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Trade policies for a green and circular
economy: Insights from WTO’s
Environmental Database
Aik Hoe Lim
Trade and Environment Division
WTO Secretariat
Outline
1
1.What role can trade policy play in the transition
towards a circular economy?
2.Interface between trade and circular economy-related
policies
3.Relevant notifications from WTO’s Environmental
Database
Role of trade policy
2
• Allowing global supply chains to work in reverse
• Circular economy approaches require that supply chains work in reverse to
collect and process products at end-of-life so that materials can be kept in use
• Scale up circular economy solutions, promote access to high quality
technological solutions
• Global value chains allow circular businesses to locate activities in the best
possible locations (in terms of costs, skills, quality, etc.) and to reap economies
of scale
• Address trade-related concerns
• Illegal waste trade, technological lock-in
The interface between trade and circular
economy policies
3
0 50 100 150 200 250 300
Reuse/repair
Remanufacturing
Recycling
Biological cycles
Technology/research
Waste to energy
Technical regulations Support Bans, licences Procurement Other
Number of notified measures related
to selected circular economy
activities, 2009-17
Source: Homepage | WTO - EDB
The interface between trade and circular
economy policies
4
Africa
Asia
CIS
Europe
Middle
East
North America
South & Central
America,
Caribbean
Members across regions
have notified measures
related to circular
economy activities
Notified measures related to selected circular economy
activities, by region (2009-17)
Source: WTO Environmental Database, edb.wto.org
Identifying the challenge
5
1. Relevant trade measures
• How do trade measures affect the competitiveness of circular economy activities?
• What approaches could help reduce the trade costs of circular economy activities while
ensuring that those activities result in environmentally sound outcomes?
2. Standards and regulatory cooperation
• Are current standards fit for purpose and what types of standards and regulatory cooperation
would be needed to improve the efficiency and environmental safety of global markets for the
circular economy?
3. Technological solutions
• What technologies, as embodied in goods, are needed to support the circular economy, and
what trade barriers affect their deployment across borders?
4. Services
• What restrictions affect trade in services that are needed for a circular economy?
5. Trade-related capacity building
• What are the priority areas to make the transition to a circular economy inclusive?
Finding solutions:
Relevant aspects of WTO work
6
Transparency and policy dialogue
Peer review
Negotiations
Capacity building for more efficient and safer
circular trade

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OECD Workshop on Regional Trade Agreements and the Environment Session 2.1 - Lim

  • 1. Trade policies for a green and circular economy: Insights from WTO’s Environmental Database Aik Hoe Lim Trade and Environment Division WTO Secretariat
  • 2. Outline 1 1.What role can trade policy play in the transition towards a circular economy? 2.Interface between trade and circular economy-related policies 3.Relevant notifications from WTO’s Environmental Database
  • 3. Role of trade policy 2 • Allowing global supply chains to work in reverse • Circular economy approaches require that supply chains work in reverse to collect and process products at end-of-life so that materials can be kept in use • Scale up circular economy solutions, promote access to high quality technological solutions • Global value chains allow circular businesses to locate activities in the best possible locations (in terms of costs, skills, quality, etc.) and to reap economies of scale • Address trade-related concerns • Illegal waste trade, technological lock-in
  • 4. The interface between trade and circular economy policies 3 0 50 100 150 200 250 300 Reuse/repair Remanufacturing Recycling Biological cycles Technology/research Waste to energy Technical regulations Support Bans, licences Procurement Other Number of notified measures related to selected circular economy activities, 2009-17 Source: Homepage | WTO - EDB
  • 5. The interface between trade and circular economy policies 4 Africa Asia CIS Europe Middle East North America South & Central America, Caribbean Members across regions have notified measures related to circular economy activities Notified measures related to selected circular economy activities, by region (2009-17) Source: WTO Environmental Database, edb.wto.org
  • 6. Identifying the challenge 5 1. Relevant trade measures • How do trade measures affect the competitiveness of circular economy activities? • What approaches could help reduce the trade costs of circular economy activities while ensuring that those activities result in environmentally sound outcomes? 2. Standards and regulatory cooperation • Are current standards fit for purpose and what types of standards and regulatory cooperation would be needed to improve the efficiency and environmental safety of global markets for the circular economy? 3. Technological solutions • What technologies, as embodied in goods, are needed to support the circular economy, and what trade barriers affect their deployment across borders? 4. Services • What restrictions affect trade in services that are needed for a circular economy? 5. Trade-related capacity building • What are the priority areas to make the transition to a circular economy inclusive?
  • 7. Finding solutions: Relevant aspects of WTO work 6 Transparency and policy dialogue Peer review Negotiations Capacity building for more efficient and safer circular trade