INF/TE/SSD/R/7  
 
6 July 2022 
(22-5224) Page: 1/7 
Trade and Environmental Sustainability  
Structured  Discussions  Original : English  
 
  
WTO TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  
MEETING HELD ON 31 MARCH AND 11 APRIL  2022 
Informal summary by the Coordinators1 
The seventh plenary meeting of the Trade and Environmental Sustainability Structured Discussions 
(TESSD) was held on 31 March and 11 April 2022. The meeting was chaired by the TESSD 
Coordinators, Ambassador Stephen de Boer (Canada) and Ambassador Gloria Abraham Peralta 
(Costa Rica). The agenda for the meeting was contained in do cument INF/TE/SSD/CN/7/Rev.1. In 
keeping with TESSD's open, transparent and inclusive approach, all WTO  Members had been invited 
to attend the meeting.  
 
1  INTRODUCTORY REMARKS BY THE COORDINATORS  
1.1.  The TESSD Coordinators said that the TESSD reflected Member's belief that trade and trade 
policy can support the achievement of environmental and climate goals, and that the WTO has a 
role to play, both as a venue for discussion and for joint action. They noted that the objective of the 
meeting was to discuss paths f orward for the topics identified in the Work Plan 
(INF/TE/SSD/W/17/Rev.1 ). They thanked the delegates who agreed to take on the roles of facilitator 
of the four informal working groups  on trade -related climate measures (Switzerland and Türkiye), 
environmen tal goods and services (Ecuador and Norway), circular economy – circularity (Chile and 
Japan), and subsidies (Iceland and Uruguay) . Following the remarks by the Coordinators, several 
delegations took the floor to express their positions on the conflict in Ukraine.  
2  TRADE -RELATED CLIMATE MEASURES  
2.1.  The Secretariat presented an overview of different types of trade -related climate measures 
(TRCMs) and information included in the Environmental Database (EDB). The presentation noted 
that between 2009 and 2020, 4,6 29 TRCMs  were notified to the WTO, relating to one or more of the 
following objectives: Alternative and renewable energy (1,551  measures), energy conservation and 
efficiency (1870), climate change mitigation and adaptation (897), air pollution reduction (8 39), 
ozone layer protection (473), and afforestation/reforestation (184). In terms of types of measures, 
the most common were technical regulations (33%  of TRCMs ), grants and direct payments (26%), 
conformity assessment procedures (13%), tax concessions (1 3%), and import licences (8%). The 
presentation also provided an overview of TRCMs, broadly distinguishing between three 
types : (i) climate requirements that condition market access; (ii) price and market mechanisms ; 
and (iii) support and financial programmes.  
2.2.  A second presentation by the Secretariat briefed Members on an informal technical workshop 
on trade and climate change modelling among staff of international organizations (IMF, OECD, 
UNCTAD, World Bank , and WTO ) to share information on their respective ongoing analytical work. 
On carbon pricing, research suggest ed that global carbon pricing was economically and 
environmentally best but difficult to achieve, and that border carbon adjustment policies could tackle 
carbon leakage and los s of competitiveness but  came with a number of challenges such as possible 
limited impact on incentivizing carbon pricing in partner countries , creation of  trade distortions , and 
 
1 This summary, prepared and circulated under the Coordinators' responsibility, provides a 
non-exhaustive, illustrative review of the issues addressed by Members at the meeting.  INF/TE/SSD/R/7  
 
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  difficulties in accounting for non -price-based regulations.  The workshop  also illustrated that climate 
change feature d prominently in the research agendas of these international organizations.  
2.3.  On behalf of the facilitators of the informal working group on TRCMs  (Switzerland and Türkiye ), 
the representative of Türkiye  suggested that Members could reflect on the implications of TRCMs on 
environmental, economic and social development , and discuss principles and benchmarks in 
designing TRCMs to contribute to sustainability. Several Members took the floor to indicate their 
priorities for discussion in the informal working group, including definitions and general principles 
for TRCMs, the compatibility of measures with WTO rules and their design features, measures to 
address carbon leakage, in creasing transparency among WTO Members , including for calculating 
embedded emissions, and means to minimize trade distortions. Certain Members also noted that 
discussions should include technical and sustainability standards, including on agricultural pro ducts, 
as well as developing country challenges and impacts .  
