    [Senate Treaty Document 106-21]
    [From the U.S. Government Publishing Office]

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    106th Congress                                              Treaty Doc.
     2d Session                      SENATE                          106-21

    _______________________________________________________________________

    ROTTERDAM CONVENTION CONCERNING HAZARDOUS CHEMICALS AND PESTICIDES IN
                              INTERNATIONAL TRADE

                                   __________

                                    MESSAGE

                                      from

                       THE PRESIDENT OF THE UNITED STATES

                                  transmitting

       ROTTERDAM CONVENTION ON THE PRIOR INFORMED CONSENT PROCEDURE FOR
    CERTAIN HAZARDOUS CHEMICALS AND PESTICIDES IN INTERNATIONAL TRADE, WITH
                 ANNEXES, DONE AT ROTTERDAM, SEPTEMBER 10, 1998

      February 9, 2000.--Convention was read the first time, and together
      with the accompanying papers, referred to the Committee on Foreign
          Relations and order to be printed for the use of the Senate

                                    -------

                        U.S. GOVERNMENT PRINTING OFFICE
    79-118                     WASHINGTON : 2000

                             LETTER OF TRANSMITTAL

                                  ----------

                                     The White House, February 9, 2000.
    To the Senate of the United States:
        I transmit herewith, for the advice and consent of the
    Senate to ratification, the Rotterdam Convention on the Prior
    Informed Consent Procedure for Certain Hazardous Chemicals and
    Pesticides in International Trade, with Annexes, done at
    Rotterdam, September 10, 1998. The report of the Department of
    State is enclosed for the information of the Senate.
        The Convention, which was negotiated under the auspices of
    the United Nations Environment Program and the United Nations
    Food and Agriculture Organization, with the active
    participation of the United States, provides a significant and
    valuable international tool to promote sound risk-based
    decisionmaking in the trade of certain hazardous chemicals.
    Building on a successful voluntary procedure, the Convention
    requires Parties to exchange information about these chemicals,
    to communicate national decisions about their import, and to
    require that exports from their territories comply with the
    import decisions of other Parties.
        The United States, with the assistance and cooperation of
    industry and nongovernmental organization, plays an important
    international leadership role in the safe management of
    hazardous chemicals and pesticides. This Convention, which
    assists developing countries in evaluating risks and enforcing
    their regulatory decisions regarding trade in such chemicals,
    advances and promotes U.S. objectives in this regard. All
    relevant Federal agencies support early ratification of the
    Convention for this reason, and we understand that the affected
    industries and interest groups share this view.
        I recommend that the Senate give early and favorable
    consideration to the Convention and give its advice and consent
    to ratification, subject to the understanding described in the
    accompanying report of the Secretary of State.

                                                    William J. Clinton.

