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The  Governments of  the  Member States  and  the European  Commission  were
represented as follows:

Belgium:
Mr Jacques SANTKIN            Minister  for  Health,  the   Environment  and
                              Social Integration

Denmark:
Mr Svend AUKEN                Minister for the Environment and Energy
Mr Leo BJØRNSKOV              State Secretary for the Environment

Germany:
Ms Angela MERKEL              Minister for the Environment

Greece:
Mr Adamadios VASSILAKIS       Deputy Permanent Representative

Spain:
Mr José BORRELL               Minister for  Public Works, Transport and  the
                              Environment
Ms Cristina NARBONA           State  Secretary   for  the  Environment   and
                              Housing

France:
Mr Michel BARNIER             Minister for the Environment

Ireland:
Ms Liz McManus                Minister of State,
                              Department of the Environment

Italy:
Mr Paolo BARATTA              Minister for the Environment

Luxembourg:
Mr Johny LAHURE               Minister for the Environment

Netherlands:
Ms Margaretha DE BOER         Minister for Planning and the Environment

Austria:
Ms Maria RAUCH-KALLAT         Federal Minister for the Environment

Portugal:
Ms Teresa PATRÍCIO GOUVEIA    Minister for the Environment

Finland:
Ms Sirpa PIETIKÄINEN          Minister for the Environment

Sweden:
Ms Anna LINDH                 Minister for the Environment
Mr Mats ENGSTROEM             State Secretary for the Environment

United Kingdom:
Mr Robert ATKINS              Minister   of   State,   Department   of   the
                              Environment

                                   - + -

For the Commission:
Ms Ritt BJERREGAARD           Member

INTEGRATED POLLUTION PREVENTION AND CONTROL

The Council  examined the Commission  proposal, the  purpose of which  is to
apply an  integrated approach  to pollution prevention  and control,  unlike
previous  Directives in  the environmental  field, which drew  a distinction
between environmental sectors (air, water and land).

The  proposal is  for  a  framework Directive  with  the main  objective  of
preventing or  resolving pollution problems caused  by emissions from  major
industrial installations.

The  Council centred its  discussions on the main  problems arising from the
proposal and,  on the basis of a Presidency draft, made some progress, which
should facilitate an overall solution.

The Council instructed the Permanent  Representatives Committee to  continue
examining  the  problems outstanding  and  to  report  to it  for  its  next
meeting, in June.

AMBIENT AIR QUALITY

Pending the Opinion  of the European Parliament,  the Council held a  policy
debate  on the  proposal for a  Directive on ambient  air quality assessment
and management.

The proposal is for a framework Directive with the purpose of laying down  a
number of  horizontal, general  provisions (definitions, information,  etc.)
so that they  need not be  included in the specific directives.   It is also
directed  towards a  working  timetable  for such  individual  directives on
pollutants.

The debate centred on two main questions in the Directive, namely:

-    that  of target  values,  which most  delegations  felt should  not  be
     included explicitly in the Directive;

-    that  of the  standstill with  regard  to air  quality in  areas  where
     pollution levels  are below the limit  values.  Most delegations  could
     endorse the Presidency's approach in this matter.

The Council instructed the Permanent  Representatives Committee to  continue
examining  this dossier  in the  light  of the  discussion and  taking  into
account the Opinion of  the European Parliament, with a  view to reaching  a
common position in the near future.

FIGHT AGAINST ACIDIFICATION

Following  the Swedish  delegation's  submission  of  a  memorandum  on  the
problem  of acidification  (acid  deposits due  to long-range  transport  of
sulphur and nitrogen oxides), the Council noted the  information provided by
the Commission and the Commission's intention to submit to it  in the second
half of 1995 a Community plan to combat the phenomenon.

The Council intends to examine  this dossier again once it has received  the
plan in question.

CONSERVATION OF WILD BIRDS

The   Council   was   informed  of   progress   on  the   proposal  amending
Directive 79/409/EEC on the conservation of wild birds.

