WORLD TRADE
ORGANIZATIONWT/CTE/W/145
21 June 2000
(00-2498)
Committee on Trade and Environment
UNCED FOLLOW-UP:  RESULTS OF THE EIGHTH SESSION OF THE
COMMISSION ON SUSTAINABLE DEVELOPMENT
24 APRIL – 5 MAY 2000
Note by the Secretariat
1. The eighth session of the United Nations Commission on Sustainable Development (CSD-8)
was held in New York from 24 April to 5 May 2000.  The agenda of CSD-8 addressed the sectoral
theme of Integrated Planning and Management of Land Resources;  the cross-sectoral theme of
Financial Resources, Trade and Investment, and Ec onomic Growth;  and agriculture and forestry.
CSD-8 adopted the conclusions and proposals contained in the final report of the Intergovernmental
Forum on Forests (IFF).  This session also discus sed the preparations for the ten-year review of
progress achieved since the UN Conference on Envi ronment and Development (UNCED), which was
held in Rio in 1992.  This review will take place in 2002 and is referred to as Rio+10.
2. A High-Level Segment was held on 26-27 April, with the participation of 47 Ministers and
State Secretaries from environment, land, development and foreign affairs ministries.  The High-Level
Segment included expert thematic panels on land and agriculture;  trade and indigenous people;finance and investment;  and trade.  The WTO Director-General addressed the panel on trade through
video conferencing.
3. Work at CSD-8 was organized in three drafti ng groups.  The First Drafting Group focused on
issues related to agriculture;  the Second Drafting Group dealt with trade, finance, investment;  and
the Third Drafting Group worked on prep arations for Rio+10 and other matters.
4. CSD-8 adopted 11 decisions, and included prepar ation for the ten-year review of the UNCED,
and an invitation to ECOSOC and the UN Genera l Assembly to act on the proposed terms of
reference for an international arrangement on forests,  as recommended in the final report of the IFF.
CSD-8 also adopted the report of the Ad Hoc Intergovernmental Group of Experts on Energy for
Sustainable Development.
5. The CSD Decision on Economic Growth, Trade and Investment, adopted at the High-Level
Segment of CSD-8, is attached as an Annex to this Note.  Negotiations on this Decision were basedon the Report of the Ad Hoc Intersessional Working Group (E/CN.17/2999/10), which was prepared
from 22-25 February in New York.  Discussion was also based on the Report of the
UN Secretary-General on Economic Growth, Trade and Investment, which was prepared by the
UNCTAD Secretariat in its capacity as the CSD's task manager for trade and environment
(E/CN.17/2000/4).
6. Economic growth, trade and investment will be considered as part of the 10-year review of
progress since the UNCED.  Priority areas for future  work will include the following: (a) promoting
sustainable development through trade and economic growth;  (b) making trade and environmentpolicies mutually supportive;  (c) promoting sust ainable development through investment;  and
(d)  strengthening institutional cooperation, capacity building and promoting partnerships.WT/CTE/W/145
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7. In terms of future work, the next session of the CSD (CSD-9) will be held in New York in
April 2001 to address atmosphere and energy;   information for decision-making and participation and
international cooperation for an enabling envi ronment;  and transport.  In 2002, the CSD will
undertake a ten-year comprehensive review of prog ress since the UNCED.  South Africa, Brazil and
the Republic of Korea announced their willingness to host Rio+10.  Discussion of the preparations forRio+10 was based on the UN Secretary-Genera l's Report in document E/CN.17/2000/15.  The
Chairman's Summary of the High-Level Segment of CSD-8 notes that Ministers recognized that the
ten-year review would be an opportunity to mobilize the political support of the international
community for the further implementation of Agenda 21  and the outcomes of UNCED.  The
Chairman's Summary of the High-Level segment, as well as other documentations from CSD-8, can
be consulted at the CSD website:  www.un.org/esa/sustdev.
8. At CSD-8, UNEP organized a panel on the relationship between the WTO rules and
Multilateral Environmental Agreements.WT/CTE/W/145
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ANNEX
DECISION ON ECONOMIC GROWTH, TRADE AND INVESTMENT
Commission on Sustainable Development
(New York, 24 April - 5 May 2000)
Introduction
1. Activities regarding economic growth, trade, and investment should be pursued in accordance
with Agenda 21 and the Programme for the Further Implementation of Agenda 21, with the
overarching objective of sustainable development.  Further steps to achieve this should also build on
the outcome of the tenth session of the United Nations Conference on Trade and Development
(UNCTAD), taking also into account developments in other international fora.  In this regard,
cooperation and coordination between UNCTAD, the United Nations Industrial DevelopmentOrganization, the World Trade Organization (WTO ), the United Nations Environment Programme
(UNEP), and other relevant institutions should be strengthened.
