Guidance on Approaches and Good Practices for the Design of Trade-Related Circular Economy Policies and Measures
The traditional linear model of the global economy, which involves extracting resources, transforming them into products, and disposing of them, has raised concerns about sustainability, health, and economic resilience. In response, governments, organizations, and businesses are advocating for a shift towards a circular economy. This transition involves considering trade-related measures and recognizing the interconnected nature of today's global economy. Trade plays a significant role in all stages of product lifecycles, from raw materials to waste management. While trade can facilitate reuse and recycling, it can also worsen environmental and social challenges without proper regulations.
Cooperation on trade policy is crucial for this transition, but current circular economy policies are mainly implemented at domestic or regional levels. This lack of coordination has led to inconsistencies in definitions, classifications, and regulations across jurisdictions, imposing additional costs on exporters, especially in developing countries. There is an urgent need for collaborative approaches to guide investments, innovation, and economic opportunities that promote sustainability. Discussions on the interface between trade and the circular economy are ongoing in various international organizations, including the World Trade Organization, to address these challenges and encourage sustainable practices.
The report offers guidance on how to design and implement Trade-related Circular Economy Measures (TrCEMs) that take into account sector-specific aspects of the circular economy throughout the value chain. It outlines considerations for:
Establishing consistency in terminology, definitions, and classification.
Adhering to good regulatory practices in the design and monitoring of TrCEMs.
Minimizing regulatory differences through harmonization, equivalences, and mutual recognition.
Collaborating on measures to restrict or eliminate trade in illegal or harmful materials, products, and wastes.
The Forum on Trade, Environment, and the SDGs (TESS) aims to promote a global trading system that effectively tackles environmental challenges and promotes sustainable development goals. TESS engages in various activities to encourage inclusive international cooperation and action on trade and sustainability. These activities involve facilitating inclusive, evidence-based, and solutions-oriented dialogue and policymaking, connecting different policy communities, offering thought leadership on priorities and policy options, and inspiring meaningful action from governments and stakeholders.
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