The purpose of the  proposal is to define the  discretion Member States have
to determine the dates  during which migratory species  can be hunted,  with
full regard for the principle of wise use.

The  Permanent   Representatives  Committee  will  continue  examining  this
dossier, in the light  of the Opinion awaited from  the European Parliament,
with a view to a rapid conclusion.

ECOLOGICAL QUALITY OF WATER

The  proposal for  a Directive  on the ecological  quality of  water was the
subject of a policy  debate by the Council, pending  receipt of the  Opinion
of the European Parliament.

The  purpose of  the proposal  is to  introduce the necessary  provisions to
maintain and  improve the  ecological quality  of surface waters  throughout
the Community.  To achieve this it is directed towards  introducing a simple
and consistent general management framework through a new  approach based on
the protection of ecosystems with  a view to the ultimate aim of good  water
quality.

The debate enabled guidelines to be agreed on the following aspects:

-    inclusion in the concept of ecological quality  of qualitative criteria
     for the assessment of water quality;
-    elaboration by  the  Member  States  of  overall  water-management  and
     water-protection programmes enabling the Directive to be implemented;

-    information of the public  and closer involvement  of interested groups
     in the preparation of the integrated programmes.

The  Permanent Representatives  Committee will  continue the  proceedings in
the light  of the Opinion awaited  from the European  Parliament and  of the
debate, with a view to the Council's meeting in June.

"SEVESO II" DIRECTIVE

The Council held  a policy debate  on the  proposal for a  Directive on  the
control of  major-accident hazards  involving dangerous  substances ("SEVESO
II").

The  purpose  of  the  proposal  is  a  thorough  overhaul  of  the  present
legislation in  order to improve  arrangements for  implementing it, enhance
management of  the human factors involved  in major accidents and  introduce
land-use   planning    controls.      It    should   repeal    and   replace
Directive 82/501/EEC  (the   "Seveso"  Directive),  which   was  adopted  in
response to  accidents  such as  those  at Flixborough (1974),  Beek (1975),
Seveso (1976) and Manfredonia (1976).

The  debate  revealed the  delegations' support  for revising  the Directive
currently in force.   Guidelines  were established for  further work on  the
following aspects:

-    scope (the  vast majority  of delegations supported  the new  approach,
     which introduced the idea of establishment into the scope);

-    major-accident  prevention  policy   (all  delegations   supported  the
     proposal  that basic rules  be laid  down, applicable  to all  types of
     establishment, relating to the major-accident prevention policy);

-    control  of town  planning (the  introduction of  provisions concerning
     town planning  in  the  vicinity of  sites  at risk  is  recognized  as
     necessary if confined to broad guidelines);

-    notification  of accidents (a  large majority  of delegations felt that
     common criteria  should be  laid down  to eliminate  the disparity  and
     delays recorded hitherto as regards the notification of accidents).

The  Permanent   Representatives  Committee  will  continue  examining  this
dossier  in the light of the debate  with a view  to enabling the Council to
act at the earliest opportunity.

CLIMATE CHANGE

Following  a discussion  on  preparation for  the  first Conference  of  the
Parties  to   the  UN Framework  Convention   on  Climate   Change  (Berlin,
March-April 1995), the Council adopted the following conclusions:

  "1.     The  Council confirms  the  conclusions  which it  adopted  at the
          meeting on 15 and 16 December 1994.  It  reiterates its view  that
          commitments to reduce greenhouse gases to their 1990  level by the
          year 2000 are insufficient  to achieve the ultimate objective laid
          down in  Article 2  of  the Convention.    It therefore  considers
          Article 4(2)(a) and (b) of the Convention to be inadequate.

  2. The Council  reaffirms the European Union's  determination to meet  its
     existing commitments  and to take  such additional  measures as may  be
     necessary to achieve  this, and urges all  other Annex I Parties to  do
     the same.

          The Council, confirming  its conclusions of  29 October 1990 inter
          alia  to  stabilize CO2  emissions  in the  Community  as  a whole
          at 1990  levels by  the year 2000,  calls  upon the  other Annex I
          Parties  also  to  commit  themselves  to  stabilizing  their  CO2
          emissions individually or jointly at 1990 level  by the year 2000,
          i.e. at least not to exceed this level after 2000.

