The 53 members of the World Trade Organization (WTO) that participate in the “Structured Discussions on Trade and Environmental Sustainability” (TESSD) are striving to achieve results before the Twelfth Ministerial Conference (MC12), which will take place from 30 November to 3 December 2021.
At the second meeting of the TESSD initiative, which took place in 26 to 28 May 2021, opinions were exchanged on issues related to environmental goods and services, Green Aid for Trade, Fossil Fuel Subsidy Reform, Carbon Border Adjustments and Greening Tradeo (with a focus on the circular economy).
La WTO information indicates that at the exclusive session for members of the Organization, on May 28, participants focused much of their debates on the possible definitions of the Ministerial Conference, which is only six months away. Thus, several supported the idea of a timely ministerial statement, highlighting the potential contribution of the WTO to achieving global environmental and climate objectives. Also, that the ministerial declaration contains a roadmap or action plan for the post-MC12 period, which could possibly include liberalisation of trade in environmental goods and services, reform of fossil fuel subsidies, transition to a circular economy, plastic pollution, among other possible areas of work.
Some members proposed the possible creation of a Forum to discuss ways to prevent “carbon leakage” (companies that move production and related emissions to countries with more lax emissions restrictions). Also, evaluate tools for carbon border adjustments, as a possible additional outcome of the Ministerial Conference. Several members emphasized that the work of the TESSD should be consistent with the WTO and international climate agreements. Measures to address climate change must not be unjustifiably discriminatory or protectionist.
During the meeting, Brazil, Ecuador, El Salvador and Paraguay submitted a written proposal highlighting the key role of the agricultural sector in achieving sustainable development and asks TESSD participants to analyse the environmental impacts of agricultural subsidies, along with the role of the environment, standards and regulations related to agricultural trade.
As at the March meeting of the TESSD initiative, select institutions were invited to contribute to the May discussions, including representatives from think tanks, intergovernmental bodies, business associations and civil society groups participated during the first two days, and the last day was limited to WTO members only.
It is clear that The TESSD initiative was launched in November 2020 to intensify discussions at the WTO on trade and the environment. Members sponsoring this initiative are Australia, Canada, Chad, Chile, Costa Rica, Gambia, Fiji, Iceland, Japan, Korea, Liechtenstein, Maldives, Mexico, Moldova, Montenegro, New Zealand, North Macedonia, Norway, Senegal, Switzerland, the Separate Customs Territory of Taiwan-Penghu-Kinmen-Matsu and the United Kingdom.
The next TESSD meeting is scheduled for the week of July 26, 2021.
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