2. Trade and investment are important factors in economic growth and sustainable development.
Both economic growth and the lack of it can have adverse environmental effects.  Poverty and
environmental degradation are closely interrelated.  While poverty results in certain kinds ofenvironmental stress, the major cause of the continued deterioration of the global environment is the
unsustainable patterns of consumption and production, particularly in industrialized countries, which
is a matter of grave concern, aggravating poverty and imbalances.
3. In consequence, there should be a balanced and integrated approach to trade and environment
policies in pursuit of sustainable development, taking into account the economic, environmental andsocial aspects, as well as the different levels of development of countries without undermining the
open, equitable and non-discriminatory character of the multilateral trading system or creating
disguised barriers to trade.  Developed countries should take the lead in addressing unsustainable
production and consumption patterns, taking into account common but differentiated responsibilities
as set forth in Principle 7 of the Rio Declaration on Environment and Development.  One of the main
challenges is to promote social equity and ensure that economic growth does not result in
environmental degradation.  Improved market access for products from developing countries,particularly least developed countries, would make a valuable contribution to sustained economic
growth and sustainable development in accordance with the relevant General Assembly resolutions
and the outcomes of recent United Nations conferences.
4. In particular, for developing countries and countries with economics in transition, it is an
important challenge to stimulate domestic investment and attract foreign direct investment (FDI) topromote sustainable development, taking into account the rights and obligations of investors and host
countries.  At the same time, the international community should strive to avoid the risks that can be
associated with the volatility of short-term private capital flows and to enhance the contribution that
investment can make to sustainable development.
Priorities for future work
5. Economic growth, trade, and investment will be considered as part of the ten-year review of
progress since the United Nations Conference on Environment and Development.  Priority areas for
future work will include the following:WT/CTE/W/145
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(a) Promoting sustainable development through trade and economic growth;
(b) making trade and environment policies mutually supportive;
(c) promoting sustainable development through investment;
(d) strengthening institutional co-opera tion, capacity building and promoting
partnerships.
Promoting sustainable development through trade and economic growth
6. Governments and international organizations are urged to support efforts of developing
countries, in particular the least developed countries, in building capacity to eradicate poverty, expand
productive employment, improve living standards with  a view to achieving sustainable development.
The promotion of trade, investment, and sustained economic growth is essential to support suchefforts.  Furthermore, appropriate policies have to be implemented at the national level to ensure
environmental protection and sustainable resource ma nagement, equitable distribution of benefits and
provision of basic social services to all.
7. Governments, particularly in developed countries and, as appropriate, international
organizations are also urged to improve market access, provide technical assistance and establishcapacity-building initiatives in favour of developing countries and countries with economies in
transition with a view to helping them to increase export opportunities, promote diversified export
oriented production and enhance their ability to trad e, and to implement their commitments in existing
multilateral agreements, including WTO Agreements. The international community should continue
to assist countries seeking integration into the world trade system, in particular accession to WTO.Governments and international organizations are encouraged to continue studies and work on impacts
of trade liberalization on developing economies in a manner which promotes the equitable distribution
between nations of gains from trade in order to achieve sustainable development.
8. Commodity exports, particularly primary commodity exports, are the mainstay of the
economies of many developing countries in terms of their export earnings, the livelihoods of theirpeople and the dependence of general economic vitality on these exports.  Commodity earnings
instability continues to be problematic.  Programm es that enhance commodity-based diversification in
developing countries, in a manner supportive to sustainable development, including through improved
market access, particularly for least-developed countries, can contribute to increased foreign exchange
earnings and employment, as well as provide increased income from value-added production.
9. Governments and international organizations sh ould endeavour to improve the functioning of
commodity markets with the aim of achieving greater transparency, stability, and predictability,particularly with regard to commodity export earnings.  In this regard UNCTAD should enhance its
support to developing countries in accordance with the UNCTAD X Plan of Action.  There should be
further evaluation of mechanisms for reducing the impacts of price volatility in primary commodities.