  3. INC 11  acknowledged the commitments in  Article 4(2)(a) and (b) to  be
     only a  first step on  the way to  the Convention's ultimate  objective
     and  the need of  their review at the  first Conference of the Parties.
     The  Council would  emphasize that  the second  stage begins  as of the
     year 2000,  since the  present commitments  make no  provision for  the
     period after that date.

4. The Council  notes that for  the commitments regarding  the period after
   2000, in view of likely  ratification times, a protocol on  policies and
   measures  as  well  as targets  and  timetables in  order  to  limit and
   progressively reduce  greenhouse gas emissions  would need  to have been
   adopted in  1997 in order to enter into  force by 2000.  If  it is to be
   adopted in 1997, such a protocol would have to be drawn up in the course
   of a set of negotiations likely to extend over two years.

5. The Council therefore reaffirms that the first Conference of the Parties
   needs at least to map out the mandate for negotiations on a protocol and
   set a time limit for its conclusion.

6. The Council considers  it desirable, drawing upon  its conclusions of 15
   and 16 December 1994,  and in the light  of the  discussions at INC  11,
   that the  mandate to  be decided  upon by  the first  Conference of  the
   Parties contain, in particular, the following key elements:

     (a)  Provision  of  a   second  step  towards  achieving  the  ultimate
          objective of the Convention.

     (b)  Establishment of  a  special  ad  hoc  working  group,  under  the
          auspices  of  the  Conference  of  the  Parties,  to  elaborate  a
          protocol,  to  which as  many  Parties as  possible could  adhere,
          building  upon  the  principles  in  Article  3 of  the  Framework
          Convention  on  Climate  Change  and  the  findings  of  the  IPPC
          including its  Second  Assessment  Report.    The  AOSIS  protocol
          proposal and the  German delegation's suggestions will as well  as
          others form part of the negotiations.

     (c)  Report  of  the ad  hoc  group to  the  second  Conference of  the
          Parties on the state  of negotiations on  the protocol; completion
          of the negotiations six months before the third  Conference of the
          Parties in order to allow adoption during that Conference.

     (d)  Inclusion  in the ad hoc group's working programme, in cooperation
          with the other subsidiary bodies, of an analysis  or assessment to
          identify  potential  and   possible  policies  and  measures   for
          achieving limitations  and  progressive  reductions of  greenhouse
          gas emissions.

     (e)  Consideration of the following key elements  for inclusion in  the
          protocol:

     (i)  comprehensiveness of the protocol, covering all  greenhouse gases,
          their sources and sinks and all relevant sectors;

     (ii) common  but  differentiated responsibilities  of  Parties  in line
          with their respective capabilities and possibilities:

          -    lead  responsibility  of  Annex  I  Parties through  specific
               commitments,  individually  or  jointly,   strengthening  and
               enlarging those undertaken  in Article 4(2)(a) and (b) of the
               Convention,

          -    participation,  over   time,  of   non-Annex  I   Parties  as
               recognized  in Article  4(2)(f) and  (g); establishment  of a
               framework  leading   to  sustainable  patterns  of   economic
               development  that  will secure  steadily increasing  economic
               growth  while  restraining   the  growth  of  greenhouse  gas
               emissions;

   (iii)  combined  approach including both policies and measures as well as
          targets and timetables such as 2005 and 2010,  taking into account
          the  differences  in  starting  points  and  approaches,  economic
          structures and resource bases as set out in Article 4(2)(a);

     (iv) coordinated   policies  and   measures  covering   CO2  and  other
          greenhouse   gases,   in   particular   in   those   areas   where
          international    coordination   is   called   for   in   view   of
          competitiveness concerns, priority being given to:

          -    measures subject to competitiveness concerns;

          -    measures concerning globally oriented industrial sectors;

          -    measures in  sectors  where  decisions  may  have  long  term
               adverse effects on climate change;

          -    measures relating to tradeable products,

          in particular when these measures represent:

               *    potential or  actual globally significant greenhouse gas
                    emissions or sinks;

               *    potential  significant  benefits  in   addressing  other
                    problems;

               *    potential   further   steps   towards    better   energy
                    efficiency;

               taking  into account,  inter alia, in an  appropriate way the
               indicative list  of possible policies  and measures  shown in
               the Annex to the present conclusions.

