1.Background

　　At its third meeting, the China Council for International Cooperation on Environment and Development approved the establishment of a Working Group on Trade and Environment.

　　On January 15 and 16, 1995 and organizing meeting for the Working Group was held in Beijing. The Meeting, chaired by Dr. Ye Ruqiu, the Deputy Administrator of N EPA and by David Runnalls of the international Institute for Sustainable Development, was attended by a number of prospective members of the Working Group.

　　The organizing meeting discussed a list of priority research topics for the future work of the Working Group, along with a limited work programme for the first full meeting of the Working Group in September. It entrusted the task of recommending a list of names for membership in the full group and the development of draft terms of reference to the two Co-Chairs.

　　2. The Nature of the Working Group

　　The group is a high level advisory body reporting to CCICED. 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 with the goals of trade liberalization.

　　3.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 e merging international trade and environmental issues.

　　4.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 CCICED based upon recommendations by the Co-Chairs.

　　5.Frequency of Meetings

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

　　6.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;

　　·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, 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 of environmental technologies, intellectual property rights

　　(7) The future development of PPM's

　　(8) The effects of Green Consumerism, Ecolabelling, packaging, recycling, and voluntary measures