2nd meeting of the Conference of the Parties to the Rotterdam 
Convention on the Prior Informed Consent procedure for Certain 
Hazardous Chemicals and Pesticides in International Trade  -  
Issue #4 

EARTH NEGOTIATIONS BULLETIN <[EMAIL PROTECTED]>
PUBLISHED BY THE INTERNATIONAL INSTITUTE FOR 
SUSTAINABLE DEVELOPMENT (IISD) <http://www.iisd.org>

Written and edited by:

Soledad Aguilar 
Paula Barrios 
Alice Bisiaux 
Noelle Eckley Selin
Peter Wood 

Editor:

Pamela S. Chasek, Ph.D. <[EMAIL PROTECTED]>

Director of IISD Reporting Services:

Langston James "Kimo" Goree VI <[EMAIL PROTECTED]>


Vol. 15 No. 128
Friday, 30 September 2005

Online at http://www.iisd.ca/chemical/pic/cop2/ 

PIC COP-2 HIGHLIGHTS

THURSDAY, 29 SEPTEMBER 2005

Delegates met in plenary throughout the day to address: issues 
raised by the CRC; cooperation with the World Customs Organization 
(WCO) and the World Trade Organization (WTO); technical assistance; 
Secretariat arrangements; and the financial mechanism. A contact 
group on budget met in the morning, and a contact group on 
non-compliance met several times throughout the day.

PLENARY 

CRC EXPERTS: The African States nominated the Democratic Republic 
of Congo to replace Gabon in the CRC, and President Roch said the 
name of the representative should be given to the Secretariat 
before 1 December 2005.

ISSUES RAISED BY THE CRC: Additional information: AUSTRALIA 
reported on the results of the drafting group on consideration for 
a study on DGDs' scope (UNEP/FAO/RC/COP.2/CRP.4), informing the 
Secretariat would be requested to prepare a paper reviewing the 
information exchange mechanisms and the clearing house to assess 
how these are meeting Parties' needs. Parties adopted the 
document, together with a revised version of the process for 
drafting DGDs reflecting changes agreed on Tuesday 
(UNEP/FAO/RC/COP.2/CRP.6). 

COOPERATION WITH WCO: The Secretariat presented documents on 
cooperation with the WCO (UNEP/FAO/RC/COP.2/16 and 
UNEP/FAO/RC/COP.2/INF/4), noting the assignment of specific 
Harmonized System (HS) customs codes to the individual chemicals 
or groups of chemicals listed in Annex III (Chemicals subject to 
the PIC procedure), and the possibility of joint training of 
customs officials. ETHIOPIA proposed including Designated National 
Authorities (DNAs) in the training. IRAN suggested converting the 
six digit HS codes into 11 digits to distinguish Annex III 
chemicals from those not included in the Annex. SWITZERLAND, 
supported by SYRIA, proposed including the compilation of HS codes 
for Annex III chemicals (UNEP/FAO/RC/COP.2/CRP.2) on the 
Convention's web site and in COP-2's report. The EU, KENYA and 
TANZANIA supported training customs officers, with the EU 
proposing to look for synergies with other environmental 
conventions providing such training. ARGENTINA supported customs 
training cooperation with the Basel Convention. The COP endorsed 
continued collaboration with the WCO and decided to address 
training proposals when dealing with technical assistance.

COOPERATION WITH WTO: The Secretariat presented a document 
(UNEP/FAO/RC/COP.2/15) stating that although it had been unable to 
achieve observer status at the WTO Committee on Trade and 
Environment, it had been invited to attend the Committee's Special 
Sessions on a meeting-by-meeting basis, and had provided the WTO 
with a matrix regarding trade provisions in the Rotterdam 
Convention. The Secretariat then presented findings from a report 
on the applicability of international trade to the Convention 
(UNEP/FAO/RC/COP.2/13), including that the absence of 
international trade in a hazardous chemical does not preclude its 
consideration by the CRC. ARGENTINA commented that they had 
requested this report, and that international trade should be 
taken into account by the CRC when analyzing severely restricted 
pesticide formulations.

COMMUNICATION WITH GOVERNMENTS: The Secretariat presented a 
document on this issue (UNEP/FAO/RC/COP.2/17). The EU suggested, 
and the COP agreed, to invite governments to provide individuals 
in official contact points, and the Secreteriat to maintain both a 
list of official contact points for non-administrative matters, 
and one with contact details for DNAs. The COP also agreed to: ask 
governments to transmit their official channel of communication on 
non?administrative matters; request the Secretariat to adopt and 
maintain lists of accredited observers; invite relevant observers 
to provide up-to-date contact information; and invite other 
observers to express their interest in being invited to COP 
meetings.