     (v)  regular review of  the commitments relating to the limitation  and
          reduction of greenhouse gas emissions;

     (vi) provisions  to  coordinate  and  exchange experience  on  national
          policies  and measures  in areas  of interest,  particularly those
          identified  in  the  review  and  synthesis  reports  as  a  major
          contributor to greenhouse gas emissions;

   (vii)  provisions  regarding  public  access  to  information  on  energy
          consumption and  on  national  policies,  regional  institutes  in
          charge  of   promoting  a  rational   use  of  energy  and  energy
          labelling.

7. They key elements  for the mandate outlined above  should form the basis
   for consultations and negotiations.

                                                                       ANNEX

             INDICATIVE LIST OF POSSIBLE POLICIES AND MEASURES

               Measures regarding energy use and CO2

   -      use  of economic  instruments, including  fiscal measures  such as
          CO2/energy  taxation  and  elimination  of  disincentives  to  the
          efficient use of energy;
   -      CO2 emissions from large combustion plants;
   -      energy consumption by household appliances;
   -      thermal insulation of buildings;
   -      CO2 emissions from energy-intensive industrial sectors;
   -      CO2 and  other greenhouse  gas emissions  from vehicles,  and more
          generally from the terrestrial transport sector;
   -      CO2  and   other  greenhouse  gas   emissions  from  international
          transport, especially from airplanes and boats;
   -      promotion of the use of new and renewable sources of energy;
   -      storage of carbon in forests.

               Measures regarding CH4

   -      limitation of CH4 emissions  from extraction and  transfer of coal
          and gas;
   -      limitation of CH4 emissions from waste disposal.

               Measures regarding N2O

   -      N2O emissions from  some industrial processes (adipic acid, nitric
          acid, ...);
   -      N2O emissions related to fertilizer use.

               Measures regarding HFCs and PFCs

   -      limitation of HFCs and PFCs emissions  through an optimization  of
          their   use  in   all  activities,   i.e.  in   refrigeration  and
          air-conditioning systems.

COMMISSION FOR SUSTAINABLE DEVELOPMENT

The Council  continued its  preparation of  the Community  position for  the
3rd meeting of the Commission for  Sustainable Development (New York,  11 to
28 April 1995).

At  this stage  it elaborated  the Union's  position on  a number  of points
(reports  procedure,  indicators  of  sustainable  development, forests  and
trade)  (see  annexed text)  and  called  for coordination  of  the  Union's
position  to  continue  on  the  problems  still  outstanding  following the
Council's discussions  and on other  problems raised  by the Member  States'
contributions and recommendations.

EURO-MEDITERRANEAN COOPERATION ON THE ENVIRONMENT

In the  context of this year's IXth Conference of the Contracting Parties to
the Barcelona Convention, to be held in June in Barcelona, and  of the Euro-
Mediterranean Conference  in  November, the  Council  adopted the  following
conclusions:

  "1.     The  objective  of  the  Euro-Mediterranean  partnership   on  the
          environment should be  to establish the conditions for sustainable
          development.

  2. The  environmental  interdependence  between  the  two  coasts  of  the
     Mediterranean,  which is  a common heritage, calls  for a strengthening
     of  Euro-Mediterranean   solidarity   and  the   environment  is,   par
     excellence,  an area  where Euro-Mediterranean  cooperation exists  and
     can develop.  In this context, the Community  should encourage regional
     cooperation  and  dialogue both  with  its  Mediterranean partners  and
     among them.