                              LETTER OF SUBMITTAL

                                  ----------

                                           Department of State,
                                        Washington, September 24, 1999.
    The President,
    The White House.
        The President: I have the honor to submit to you the
    Rotterdam Convention on the Prior Informed Consent Procedure
    for Certain Hazardous Chemicals and Pesticides in International
    Trade, with Annexes, done at Rotterdam September 30, 1998. The
    United States signed the Convention, subject to ratification,
    on September 11, 1998. I recommend that the Convention be
    transmitted to the Senate for its advice and consent to
    ratification.
        Advances in chemical synthesis and production in this
    century have been responsible for many important benefits
    currently enjoyed by modern society. The introduction and use
    of chemicals and pesticides into the environment, however, also
    carries with it inherent risks. The United States has made
    great strides to address these risks since the dangers of
    indiscriminate pesticide use were highlighted some thirty-five
    years ago. Each year, chemical manufacturers and developed-
    country governments such as the United States spend many
    millions of dollars to test and assess chemicals to ensure that
    they can be managed in a sound manner once they are introduced
    into commerce. The Environmental Protection Agency and other
    state and federal agencies employ a great number of experts to
    decide which chemicals can be used safely and to ensure their
    safe use.
        Outside the developed world, however, countries simply do
    not have these resources at their disposal, and the United
    States and other developed countries have long recognized the
    critical role they play in sharing their experience and
    knowledge with developing countries and to help alert them to
    significant chemical risks. With the current pace of
    globalization and associated increases in chemical trade, the
    need to promote good risk-based decision-making is also
    increasing rapidly in many countries.
        The Rotterdam Convention is a substantial new tool to
    promote this goal. The Convention establishes a procedure to
    promote shared responsibility in the international trade of
    certain hazardous chemicals through the exchange of information
    about these chemicals and the communication of national
    decisions about their import and export. Under the Convention,
    each Party agrees to inform the Secretariat of its national
    decisions regarding the import of certain listed chemicals, and
    each Party is required to ensure that exports from its
    territory comply with those import decisions. This mechanism is
    known as the prior informed consent, or ``PIC'', procedure. The
    Convention also required each exporting Party to provide export
    notifications to importing Parties with respect to eachchemical
    that the exporting Party has banned or severely restricted under its
    domestic law.
        The Convention builds on voluntary guidelines for the
    exchange of information on chemicals in international trade and
    on a parallel international code of conduct for the
    distribution and use of pesticides (the ``voluntary
    procedure''). The United States helped develop the voluntary
    procedure, which was designed to give developing countries
    information about risks posed by especially hazardous chemicals
    and to assist them in enforcing their decisions regarding trade
    in such chemicals. Over 150 countries currently participate in
    the voluntary procedure, which has been operational since 1992.
    Major chemical producers and environmental groups from the
    United States and abroad have supported the voluntary procedure
    and endorsed its being strengthened into binding obligations.
    The Convention includes in its original list of chemicals
    subject to the PIC procedure the 27 chemicals that were listed
    in the voluntary procedure at the time the Convention was
    concluded.
        The United States played a leading role in negotiating the
    Convention, which was developed under the joint auspices of the
    Food and Agriculture Organization of the United Nations (FAO)
    and the United Nations Environment Program (UNEP). Throughout
    the negotiations, the Department of State and interested
    federal agencies, including the Environmental Protection
    Agency, the Department of Commerce, the United States Trade
    Representative, and the Department of Agriculture, consulted
    with the Congress, industry, and environmental organizations.
    The relevant federal agencies support expeditious ratification
    of the Convention by the United States. The Convention has the
    support of U.S. industry and environmental organizations.
        The following analysis reviews the Convention's key
    provisions and sets forth the proposed understanding of the
    United States with respect to several elements.

                                    preamble

        The Preamble emphasizes that the Convention shall not be
    interpreted as implying in any way a change in the rights and
    obligations of a Party under any existing international
    agreement applying to chemicals in international trade or to
    environmental protection. The text thus clarifies that the
    convention does not affect the rights and obligations created
    by agreements such as the Agreement establishing the World
    Trade Organization. This text was agreed to in recognition of
    the fact that the Convention can be implemented by Parties in a
    manner fully consistent with such agreements.

                             article 1 (objective)

        This article sets out the objective of the Convention,
    which is to be pursued in accordance with the specific
    operative provisions. The objective is to promote shared
    responsibility in the international trade of certain hazardous
    chemicals in order to protect human health and the environment.

                            Article 2 (Definitions)

