Trade policies for a circular economy: What can we learn from wto experience?

As interest in circular economy approaches grows, it becomes increasingly important to ensure that trade policies are designed and implemented with the goals of a circular economy in mind. Doing so would bolster the role of trade in scaling up circular economy solutions worldwide.

This paper reviews work at the WTO related to the circular economy. It shows how WTO members have addressed issues related to the circular economy through policy dialogue, peer review, negotiations and more recently, Aid for Trade. Experience in these four areas provides valuable insights into how WTO members can expand the positive contribution of trade to a circular economy, not least by: (i) improving their collective understanding of how trade interacts with the circular economy; (ii) building trust and confidence to engage in mutually beneficial activities related to circular economy; (iii) opening and facilitating trade in key areas of the circular economy; and (iv) supporting efforts in developing countries to seize the potential environmental, economic and social benefits of a circular economy through enhanced trade.

No: ERSD-2020-10

Authors: Karsten Steinfatt

Manuscript date: June 2020

Key Words:

International trade, circular economy, resource efficiency, sustainable development, waste, WTO, transparency, policy coordination, Aid for Trade.

JEL classification numbers:

F13, F18, F42, F64, Q56

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Disclaimer 

This is a working paper, and hence it represents research in progress. The opinions expressed in this paper are those of its author. They are not intended to represent the positions or opinions of the WTO or its members and are without prejudice to members' rights and obligations under the WTO. Any errors are attributable to the author.

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