WORLD TRADE
ORGANIZATIONWT/CTE/W/138
4 April 2000
(00-1348)
Committee on Trade and Environment Original: English
UNEP-UNCTAD CAPACITY BUILDING TASK FORCE
ON TRADE, ENVIRONMENT AND DEVELOPMENT
Communication from UNEP and UNCTAD
I. BACKGROUND
1. UNEP and UNCTAD have been actively cooperating in the field of trade, environment and
development through a Memorandum of Understanding signed in July 1997.  Country demand for,and participation in, jointly supported UNCTAD-UNEP activities has been strong, and many
Governments from both developing and developed countries have expressed their interest in seeing
such activities broadened in scope and expanded to reach a wider field of beneficiaries.  These
activities - which have included the organisation of joint expert meetings, the undertaking of policy-
oriented studies and the implementation of country projects - have had a significant effect onenhancing capacities to assess the sustainable development impacts of trade liberalisation, and to
promote the integration of trade and environment policies, particularly in developing countries and
countries with economies in transition.
2. At the start of the new millennium, and in the context of future trade, environment and
development discussions, many countries have expressed their desire that UNEP and UNCTADshould step-up their joint efforts to further strengthen country capacities to promote trade expansion
and develop their economies in an environmentally friendly and sustainable manner.  The UNEP and
UNCTAD Capacity Building Task Force on Trade, Environment and Development (CBTF) was
conceived as a response to expressed needs and requirements of Governments.  This document
presents an outline of CBTF objectives and activities resulting from extensive consultations and
dialogue with Government officials. The CBTF is being initially implemented for a three-year period,
with a continuation of its existence to be decide d upon after a review of implementation results in
late 2002.
II. RATIONALE
3. The CBTF has been conceived to combine the unique strengths of UNEP to build capacities
on environmental aspects of trade, and of UNCTAD to build capacities on the development aspects of
trade. By enhancing synergies between UNEP and UNCTAD, and drawing on the two organisations’technical expertise and comparative advantages, the CBTF will more efficiently make resources
available to a wider range of beneficiaries in developing countries and countries with economies in
transition. With access to both organisations’ glob al networks, and through cooperation with the
WTO, interested Governments, intergovernmental organisations (IGOs) and non-governmental
organisations (NGOs), the CBTF will be able to launch and sustain a coordinated global programmeof demand-driven activities, and make a long-term commitment to them.
4. There is a need to ensure proper communication, coordination and collaboration between
international organisations working in the trade-environment-development domain.  The CBTF thus
seeks to build synergies and enhance coordination between these organisations and to draw on the
technical expertise of NGOs in an effort to foster capacity building for balanced integration of trade,environment and development policies.WT/CTE/W/138
Page 2
III. EXPERIENCE
A. UNCTAD
5. UNCTAD’s major objective is to help developing countries integrate themselves more fully
into, and derive benefits from, the multilateral trading system. UNCTAD’s work focuses on policy
analysis and consensus building to identify more clea rly the implications of multilateral trade rules for
the development prospects of developing countries. UNCTAD's activities also help to ensure balance
in the trade and environment debate by highlighting issues of concern to developing countries and
strengthening the development dimension. In this regard, UNCTAD identifies policies to address
major constraints faced by many developing countries in responding to environmental challenges,
such as lack of technical, financial, instituti onal and supply capacities, taking into account the
environmental and developmental needs and situations of each country. UNCTAD also strives to
enhance understanding of the economic and developmental implications of trade measures forenvironmental purposes for countries at different levels of development, including the effects of
environmental requirements on developing countries' exports.
6. Given the growing recognition that equity consid erations also need to be emphasised in the
multilateral trading system, UNCTAD is uniquely positioned to contribute in this area by bringing the
concerns of developing countries to the fore. UNCTAD can help developing countries identify areasthat are of interest to them and enhance the developed countries' understanding of the needs and
concerns of developing countries. This is a unique advantage that UNCTAD offers in the area of
consensus building around well-defined trade and development issues as derived from its mandate.
7. The UNCTAD Secretariat has already developed a comprehensive programme for capacity
building on trade, environment and development in order to ensure that developing countries fullyparticipate in and derive real benefits from the multilateral trading system. In response to strong
interest expressed by a number of Least Developed Countries (LDCs), UNCTAD's technical
co-operation is increasingly paying attention to the particular conditions and needs of the LDCs in an
effort to make a substantial contribution to the pursuit of their development objectives.