        Paragraph (a) expressly provides that the term ``chemical''
    includes a substance ``whether by itself or in a mixture or
    preparation.'' In defining a ``chemical,'' paragraph (a)
    further provides that the term consists of two categories:
    pesticide (including severely hazardous pesticide formulations)
    and industrial. These categories are significant because the
    responses of importing countries are tied to a specific
    category of use, as are the obligations of exporting Parties
    under the Convention. This approach is consistent with the
    distinction between pesticides and industrial chemicals under
    U.S. law, and with the implementation of the voluntary
    procedure in the United States.
        Paragraph (b) defines a ``banned chemical'' as a chemical
    all uses of which within the pesticide and/or industrial
    categories have been prohibited in order to protect human
    health or the environment. Paragraph (c) defines a ``severely
    restricted chemical'' as a chemical virtually all use of which
    within the pesticide and/or industrial categories has been
    prohibited, but for which certain specific uses remain allowed.
    These definitions expressly include a chemical that has been
    refused approval or withdrawn by industry when there is clear
    evidence that such action has been taken in order to protect
    human health or the environment. This definition reflects the
    fact that chemicals are sometimes withdrawn prior to a
    regulatory determination, based on the anticipation that they
    would be subject to a ban or severe restriction if the
    regulatory process were carried through to conclusion.
        Paragraph (d) defines a ``severely hazardous pesticide
    formulation'' as ``a chemical formulated for pesticidal use
    that produces severe health or environmental effects observable
    within a short period of time after single or multiple
    exposure, under conditions of use.'' In developed countries,
    such formulations are likely to be subject to stringent
    handling requirements, such as application by means of closed
    tractor cabs or fully enclosed suits with respirators. These
    requirements would not give rise to a definition as a
    ``severely restricted chemical'' under the Convention, but
    nonetheless may be difficult or impossible to put into effect
    in many developing countries. The Convention therefore sets out
    a specific procedure for the inclusion of such formulations in
    the PIC procedure.
        Paragraph (e) defines ``final regulatory action'' as an
    action the purpose of which is to ban or severely restrict a
    chemical, and which does not require subsequent action. As
    discussed below, a Party's adoption of a ``final regulatory
    action'' with respect to a particular chemical gives rise to
    certain notification requirements. This definition makes it
    clear that interim domestic regulatory measures do not trigger
    such obligations.

                      Article 3 (Scope of the Convention)

        This article specifies that the Convention applies to
    banned or severely restricted chemicals and severelyhazardous
    pesticide formulations. It also specifies that the Convention does not
    apply to: narcotic drugs and psychotropic substances; radioactive
    materials; wastes; chemical weapons; pharmaceuticals, including human
    and veterinary drugs; chemicals used as food additives; food; and
    chemicals in quantities not likely to affect human health or the
    environment, provided they are imported for the purpose of research or
    analysis or by an individual for his or her personal use in quantities
    reasonable for such use.

                  article 4 (designated national authorities)

        Each Party shall designate one or more national authorities
    to perform the administrative functions required by this
    Convention. In the United States, the Assistant Administrator
    for Prevention, Pesticides and Toxic Substances of EPA
    currently serves as the designated national authority for the
    voluntary PIC procedure, and it is anticipated that this
    arrangement would continue under the Convention.

       article 5 (procedures for banned or severely restricted chemicals)

        Article 5 describes the mechanism for global notification
    of national decisions to ban or severely restrict chemicals.
    Under this mechanism, each Party shall notify the Secretariat
    when it adopts a final regulatory action to ban or severely
    restrict a chemical. The notification shall include certain
    information regarding both the chemical and the regulatory
    action, such as the basis for the regulatory action. The
    information requirements for such notifications are contained
    in Annex 1. In addition, this article sets out the procedure by
    which a banned or severely restricted chemical is considered
    for inclusion in the list of chemicals subject to the PIC
    procedure (Annex III).
        Pursuant to paragraph 5, when the Secretariat has received
    notifications regarding a national decision to ban or severely
    restrict a particular chemical from at least two countries from
    different regions of the world, it forwards these notifications
    to the Chemical Review Committee established under the
    Convention. This two-region process ensures that chemicals of
    concern to only one region will not be subject to consideration
    for inclusion in the globally binding PIC procedure. The
    composition of the regions will be designated in a future
    decision of the conference of the Parties, based on the
    regional groupings used in the FAO.
        Following transmittal of the notifications pursuant to
    paragraph 5, the Chemical Review Committee then considers the
    chemical for possible inclusion in the PIC procedure. Paragraph
    6 requires that, in reviewing a notification, the Committee
    consider several criteria, including whether the regulatory
    action has been taken on the basis of a risk evaluation, and
    whether the considerations giving rise to the regulatory action
    are based on limited geographical or other circumstances. The
    criteria are set out in Annex II. Based on its review, the
    Chemical Review Committee then makes a recommendation to the
    Conference of the Parties whetherthe candidate chemical should
    be added to Annex III and thereby made subject to the PIC procedure.

