A Sustainability Toolkit for Trade Negotiators:

Trade and investment as vehicles for achieving the 2030 Sustainable Development Agenda

2.2 Establishing Institutions

The basic architecture may establish institutions charged with a variety of duties that may include: implementing substantive commitments, discussing matters of mutual interest, undertaking original research, elaborating new commitments (e.g., in the area of cooperation), reviewing and monitoring progress, or handling text-related consultations and disputes.

The scope and character of these institutions varies widely, in accordance with their mandates and responsibilities, and can range from committees convened at the working level to ministerial councils. Stronger agreements will set regular meeting dates and elaborate detailed terms of reference (recommended), while others may set an initial meeting date and leave further meetings and the details of the work to the discretion of the institution.

Option 1:Specific environmental institution

For agreements that have substantial environmental provisions to oversee, such as capacity building, enforcement, etc., a dedicated environmental institution makes most sense; it gives those issues an institutional home (Secretariat, for example), meaning they may be diligently pursued.

Examples

Elaborate institution: The North American Commission for Environmental Cooperation (CEC) is a tri-national institution created by the NAAEC. It has a permanent secretariat with a mandate on cooperation, research and dispute settlement, a council consisting of the three parties’ Environment Ministers and a Joint Public Advisory Committee.

How Commonly Used

Examples

Less elaborate: The as-yet unnamed body on Trade and Sustainable Development created under CETA: [Article 22.4] comprised of party representatives, charged with overseeing environment and labour provisions, reporting annually. No scheduled regular meetings.

How Commonly Used 

Examples

Minimally elaborate: “The Parties shall designate the administrative entities which shall serve as contact points for the purpose of implementing this Chapter.” (EFTA-Central America FTA, Article 9.10)

How Commonly Used 

Option 2:Environment as part of broader institution

Not as desirable as a dedicated environmental institution, if there are substantial environmental provisions to oversee. Environmental interests and issues will tend to be sidelined in such an arrangement.

Examples

US-Jordan FTA establishes a Joint Committee to oversee implementation of all aspects of the agreement, including environmental aspects.

How Commonly Used

Option 3:No institution created

Appropriate only where there are no substantial environmental provisions.

Examples

“Each Party shall designate a contact point to facilitate communications between the Parties on any matter covered by this Agreement.” (India-Korea FTA Article 15.3)

How Commonly Used

Option 4:Over-arching responsibility for mandate given to a high-level body, such as Council of Ministers

High-level responsibility has potential to translate into higher-level political attention to the success of the institution. Best if complemented by strong working-level technical bodies. And best if comprised of trade officials as well as environment officials.

Examples

The North American Agreement on Environmental Cooperation is headed by a council of environment ministers from the three parties.

How Commonly Used

Option 5:Overarching responsibility for mandate given to committee of government representatives

Has potential to work well, given strong and abiding political will from senior officials. Without that will, however, there is a risk that the institution’s mandate will be sidelined. Best if comprised of trade officials as well as environment officials.

Examples

“The Parties establish an Environment Committee (Committee) composed of senior government representatives, or their designees, of the relevant trade and environment national authorities of each Party responsible for the implementation of this Chapter.” (TPP article 20.19(2))

How Commonly Used

Option 6:Spell out function of the institution in detail: regular meeting dates; detailed terms of reference; fleshed out work plan or process to create work plan

This is recommended. It allows the institution to work concretely rather than getting stuck in abstract issues; it pre-empts agenda fights; it builds trust through regular meetings.

Examples

NAAEC (Part 3) sets out in detail the structure, procedures and function of the Council, the secretariat, and the Joint Public Advisory Committee, specifying commitments for regular meetings of each.

How Commonly Used

Previous Scroll to top Next