2.4.  A number of Members shared their experiences on TRCMs . The representative of China noted 
that its national carbon market had started online trading in July 2021, representing a significant 
step in helping China reduce its carbon footprint and meet emission targets. The representative of 
Switzerland informed on  a tax relief on biofuels to reduce CO 2 emissions in the transport  sector.  The 
tax relief was granted to importers and manufacturer s who could demonstrate that their biofuel met 
ecological and social requirements, includ ing that  emissions were at least 40% lower than those 
from fossil fuels; environmental impacts were not significantly higher than those of fossil fuel s; 
production requirements that did not require the conversion of carbon -rich land, and that production  
only occurred  on legally acquired land through socially acceptable production conditions in 
accordance with the fundamental conventions of the International Labour Organization (ILO).  
2.5.  The representative of Canada highlighted Canada's ambitious carbon pricing policies aimed at 
progressively increasing the price of carbon from CA D 15 per ton of CO 2 in 2023 to C AD 170 per ton 
of CO 2 in 2030.  In this context, mitigating carbon leakage risks was a policy objective to ensure that 
it did not undermine the effectiveness of Canada's carbon pricing policy. Currently the risk of carbon 
leakage was addressed through the design of domestic carbon pricin g systems using  free allocations 
to reduce costs for emissions -intensive and trade -exposed industries. In addition, consultations were 
ongoing regarding border carbon adjustment as a possible policy tool to address carbon leakage 
risks and competitive pres sures as Canada would increase its carbon price.  
2.6.  The representative of the European Union shared an update on the ongoing process to 
implement its Carbon Border Adjustment Mechanism (CBAM) . On 15 March 2022, the European 
Council had agreed on the general a pproach and provid ed a mandate for talks with the European 
Parliament. The most significant amendments suggested by the Council concerned : (i) increased 
centrali zation at EU level of various tasks relating to the governance of the CBAM ; (ii) the 
introducti on of a de minimis  clause exempting small consignments of goods from the application of 
the CBAM ; (iii) the persons responsible for CBAM obligations in cases of indirect customs 
representation ; and (iv) additional elements in respect of the review clause. Next legislative steps 
would be a vote on the CBAM in the European Parliament, following the adoption of a report by the 
responsible standing committees. Following the adoption of the European Parliament, direct talks 
between the Council and Parliament would take place.  
2.7.  The representative of Türkiye  said that a national Climate Council had  been convened in 
February 2022 to lay out a roadmap to achieve the Government's  2053 carbon neutrality tar get 
announced  at COP26 , including recommendations on greenhouse gas  (GHG)  reductions, green 
finance, carbon pricing, adaptation, migration, science and technology, and social policies to achieve 
a just transition. It was expected that the Council's decisio ns would help prepare the ground for 
establishing the legal and institutional infrastructure for a climate change law as well as a national 
carbon pricing system.  
2.8.  The representative of the Kingdom of Saudi Arabia provided information on the recently 
annou nced Saudi Green Initiative (SGI) and Middle East Green Initiative (MGI). As part of the SGI, 
the Kingdom of Saudi Arabia would collaborate with other countries on deploying new technologies 
and innovative approaches, for instance with Germany on developin g and deploying hydrogen 
technologies as a new source of energy. Under the MGI, the Kingdom of Saudi Arabia aimed to 
implement initiatives in collaboration with countries across the region as well as multilateral 
development banks (MDBs ).  INF/TE/SSD/R/7  
 
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  2.9.  The representati ve of the United Kingdom underlined the Un ited Kingdom 's new climate change 
target to cut emissions by 78% by 2035 compared to 1990 levels, and ambitious carbon pricing 
through its emissions trading scheme and Carbon Price Support mechanism. The Government's Net 
Zero Strategy, published in October 2021, set out  specific measures for transitioning to a low carbon 
economy, alongside plans to cut emissions across the economy included in the Energy White Paper, 
North Sea Transition Deal, Transport Decarboni zation  Plan, Industrial Decarboni zation , Hydrogen 
and Heat a nd Buildings Strategies.  