      article 6 (procedures for severely hazardous pesticide formulations)

        Article 6 establishes distinct procedures and criteria for
    considering inclusion of severely hazardous pesticide
    formulations in Annex III on the basis of actual problems in
    developing countries or in countries with economies in
    transition. Under paragraph 1, any developing country Party or
    Party with an economy in transition that is experiencing
    problems caused by a severely hazardous pesticide formulation
    may propose it for listing in Annex III. The proposal shall
    contain certain specified information, including a description
    of incidents related to the substance, such as adverse effects
    and the way in which the formulation was used, and any
    regulatory measure taken or intended to be taken by the
    proposing Party in response to these incidents.
        Paragraph 2 requires the Secretariat to verify whether the
    proposal contains the required information, and, if so, to
    forward within six months a summary of the information to all
    Parties. Paragraph 3 further requires the Secretariat to
    collect certain additional information, including, for example,
    information on the properties of the formulation, the existence
    of handling restrictions in other States, and information on
    incidents in other States.
        Pursuant to paragraph 5, when the requirements of
    paragraphs 2 and 3 have been fulfilled, the Chemical Review
    Committee reviews whether the pesticide formulation merits
    inclusion in Annex III. As with a banned or severely restricted
    chemical, the Convention specifies certain criteria that the
    Committee shall consider in its review, in order to help
    Parties determine the reliability and seriousness of incident
    reports and the degree to which they support the pesticide
    formulation's listing in Annex III. The criteria include, for
    example, the reliability of the evidence linking the
    formulation to the reported incidents, and the relevance of
    such incidents to other States with similar conditions. The
    criteria are set out in part 3 of Annex IV. Based on this
    review, the Chemical Review Committee then recommends to the
    Conference of the Parties whether the proposed pesticide
    formulation should be added to Annex III.

                 article 7 (listing of chemicals in annex iii)

        This article sets out the procedure for the addition of a
    chemical to Annex III. For each chemical that the Chemical
    Review Committee decides to recommend for listing in Annex III,
    it shall prepare a decision guidance document and forward that
    document along with its recommendation to the Conference of the
    Parties.
        The Conference of the Parties then makes a decision whether
    the chemical is to be listed in Annex III. Pursuant to
    paragraph 5(b) of Article 22, those decisions are taken by
    consensus and become binding on all Parties. This special
    procedure ensures that there is widespread support for the
    listing of a particular chemical, andthat the list of chemicals
    that are subject to the PIC procedure is uniform for all Parties.

    article 8 (chemicals in the voluntary prior informed consent procedure)

        As noted above, Annex III currently consists of the 27
    chemicals that had been subject to the voluntary PIC procedure
    at the time the Convention was concluded. Because it was
    intended that the voluntary procedure would continue during the
    period before the convention's entry into force, however,
    Article 8 ensures that any new chemicals added to the voluntary
    procedure during that interim period will be fully considered
    before inclusion in the Convention. As with all decisions
    regarding the addition of new chemicals to Annex III, pursuant
    to paragraph 5(b) of Article 22, such decisions will be taken
    by the Conference of the Parties by consensus.

              article 9 (removal of the chemicals from annex iii)

        Article 9 sets forth the procedure for proposing the
    removal of a chemical from Annex III. A Party may submit
    information that was not available at the time the decision to
    list a chemical was made. The procedure under which such a
    proposal is considered closely parallels the procedure for
    adding chemicals, as set forth in Articles 6, 7, and 8.