B. UNEP
8. UNEP already plays a crucial role at the trade and environment interface, undertaking a range
of research, capacity and consensus-building roles,  including in support of the negotiation and
implementation of multilateral environmental agreements (MEAs). Issues researched encompass
many of the key linkages between trade and sustainable development such as process and production
methods, technology transfer, globalized production, economic reforms and the environment, trade in
genetic materials, production subsidies and environmental risk analysis. UNEP also undertakes
research aimed at producing a wide range of application-oriented guides for practitioners onenvironmental assessment and incentive tools including environmental impact assessment,
environmental resource valuation, environmental accounting and economic instruments for
environmental management. UNEP research has an overall objective of reconciling and integrating
trade and environment policies.
9. UNEP acts also to enhance the capacities of Governments to undertake environmental
assessments of trade liberalisation policies, and design and implement necessary environmental and
other macroeconomic policies to maximise the positive contribution of trade to economic
development. For example, by engaging Governments, research institutions, NGOs and civil groups,
UNEP’s Country Studies on Trade and the Environment have enhanced in-country capacity to analyse
and respond to the trade-environment-development interface in developing countries and countrieswith economies in transition. The CBTF will ex tend and reinforce the capacity-building element of
many of UNEP’s activities in partnership with UNCTAD and other institutions.WT/CTE/W/138
Page 3
10. Another strength of UNEP is its ability to cata lyse action in the private sector through its
collaboration and networking with industry and the financial services sector on the development and
implementation of private sector initiatives for sustainable development. In bringing together its
partners from the private sector with those from Governments, research institutions, environmental
NGOs and civil groups, UNEP is in a unique position to convene policy dialogue events engaging afull spectrum of stakeholders, and to access its partners’ global knowledge and experience.
IV. OBJECTIVES
11. The overall purpose of the CBTF will be to strengthen the capacities of countries, particularly
developing countries and countries with economies in transition, to effectively address trade-
environment-development issues. To support this aim, the CBTF will help beneficiaries, at their
request, to:
• Undertake comprehensive analyses of the relationships between trade, environment and
development;
• assess the environmental and developmental impacts of trade policies, as well as the trade and
developmental implications of environmental policies with a view to maximising the potential
benefits;
• develop and implement policy packages to promote integrated national trade, environment and
development policies;
• explore approaches to address trade-environment-development issues at the domestic level with
national stakeholders, and at regional and global levels with international experts, practitioners and
negotiators;
• participate effectively in trade-environment-development deliberations;
• access information from, and build cooperation with, relevant organisations working in the trade-
environment-development domain.
V. ACTIVITIES
12. In response to the country needs expressed to UNCTAD and UNEP, and given resource
constraints, the CBTF will facilitate five integrated and complementary activities, which will beconstructed around a collaborative partnership-based approach:
• Thematic Research  on major issues in the trade-environment-development domain and on practical
approaches to sustainably address them, bearing in mind the development priorities of countries;
• Country Studies  to enhance countries’ capacities to develop mutually supportive trade,
environment and development policies;
• Training  to enhance countries’ appreciation of the relationship and complementarities between
trade, environment and development;
• Policy Dialogue to facilitate awareness raising, consultations and the exchange of perspectives
among experts, practitioners and negotiators at the national, regional and international levels;
• Networking and Information Exchange to provide technical and operational support at the national
and regional levels and to widely disseminate the results of CBTF activities.
13. Activities will be specifically designed to meet the expressed needs of CBTF beneficiaries.
Each of these activities, for which UNEP and UNCTAD will seek appropriate extra-budgetary
resources, is briefly described below.WT/CTE/W/138
Page 4
A. T HEMATIC RESEARCH
14. The CBTF will build on ongoing research at  UNCTAD and UNEP on trade, environment and
sustainable development issues and on the development of practical approaches and methodologies to
promote trade, manage environmental resources, meet national development priorities and promote
additional research, both in-house and by consultants and research institutions particularly fromdeveloping countries.
15. The focus of research will be on topics selected to respond directly to the expressed needs of
beneficiaries, with emphasis placed on the special ro le of thematic topics in achieving sustainable
development. The topics for research for an initial three-year period are:
• Trade-related intellectual property rights and the environment;
• Trade distorting subsidies;
• Technology transfer, dissemination, absorption and cooperation;
• Foreign direct investment and sustainable development;
• Environmental standards and market access;
• Trade, environment and poverty alleviation;
• Integrated assessment techniques to analyse the impact of recent trade liberalisation, and project
the impact of proposed trade agreements, in specific sectors at the national level;
• Production of, and trading opportunities for, environmentally friendly products;
• Eco-labelling and process and production methods (PPMs);
• Common but differentiated responsibilities under Agenda 21 and their role in trade agreements;
• Escalating tariffs, tariff peaks and market access;
• The implications of precautionary approaches to the formulation of sustainable development
policies, including in trade policies.