2.10.   Stakeholders highlighted their efforts to promote engagement, understanding, and actions on 
trade and climate change. The representative of the Forum on Trade, Environment and the SDGs 
(TESS) noted plans  to prepare policy briefs an d create dialogues to support the participation of LDCs, 
including through a multi -stakeholder platform with developed and developing countries and 
non-state actors to explore the nexus between trade and sustainable development. The 
representative of  the I nternational Trade Centre (ITC)  provided information on the SME 
Competitiveness Outlook 2021, which was focused on empowering the green recovery ; the ITC 
Standards Map, which was the world's largest database on voluntary sustainability standards ; as 
well a s regarding ongoing efforts to support MSMEs in implement ing green business practi ces and 
strategies . The representative of  the United Nations Industrial Development Organization ( UNIDO ) 
provided information on initiatives to reduce industrial emissions th rough increased sustainability 
measures and alternative technologies including hydrogen. Another initiative aimed to decarbonize 
heavy industries by develop ing a common global approach, production standards , and reporting 
systems. It also aimed to generate demand for green steel and cement through green public 
procurement.  
3  CHALLENGES AND OPPORTUNITIES FOR SUSTAINABLE TRADE  
3.1.  Following an introduction by the Enhanced Integrated Framework ( EIF), ODI presented 
highlights of the EIF -funded project "Aligning climate and trade policy for LDCs and graduates". As 
part of the project, expert group and high -level meetings with LDCs had been  organi zed, and three 
thematic briefings on : (i) climate finance and aid for trade ; (ii) carbon markets and standards; and 
(iii) technology  had been  produced. The presentation highlighted the need to better integrate climate 
change into aid for trade and trade into climate finance , as well as challenges for LDCs to access 
climate financ e, with adaptation finance being particularly important for LDCs. The presentation also 
underlined the importance of technology transfer and capacity building complementing possible 
liberali zation of  trade in Environmental Goods and Services ( EGS); making the role of technology 
transfer for LDCs more explicit in the circular economy ; and supporting sustainable regulatory 
frameworks in LDCs, including for setting up systems for GHG accounting and  covering costs of 
certifying emissions embedded in exports.  
3.2.  The representative of Chad , on behalf of the LDC Group, highlighted challenges of climate 
change adaptation and mitigation for LDCs, including the need to reduce poverty while fostering 
clean economic growth and increasing their participation in world trad e. He underlined the need to 
align aid for trade and climate financing, mentioning EIF's efforts to align its  diagnostic trade 
integration studies and support with nationally determined contributions and national adaptation 
programmes of LDCs. For LDCs, an y effort to liberali ze trade in EGS would need to be accompanied 
by technology transfer mechanisms and increased trade -related support to strengthen absorptive 
capacity. He said that  MC12 would be an opportunity to support the integration of sustainability  
considerations into WTO work and to show the important role of the Committee on Trade and 
Environment as a forum for dialogue on trade and environmental measures.  
3.3.  The representative of the United Kingdom  welcomed the insights of the presentation, in 
particular the suggestions to align types of financial support, the need for trade analysis of climate 
finance, and for greater integration of climate change in trade objectives. He suggested that progress 
in climate financing should be done in an inclusive ma nner, and that future work on carbon standards 
and markets, aid for trade, and technology could help achieve the green transition.  