     article 10 (obligations in relation to imports of chemicals listed in
                                   annex iii)

        Article 10 sets forth obligations on Parties with respect
    to the import of chemicals listed in Annex III. Pursuant to
    paragraph 2, for each chemical listed in Annex III, each Party
    shall transmit a response with its decision concerning the
    future import of that chemical; that decision will form the
    basis of exporting Party obligations under the PIC procedure.
    An importing Party's responses shall consist of: a decision to
    consent to import; a decision not to consent to import; or a
    decision to consent to import only subject to specified
    conditions. These responses may be either final decisions or
    interim responses.
        As discussed above, pursuant to paragraph 5, a Party's
    response shall relate to the category or categories under which
    the chemical is listed in Annex III. For example, for those
    chemicals that are listed in Annex III under the pesticide
    category, decisions with respect to the import of the chemical
    shall apply only to uses as pesticides.
        Paragraph 9 requires Parties that prohibit or condition the
    import of a chemical listed in Annex III to simultaneously
    prohibit or make subject to the same conditions both imports of
    the chemicals from any source, and domestic production of the
    chemical for domestic use. This provision thus requires that
    import decisions under the PIC procedure will have a trade
    neutral effect.
        Paragraph 10 provides that every six months the Secretariat
    shall inform the Parties of the responses it has received.

     Article 11 (Obligations in relation to exports of chemicals listed in
                                   Annex III)

        Article 11 sets forth obligations on exporting Parties with
    respect to chemicals listed in Annex III. Paragraph 1 requires
    each Party to adopt measures to communicate other Parties'
    import decision responses to those concerned in its
    jurisdiction and to take appropriate measures to ensure that
    exporters comply with those importing Party responses. This
    obligation is similar to current U.S. law requiring U.S.
    exporters to comply with specifications or directions of
    importers abroad.
        Paragraph 1(c) requires Parties to assist importing
    countries, upon request and as appropriate, to obtain further
    information to help them to make responses under Article 10,
    and to strengthen their capacities to manage chemicals safely.
    The United States already provides such assistance upon
    request. The language of this article will give the United
    States the latitude to determine, from the standpoint of
    resource allocation and applicable U.S. law, those requests
    that are appropriate for U.S. assistance.
        Paragraph 2 sets forth provisions that govern exports to a
    Party that has failed to transmit an import response or has
    transmitted an interim response that does not specify its
    decision with regard to imports. This provision requires that
    exporting Parties take steps to ensure that a listed chemical
    is not exported to a Party that has failed to transmit a
    response, unless the chemical is registered in the importing
    Party, there is evidence that the chemical has previously been
    used or imported there, or the exporter has obtained the
    importing Party's explicit consent. This grace period for
    importing countries parallels the approach in the voluntary PIC
    procedure, and reflects the fact that there may be exceptional
    circumstances in which certain Parties are unable to provide
    responses in a timely manner. These obligations remain in
    effect for a period of one year, beginning six months after the
    date that the Secretariat has circulated the initial set of
    responses to the Parties. This ``sunset'' provision, which is
    not part of the current voluntary PIC procedure, is designed to
    impose incentives on countries to ensure that they file import
    responses pursuant to Article 10.

                        article 12 (export notification)