B. C
OUNTRY STUDIES
16. Many developing countries and countries with economies in transition require, and have
requested, financial and technical support to undertake assessments and to develop mutuallysupportive trade and environment policies and strategies. UNEP has responded to such requests
through its support of a recently completed First Round of Trade and Environment Country Studies .
These projects assisted developing countries in undertaking assessments of the impacts of trade
liberalisation on specific sectors of special importance and developing policy response measures to
mitigate negative impacts and enhance positive ones. Sectors studies included fisheries in Bangladesh,mining in Chile, transport in India, water in Romania, forestry in the Philippines, and fisheries in
Uganda. The country studies, conducted by local experts through national institutions, adopted a
multi-stakeholder approach, and emphasised a ‘learning by doing process’. The projects were also
designed to provide practical and implementable policy packages including market-based incentives,
regulatory measures and voluntary initiatives.
17. UNCTAD, with the collaboration of the Foundat ion for International Environmental Law and
Development (FIELD), has been implementing a project on strengthening research and policy-making
capacity on trade and environment in developing countries. This project assists ten developing
countries (Bangladesh, Brazil, Costa Rica, Cuba, India, Philippines, South Africa, Tanzania, Tunisia
and Uganda) to (i) deepen their understanding of the complex relationships between trade andenvironment;  (ii) improve policy co-ordination at the national level;  and (iii) participate effectively
in multilateral deliberations on trade and envir onment in the WTO, UNCTAD and other forums. The
project includes the preparation of a large number of country studies by researchers and policy makers
in developing countries on national experience in dealing with various trade and environmentWT/CTE/W/138
Page 5
problems. UNCTAD has also been conducting country projects on strengthening capacities for trade
and environmental policy co-ordination in India and Vietnam, which encompass a number of studies
on, inter alia, the impact of environmental factors on market access and competitiveness;  ways and
means to improve access to environmentally sound technologies;  the contribution of foreign direct
investment to sustainable development;  the implications of the ISO 14001 standard for continuedmarket access and improved environment performance;  and trading opportunities for environmentally
preferable products.
18. The success of both organisations’ efforts on country-based projects has led to demand from
numerous additional countries to participate in similar studies.
19. The CBTF will respond to country demand for much needed studies. Through the CBTF,
UNCTAD and UNEP will closely cooperate on country studies aimed at strengthening the capacities
of developing countries to assess the environmental impacts of trade policies and the tradeimplications of environmental policies, and to develop appropriate packages of policy measures. The
results of the country studies will provide empirical lessons to be used to reinforce research, training,
and policy dialogue. During its initial three-year period, the CBTF plans to support and backstop the
implementation of 16 Country Studies on Trade and Environment.
C. T
RAINING
Training must respond to the specific needs of countries.  Through the CBTF, UNCTAD and UNEP
will thus assist countries, particularly developing countries and countries with economies in transition,
to conduct a short national needs assessment for trade-environment training.  The CBTF will also
assist requesting countries in developing a tailored trade-environment training programme, to be
delivered at the national level by in-country experts and national institutions.  The CBTF willfacilitate the preparation of training modules for specific target groups, drawing on ongoing work,
such as UNCTAD’s TrainforTrade Programme, as well as completed UNEP and UNCTAD country
studies and training resource materials.  These activities will enhance the capacities of developing
countries to promote integrated and mutually supportive national policies.  During its initial three-year
period, the CBTF plans to provide technical assistance for the development of trade, environment andsustainable development training programmes in eight countries.
D. P
OLICY DIALOGUE
20. A number of critical issues in the environment, trade and sustainable development debate
have been identified by Governments as requiring additional dialogue among stakeholders because of
their complexity and the divergence of Government views on some of them.
21. Policy Dialogue activities of the CBTF therefore seek to bring experts and decision-makers,
from developed and developing countries, together in informal and unofficial dialogue to exchange
views, raise awareness and enhance appreciation of these issues.  These activities will take place in
the form of seminars, briefings, conferences, workshops and round-tables.
22. These events will be convened in multiple locations, but especially in parallel with major
trade and environment conferences and in developing countries.  Taken together, they will form anongoing policy dialogue process with structur ed debate evolving progressively over time.
23. During its initial three-year period, the CBTF plans to support and coordinate the
implementation of:
• 3 conferences of international experts
• 9 national/regional seminars or workshops (3 each year)
• 9 national/regional briefings or round-tables (3 each year)WT/CTE/W/138
Page 6
These meetings are in addition to national seminars, workshops, briefings and round-tables that take
place in connection with CBTF country studies and training activities.