4  ENVIRONMENTAL GOODS AND SERVICES  
4.1.  The Secretariat presented a factual note (INF/TE/SSD/W/18) on experiences in the promotion 
and facilitation of trade in EGS. The note focused on experiences in the WTO (multilateral 
negotiations under the D oha Development Agenda , and plurilateral negotiations on an Environmental INF/TE/SSD/R/7  
 
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  Goods Agreement), and also covered  experiences from outside the WTO (Asia-Pacific Economic 
Cooperation  and R egional Trade Agreement s), covering the objectives and scope of the various 
initiatives. The note also discussed experiences related to the identification of EGS, tariff treatmen t 
and non -tariff barriers, as well as a number of challenges and views that have been raised. The note 
also provided a summary of selected research on trade effects, diffusion of environmental 
technology, and environmental effects of trade in EGS.  
4.2.  Members expressed appreciation for the note in helping improve common understanding of 
past experiences and informing discussions in the working group.  Members broadly agreed that 
climate and other environmental objectives should be at the cent re of discussions on EGS. Members 
highlighted various aspects that could be advanced through the informal working group including 
the identification of environmental goods and related criteria, measures to address non -tariff 
barriers, environmental services,  involvement of stakeholders, as well as ongoing efforts in other 
initiatives such as APEC or RTAs.  
4.3.  Several Member s suggested that discussions could start by focusing on products and 
technologies that contribute to climate objectives such as the reduction of GHG emissions. A Member  
also expressed interest in discuss ing technologies to increase efficiency or related to carbon capture 
and storage. A number of Member s suggested a staged approach where the working group would 
focus on only one objective before moving on. It was suggested that climate mitigation  – renewable 
technologies for energy and energy efficiency goods – could be a starting point . Another Member 
suggested that addressing EGS should follow a project -based framework.   
4.4.  A number of Members also  suggested discuss ing the environmental impacts of trade in EGS. 
One Member suggested discuss ing the criteria for evaluating the environmental benefits of goods 
and services. Another Member suggested that discussions should evaluate the full lifecycle  and 
supply chain of environmental goods including whether these goods were produced in an 
environmentally sustainable manner and under fair working conditions. A few Members also 
expressed interest in discuss ing how to capture the future development of technol ogies, the 
dissemination of technology through trade in EGS, as well as the promotion of research and 
development of new products and technologies.  
4.5.  Several Members highlighted the importance of addressing non -tariff barriers and regulatory 
measures in EGS in the discussions. In this regard, a Member expressed interest in discuss ing supply 
chain resilience, the adoption of standards , and improving the transparency of environmental 
regulations. A number of Members also expressed interest in discussing environmental services , and 
that such discussions should be conducted in parallel and support work on environmental services 
in the Council for Trade in Services in Special Session. Certain Members also noted ongoing efforts 
in other initiatives , such as APEC or RTAs , to advance discussions on the liberalization of trade in 
EGS. It was noted that  a reference list of environmental and environmentally  related services had 
been adopted  at the APEC Ministerial Meeting in November 2021 , which could se rve as a reference 
for discussions on environmental services.  
4.6.  Several Members suggested that discussions should include a dedicated focus on challenges 
for developing countries. The importance of capacity building, aid for trade, and facilitating trade 
and investment in technologically advanced products was recognized. A Member suggested that a 
holistic approach recognizing different transition pathways, including by using all available 
technologies, should be considered. Another  Member suggested that discu ssions should cover 
technology transfer for agricultural technologies, including for the use of drones, mobile applications, 
and genetic modification or gene editing to allow for increased plant protection and adaptation to 
different climate realities.  
4.7.  As part of the stakeholder discussion, t he representative of TESS informed on  its efforts to 
contribute to discussions in TESSD, including through the organization of round tables that could 
help identify approaches to discuss regulatory cooperation, equivale nce, or government subsidies. 
The representative of the World Economic Forum (WEF) noted  WEF's collaboration with industry to 
identify non -tariff barriers and relevant technologies to support the HS 2027 update, as well as 
climate -related services and tech nologies that could contribute to addressing environmental 
challenges.  INF/TE/SSD/R/7  
 
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  5  CIRCULAR ECONOMY – CIRCULARITY  
5.1.  The Secretariat provided an aide -mémoire on circular economy issues presented at the 
previous meeting, including  challenges such as lack of information i n assessing trade flows, policy 
obstacles in achieving a circular economy including standards and conformity assessments and 
HS classifications, and potential deliverables including extending previous work on non-tariff barriers 
or the development of common principles and best practices.  
