INF/TE/SSD/W/5  
 
15 February 2021  
(21-1270) Page: 1 
  Original: English  
 
TRADE AND ENVIRONMENTAL SUSTAINABILITY  
STRUCTURED DISCUSSIONS (TESSD)  
COMMUNICATION BY ICELAND  
The following communication, dated 12 February 2021, is being circulated at the request of the 
delegation of  Iceland . 
 
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This communication outlines Iceland´s priorities for the Trade and Environmental Sustainability 
Structured Discussions. It is intended to provide input into  ongoing preparation for the future work 
of the TESSD . 
1  TRADE AND ENVIRONMENTAL SUSTAINABILITY SHOULD BE ADDRESSED AT THE WTO  
1.1.  The multilateral trading system - with the WTO at its core - has an important role to play in 
global efforts to combat climate chan ge and biodiversity loss. Iceland is therefore in favour of further 
elevating environmental sustainability to be discussed in relation to international trade policy at the 
WTO.  
2  TOPICS FOR DISCUSSION  
2.1.  Iceland views the TESSD as a venue for WTO Members and re levant stakeholders to explore 
methods and best practices for realising environmental sustainability within a framework of 
international trade policy. Iceland favours a TESSD process that is well defined and focused on real 
challenges and actual results. E mphasis should be given to topics that fall within the mandate of the 
WTO and can be linked to actual trade policy tools.  
2.2.  Iceland supports negotiations of agreements to eliminate barriers to trade in environmental 
goods and services. Further liberalisation of goods and services with environmental benefits will 
support international commitments to combat climate change and contribute towards a more 
sustainable world economy.  
2.3.  Iceland supports addressing environmentally harmful subsidies in the T ESSD. Environmentally 
harmful subsidies incentivise production and consumption of products and services that contribute 
directly to climate change and biodiversity loss. They also distort competition at the expense of more 
environmentally beneficial techno logies and products. WTO Members can build on previous work and 
established trade rules regarding industrial subsidies to discipline subsidies of products that cause 
environmental harm.  
3  STAKEHOLDER PARTICIPATION  
3.1.  Iceland views the participation of competent  outside stakeholders in the TESSD process as 
contributing added value compared to other WTO forums and initiatives. Competent NGOs, academic 
institutions, international organisations, private sector entities etc. possess valuable knowledge and 
expertise a nd have an important contribution to make towards positive and concrete results of 
the TESSD process. Restricting the discussion to WTO Members only may, on the other hand, 
prevent important views from being heard and therefore diminish the likelihood of a  meaningful 
outcome.  INF/TE/SSD/W/5  
 
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  3.2.  The TESSD process should strive to include a broad and representative range of stakeholders 
covering different fields of expertise. Iceland views the establishment of an inclusive and transparent 
framework governing stakeholder selecti on and participation in the TESSD as essential for ensuring 
credibility and trust in this new and innovative approach to WTO discussions.  
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