Summary of Preparation Meeting of the Working Group on Trade and Environment of CCICED

Date:1995-09-19

  Some prospective members of the working group met under the joint Chairmanship of Dr. Ye Ruqiu, the Deputy Administrator of NEPA and David Runnalls of the Inter national Institute for Sustainable Development. Participants are listed in Append ix 1 (omitted).
  Members of the group discussed the full range of trade/environment issues while arriving at a list topics reflecting China's particular situation for the work plan for the full group. The group agreed on the following summary of priorities:
  1. General Subjects for Research
  (1)The relationship between China's Agenda 21 and trade
  (2)Lessons learned from the experience with trade and environment issues in other countries and regions with emphasis on:
  ·The experience of Mexico, a developing country, in NAFTA, an agreement with two developed countries;
  ·National legislation of various countries;
  ·The regulation of goods which are prohibited from sale in developed countries but which are nevertheless exported to developing countries;
  ·The experience of the European Union with trade and the environment integration.
  (3)The role of Multilateral Environmental Agreements, the potential for the harmonization of national standards, the importance of intellectual property rights
  (4)The existence of potential "pollution havens" in China and their relation to the domestic environmental standards of countries with foreign direct investments in China
  (5)The future affects on China's exports of Green protectionism in the OECD countries and the threat of unilateral trade sanctions
  (6)Transfer to environmental technologies, intellectual property rights
  (7)The future development of PPM's
  (8)The effects of Green Consumerism, Ecolabelling, packaging, recycling, and voluntary measures
  2.More Detailed Research Topics
  (1)China's Agenda 21 and trade; general and special topics.
  (2)Legislation systems in different countries
  ·Domestically prohibited products
  ·NAFTA and the role of Mexico as a developing country in an arrangement with two developed countries; other developing countries
  ·The role of trade and environment in regional trading relationships/the future of APEC, EU et al
  (3)Technical barriers to trade
  Multilateral environmental agreements:
  ·EITES, the Convention on Biological Diversity, and the relationship with the Working Group on Biodiversity,
  ·the Basel Convention,
  ·the Convention on Climate Change and the potential use of Joint Implementation as a means of technology transfer and the relationship with the Council's Working Group on Energy,
  ·the Montreal Protocol,
  ·the relationship between the conventions and the WTO dispute resolution provisions.
  The potential for harmonization and mutual recognition of standards; the particular role of ISO
  (4)Environmental standards in countries making foreign direct investment in China
  The possible creation of "pollution havens" in China, especially in small and medium sized enterprises utilizing outdated technology from Taiwan and Hong Kong
  (5)The effects on Chinese exports of green protectionism/unilateral sanctions in the OECD countries
  (6)The potential for trade in environmental technology; the role of intellectual property rights; The environmental technology potential of investment in build/ operate and transfer systems.
  Development assistance and the implementation of China's Agenda 21
  (7)The future development of trade measures based upon PPM's Cost internalization and the Polluter Pays Principle
  Environmentally perverse subsidies, environmental taxes and trade; and their relationship to the work of the Working Group on Resource Accounting and Price Policy
  Integration of environment and economics in decision-making
  (8)Ecolabelling, packaging, recycling standards and their effects on China's exports
  3.First Meeting of the Full Working Group
  Participants agreed that the above lists are still too exhaustive, but decided to present the entire list to the first full meeting of the Working Group.
  The first meeting will be held in September in China, probably in Beijing. The organizing meeting recommended the preparation of two papers for the first full meeting. The Chinese members will complete the first, on pollution havens. The second, on the experience of other regions and countries will be prepared by the IISD under the direction of Mr. von Moltke and Mr. Runnalls. Other papers may be developed as required.
  The Chinese members agreed to prepare background information on current Chinese trade and environment policies and practices for the meeting.
  The meeting would be no more than four days in length. It was agreed that the Co-Chairs would confer on the subject of the additional foreign members of the group to be added for the first full meeting