E. N ETWORKING AND INFORMATION EXCHANGE
24. The CBTF will enhance networking between the trade, environment, and development communities
and effectively engage them in its activities.  The CBTF will fac ilitate and widely disseminate relevant
information on trade, environment and development including the publication of outputs of its
activities to experts, practitioners, policy-makers, negotiators, and Government officials as well to
collaborators participating in CBTF activities.  Outputs include newsletters describing current and
planned activities, research and country study publications, training manuals and interactive courses,
databases, and policy dialogue reports of all CBTF briefings, seminars, workshops and conferences.
In order to facilitate instant electronic access to CBTF outputs from anywhere in the world, and
provide a forum for electronic discussions, a CBTF website will be established, maintained andcontinuously updated.
VI. OPERATIONAL ARRANGEMENTS
A. T
RUST FUND
25. Activities to be implemented through the CBTF will be provided for by extra budgetary
resources to both UNEP and UNCTAD.  A trust fund will therefore be established by UNEP andjointly managed by UNEP and UNCTAD in accordance with the United Nations rules and
regulations.  The disbursement of funds will be  made to both UNCTAD and UNEP on the basis of an
agreed programme of work developed in response to Governments’ needs and requirements.
Activities to be undertaken in collaboration with other national and international collaborating
institutions and organisations will be suppor ted by the trust fund through UNCTAD and UNEP.
B. B
ACKSTOPPING BY SECRETARIATS
26. The UNEP Economics and Trade Unit of the Division of Technology, Industry and
Economics and the UNCTAD Trade, Environment and Development Section will be the focal points
in both organisations for the CBTF.  The two focal points will be responsible for providing technical
and administrative support for CBTF activities.  Ea ch focal point will designate at least one staff
member to provide administrative backup and handle day-to-day CBTF-related work.
C. C OUNTRY SELECTION FOR TRAINING AND COUNTRY STUDIES
27. The CBTF will work closely with Governments and civil society, particularly those of
developing countries, to assist them in their effo rts to enhance their institutional and human capacities
for integrating environmental considerations in development planning and decision-making.  Efforts
will also be made to ensure a balanced geographical distribution of beneficiaries.  Special attention
will be given to providing services to least deve loped countries, where the combined developmental
and environmental challenges are greatest, and where limited financial, technical and human
capacities are currently unavailable to address them.
D. M EETINGS AND CONSULTATIONS WITH GOVERNMENTS
28. The CBTF will convene periodic meetings (monthly/or as agreed upon) for Governments’
Permanent Representatives in Geneva and Nairobi.  These meetings will provide a consultation forumbetween UNCTAD-UNEP and Governments on priority setting of activities for implementation, the
development of the CBTF’s detailed work programme, the preparation of terms of reference of studies
and research, collaboration with intergovernmental and non-governmental organizations and policyWT/CTE/W/138
Page 7
dialogue topics and venues.  The meetings are also intended to brief Geneva and Nairobi-based
Officials on the overall status of implementation of CBTF activities.
E. C OLLABORATION WITH OTHER ORGANISATIONS AND INSTITUTIONS
29. The CBTF will work closely with the WTO as well as other relevant organisations within the
United Nations system in particular UNDP, FAO, UNIDO, the United Nations University (UNU),UNITAR, as well as regional economic commissions.  In consultation with Governments, the CBTF
will also coordinate its activities with intergovernmental and non-governmental organisations,
particularly from developing countries, and with regional and sub-regional organisations and trade
agreements.  Additionally, the CBTF will promote collaboration with national and regional
institutions and will identify/designate regional centers of excellence to assist in the implementation
of the CBTF activities.
F. S
UPPORT SERVICES
30. To make full use of online publishing and communication via the world-wide web, a CBTF
website will be established, maintained and continuously updated.  The website will provide
information on ongoing and planned activities and initiatives of the CBTF.  It will also provide a
forum for information exchange and interaction betw een collaborators and beneficiaries.  A newsletter
will be issued on a quarterly basis through the website.  Databases will be developed in connectionwith certain analytical activities, in particular the country studies.
VII. FINANCIAL SUPPORT
31. A trust fund will be established to support the work of the Task Force as well as other joint
technical cooperation activities.
32. Budget and description of financial arrangements to be provided.
VIII. UNEP AND UNCTAD FOCAL POINTS
33. The UNEP and UNCTAD focal points are:
Mr. Hussein Abaza Mr. René Vossenaar
Chief Chief
Economics and Trade Unit Trade, Environment and Development SectionDivision of Technology, Industry and Econom ics DITC, United Nations Conference on
United Nations Environment Programme Trade and Development
Palais des Nations Palais des Nations
CH-1211 Geneva 10, Switzerland CH-1211 Geneva 10, Switzerland
Tel.:  +41-22-917-8298 Tel:  +41-22- 907-5082
Fax:  +41-22-917-8076     Fax:  +41-22- 917-0247
E-mail:  hussein.abaza@unep.ch     E-mail:  rene.vossenaar@unctad.org
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