As mentioned in its mandate, the Task Force now has more defined objectives. The TF has two priority areas for Phase III.

I. Environmental Impact Assessment

The first priority is to undertake an environmental assessment in six sectors that closely link to the environment and that are of importance to sustainable development. Priority will be given to sectors likely to experience significant change following WTO accession. These sectors include energy, forestry, agriculture, automobiles, textiles and fisheries. Energy, forestry, agriculture and automobiles will be examined as the first tier of priority sectors, and textiles and fisheries will be examined as the second tier of priority sectors. The Task Force will look at the later two sectors if sufficient funding is available. The project will also undertake a synthesis based on the sectoral studies to provide an overall estimate of the dimensions and direction of environmental changes associated with WTO accession. It should be noted that the issue of the environmental industry in relation to trade (environmental goods and services) and the new Round of the WTO negotiations will also be discussed in a synthesis analysis. The detailed project activities are briefly described below.

The project aims to contribute to providing information on the environmental impacts of China's accession to the WTO, and to improving overall trade and environmental policy coherence at the national level by assisting decision-makers to understand environmental implication of further trade liberalization. It will also contribute to China's participation in WTO negotiations following the Doha Ministerial Conference.

The project also aims to explore the feasible and appropriate methodology in conducting environmental assessments of strategic policies in China. China has now been drafting a law on environmental assessments of strategic policies, and the implementation of environmental assessment of major policies will be soon institutionalized. Experience elsewhere indicates that it is difficult to measure environmental as opposed to economic changes. This proposed initiative will facilitate environmental assessments of major Chinese policies by further developing capacities in this regard.

The Chinese institutions that will undertake the project include: the Policy Research Centre for Environmental and Economy (PRCEE) of the State Environmental Protection Administration (SEPA), the Chinese Academy of International Trade and Economic Cooperation (CAITEC) of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC), the Department of Automobile Industry of Tsinghua University, the Energy Research Institute (ERI) of the State Development and Planning Commission (SDPC) and the Centre of Ecological and Environmental Economics, the Chinese Academy of Social Sciences (CASS) and World Economy Institute of CASS, as well as the University of International Business and Economics (UIBE).

II. Capacity Building for WTO Negotiations

The second priority area is to enhance the capacity China needs, in view of its recent accession to WTO membership, to address the complex issues of trade, environment and sustainable development. It aims to assist officials of trade departments in the Chinese central and local governments as well as academics who will likely influence the policy-making process in China in acquiring in-depth understanding of the relationship between trade and environment, the environmental provisions in the WTO agreements, and their implications for China; and to increase awareness and understanding of the environmental and sustainable development issues that are likely to arise in the course of the upcoming new Round of multilateral trade negotiations. The goal of the project is to help China to formulate and implement integrated policies and measures to address the environmental impacts of its accession to the WTO; to help its exporters compete in the international markets, in particular, developed countries' markets where there are most environmentally-conscious consumers; and to assist relevant government departments to identify China's interests and strategies for the upcoming WTO Round of negotiations, which requires Members to deal with trade, environment and sustainable development issues.

Timeline

• 06/2003 - Signing the agreements on the sub-projects of WTO environmental impact assessment
• 06/2003 - 09/2004 - Implementation of the WTO environmental impact assessment project
• 07/2003 - Signing the agreements on the sub-projects of WTO negotiations
• 07/2003 - 07/2004 - Implementation of the WTO negotiation capacity building project
• 08/2003 - Informal meeting on the preparation of WTO Cancun Ministerial Conference
• 10/2003 - First TFWE meeting in Beijing
• 04/2004 - Second TFWE meeting
• 09-10/2004 - Summarize the work of TFWE and prepare recommendations
• 10 or 11/2004 - Reporting to the CCICED at its 2004 AGM
• 11-12/2004 - Final TFWE and financial reporting