REGIONAL DELIVERY OF TECHNICAL ASSISTANCE: The Secretariat 
presented on the experience gained regarding delivery of regional 
assistance, and a draft decision on the issue 
(UNEP/FAO/RC/COP.2/12). Several delegations called for synergies 
between chemicals-related conventions and other relevant 
conventions and activities, such as trade-related conventions and 
customs initiatives. Nigeria, for the AFRICAN GROUP, called for 
legislation stressing synergies between chemicals-related 
activities. ETHIOPIA urged consideration of waste-related issues, 
and recommended close collaboration with the Basel Convention's 
Secretariat. Many delegates welcomed the collaboration of the 
United Nations Institute for Training and Research (UNITAR) in 
technical assistance, and UNITAR announced that it would support 
the participation of one or two additional countries in a pilot 
project on implementation plans for the Convention. The EUROPEAN 
COMMISSION pledged a contribution to the special trust fund for 
technical assistance. CHINA and others called for technical 
assistance at the national level. The AFRICAN GROUP, CHINA, the 
BASEL CONVENTION SECRETARIAT and URUGUAY stressed the role Basel 
Convention Regional Centers play in implementing the Rotterdam 
Convention, and called for predictable financial resources to 
support them. BRAZIL and MOROCCO highlighted the role of regional 
centers to be created under the Stockholm Convention. The WORLD 
HEALTH ORGANIZATION noted its role in delivering health-related 
technical assistance. The EU proposed new text on the Bali 
Strategic Plan for technology support and capacity building in the 
preamble of the draft decision. He also suggested adding a 
reference to DNAs, customs services, and other relevant 
organizations. CHINA proposed including national technical 
assistance in addition to regional assistance in the title of the 
decision, and in an operative paragraph requesting the Secretariat 
to prepare a programme of activities for 2007-2008. The decision 
was adopted as amended by the EU and China.

ELECTION OF OFFICERS FOR COP-3: The COP elected Andrea Repetti 
(Argentina); Helga Schrott (Austria); Azhari Omer Abdelbagi 
(Sudan); and Yue Ruisheng (China) as bureau members for COP-3.

BUDGET: Contact group Chair Jean-Louis Wallace (Canada) reported 
that agreement had been reached on all items of the budget. 
President Roch indicated that a decision on the budget will be 
taken in plenary on Friday.

SECRETARIAT ARRANGEMENTS: The Secretariat introduced a note on 
arrangements by UNEP's Executive Director and FAO's Director-
General for performance of the Convention's Secretariat functions, 
including a memorandum of understanding (MoU) 
(UNEP/FAO/RC/COP.2/14 and 14/Add.1). SWITZERLAND and CANADA said 
it should be possible to amend the MoU if necessary, and the 
Secretariat clarified it could be amended if agreed by FAO and 
UNEP, and approved by the COP. 

On synergies between conventions, the Secretariat introduced 
decisions taken by COP-1 of the Stockholm Convention accepting the 
Rotterdam Convention's invitation to share the position of joint 
head of Secretariats, and on a study on cooperation and synergies 
between the Stockholm, Rotterdam, and Basel Conventions 
(UNEP/FAO/RC/COP.2/INF/7). NEW ZEALAND introduced its joint 
proposal, with Canada, Liechtenstein, Norway, Republic of Korea, 
Switzerland and the EU, and supported by NIGERIA and IRAN, calling 
for an additional report on financial and administrative 
information regarding potential synergies and identifying any 
financial savings (UNEP/FAO/RC/COP.2/CRP.5). He said the study 
should be considered at the 9th Special Session of the UNEP 
Governing Council (GC), and at the COPs of the three Conventions 
in 2006. BRAZIL opposed references to: inviting the Executive 
Director of UNEP to prepare a report for the UNEP GC; inviting 
UNEP and FAO to adapt arrangements as necessary to any decisions 
by the Stockholm and Basel COPs; and identifying financial savings 
that might be available to facilitate projects. SOUTH AFRICA, with 
the GAMBIA and CHINA, concurred, and suggested several drafting 
modifications. The US raised concerns about funding for such a 
study, and warned against prejudging the conclusions of the 
Stockholm Convention's report. A group was created to work on a 
draft decision.

FINANCIAL MECHANISMS: On the study of possible options for lasting 
and sustainable mechanisms (UNEP/FAO/RC/COP.2/10), many developing 
countries expressed support for: the establishment of a financial 
mechanism for chemicals agreements; the expansion of the GEF POPs 
focal area to serve chemicals-related activities; and the 
establishment of a Rotterdam Convention financial mechanism. IRAN 
and TOGO preferred a financial mechanism for chemicals agreements, 
while BRAZIL and ETHOPIA preferred a mechanism for the Convention. 
NEW ZEALAND and others stressed the need to inquire with relevant 
donors, such as the Multilateral Fund of the Montreal Protocol and 
the GEF, about the feasibility of different options. The 
MULTILATERAL FUND SECRETARIAT noted that decisions on the 
availability of funding depended on the parties to the Montreal 
Protocol. SOUTH AFRICA stressed the need to consider options for 
the interim period, but expressed concern about not being eligible 
for Multilateral Fund assistance under the Montreal Protocol. 
TOGO, KENYA and NIGERIA expressed support for the Multilateral 
Fund option in the interim period if South Africa's problems were 
accommodated. The use of the Multilateral Fund was also supported 
by the EU, who also called for enhancing the voluntary trust fund 
of the Convention, and the mainstreaming of chemicals into 
multilateral and bilateral development aid. The COP asked the 
Secretariat to prepare a decision to further work on this issue.

