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The Chair, Magn�s J�hannesson, noted that the compilation text on financial resources and mechanisms had been distributed.

COMBATING POVERTY: The discussion was based on the G-77/China text. In paragraph 1 (UN precedents), the EU, Japan and the US included reference to the Social Summit. Canada noted that the G-77/China text represented a conceptual shift from linking poverty and environment to a general statement on poverty. The US proposed replacing paragraph 2 (poverty eradication and sustainable development) with paragraph 6 of the WSSD Programme of Action. India objected. Canada proposed two new paragraphs on economic growth, poverty reduction and sustainable development. In paragraph 3 (economic environment), the US and the EU proposed a reference to intellectual property rights (IPRs). The G-77/China proposed deleting paragraph 8 of the Chair's draft (links between poverty and the environment) because it noted only a few aspects of poverty eradication. Many objected.

DEMOGRAPHIC DYNAMICS AND SUSTAINABILITY: The group reviewed four new paragraphs in the G-77/China text before examining the Chair's text. In paragraph 13 of the G-77/China text (empowering women), the EU added reference to health. Canada said there are relevant aspects of Commitment 5 of the Copenhagen Declaration. In paragraph 10 of the Chair's text (CSD and CPD cooperation), the G-77/China said that ECOSOC will address coordination of conference follow-up. The EU and Japan wanted to give ECOSOC a message on cooperation between the CSD and the Commission on Population and Development (CPD). The EU suggested merging paragraphs 11 and 12 (populations at risk) and asking the CPD to take the lead in preparing reports on populations at risk. The EU suggested deleting paragraphs 15 (increased attention to population) and 16 (CSD reporting).

CHANGING PRODUCTION AND CONSUMPTION PATTERNS: Delegates disagreed over the need to change consumption patterns in all countries or only in developed countries in paragraphs 2 (need for progress), 3 (imbalances in patterns of consumption), and 4 (reducing consumption). In paragraph 7 (information), the G-77/China noted that product information should not be used as an excuse for protectionist trade measures. In paragraph 9 (producer responsibility), the US and the EU proposed deleting reference to ecological tax reform. In sub-paragraph 13(b) (impact on LDCs), the US proposed deleting a reference to obstacles created by eco-labeling. In sub-paragraph 13(c) (policy measures), the US and Japan proposed deleting a reference to ecological tax reform.

TRADE, ENVIRONMENT AND SUSTAINABLE DEVELOPMENT: The G-77/China proposed two new paragraphs on the implementation of the outcome of the Uruguay Round and the work of the WTO Trade and Environment Committee. Paragraph 4 (trade measures in multilateral environment agreements) generated debate over the use of trade measures in environmental agreements. The EC proposed paragraph 4 bis on convergence of environmental standards. The US and the G-77 requested deletion of paragraph 9 on IISD's Trade and Sustainable Development Principles. The EC introduced paragraph 12 bis, inviting UNCTAD to study the impact of internalizing environmental costs. In paragraph 13 (eco-labeling, packaging and recycling), the G-77/China said that eco-labeling and recycling requirements must be transparent and internationally agreed. In paragraph 17 (mitigating adverse effects), the EC proposed inviting UNEP and UNCTAD to assess the environmental impact of trade policies. The EC introduced paragraph 18 bis on public and expert involvement in work on trade and environment. The US introduced a new paragraph 19 on laws and programmes to internalize environmental costs.

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