  3. Euro-Mediterranean cooperation in this area should seek to:

          .    protect the Mediterranean Sea and its coastal regions;

          .    conserve  natural resources,  in particular  the habitats  of
               species of flora and fauna, and biodiversity;

          .    combat pollution, erosion, desertification and drought;

          .    promote  the  integration  of  the  environment   into  other
               policies,   particularly   in   the agriculture,   fisheries,
               energy,   industry,  land   and  urban   planning,  transport
               and tourism  sectors, in  order  to  promote the  sustainable
               development of the Mediterranean region.

  4. Its priority objectives are:

          .    integrated management of water  resources, maximizing them by
               thrifty  use  of the  resource,  purification  and re-use  of
               sewage;

          .    combating erosion and soil degradation and forest fires;

          .    combating pollution, especially marine pollution;

          .    reducing  waste   production   and  managing   waste  in   an
               ecologically rational way;

          .    protection and sustainable management of the coastline;

          .    conservation  of  the  natural heritage,  of  landscapes  and
               beauty spots.

  5. The adoption of preventive  measures should be  promoted, in particular
     by  using  instruments  such  as  environmental  impact  assessment  to
     promote environmentally-friendly infrastructures.

  6. In  the  context  of  the  Euro-Mediterranean  partnership,   financial
     cooperation should  seek,  within  the  framework  of  the  instruments
     employed  for   the  purpose,   to  achieve   sustainable  development;
     environmental protection  should be  among its priorities.   It  should
     support  efforts  to   strengthen  and  coordinate   the  environmental
     policies  of   the  Mediterranean  countries   by  means   of  improved
     institutional and  legal structures and  of suitable  economic actions.
     It  should   back  the  development   of  technological   training  and
     cooperation and  the financing of  environmental infrastructures  which
     are in  keeping with the  objectives agreed  by the partner  countries.
     It should ensure that the various financial contributions  made in this
     connection  are  mutually  consistent.     It  should  pay   particular
     attention to regional cooperation and encourage the  involvement of key
     players in the field of the environment and decentralized cooperation.

7. The  Mediterranean Action  Plan  and  the Barcelona  Convention for  the
   protection of the Mediterranean  Sea and the protocols thereto are major
   instruments for  multilateral regional Mediterranean  cooperation in the
   environmental sphere.

8. The European Community will increase its support for MAP activities with
   a view  to giving fresh  impetus to  the Plan and to  its restructuring,
   topics that will be discussed at the Barcelona Conference in June 1995.

     It will support the setting up of mechanisms  for constantly monitoring
     and  following  up the  situation  and  for taking  action  to  improve
     protection of  the  sustainable  environment  and  development  in  the
     region."

BASEL CONVENTION  ON  THE CONTROL  OF TRANSBOUNDARY  MOVEMENTS OF  HAZARDOUS
WASTES AND THEIR DISPOSAL

Alongside the  items  on  its  agenda  the  Council  noted  that  there  was
unanimous agreement  that the  Community should  submit a  proposal for  the
amendment of the Basel  Convention, with a view to its adoption at the third
Conference of the Parties.

The  purpose  of  the amendment  is  that  the Parties  should  prohibit any
transboundary movement  of  hazardous wastes  for final  disposal from  OECD
member countries to countries which are not OECD members.

Under  Article 22  of  the Convention,  such  a  Community  amendment  would
replace any unilateral amendment submitted by a Community Member State.

                                                                       ANNEX

           PRESENT STATE OF PREPARATIONS FOR THE THIRD MEETING OF
                 THE COMMISSION FOR SUSTAINABLE DEVELOPMENT

1. The  Council takes  note  of  the contributions  prepared  by  the pilot
   countries and the  Commission for the  third meeting of  the CSD  on the
   topics of  patterns of  consumption, trade,  finance, technology,  major
   groups,   economic  indicators,  town  and  country  planning,  forests,
   desertification,   biodiversity,    the   mountains    and   sustainable
   agriculture,  and  the transfer  of  technologies  compatible  with  the
   environment, sustainable  development  and  the  management  of  coastal
   regions.   These contributions  together with  the recommendations  they
   contain will underpin the position of the European Union in New York and
   are  likely to be supplemented in the light  of the discussions still to
   be held  at both  Union and  international level  in the  run-up to  the
   3rd meeting of the CSD, including discussions in the FAO.