5.2.  The facilitators  (Chile and Japan)  of the working group provided their preliminary thoughts on 
future work, suggesting to possibly narrow down the focus of discussions, for instance by identifyin g 
specific sectors, cross -border supply chain issues, or business models that could enhance 
cross-border circularity. Developing country perspectives would be an essential part of the working 
group discussions and it was important to  ensure complementarity  with discussions in other fora 
such as the Informal Dialogue on Plastics Pollution and Environmentally Sustainable Plastics Trade 
(IDP). The facilitators suggested that  Members could collaborate with bodies working on 
environment, customs, economic, and i ndustrial issues to integrate expertise and data from other 
work areas.  
5.3.  A Member suggested  that working group  discussions could cover : (i) the circular economy in 
the context of value chain integration , particularly  for developing countries ; (ii) technica l standards 
and regulations to enhance productivity and efficiency  in the use of raw materials, water, and 
energy ; and (iii) the promotion of technology transfer as well as cooperation for the circular use of 
material flows and the extension of material li fetimes through technological innovation. The Member 
also stressed the need to ensure that trade for the circular economy was  inclusive and value -
creating.  Another Member  suggested that the working group  could examine recent research, which 
suggested that : (i) many trade barriers  were linked to  import and export restrictions  on 
circular -economy related trade commodities; (ii) there was a lack of data  on circular 
economy -related trade flows  and internation ally accepted definitions ; (iii) barriers also impeded  the 
adoption of CE -enabling technologies ; and (iv) the importance of developing international standards, 
transparency, data, common definitions, and cooperation  to advance trade policy in support of a 
transition to a circular economy .  
5.4.  Another Member noted that recycling supply chains were dependent on trade and trade policy,  
including trade facilitation for reverse supply chains . Closing the circular economy loop would require 
rules and policies to fac ilitate aggregation of sufficient quantities of materials to recycle, in part by 
working to improve markets for recyclable materials and products and by better  integrating recycled 
materials into product and packaging designs. The Member suggested that the working group  could 
discuss barriers impeding circular trade, particularly by identifying the bottlenecks that limit reuse, 
repair, refurbishment, remanufacturing, and recycling of goods.  
5.5.  Several Members shared experiences regarding ongoing policy efforts  to enhance the circular 
economy . The representative of Japan said that Japan had implemented a number of  policies to 
promote the transition to a circular economy . Based on  collaboration between government, industr y 
and the public , significant achievements in enhancing the circular economy were made through 
means such as eco-friendly design , waste separation and collection , and high -level recycling 
systems . In March 2021, Japan had established a domestic  circular economy partnershi p ("J4CE") 
to promote collaborative efforts and  strengthen public -private  alliances among companies and 
stakeholders, as part of which a compilation of good practices by Japanese companies had been 
published in September 2021 . 
5.6.  The representative of Colombi a noted that its circular economy strategy , adopted in 2019,  
prioritized actions in six areas : industrial materials and consumer goods, packaging, biomass, 
energy, water, and construction materials . National and regional pacts and roundtables were being 
used to foster engagement among government, private sector, civil society and academia , and 
promote  public -private partnerships  and circular economy projects.  Recent policy initiatives aimed 
to recover 10% of packaging materials (plastics, glass, aluminium a nd paper), which would involve 
reintegrating more than 200,000 tonnes of waste into value chains, and further develop ing the reuse 
of wastewater as well as construction materials .  
