Plastic pollution has become a global crisis, disproportionately impacting developing nations already struggling with waste management and climate resilience. With plastic production reaching 436 million metric tons and trade surpassing $1.1 trillion in 2023, the stakes have never been higher.
From supporting responsible production and consumption to promoting circularity and sustainable alternatives, trade must be part of the solution to plastic pollution. It should not be part of the problem, says the latest Global Trade Update .
Despite growing urgency, the world still lacks a comprehensive international treaty governing plastic production, trade, and disposal across borders.
PLASTICS ARE FUELING POLLUTION, CLIMATE CHANGE, AND BIODIVERSITY LOSS
Plastic is deeply intertwined with the triple planetary crisis—pollution, biodiversity loss, and climate change—yet remains largely unregulated globally.
An estimated 75% of all plastics ever made have become waste, often ending up in oceans, food chains, and fragile ecosystems. For small island states and coastal nations, the environmental burden poses serious threats to food security, tourism, and public health.
NON-PLASTIC SUBSTITUTES ARE EMERGING—BUT STILL FACE MAJOR TRADE BARRIERS
In 2023, trade in non-plastic substitutes reached $485 billion, driven by materials like bamboo, seaweed, and natural fibers.
These eco-friendly options are recyclable or compostable, offering sustainable alternatives to fossil fuel-based plastics in packaging and products. However, higher tariffs and regulatory hurdles continue to suppress investment and innovation in these greener materials, especially in developing countries.
PLASTIC TARIFFS ARE LOWER THAN ECO-FRIENDLY ALTERNATIVES – BLOCKING SUSTAINABLE PROGRESS
Over the past 30 years, global tariffs on plastic and rubber products dropped from 34% to just 7.2%. In contrast, tariffs for many biodegradable or natural substitutes still average 14.4%, making them more expensive and less competitive.
This imbalance undermines market access and slows the transition to sustainable materials, despite growing global demand for greener solutions.
REGULATORY FRAGMENTATION AND NON-TARIFF BARRIERS HURT SMALL PLAYERS MOST
Countries use non-tariff measures (NTMs)—like labeling laws, bans, and safety standards—to control plastic pollution, but policies remain inconsistent.
This fragmented approach increases compliance costs and creates uncertainty, especially for small exporters and developing economies.
A unified global framework would help lower trade barriers and support inclusive participation in sustainable value chains.
MOMENTUM BUILDS FOR A GLOBAL TREATY ON PLASTIC POLLUTION
From August 5–14, world leaders will gather in Geneva for INC-5.2, the final UN-led negotiations for a global plastics treaty.
The treaty aims to address the entire plastic lifecycle—from production to waste—through legally binding international commitments.
If successful, it could redefine how trade, finance, and sustainability intersect, shaping global markets for decades to come.
WHAT A SUCCESSFUL GLOBAL PLASTICS TREATY MUST INCLUDE
According to UNCTAD, the treaty must move beyond plastic bans and recycling goals. It must create systemic incentives and trade reforms:
- Lower tariffs and reform NTMs to favor sustainable substitutes
- Invest in circular infrastructure and waste management, especially in developing regions
- Adopt digital tools for product traceability and customs compliance
- Ensure policy coherence across WTO, UNFCCC, Basel Convention, and regional trade agreements
Final Thoughts: Trade Is Not the Enemy—It Can Be the Solution
Trade is often seen as a driver of environmental harm, but it can also be a powerful tool for change.
With the right global agreements in place, it could accelerate the shift to a circular economy and help end plastic pollution by 2040. The path forward requires bold decisions, international cooperation, and rethinking how trade can serve people and the planet.