CONTACT GROUP ON NON-COMPLIANCE

The contact group met Thursday morning and twice in the afternoon 
to resolve controversial issues including what measures, if any, 
could be applied to a party if facilitative measures were 
inadequate to achieve compliance. It was suggested that 
facilitation and capacity building may only address certain types 
of non-compliance. Several options were eliminated, but debate 
persisted over how directive the language should be and whether 
decisions should be taken by consensus.

The composition and size of the compliance committee also remained 
unresolved with options on basing it on either the UN or the PIC 
Regions. The underlying issue of triggers to the compliance 
mechanism remained divisive, with several countries unwilling to 
allow party-to-party or Secretariat triggers, let alone those made 
by NGOs or individuals.

CONTACT GROUP ON BUDGET

Negotiations in the contact group focused on the professional 
personnel budget line of the core Secretariat costs, in particular 
the three staff posts contributed in-kind by FAO. Some delegates 
argued that the salaries for these posts should not appear in the 
budget, as they were not actually being paid by the Convention's 
budget. Delegates agreed to reference FAO's in-kind contribution, 
but create a salary contingency reserve in case FAO withdraws its 
contribution. Discussions also extended over the budget line for 
the compliance committee due to the little progress made on this 
issue, with some proposing its deletion. Most delegates opposed 
funding an additional intersessional meeting to continue the 
negotiation, and preferred having the contact group on non-
compliance complete its work at COP-3.

IN THE CORRIDORS

Recalling SAICM's exhausting and even tedious financial mechanism 
discussions, some developing countries feel that the financing of 
the chemical conventions cluster is the "ugly duckling" of the 
international environmental finance world, and cannot compete in 
terms of access to funding with climate change, biodiversity and 
ozone depletion conventions. Others say it is receiving less 
attention than it deserves at this meeting. Meanwhile, some 
delegates from developed countries contend that they are 
"financial-mechanism fatigued," and that SAICM is the place to 
discuss this issue.

In another of the many FAO corridors, some delegates lamented that 
sustained efforts to weaken the compliance mechanism amount to an 
effort to "weasel out" of the Convention's obligations. Others 
believe that once a "black sheep" has been identified as 
non-compliant, they should be lured back to the flock through 
facilitation and capacity building, instead of being hit with 
punitive measures which might prevent others from joining the 
Convention.




This issue of the Earth Negotiations Bulletin (c) <[EMAIL PROTECTED]> is 
written and edited by Soledad Aguilar, Paula Barrios, Alice 
Bisiaux, Noelle Eckley Selin, and Peter Wood. The Digital Editor 
is Dan Birchall. The Editor is Pamela S. Chasek, Ph.D. 
<[EMAIL PROTECTED]> and the Director of IISD Reporting Services is 
Langston James "Kimo" Goree VI <[EMAIL PROTECTED]>. The Sustaining 
Donors of the Bulletin are the Government of the United States of 
America (through the Department of State Bureau of Oceans and 
International Environmental and Scientific Affairs), the 
Government of Canada (through CIDA), the Swiss Agency for 
Environment, Forests and Landscape (SAEFL), the United Kingdom 
(through the Department for International Development - DFID), the 
Danish Ministry of Foreign Affairs, the Government of Germany 
(through the German Federal Ministry of Environment - BMU, and the 
German Federal Ministry of Development Cooperation - BMZ), the 
Netherlands Ministry of Foreign Affairs, the European Commission 
(DG-ENV), and the Italian Ministry of Environment. General Support 
for the Bulletin during 2005 is provided by the United Nations 
Environment Programme (UNEP), the Government of Australia, the 
Austrian Federal Ministry of Agriculture, Forestry, Environment 
and Water Management, the Ministry of Sustainable Development and 
the Ministry of Foreign Affairs of Sweden, the Ministry of 
Environment and the Ministry of Foreign Affairs of Norway, the 
Ministry of Environment and the Ministry of Foreign Affairs of 
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(through the Institute for Global Environmental Strategies - IGES) 
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contact the Director of IISD Reporting Services at <[EMAIL PROTECTED]>, 
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The ENB Team at PIC COP-2 can be contacted at Room A-353 on the 
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