5.7.  The representative of the Kingdom of Saudi Arabia  presented its efforts to promote circularity 
through circular approaches aimed at address ing both material waste and emissions flows. This could INF/TE/SSD/R/7  
 
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  contribute to sustainable trade by promoting solutions adapted to the country's specific  needs, 
circumstances,  and priorities. He also  described  efforts to integrate carbon removal as an additional 
step in the circular cycle beyond reduction, reuse, and recycling. It was noted that the removal of 
carbon emissions could have positive effects on the extraction of na tural resources by reducing 
emissions, and that improving access to technology could help the dissemination of necessary 
technologies.  
5.8.  The representative of the European Union noted that a recent European Commission proposal 
aimed at making sustainable pro ducts the norm, with product design and information flow being key 
elements.  During negotiations of RTAs, the European Union sought  to include  commitments that 
promote d the circular economy such as the sustainable use of raw materials ; facilitat ion of  market 
access for repairing, recycling, and maintenance services ; abolishing tariffs on repaired and 
remanufactured goods ; as well as the inclusion of provisions to effectively implement  multilateral 
environmental agreements . 
5.9.  The representative of Canada  highlighted its efforts to achieve a more circular economy 
through better design and use of resources to reduce waste and increase economic opportunities. 
He noted that the Government  was taking ambitious action to eliminate plastic waste by 2030 and 
its furthe r priorities include d circularity in government procurement, mining and forestry, and food 
waste. The Government was committed  to implement ing a "right to repair " that would help extend 
the lifetime of appliances, and was developing a strategy to encourage value -retention processes, 
including through remanufacturing, refurbishment, reuse, and repair to extend a product's service 
life.  
5.10.   The representative of the Republic of Kor ea said that the Government had formulated the 
"Korean (or K) -Circular Economy Implementation Plan " at the end of 2021 with the goal of reducing 
waste and strengthening circulation throughout the entire lifecycle of production, distribution, 
consumption , and recycling. The plan, which had been formulated with the participation of 
stakeholders, aimed to promote : (i) biodegradable plastics , renewable materials and eco-friendly 
design s; (ii) eco -friendly  consumption through smaller packaging and multi -use cont ainers ; and 
(iii) recycling  waste  resources.  
5.11.   The representative of the United States said that the United States ' approach to the circular 
economy emphas ized lifecycle impacts of materials, including climate impacts, reducing the use of 
toxic materials, an d decoupling materials ' use from economic growth, as well as decreasing the 
creation and disposal of waste in a way that was inclusive of local communities and cogni sant of 
environmental justice concerns.   
5.12.   Stakeholders informed on their ongoing work to sup port the transition towards a circular 
economy . The representative of the United Nations Economic Commission for Europe (UNECE) noted 
that UNECE was in the process of finalizing a policy report on "Accelerating the Circular Economy 
Transition in the UNECE Region: Policy options for harnessing the power of trade and economic 
cooperation ". The representative of WEF mentioned  that WEF was represented  on the Board of the 
Platform for Accelerating the Cir cular Economy (PACE), whose communities could  be a valuable  
resource for informing the TESSD informal working group  in areas such as food, electronics, textiles, 
plastics and capital equipment . The representative of UNIDO noted its efforts to provide capac ity 
building for green and circular products, manufacturing with green energy, and lifetime extension of 
products in diverse sectors and value chains. He pointed to f our areas of action that could support 
the transition to a circular economy, including enh ancing market access for circular products; 
removing barriers to remanufacturing and refurbishment; requirements for environmental labelling 
and removing incentives for fossil -fuel based products.  
6  SUBSIDIES  
6.1.  Representatives of the International Institute fo r Sustainable Development  (IISD) provided 
presentations on fossil fuel and agricultural subsidies. On fossil fuel subsidies, the presentation 
covered definitional elements  and estimates on the amounts of global subsidies , showing that 
subsidies for fossil fuels globally largely exceeded those for renewable energy. The presentation on 
agricultural subsidies provided estimates on the amounts of global subsidies, their global and specific 
environmental impacts, and opportunities to repurpose these towards more  positive environmental 
outcomes.  INF/TE/SSD/R/7  
 
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  6.2.  Some Members suggested that discussions on subsidies in the informal working group should 
encompass a broader scope and include  discuss ions of  industrial subsidies. It was noted that 
industrial subsidies leading to excess capacity could have impacts on GHG emissions from high -
intensity sectors, and discussions could analyse the effect of such subsidies. A number of Members 
cautioned that discussions should avoid duplicating efforts in o ther WTO bodies or international fora, 
including  discussions on agricultural subsidies in the Committee on Agriculture Special Session. A 
Member suggested that horizontal aspects on the environmental effects and trade impacts of 
relevant subsidies could co ver trade impacts of relevant green subsidies and environmental impact s 
of relevant subsidies across sectors.  
