On 30 September 2020 the WTO Deputy Director-General addressed the role of trade policy in combating plastic pollution. Trade regulations, border duties and taxes, domestic tax law and incentives in the form of subsidies are some of the tools that could be used to support efforts to reduce plastic pollution.
The WTO member countries have always accepted the need to protect the environment and promote sustainable development. The issue of plastics pollution and the linkages between plastics pollution and trade has become prominent in recent years. Combating the problem calls for collective action along the supply chain involving policy makers in addition to producers and consumers.
Through trade policy the global trade in goods and services can be shaped to support the worldwide efforts to reduce plastic pollution. Trade can provide opportunities to access improved waste management processes and adopt less-polluting practices. Trade policy can facilitate a transition to a sustainable plastics economy.
The WTO’s Committee on Trade and Environment (CTE) is a channel for coordination and cooperation between the global trading system and Multilateral Environment Agreements (MEAs) such as the Basel, Rotterdam and Stockholm Conventions. The Committee provides a forum for coordinating the efforts currently being made worldwide to tackle plastics pollution.
The tools available to address plastics pollution include trade regulations, import or export restrictions, public procurement practices, border taxes and duties, domestic taxes and subsidies. Transparency in sharing knowledge and best practices can increase certainty for trading relationships. Disclosure of the reasons for measures taken can help to eliminate the exploitation of issues for disguised trade protection. Trade policy can help to accelerate the dissemination of technology and spur research and development leading to an improved plastics trade.
The WTO Environmental Database (EDB) includes all the environment-related notifications made by WTO member countries and the environmental measures in WTO Trade Policy Reviews. By keeping a note of trade measures to combat plastic pollution the EDB is a basis for discussions to pinpoint areas where further action or coordination may be needed.
As the issue of plastics pollution is a worldwide crisis the solution requires concerted global action. The WTO through its Committee on Trade and Environment has looked at the cross-border issues of plastic pollution and provided a platform to share experiences and best practices. The Committee is also examining the issue of a circular economy and trade facilitation measures required to support reverse supply chains.
