts could be
made toidentify "win-win" opportunities inthedesign andimplementation of
environmental policies, which could improve resource efficiency, competitiveness,
employment, andmarket access;
(b) firmly reflects "green countervailing duties" orother protectionist orWTO
inconsistent trade measures tocompensate fornegative competitiveness effects, whether
realorperceived, ofenvironmental policies;
(c) stresses thatitwould beinappropriate torelax environmental laws, regulations and
standards ortheirenforcement inorder toencourage foreign direct investment orto
promote exports;
(d) considering thatcomplying withtheenvironmental requirements ofimporting
countries mayraiseparticular competitiveness concerns fordeveloping countries and
countries witheconomies intransition, recommends thatGovernments ofdeveloped
countries facilitate continued market access fordeveloping countries byensuring greater
transparency, andproviding them technical andfinancial assistance directed towards
environmental capacity-building inaccordance withtheprovisions ofrelevant chapters of
Agenda 21;
(e) encourages UNCTAD topropose positive measures atthenational and
international levels, aimed atsupporting developing countries intheirefforts toachieve the
objectives ofsustainable development, focusing oncapacity building andsupport for
national efforts aimed atinternalizing environmental costs;
(f) takes noteoftheprogress report, submitted byUNCTAD, oftheanalytical study
ontherelationship ofenvironmental protection tointernational competitiveness, job
creation anddevelopment, andinvites UNCTAD tofurther elaborate thisstudy, withthe
input ofgovernments, regional economic integration organizations, aswellastheprivate
sector, NGOs, andother relevant regional andinternational organizations, andtosubmit
theresults tofuture sessions oftheCommission, asappropriate.
5. TheCommission recognizes thateco-labelling canhaveanimpact ontrade. The
Commission invites Governments toensure adequate transparency ofeco-labelling, interaliaby
considering inputs from interested parties, including consumer andenvironmental groups,
domestic andforeign producers, atanappropriately early stage inthedesign ofthemeasures, and
toencourage private bodies involved ineco-labelling todothesame. Calls upon nationalWT/CTE/W/30
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governments andprivate bodies involved ineco-labelling toexplore thescope formutual
recognition ofprocedures andapproaches onthebasis ofequivalency atappropriately highlevels
ofenvironmental protection taking intoaccount differing environmental anddevelopmental
conditions indifferent countries. TheCommission alsoinvites UNCTAD, UNEP, WTO and,as
appropriate, ISOtogivethefullest consideration tothese concepts inthefuture work on
environmental labelling inthebestinterest oftransparency.
6. TheCommission supports thepromotion ofbalanced public awareness andeducational
programmes onissues related toeco-friendly classification toassist bothproducers andconsumers
inmaking environmentally-sound decisions.
7. Inregard totrade liberalization andtheenvironment, theCommission:
(a) recalls therecommendation made inparagraph 67ofthereport onitsthirdsession
inwhich itinvited theUNEP/UNCTAD programme tocarry outfurther work andreport
onthedevelopment ofaframework tofacilitate theassessment oftheenvironmental
impact oftrade policies, taking intoaccount thespecial needs ofdeveloping countries and
countries witheconomies intransition;
(b) recognizes theutility ofUNEP andtheFAO continuing toexamine the
environmental effects intheimporting countries oftheexport ofgoods prohibited forsale
onenvironmental grounds intheexporting countries;
(c) invites UNCTAD, incooperation withUNEP andother relevant organizations,
suchasOECD, taking intoaccount work already underway attheWTO, toexamine how
further trade liberalization, e.g.through thereduction orelimination oftariff escalation,
export taxes orrestriction, trade-distortive subsidies andtheelimination oftariff andnon-
tariff barriers totrade, canresult inenvironmental benefits andcontribute tosustainable
development, including byexamining recent analyses onthese topics;
(d) reaffirms theimportance ofefforts aimed atinternalizing environmental costs in
order topromote positive, andavoid negative, environmental effects oftrade
liberalization;
8. Inregard tosustainable development ofthecommodity sector, theCommission:
(a) invites UNCTAD incooperation withUNEP, UNIDO andother relevant
organizations toassist developing countries inimplementing pilotprojects inexport-
oriented production andprocessing activities aimed atinternalizing environmental costs;
(b) encourages international organizations, Governments andthebusiness community
tointensify thesearch forpragmatic methods forincreasing cooperation between exporters
andimporters withaviewtofacilitating developing countries 'efforts tointernalize
environmental costs intheirdevelopment process andtoassess thescope forthe
establishment ofsectoral round tables andother formal orinformal arrangements for
identifying efficient andcost-effective approaches.
