Members highlight progress in sustainability discussions, discuss MC14 objectives

Ambassador Nadia Theodore of Canada, a co-convener of TESSD, welcomed the “important strides” made by the four working groups — each focused on a different key theme outlined above . As work intensifies in the lead-up to MC14, she noted: “It is useful to recall that, as an incubator of ideas, our aim is to identify where trade policy can best support members’ efforts to achieve their environmental and climate goals and promote more sustainable production and consumption.”

Progress in working groups

The facilitators of the four TESSD working groups updated members on progress made in recent technical discussions, with several highlighting advances in drafting outcome documents in preparation for MC14. Feedback from members is currently being incorporated into the outcome documents and revised versions will be circulated ahead of the next working group meetings in October.

Jean-Marie Meraldi of Switzerland, the facilitator of the Working Group on Trade-Related Climate Measures (TrCMs) highlighted the discussions held in May, which focused on the interoperability of carbon border adjustment mechanisms (CBAMs). Key topics included carbon standards, emissions measurement methodologies, and data exchange frameworks. Members also reviewed the first draft outcome document mapping trade-related climate policies. Work is now underway to refine the document’s structure and incorporate members' feedback.

Ben Rake of the United Kingdom, co-facilitator of the Working Group on Environmental Goods and Services (EGS) reported that discussions have proceeded on two fronts: sector-specific topics such as sustainable agriculture and climate adaptation, and horizontal issues, including trade facilitation and regulatory practices. The group continued to develop its analytical summary.  A revised version will be reviewed at the October meeting.

Taka Sashida of Japan and Nur Karabağ  of Türkiye, the co-facilitators of the Working Group on Economy-Circularity reported that members had recently shared a range of experiences  on promoting circularity in the textiles and battery sectors. Members also discussed a draft outcome document for MC14. They broadly supported compiling members’ practices and trade policy tools to capture trade-related aspects of circularity across four key sectors — textiles, batteries, electronics and renewable energy.

Tiffany Smith, co-facilitator of the Working Group on Subsidies said members have focused on policy incentives and international cooperation to support the decarbonization of energy-intensive industries — such as steel, aluminium and cement — as well as maritime transport. The first draft outcome document on key elements for subsidy design was introduced, including considerations for subsidy design and member experiences.

Members and stakeholders welcomed the progress achieved across the four TESSD working groups, with many emphasizing their value in fostering inclusive, practical and technical discussions at the intersection of trade and environmental sustainability. Members supported the continued development of the outcome documents, underscoring the importance of transparency, stakeholder engagement, and the sharing of national experiences.

They highlighted the need to address both horizontal and sector-specific issues and to include examples from developing members. Some suggested that members begin reflecting on the structure of the four working groups and the content of TESSD work beyond MC14. Some members asserted that TESSD has been successful in catalysing the uptake of multilateral discussions on trade-related climate measures and suggested shifting this work to the Committee on Trade and Environment.

TESSD publication for MC14

Ambassador Ronald Saborío of Costa Rica, also a co-convener of TESSD, introduced a draft annotated outline for planned TESSD publication for MC14 (INF/TE/SSD/W/40). The draft aims to consolidate key messages and substantive insights into how trade and trade policy can support climate and environmental goals, including the clean energy transition, decarbonization of industry and transport, climate adaptation, and biodiversity. The document also has a section on lessons learned and key messages for policymakers at both national and multilateral levels, along with a forward-looking vision for TESSD’s future work.

Delegates welcomed the co-convenors’ draft outline for this overarching MC14 output as a good basis for further discussion, recognizing its value in consolidating five years of substantive work and enhancing transparency and understanding for a wide range of policymakers and stakeholders.

Some members emphasized the importance of maintaining balance across different objectives, while others called for better integration of cross-cutting themes. Several delegates highlighted the importance of including case studies from members at different levels of development  to reflect diverse experiences. Others stressed that the document should remain non-prescriptive.

In conclusion, Ambassador Saborío thanked participants for their constructive feedback. He reaffirmed TESSD’s commitment to helping members leverage trade to achieve environmental objectives. He said: “Over the past five years, TESSD has made remarkable progress toward its goals. We have created a platform for meaningful dialogue — one that is innovative, creative, active and transparent.” He encouraged continued collaboration in the lead-up to MC14 and assured members that their inputs would be reflected in the revised outcome document.

More information

Guided by its 2021 Ministerial Statement, TESSD seeks to complement the work of the WTO Committee on Trade and Environment and advance discussions at the intersection of trade and environmental sustainability towards identifying concrete actions that members could take individually or collectively. The initiative, which is open to all WTO members, is currently co-sponsored by 78 members representing all regions and all levels of development.

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