2. The  Council  considers  that,  given the  importance  of  exchanges  of
   information  on experience acquired  in implementing Agenda 21,  and the
   value  of national reports to measure the progress made and the problems
   encountered:

     -    further  improvement  in  the  presentation  of  such  reports  is
          required   to  make   them  more  readable,  to   enable  the  CSD
          Secretariat  to summarize  them and  to turn  them  into a  useful
          basis for dialogue with the public;
     -    to this end,  standardized simplified presentation of reports must
          be  reconsidered  through  closed questions  designed  to  produce
          internationally comparable  data and open  questions insisting  on
          the practices implemented and the problems encountered.

3. Indicators of Sustainable Development

     The Council welcomes and fully endorses the role of the UN  Secretariat
     as  a Task  Manager  to coordinate  the  development of  Indicators  of
     Sustainable  Development,  i.e. to  contribute  significantly  to   the
     global process  of consensus-building in  order to  arrive at a  common
     approach and a harmonized  framework of ISDs and to bring  together the
     efforts of the  large number of organizations that are  already working
     on indicators.

     The  Council welcomes  and  fully supports  the  initiative of  the  UN
     Secretariat to  develop a work  programme on  ISDs making available  to
     governments  the methodology for a  core set of  indicators in the form
     of a set  of methodology sheets.   Such a core  set would  constitute a
     menu from  which countries could  select the  indicators that they  may
     use  in  their  national  policies, according  to  their  own problems,
     priorities and targets.

4. Forests

     (a)  Sustainable management, conservation and  development of all types
          of forests  is an  ecological, economic  and  social necessity  in
          view of the  importance of forests  as a heritage for  present and
          future generations.

     (b)  The efforts  made by the Member  States to implement the  forestry
          principles  decided  on   at  the  United  Nations  Conference  on
          Environment  and   Development  make  a  significant  contribution
          towards  ensuring  the  sustainable  development of  the  European
          Union's forests.   The States of the European Union  will continue
          to  strive  to introduce  appropriate  measures  through a  global
          approach  guaranteeing  the sustainable  development  of  forests,
          while respecting ecological, economic and social balances.

     (c)  The adoption, under  the process initiated in Helsinki, of  a list
          of   national  criteria  and  indicators  for  sustainable  forest
          management is a  considerable contribution to a desirable process,
          the objective  of  which is  to  harmonize sustainable  management
          criteria for the planet's forests.

     (d)  The   international   certification  of   timber   obtained   from
          sustainably  managed resources  must be  regarded as  an important
          instrument for  promoting the  sustainable management  of forests.
          The  European Union  expresses its  resolve  to contribute  to the
          international coordination of  discussions on the  introduction of
          international certification of timber.

     (e)  Closer  cooperation is  desirable with  developing countries which
          share  the wish  to combat  the  growing  destruction of  tropical
          forests, account  being taken  of the fact  that deforestation  is
          caused by  a  combination of  social,  economic and  institutional
          problems in the  context of forest management but also,  and above
          all, in other areas affecting forests.

     (f)  In  this  context,  the  UNCED  Forest  Principles  are  of  great
          importance since  they  represent the  first  global consensus  on
          forests.  However, the Council  considers that developments  since
          UNCED have demonstrated the need for  a more comprehensive  global
          framework  for   the  management,  conservation  and   sustainable
          development  of all  types  of forest.    Such a  framework  would
          provide a  solid basis for  improving international  technical and
          financial  cooperation  and  for the  elimination  of  unjustified
          obstacles to trade in forest products.

     (g)  The  management,  conservation  and  sustainable  development   of
          forests concerns many  aspects, especially  socio-economic aspects
          which  go  beyond  issues  of  biological  diversity  and  climate
          change.  Therefore the Council considers that, in  addition to the
          Conventions agreed at Rio, a  specific legally binding  instrument
          on  forests is  needed  to manage  all  aspects of  this  holistic
          approach.