        Article 12 requires a Party to provide an export
    notification to the importing Party when a chemical that is
    banned or severely restricted under the exporting Party's law
    is exported from its territory. The information required to be
    contained in these export notifications is set out in Annex V.
    The export notification shall be provided prior to the first
    export following adoption of the regulatory action, and,
    thereafter, before the first export in any calendar year or
    after a major change in the regulatory status of thechemical.
    This article also requires importing Parties to acknowledge receipt of
    the first export notification. In the absence of such acknowledgement,
    exporting Parties are required to submit a second notification. The
    second notification does not need to be provided prior to export. This
    article also provides that the export notification requirement may be
    waived by the importing Party.
        These export notification obligations cease when a chemical
    has been listed in Annex III and the importing Party has
    provided an import decision response concerning that chemical.
    The requirement is based on the principle that importing
    Parties should be informed if they are receiving exports of
    chemicals that are banned or severely restricted in the country
    of export. Certain export notification requirements are already
    in place in the United States and certain other developed
    countries.
        Article 12 does not expressly state whether the obligation
    to provide export notifications extends to exports of chemicals
    in a different category (i.e., pesticide or industrial
    chemical) from the one in which the exporting Party imposed a
    ban or severe restriction. At the behest of the United States,
    Canada, Mexico and the European Union, it was made clear during
    the negotiation, however, that the obligation in article 12
    would be fulfilled if a country only required notification of
    exports in the same category in which the ban or severe
    restriction had been taken. This category-based approach to
    export notification is consistent with the approach taken by
    the United States and several other countries in implementing
    the voluntary PIC procedure. In order to emphasize this point,
    I recommend that the following understanding be included in the
    U.S. instrument of ratification:

              It is the understanding of the United States of
            America that the notification obligation in Article 12
            requires only that an exporting Party provide export
            notifications with respect to exports in the same
            category of chemicals in which the exporting Party has
            imposed a ban or severe restriction, and does not
            require notifications for exports of chemicals in a
            different category.

            article 13 (information to accompany exported chemicals)

        Article 13 contains a number of provisions relating to
    shipping documents, labeling, and safety data sheets for
    exported chemicals that are either listed in Annex III or
    banned or severely restricted by an exporting Party. These
    provisions are in keeping with the purpose of the Convention to
    provide appropriate information regarding exports of especially
    hazardous chemicals.
        Paragraph 1 encourages the world Customs Organization to
    assign specific Harmonized System customs codes to chemicals
    listed in Annex III. This approach has been used in the case of
    certain other controlled products, and was considered an
    effective way to use existing mechanisms to help Parties track
    the levels of PIC chemicals in their territory. Exporting
    Partiesshall require that such codes, if assigned, are included
    in shipping documents.
        Pursuant to paragraph 2, each Party shall require that
    exports of chemicals that are listed in Annex III or are banned
    or severely restricted in its territory be subject to certain
    labeling requirements. The labeling requirements shall ensure
    adequate availability of information with regard to risks and/
    or hazards to human health or the environment, taking into
    account relevant international standards. Paragraph 3 provides
    that a Party may, should it so decide, require that chemicals
    subject to environmental or health labeling in its territory
    also be subject to labeling requirements upon export. These
    labeling requirements are similar to requirements under current
    U.S. law with respect to pesticide exports.
        Paragraph 4 requires that, for chemicals listed in Annex
    III and chemicals that are banned or severely restricted in its
    territory that are to be used for occupational purposes, each
    exporting Party shall require that a safety data sheet that
    follows an internationally recognized format is sent to the
    importer.

                       Article 14 (Information exchange)

        Article 14 contains a number of general provisions designed
    to facilitate the exchange of information relevant to the
    objections of the Convention. The Convention will be an
    important mechanism for helping countries better obtain and use
    information in making decisions regarding chemicals posing
    particular risks, and this article is in keeping with that
    purpose.
        Parties that exchange information pursuant to this
    Convention shall protect any confidential information as
    mutually agreed. Paragraph 3 lists several categories of
    information that shall not be regarded as confidential for the
    purposes of the Convention, including information referred to
    the Annex 1 (concerning notifications of final regulatory
    actions). Paragraph 2(b)(iii) of that annex requires that the
    notifications include an ``[e]stimation, where available, of
    quantities of the chemical produced, imported, exported and
    used.'' The negotiating record expressly reflects that
    negotiators understood this provision to require reasonable
    reporting of available information on relative quantities of
    the chemicals produced, imported, exported, and used for the
    purpose of helping other Parties determine the significance of
    a Party's final action. For this reason, the United States
    would generally be able to provide the required information at
    a level of generality consistent with U.S. law regarding the
    protection of confidential business information.

