The Terms of Reference for International Jute Study Group (IJSG) was negotiated in the UN Conference on Jute and Jute Products held under the auspices of UNCTAD during 12-13 April 2001 in Geneva.

Considering the fact that the International Agreement on Jute and Jute Products, 1989 came to an end in 2000 and recognizing the desire of the members of the IJO to continue international cooperation in jute and jute products, the Working Group established by the Council of the IJO prepared a draft instrument for future international cooperation in jute and jute products. This document formed the basis of negotiation in the UNCTAD conference.

The new instrument recognized the need for an increased role for the private sector and provided for Associate Membership for private sector entities and also the setting up of a Private Sector Consultative Board in the IJSG.

The International Jute Study Group (IJSG) and the Food and Agriculture Organisation of the United Nations (FAO) have agreed to strengthen their cooperation through consultation and coordination for the development of Jute, Kenaf, and Allied Fibres. Mr. T. Nanda Kumar, Secretary General of the IJSG and Mr. Jacques Diouf, Director General of the FAO signed a Memorandum of Understanding (MoU) in this regard. Both organisations agreed to support the efforts of their Members to facilitate jute production, consumption and trade so as to improve the incomes and food security of jute producers and others associated with the jute industry.  Under the agreement, IJSG and FAO will invite each other to participate as observer in conferences and meetings which will be hosted by either party on common interests. The organisations will also exchange information, documents and use those to avoid duplication of efforts.