This article is part of a Synergies series on Next generation trade arrangements for environment and sustainable development. Any views and opinions expressed are those of the author(s) and do not necessarily reflect those of TESS or any of its partner organizations or funders.

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Trade and environment discussions at the World Trade Organization (WTO) have seen renewed momentum over the past five years. This impetus has been spearheaded by three separate member-led initiatives, each bringing together different subsets of members to enhance cooperation on global environmental challenges and sustainable development within the WTO framework.

In December 2021, three ministerial statements were issued by co-sponsors on environmental sustainability, plastic pollution, and fossil fuel subsidy reform—each aiming to spur enhanced cooperation and dialogue as a complement to work under way in other WTO bodies. These statements have gained traction across a broad diversity of WTO members. In each case, participation in the work of the initiatives is open to all WTO members.

One of these initiatives, the Trade and Environmental Sustainability Structured Discussions (TESSD), was launched in 2020 by a group of 53 WTO members to bolster information-sharing and dialogue on issues at the intersection of trade and environment, nurture possible ways forward, and spur more focused attention to these issues in the WTO’s regular committees. TESSD has since garnered the support of 79 members from all regions and levels of development.

For the Fourteenth WTO Ministerial Conference (MC14) in March 2026, TESSD has presented a comprehensive package of documents that includes a ministerial communiqué from the co-convenors (Canada and Costa Rica), a report on insights and outcomes from five years of work capturing the evolution of TESSD and the breadth of information generated over its first five years, and outcome documents from the four TESSD working groups—trade-related climate measures, environmental goods and services, circular economy – circularity, and subsidies—reflecting technical work undertaken by the co-sponsors.

The package prepared for MC14 demonstrates the depth and sophistication of TESSD’s work. The outcomes have benefited from engagement with a broad and growing range of WTO members, international organizations, businesses, and civil society, as well as the expertise of the WTO Secretariat. The inclusive nature of the process and the breadth of input strengthen both the credibility and the relevance of the work.

As argued below, TESSD has pioneered new forms of engagement within the WTO on trade and sustainability. It has served as an incubator of ideas and a testing ground for new models of cooperation. The initiative can be seen as part of a broader ecosystem of trade arrangements committed to sustainability principles as governments rethink how they can cooperate on trade to address global environmental crises and sustainable development challenges.

In this context, the five-year anniversary of TESSD is a good time to reflect on what this member-led initiative has achieved since its launch, and, importantly, to consider the next steps towards practical solutions and tangible outcomes.

First, TESSD has succeeded in firmly placing sustainability on the WTO agenda—in a constructive and forward-looking way.

To fully appreciate where we are today, we must look back to a time when sustainability’s place within the WTO was far less defined, and far less dynamic, than it is today.

Five years ago, many of the issues now routinely discussed were simply absent from WTO conversations. Topics such as the interoperability of trade-related climate measures , circular economy approaches, climate adaptation, or the role of trade cooperation in decarbonizing industry were not part of the mainstream dialogue.

One of the reasons for this was structural. There was no dedicated space within the WTO for exploratory discussions—no forum where members could exchange ideas, share experiences, and learn from one another outside of formal negotiations, and an in iterative, collaborative way rather than through one-off events.

TESSD filled that gap.

By creating a safe, inclusive, and non-negotiating space, it has reinvigorated discussions across the system. It has helped catalyze momentum not only within TESSD itself, but also in other fora such as the Committee on Trade and Environment (CTE), and beyond. Members would not have engaged in the constructive, focused discussion in the CTE on trade measures with climate objectives over the past year without the prior collaborative exploration in TESSD.

Today, trade and sustainability discussions are among the most dynamic at the WTO—and TESSD has been central to that transformation.

Second, TESSD has significantly advanced how we think about and frame the relationship between trade and sustainability.

In the past, discussions were often defensive—focused on ensuring that trade rules did not constrain environmental policies or stand in the way of them.

That mindset has evolved.

Today, the focus is on how cooperation on trade can—and must—be part of the solution. There is growing recognition that certain trade flows and policies can be harmful to the environment, and that concerted action is needed to address them. Environmentally harmful subsidies are a case in point. 

We are now exploring how and where trade and trade policies can actively support environmental objectives, provide positive incentives, encourage the shift from unsustainable production to sustainable production and consumption patterns, and drive green economic transformation and innovation in ways that create and diversify economic opportunities.

Importantly, TESSD has also helped move the conversation towards how trade and trade policies can address specific environmental problems and challenges. This shift towards focussing on the environmental challenges we are trying to solve—many of which are clearly collective problems—has encouraged a more holistic approach, grounded in environmental realities and focused on practical solutions.

TESSD has also challenged outdated assumptions. The idea that environmental sustainability is primarily a concern of advanced economies has been clearly disproven. TESSD discussions have highlighted the diverse priorities, challenges, and perspectives of developing countries, enriching the dialogue and making it more inclusive. A key achievement over time has been the initiative’s ability to attract new members—particularly developing country members. 

TESSD has shown without question that trade and trade policies have a critical role and positive contribution to make in addressing challenges and driving and supporting change. The initiative has shown that inclusive international cooperation will be vital to both effectiveness and fairness.