                 Article 15 (Implementation of the Convention)

        This article requires each Party to establish the necessary
    institutional measures to effectively implement the Convention,
    to ensure that its public has appropriate access to information
    to hazardous chemicals, and to cooperate in implementation of
    the Convention. It also provides that the Convention does not
    restrict the right of a Party to take more protective measures,
    provided that such measures are consistent with the Convention
    and in accordance with international law.

                       Article 16 (Technical Assistance)

        This article requires the Parties to cooperate in promoting
    technical assistance for the development of the capacity to
    manage chemicals to enable implementation of the Convention.

                          Article 17 (Non-Compliance)

        This article provides that the Conference of the Parties
    shall, as soon as practicable, establish procedures for
    determining non-compliance with the Convention and for
    treatment of Parties found to be in non-compliance.

                     Article 18 (Conference of the Parties)

        Article 18 establishes a Conference of the Parties and
    outlines its duties and functions. It also provides that the
    Conference of the Parties shall establish the Chemical Review
    Committee. The Committee will consist of a limited number of
    government-designated experts that are appointed by the
    Conference of the Parties.

                            Article 19 (Secretariat)

        Article 19 establishes a Secretariat, identifies its
    functions, and specifies that those functions shall be
    performed jointly by the Executive Director of UNEP and the
    Director-General of FAO.

                      article 20 (settlement of disputes)

        This article provides that the Parties shall settle
    disputes through negotiation or other peaceful means.
    Consistent with many recent environmental agreements, this
    article also provides for mandatory recourse, at the request of
    one party to a dispute, to non-binding conciliation. In
    addition, paragraph 2 provides that a Party may declare that it
    is prepared to submit to compulsory dispute settlement by
    arbitration or before the International Court of Justice with
    respect to Parties that have made similar declarations. I
    recommend that the United States not make such a declaration.

                         articles 21-29 (final clauses)

        Article 21 and 22 contain the procedures for amending the
    Convention and its annexes. An amendment to the Convention
    requires adoption by a three-fourths majority, and enters into
    force for those Parties having accepted the amendment on the
    ninetieth day after the date of deposit of instruments of
    ratification, acceptance or approval by at least three-fourths
    of the Parties. New annexes, as well as amendments to all
    annexes except for Annex III, are proposed and adopted in the
    same manner as amendments to the Convention. They differ,
    however, in that they enter into force one year after adoption
    for all Parties that have not, within that year, indicated
    their inability to accept them. Article 22 provides that
    annexes shall be restricted to procedural, scientific,
    technical or administrative matters; for this reason, it is
    envisaged that amendments to such annexes would not ordinarily
    be submitted for the Senate's advice and consent, but rather
    would be entered into under the existing authority of the
    Executive.
        Paragraph 5 of Article 22 sets out a special procedure for
    the proposal, adoption, and entry into force of amendments to
    Annex III, due to the significant obligations attached to the
    listing of a chemical in Annex III, and the need for all
    Parties to have identical obligations with respect to that
    Annex. Amendments to Annex III are to be adopted by the
    Conference of the Parties by consensus and will enter into
    force for all Parties on a date to be specified in the relevant
    decision by the Conference of the Parties.
        Article 23 describes voting procedure, including those for
    regional economic integration organizations. Article 24
    specifies the opening of the Convention for signature. Article
    25 provides rules governing ratification, acceptance, approval
    or accession. Article 26 specifies that the Convention will
    enter into force on the ninetieth day after the date of deposit
    of the fiftieth instrument of ratification, acceptance,
    approval or accession. Article 27 prohibits reservations to the
    Convention. Article 28 provides for withdrawal by any Party at
    least three years after the Convention has entered into force
    for that Party. Such withdrawal will take effect one year after
    receipt by the Depository of the notification of withdrawal.
    Article 29 specifies that the Secretary-General of the United
    Nations shall be the Depositary.

