Trade, Circular Economy, and Sustainable Development

The report outlines ten considerations for the design of trade-related circular economy policies and measures (TrCEMs), emphasizing the need for international cooperation to avoid regulatory fragmentation. It highlights the role of the WTO, ISO, and multilateral environmental agreements in aligning definitions and standards. The document specifically addresses the challenges faced by developing countries, such as the need for technical assistance and the risk of a 'circular divide,' and suggests mechanisms like extended producer responsibility (EPR) fee transfers to manage end-of-life products in importing nations.

• The report identifies three primary objectives currently driving the development of trade-related circular economy policies and measures (TrCEMs): phasing out harmful materials, ensuring products meet circularity standards, and facilitating safe circular supply chains.
• A significant barrier to international cooperation is the lack of alignment in terminology and product classification, particularly the Harmonized System (HS), which was not designed to distinguish goods by environmental impact or intended circular use.
• To minimize trade costs and avoid discrimination, the report recommends following good regulatory practices, such as basing measures on international standards, ensuring origin neutrality, and conducting ex-ante and ex-post impact assessments.
• Regulatory heterogeneity in circular economy requirements, such as varying extended producer responsibility (EPR) fees, increases administrative burdens for exporters, especially micro, small, and medium-sized enterprises (MSMEs) in developing countries.
• The report suggests enhancing international cooperation on Extended Producer Responsibility (EPR) systems so that financial responsibility follows the trade flow of products exported as second-hand goods to foreign markets.
• To prevent 'waste colonialism' and ensure environmental safety, the report advocates for the principles of self-sufficiency and proximity, suggesting that waste should be managed in the state where it was generated whenever possible.
• The report recommends facilitating trade in goods and services that enable circularity, such as remanufacturing equipment and biodegradable substitutes, though it notes that a lack of specific HS codes often hinders the competitiveness of these products.
• The report emphasizes the need to support developing countries to avoid a 'circular divide,' suggesting measures such as longer adjustment periods for new TrCEMs, technical assistance for monitoring and traceability, and affordable access to technology.
• International cooperation is deemed essential for aligning terminology, reducing regulatory heterogeneity, and coordinating EPR schemes, with the WTO, ISO, and WCO identified as key fora for these efforts.

APA

Forum on Trade, Environment, & the SDGs (2024). Trade, Circular Economy, and Sustainable Development. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Report-Trade-Circular-Economy-and-Sustainable-Development.pdf?dm=1727082344

Chicago

Forum on Trade, Environment, & the SDGs. Trade, Circular Economy, and Sustainable Development. 2024. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Report-Trade-Circular-Economy-and-Sustainable-Development.pdf?dm=1727082344.

Wikipedia

{{cite report |author=Forum on Trade, Environment, & the SDGs |title=Trade, Circular Economy, and Sustainable Development |date=September 2024 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Report-Trade-Circular-Economy-and-Sustainable-Development.pdf?dm=1727082344 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{forumontradeenvironmentthesdgs2024trade, author = {{Forum on Trade, Environment, \& the SDGs}}, title = {{Trade, Circular Economy, and Sustainable Development}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2024}, month = sep, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Report-Trade-Circular-Economy-and-Sustainable-Development.pdf?dm=1727082344}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }