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Trade policies to promote the circular economy: A case study of the plastics value chain

Author

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  • Evdokia Moïsé
  • Enxhi Tresa

Abstract

Plastic products present several environmental, health, social and economic challenges that span from the extraction of raw materials to primary and final plastics production, to their distribution and use, and to the collection and sorting of plastic waste. International trade, which has facilitated the development of plastics supply chains, also comes with a range of challenges, such as a surge in demand for plastics ― notably in packaging ― difficulties to monitor plastics embedded in other products, and an increased risk of plastic waste leaking in countries that have less rigorous environmental regulations. Yet trade can also serve as a vehicle to access foreign pollution control technologies or to foster economies of scale for circular economy practices. Indeed, the implementation of circular economy solutions through trade policies is crucial in addressing plastic pollution. Such policies could include reduced tariffs on environmentally-friendly alternatives to plastic products; trade facilitation measures for reverse supply chains; or technical regulations, standards, labelling schemes, and conformity assessment procedures that promote product designs which will minimise pollution throughout the entire plastic lifecycle.

Suggested Citation

  • Evdokia Moïsé & Enxhi Tresa, 2023. "Trade policies to promote the circular economy: A case study of the plastics value chain," OECD Trade Policy Papers 279, OECD Publishing.
    • Handle: RePEc:oec:traaab:279-en
    DOI: 10.1787/e36f2d91-en
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    More about this item

    Keywords

    Green transition; Trade policies; Value chains;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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