     Annex I--Information requirements for notifications made pursuant to
                                   Article 5

        Annex I contains information that Parties are required to
    provide to accompany a notification to the Secretariat of a
    final regulatory action pursuant to Article 5.

      Annex II--Criteria for the listing of banned or severely restricted
                             chemicals in Annex III

        Annex II contains detailed criteria to be used by the
    Chemical Review Committee in determining whether a chemical
    should be listed in Annex III on the basis of final regulatory
    actions to ban or severely restrict it. It is associated with
    the obligations in Article 5.

      Annex III--Chemicals subject to the Prior Informed Consent Procedure

        Annex III contains the list of chemicals or classes of
    chemicals and their use categories that are subject to the
    Prior Informed Consent procedure. As noted above, at the time
    the Convention enters into force, Annex III shall consist of
    the 27 chemicals listed in the annex attached herewith.

     Annex IV--Information and criteria for listing of severely hazardous
                      pesticide formulations in Annex III

        This annex sets out the information a Party is required to
    provide when it proposes the listing of a severely hazardous
    pesticide formulation, specifies additional information that
    the Secretariat is required to gather regarding the substance,
    and sets out criteria that the Chemical Review Committee shall
    take into account when reviewing whether to recommend the
    substance for inclusion in Annex III. The annex is associated
    with the obligations in Article 6.

           Annex V--Information requirements for export notification

        Annex V sets out the information that shall be contained in
    export notifications required under Article 12.
        Although much of the Convention can be implemented in the
    United States under existing statutory authority, it is
    envisaged that certain changes in domestic law would be made
    before the United States would deposit its instrument of
    ratification. The United States would likely implement its
    obligations relating to the pesticide category of chemicals
    through the Federal Insecticide, Fungicide, and Rodenticide Act
    (FIFRA), and those relating to the industrial category through
    the Toxic Substances Control Act (TSCA). These statutes
    currently provide EPA with some limited authority over the
    export of particularly hazardous chemicals, but it is envisaged
    that additional legislative authority will be required to
    expeditiously and effectively meet all the Convention's
    requirements.
        The primary legislative changes would include a
    clarification of EPA's authority to condition or prohibitU.S.
    exports of Annex III listed chemicals in a manner consistent with the
    importing Party's import decision response, as required under Article
    11. Similarly, additional authority may be required in order to ensure
    full compliance with the export notification requirements for banned or
    severely restricted chemicals that are set forth in Article 12, and
    with the labeling and safety data sheet requirements in Article 13.
    Certain other technical adjustments to existing authority may be
    required; all necessary changes will be included in the
    Administration's proposal for legislation to implement the Convention,
    which will be provided in due course.
        To date, 62 states have signed the Convention; no state has
    yet acceded to or ratified the Convention. Several states,
    including many members of the Organization for Economic
    Cooperation and Development, are expected to deposit
    instruments of accession or ratification soon. Early U.S.
    ratification would provide valuable momentum to bring the
    Convention into force and would demonstrate the continued
    commitment of the United States to cooperation with the
    international community on chemicals management issues. It
    would also enhance the international leadership role of the
    United States related to the safe management of hazardous
    chemicals and pesticides, particularly during this important
    period when the details and implementation of the Convention
    are being discussed internationally. Finally, it would ensure
    that the United States is a Party when the Convention enters
    into force, when many of the critical decisions relating to its
    implementation will be made. For example, only Parties will be
    able to designate experts to sit on the Chemical Review
    Committee, which will play an important role in considering the
    addition of chemicals to Annex III.
        I recommend that the Rotterdam Convention on the Prior
    Informed Consent Procedure for Certain Hazardous Chemicals and
    Pesticides in International Trade, with Annexes, be transmitted
    to the Senate for its advice and consent as soon as possible.
        Respectfully submitted.
                                                         Strobe Talbot.