9. Inregard tobiological diversity andtrade issues, theCommission welcomes UNCTAD 's
BIOTRADE Initiative asacollaborative effort withtheSecretariat oftheConvention onBiological
Diversity (CBD), interested United Nations agencies andother inter-governmental andnon-
governmental organizations, theprivate sector, localcommunities andacademic institutions witha
viewtostrengthening capacity-building, andencourages further consultations onthismatter.WT/CTE/W/30
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10. TheCommission invites UNCTAD, UNDP, ITC, UNEP andother relevant UNAgencies,
tostrengthen cooperation intheimplementation ofaprogramme oftechnical assistance for
capacity-building, inaccordance withthemandates andexpertise ofeachagency, interalia,witha
viewtoassisting developing countries andcountries witheconomies intransition toparticipate
effectively ininternational deliberations ontrade andenvironment, international trade negotiations
andinternational environmental negotiations.
11. TheCommission takes noteofthepreliminary background paper, prepared byUNCTAD,
ontheresearch ontrade, environment andsustainable development linkages carried outby
international organizations, aswellasacademic institutions andNGOs indeveloped and
developing countries; encourages additional research inparticular areas where gapsexist;
recommends international andbilateral aidagencies tosupport research activities indeveloping
countries andcountries witheconomies intransition, inparticular inthese areas.
12. TheCommission:
(a) takes noteofthework oftheWTO Committee onTrade andEnvironment, looks
forward toasubstantive report ontheresults ofitsdeliberations, including further
progress inmaking trade andenvironmental policies mutually supportive inorder to
promote sustainable development, andinvites Ministers toconsider allitems listed inthe
Marrakesh Decision onTrade andEnvironment of15April 1994, taking intoaccount the
objectives ofAgenda 21andtheRioDeclaration aswellastogivedueconsideration to
theresults ofdeliberations oftheCommission atthissession;
(b) looks totheWTO Ministerial meeting atSingapore tocontinue theimportant work
oftheCommittee onTrade andEnvironment;
(c) invites UNCTAD andUNEP totransmit theresults oftheiractivities ontrade,
environment andsustainable development totheCommittee onTrade andEnvironment for
consideration attheWTO Ministerial meeting inSingapore;
(d) requests UNCTAD inaccordance withGeneral Assembly resolution 50/95,
paragraph 27of20December 1995, tocontinue itsspecial roleinthefieldoftrade and
environment andinvites UNCTAD IXtoconsider appropriate arrangements tocarry out
intergovernmental activities, taking intoaccount itsmandate andcompetence, aswellas
theneedforcontinued cooperation andcomplementarity inthework ofUNCTAD, UNEP
andWTO;
(e) invites UNEP tocontinue itswork ontrade andenvironment inaccordance with
itsmandate;
(f) invites theU.N. regional commissions, within theirmandates andtaking into
account thespecific context ofeachregion, andtheOECD, inclose cooperation withthe
competent international organizations, suchasUNCTAD, UNEP andWTO, toorganize
meetings asnecessary, forthepurpose ofenhancing coordination ontrade and
environment;
(g) recalls General Assembly resolution 50/95 which requests theUnited Nations
Conference onTrade andDevelopment, andinvites theWorld Trade Organization, in
accordance withtheirrespective mandates andcompetence andinclose cooperation with
other competent United Nations bodies andtheregional commissions, toaddress trade and
environment matters comprehensively andtoreport, through theCommission onWT/CTE/W/30
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Sustainable Development, totheEconomic andSocial Council andtheGeneral Assembly
atitsspecial session in1997 ontheconcrete progress achieved ontheissue oftrade and
environment;
(h) invites UNCTAD andUNEP tocontinue theirjointprogramme ofwork ontrade,
environment andsustainable development, inaccordance withparagraph 59ofChapter I
ofthereport oftheCSD onitsthirdsession andparagraph 14oftheGeneral Assembly
Resolution 50/95 of20December 1995;
(i) takes noteoftheongoing analytical work oftheOECD ontrade andenvironment,
especially thatoftheJoint Session ofTrade andEnvironment Experts, including itsreport
totheOECD Council atMinisterial levelinMay1995, andencourages ittomake
available theresults ofitswork totheCommission onSustainable Development.