Countries, particularly developed countries, should provide improved market access for primary
commodities from developing countries and particularly from least developed countries, especially intheir processed forms.  Developed countries should endeavour to respond favourably to requests for
technical assistance aimed at enhancing the diversification of exports, in a manner supportive of
sustainable development, in those developing countries which are highly dependent on the export of a
limited number of commodities.  Existing mechanis ms for helping to stabilize commodity export
earnings should be improved so as to respond to the real concerns of developing country producers.
10. Governments are urged to pursue continued trade liberalization through, inter alia , the
elimination of unjustifiable and discriminatory trade practices and non-tariff barriers to trade, notablyWT/CTE/W/145
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in order to improve market access for products of export interest to developing countries.
Governments in developed countries should devise policies and measures to assist developing
countries, and in particular least developed countries, in diversifying their export base in a sustainable
manner taking into account existing agreements and arrangements for special and differential
treatment for developing countries.
11. Market access conditions for agricultural and industrial products of export interest to
developing countries, in particular least developed countries, should be improved on as broad and
liberal a basis as possible.  Concrete steps need to be urgently taken to implement the commitments
by developed countries to grant duty-free and quota-free market access for essentially all exports
originating in least developed countries and to further examine options for other proposals to
maximize market access for least developed countries.  Consideration should also be given to
proposals for developing countries to contribute to improved market access for least developedcountries' exports.  Modernization and operationalization of special and differential treatment, in
particular in terms of maintaining and expanding export opportunities for developing countries, may
be needed to be adapted to changing international trading conditions and to make special and
differential treatment a better instrument for development, enabling developing countries, in particular
the least developed countries, to gradually integrate into the multilateral trading system.
12. Food security as a priority area for sustainable agricultural development should be
strengthened, in particular both by and for developing countries.  More focused financial and
technical assistance, as well as the transfer of agricultural technology which is environmentally and
economically viable, upon mutually agreed terms, should be provided to address effectively the issue
of food security, including development of an enabling policy environment and the problems of netfood importing countries, as outlined in the Rome Declaration on World Food Security and the World
Food Summit Plan of Action.
13. Governments and international institutions are encouraged to ensure that the benefits arising
from increased trade liberalization are equitably distributed and reach those living in poverty, in
particular in developing countries by establishing policies and programs that will enable theirparticipation.  Measures are required to ensure enhanced trade opportunities for developing countries
and to provide greater security and predictability in a liberalized trading system, with particular
emphasis on vulnerable groups like women and children, and that trade contributes to employment
generation and social development.
14. Governments and international organizations are encouraged to examine ways and means to
promote the indigenous development of environmentally-sound technologies (ESTs) in developing
countries and the transfer and dissemination of ESTs to developing countries.  In this regardGovernments are encouraged to implement relevant  provisions in the Trade-Related Intellectual
Property Rights (TRIPs) Agreement.
15. Governments should fully implement the UNCTAD X Plan of Action and, in particular,
examine the use and effect, particularly on trade, of  incentives to attract FDI with high technological
content.  UNCTAD should analyse all aspects of exis ting international agreements relevant to transfer
of technology to be supported, as appropriate, by developed country funding.
16. Governments and international organizations, in collaboration with the business community
and other representatives of civil society, are encouraged, where appropriate, to promote markets for
environmentally friendly products, environmentally sound technologies and environmental services.
Making trade and environment policies mutually supportive
17. Governments and international organizations, such as WTO, and the secretariats of
multilateral environmental agreements, are encouraged to co-operate and to continue to explore waysWT/CTE/W/145
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on how to enhance the complementarities between trade liberalization and environmental protection
and to make the multilateral trading system more responsive to sustainable development concerns.
All relevant parties are encouraged to identify and pursue opportunities where trade liberalization
holds particular promise for promoting sustainable development, including actions to address
subsidies with the aim of eliminating effects which are both trade distortive and environmentallyharmful, in a way that would result in trade, environmental and developmental benefits.
18. Certification and labelling schemes can be important tools for the promotion of sustainable
consumption and promotion patterns.  If introduce d, such schemes, whether voluntary or mandatory,
should be designed and implemented in an open and transparent manner and should not constitute a
means of arbitrary or unjustifiable discrimination or a disguised restriction on trade.  Governments
and international organizations are urged to facilitate effective participation of developing countries in
the standard-setting process.  They are also urged to further explore the concept of equivalency and itsapplication.