     (h)  The European Union wholeheartedly supports the proposal to set  up
          on open-ended intergovernmental panel on  forests under the  aegis
          of the UN Commission for Sustainable Development.

          It  proposes  that the  Secretariat  be  provided jointly  by  the
          United Nations  Food and Agriculture  Organization and  the United
          Nations Environmental Programme.   While fulfilling its tasks, the
          Group  should also  involve UNDP,  the World  Bank,  ITTO and  the
          executive    bodies   of    the   existing    global   Conventions
          (biodervisity, climate, desertification), in cooperation  with the
          Policy Coordination and Sustainable Development Department.

          In the context of the Intersessional Group's  proposals, the panel
          should be mainly responsible for:

          -    preparing  the  basis  for  a  world-wide  consensus  on  the
               criteria  and  indicators for  sustainable forest  management
               based on  convergence  of the  initiatives  already taken  in
               this sector;

          -    preparing  the  basis  for   a  framework  of   international
               understanding   for   the  certification   of   timber   from
               sustainably managed resources,  in the interests of all those
               involved;

          -    examining  the need for and feasibility of  a legally binding
               instrument covering all  types of forests and identifying the
               elements to be included in such an instrument.

               Any duplication of work on forests should be avoided.

5. Trade and Environment

     (a)  The European Union  reiterates its commitment, in the framework of
          the implementation  of Chapter 2  of Agenda  21, to promoting  the
          mutual supportiveness  of trade and  environment with  the overall
          aim of  sustainable  development.    While  preserving  the  open,
          equitable  and  non-discriminatory character  of the  multilateral
          trading system and  in the pursuit of the abovementioned  aim, the
          EU  relies  upon the  principle  of  multilateral cooperation  and
          dialogue    among   trading    partners,   transparency   in   the
          implementation  of  environmental  policies  and  preserved market
          access for exporting countries especially LDCs.

     (b)  The  EU considers  that  the present  division  of labour  in  the
          international discussion  on trade and  environment is  in general
          satisfactory.   The WTO/CTE has assumed  an important role in  the
          discussion.    Thanks  to  its  mandate,  the  CTE  can  assume  a
          "normative" role  and  accommodate environmental  concerns in  the
          multilateral trading  system.  For  the time  being, the need  for
          complementary  fora  has  been  satisfactorily  fulfilled  by  the
          establishment of  the UNEP/UNCTAD.   Joint Initiative  and of  the
          UNCTAD Ad  Hoc Working Group.   Furthermore, the CTE should  start
          examining  the  interconnections  between  GATS,  TRIPs  and   the
          environment, as envisaged by its mandate.

          In its  coordinating role, the CSD  should also consider how  best
          to carry forward the UNEP-UNCTAD  joint initiative, preferably  at
          a technical level, with a focused agenda.

     (c)  In this context, the EU advocates a stronger role for  UNEP as the
          environmental  counterpart of  the trade  side represented  by the
          WTO.   UNEP and  UNCTAD should  continue to  provide input  to the
          work of the CTE and  also address important issues not  covered by
          the CTE programme of work, the following items in particular:

          -    environmental impact of trade policies; 

          -    internalisation of environmental costs;

          -    implementation of the polluter-pays principle.

               In particular, as  already stated, UNEP's role as facilitator
               of    cooperation   between    secretariats   of    different
               environmental agreements and as creator  of a model  for MEAs
               is important.

     (d)  The OECD should continue its analytical work on  issues related to
          the Report  prepared for the  OECD ministerial  meeting on 23  and
          24 May 1995.   The programme of  work of  the OECD joint  session,
          however, could be reviewed in the light of  the discussion carried
          out in other international fora.

     (e)  Discussion on  trade and environment  should be  carried out in  a
          transparent  manner.  This  should include not only information to
          the public but  also appropriate arrangements for consultation and
          cooperation with NGOs."

                                                  

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