6.3.  Regarding fossil fuel subsidies, several Members recognized the importance of phasing out 
inefficient subsidies that encourage d wasteful consumpti on. One Member suggested discussing 
definitional elements and what would be considered wasteful or inefficient. Several Members noted 
that the work of TESSD on subsidies could offer guidance for the reform of fossil fuel subsidies and 
for improving transpa rency. Members highlighted efforts and commitments made to reform fossil 
fuel subsidies in different international fora including the UNFCCC, G7, G20, ACCTS and APEC, and 
suggested building understanding in TESSD on the scale and impacts of fossil fuel sub sidies. It was 
also noted that discussions should not duplicate the work that would take place under the Fossil Fuel 
Subsidy Reform (FFSR) initiative. A Member suggested that discussions on phasing  out subsidies 
should take a more holistic approach and cover all types of subsidies.  
6.4.  Several Members highlighted the environmental impacts of agricultural subsidies, including 
overproduction and consumption of water as well as the impacts of agricultural subsidies on 
developing countries. One Member highlighted that agriculture should be a central element in trade 
and sustainability discussions, incorporating the three dimensions of sustainability (social, 
environmental, and economic) and tak ing into account climatic and geographic considerations. The 
Member note d that developing countries did not have the same capacity to subsidize agriculture as 
developed countries, and that such subsidies could be distortive. Agricultural policies could be used 
to generate employment and improve food security, but subsidies fro m developed countries could 
provide artificial competitive advantages. It was also noted that discussions  of the complex issues 
related to sustainability in agriculture could benefit from the involvement of stakeholders such as 
the Food and Agriculture Org anization ( FAO), the United Nations Environment Programme ( UNEP ), 
and the Organisation for Economic Co -operation and Development  (OECD ) to move towards reform 
of agricultural subsidies.  
6.5.  The representative of UNEP highlighted findings from a joint FAO-UNDP -UNEP report ("A Multi -
Billion -Dollar Opportunity: Repurposing agricultural support to transform food systems ") that 
estimated that USD  540 billion were spent worldwide on direct support for individual agricultural 
producers, of which 87% could be considered price distorting and harmful to nature and health. It 
was estimated that this would increase to USD  1.8 trillion by 2030. Trade policy could help update 
agricultural trade rules to support the environmental transition. Governments should priorit ize fiscal 
spending that support ed green recovery and invest in long -term solutions rather than short -term 
unsustainable expenditures such as environmentally harmful subsidies. It was suggested that 
resources could be invested in public goods , such as rese arch and development or infrastructure , to 
ensure that fiscal support protect ed consumers and ensure d food security.  
7  CONCLUDING REMARKS BY THE COORDINATORS AND NEXT STEPS  
7.1.  The TESSD Coordinators thanked Members for their active engagement and the facilitato rs for 
leading the work in the working groups going forward. Ambassador De Boer (Canada) noted that 
views  and interest s expressed would  be of great value for the work going forward in the working 
groups and for upcoming sessions, as well as for the facilit ators as they prepared the work of the 
working groups.  Ambassador Abraham (Costa Rica) noted that the current format of the TESSD 
aimed to help advance discussions on common trade and environmental objectives through the lens 
of the interests and prioritie s of the Members. Outcomes would have important results for the 
multilateral system and making trade a force for good . She  encouraged Members to continue 
encouraging the participation of new co -sponsors.  
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