Terms of Reference

The Nature of the Working Group

The group is a high-level advisory body reporting to the China Council. It will carry out policy-related research leading to practical recommendations for consideration by the Government of China on the development of trade policies which promote sustainable development and environmental policies consistent with the goals of trade liberalization.

The Purpose of the Working Group

The Working Group will assist China in developing and implementing long-term, comprehensive and integrated trade and environmental policies and measures that are supportive of sustainable development, after reviewing China's current trade, development and environmental policies and practices that might be affected by emerging international trade and environmental issues.

Membership of the Working Group

The Group shall consist of up to 12 members, half of whom shall be from China and the remainder from the rest of the world. Members will be chosen by the China Council, based upon recommendations by the Co-Chairs.

Frequency of Meetings

The Working Group will normally meet twice a year: once at the time of the annual meeting of the Council, and once at the discretion of the members.

General Subjects for Research

1. The role of trade in China's Agenda 21

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

  • Relevant national legislation on trade and environment 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 environment integration

3. The role of multilateral environmental agreements (MEAs), the potential for the harmonization of national standards, intellectual property rights

4. The existence of potential "pollution havens" in China and their relation to the domestic environmental standards of countries and the threat of unilateral trade sanctions

5. The future effects on China's exports of green protectionism in the OECD countries and the threat of unilateral trade sanctions

6. Transfer of environmental technologies, intellectual property rights

7. The future development of process and production methods (PPMs)

8. The effects of green consumerism, ecolabelling, packaging, recycling, and voluntary measures