The work in TESSD has been particularly important in highlighting specific examples of where trade cooperation is needed and possible:

• Cooperation on standards and accounting frameworks to drive the transition from carbon-intensive trade to net zero-aligned trade across supply chains in a range of sectors and industries.
• Broadening the scope of the climate and trade discussions to focus also on adaptation and resilience. 
• Advancing cooperation on sustainable agriculture, including reducing environmentally harmful subsidies.
• Promoting an integrated, holistic approach to trade policies and tools on environmental goods and services to support the development, diffusion, and uptake of critical environmental technologies around the world.

The work in TESSD has also drawn attention to emerging, but critical issues and opportunities for more sustainable trade, including water management, nature, and the opportunities arising from biotrade and a more sustainable bioeconomy.

Third, TESSD has pioneered new forms of engagement within the WTO on sustainability.

It has created space for a broader range of voices—international organizations, businesses, and non-state actors—to contribute their expertise. There is now a wider range of stakeholders, including from developing countries, engaging on trade and sustainability than ever before, reflecting growing investment and interest in these issues at the national level. This has strengthened the deliberative function of the WTO and enhanced the quality of discussions. 

At the same time, TESSD has explored innovative approaches to cooperation. Rather than focusing solely on binding rules, it has emphasized the value of knowledge-sharing, best practices, guidelines, and voluntary approaches.

In doing so, it has acted as a laboratory—an incubator of ideas and a testing ground for new models of collaboration.

Across the globe, environmental pressures are intensifying. Climate change, biodiversity loss, pollution, and resource constraints are already affecting economies and societies everywhere—generating enormous risks to both prosperity and stability. These are not abstract issues—they are immediate and consequential. It is vital—not a choice—that we become better stewards of nature, natural resources, the air, the water, the ecosystems, on which our economies depend and which are critical for human well-being.

The urgency of the challenges we face makes continued and strengthened engagement of the trade community more important than ever.

While there are glimmers of hope that there is momentum to take this work elsewhere within the WTO, these efforts are not yet sufficient—which is precisely why TESSD remains so important. The engagement of the nearly 80 WTO members co-sponsoring TESSD demonstrates that there is both appetite and capacity to work collaboratively on these issues. Loosing that momentum would be a missed opportunity.

Looking ahead, it may be useful to revisit the original objectives of TESSD. In particular, the commitment in the launch statement to “identifying concrete actions that participating members could take individually or collectively ” and exploring “opportunities for voluntary actions and partnerships” to ensure that trade and trade policies are supportive of sustainable development.

In the next phase, the initiative must build on the foundations laid by moving from exploration to implementation—focusing more directly on solutions, partnerships, and tangible outcomes. The priority now is to move to action, where possible, while maintaining momentum.

In that regard, it will be vital that TESSD continue and strengthen engagement with external stakeholders—who are key actors on the ground in driving more sustainable production and consumption. Their insights, innovations, and investments can help translate discussions into real-world impact; harnessing this energy will be critical to advancing practical solutions.

At the same time, TESSD can—and should—play a catalytic role across the broader WTO system. Sustainability issues are not confined to a single forum—they cut across multiple committees and processes. TESSD is well positioned to connect these discussions and promote coherence.

More broadly, TESSD has an important role to play in the context of ongoing WTO reform discussions. As members consider the future of the multilateral trading system, ensuring that sustainable development broadly, and environmental sustainability more specifically, are at the heart of that conversation will be essential. 

Finally, a key value of the WTO is that it serves as a forum for the exchange and diffusion of ideas and approaches that can be taken up not only in the WTO, but also in the numerous bilateral, regional, and sectoral trade arrangements that many members are pursuing, helping to connect the dots across these efforts. In that way, the work at TESSD can also support progress towards a next generation of trade arrangements beyond the WTO that advance sustainability and resilience critical to prosperity.

The comprehensive package prepared for MC14 demonstrates the depth and sophistication of TESSD work. The working group outputs provide a nuanced and granular understanding of key issues at the intersection of trade and sustainability. They reflect not only technical expertise, but also the richness of discussions and the diversity of perspectives brought forward over the past five years.

These documents provide a foundation for future work—for identifying and prioritizing where deeper, more targeted work, dialogue, cooperation, and action is needed; whether within TESSD, across the WTO, or in regional and bilateral contexts. 

The TESSD package also plays an important signalling role. Beyond the walls of the WTO in Geneva, stakeholders are watching. Governments, legislators, businesses, and NGOs are all looking for evidence that multilateral cooperation on sustainability is not only possible, but productive. TESSD offers a compelling story in that regard.

TESSD has shown that progress is possible. However, progress must accelerate—we need to remain engaged, stay ambitious, continue working collectively, and pave more deliberatively the path towards concrete, collective actions.

The world needs transformative action at speed and scale and depends on the success of collective efforts such as TESSD. It requires ongoing efforts to build and sustain trust and catalyse change. It requires leadership and sustained engagement to move the trade and sustainability agenda forward.

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Carolyn Deere Birkbeck is Founder and Executive Director, TESS.

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Synergies is an online platform featuring expert commentary and opinions curated by TESS. We foster dialogue and incubate ideas on how to shape a global trading system that effectively addresses global environmental crises and advances sustainable development. Synergies draws on perspectives from leading experts and practitioners across policy communities from around the world. We cultivate solutions-oriented policy analysis for a sustainable future.

The Executive Editor is Fabrice Lehmann.

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