19. The pursuit of effective environmental policies should be ensured both nationally and
internationally.  However, environmental measures must not be used for protectionist purposes.
Governments should also avoid imposing unilatera l measures that are inconsistent with the
Rio Declaration on Environment and Development, in particular principle 12.
20. Governments and international organizations are urged to further consider the relationship
between MEAs and WTO Agreements, including the relationship between the CBD and TRIPs,
recognizing the importance of trade and environmen t agreements being mutually supportive, taking
into account that both trade agreements and MEAs are developed and negotiated in pursuit of
legitimate multilateral objectives in support of sustainable development.  In this regard, it is essentialto improve dialogue and cooperation between trade, environment, and other relevant policy-makers at
the national level, as well as among relevant international organizations, including secretariats of
MEAs.  UNEP and UNCTAD are urged to continue to study and examine economic and development
implications of MEAs.
21. Developed countries and international organizations, in accordance with their commitments
under multilateral environmental agreements, are encouraged to assist developing countries in
implementing the agreements by promoting the transfer of environmentally-sound technology, in
particular, those arising from publicly-funded research and development, as well as promoting
capacity building.
Promoting sustainable development through investment
22. Governments are encouraged to promote a stable, predictable, non-discriminatory and
transparent investment climate nationally and internationally that encourages domestic investment and
foreign capital flows, including FDI while addressi ng, as appropriate, the rights and obligations of
investors in order to promote sustainable development.  Governments in developed countries and
international organizations are encouraged to provide adequate support for developing countries in
their efforts to formulate and implement the appropriate domestic policies.
23. Governments and international organizations are encouraged to address the potential risks that
may arise from the volatility of short-term capital flows.
24. It is recommended that in order to enhance th e potential of investment, including FDI, to
contribute to sustainable development, Governments, and international organizations, in cooperation
with relevant private sector organizations and stakeholders:WT/CTE/W/145
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(a) Explore ways to ensure that a larger number of developing countries and countries
with economies in transition benefit fr om investment, in particular FDI;
(b) seek to promote the use of environmental management systems in and transfer of
environmentally-sound technologies to developing countries and countries witheconomies in transition;
(c) encourage companies to take responsibility to promote sustainable development by
applying best practices and promoting environmentally-responsible corporate
behaviour and information policies, especially those related to public disclosure
procedures;
(d) explore the potential for improving environmental performance along the supply
chain and in waste management;
(e) explore the potential role of voluntary guidelines for making investment more broadly
supportive of sustainable development.
25. Governments and international organizations are encouraged to develop, as appropriate,
mechanisms for the environmental assessment of export credit projects.
Strengthening institutional cooperation, capacity building and promoting partnerships
26. The Commission noted that the tool of envir onmental impact assessment, following previous
recommendations, is being used by many countries and that some are developing other assessment
tools.  The Commission also noted the work under way in UNEP and UNCTAD on this issue.  In
response to the concerns expressed by many countries, the Commission stressed that the assessmentsof trade policies should be conducted with a view  to promote sustainable development and should not
serve as a disguised barrier to trade.
27. Governments and international organizations are urged to improve policy coherence and
coordination in promoting sustainable development through trade and investment.  Countries are also
urged, with the full participation of international organizations, to improve coherence andco-ordination to ensure that technical assistance  and capacity-building in developing countries and
countries with economies in transition enable them to benefit from globalization and trade
liberalization and to better integrate into the world economy.  Governments and international
organizations are further encouraged to promote ca pacity-building with a view to enabling recipient
countries to implement and enforce effectively en vironmental policies, including through the design
and use of economic instruments, taking into account the specific conditions and the different levels
of development in individual countries.
28. Governments and international organizations should foster partnerships between the public
and private sectors at the national and international level for the promotion of trade and economic
growth in a manner conducive to sustainable devel opment.  Dialogue, consultations and information
sharing with stakeholder and civil society organizations should also be promoted.
29. International cooperation and support for ca pacity building in trade, environment and
development policy formulation should be strengthened through renewed system-wide efforts and
with enhanced responsiveness to sustainable development objectives by the United Nations, WTO,
the Bretton Woods institutions and national Governments.
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