   
  
INF/TE/SSD/W/27  
 
5 July 2023  
(23-4562) Page: 1/14 
  Original: English  
 
TRADE AND ENVIRONMENTAL SUSTAINABILITY STRUCTURED DISCUSSIONS  
INFORMAL WORKING GROUP ON CIRCULAR ECONOMY -CIRCULARITY  
Mapping Exercise: Trade and trade policy aspects along the lifecycle of products1 
 
 
_______________  
 
 
 
 
Table of Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  2 
2   INITIATIVES AND EXPERIENCES SHARED BY MEMBERS  ................................ .............  2 
3   MAPPING OF MEASURES IN THE WTO  ................................ ................................ .........  4 
4   TRADE ASPECTS OF THE CIRCULAR ECONOMY  ................................ ............................  9 
4.1   Classifications and data for circular goods  ................................ ................................ .... 10 
4.2   Standards and regulations  ................................ ................................ .........................  10 
4.3   Trade facilitation and promotion  ................................ ................................ .................  11 
4.4   Trade restrictions and waste management  ................................ ................................ ... 12 
4.5   Capacity building and technical assistance  ................................ ................................ .... 12 
4.6   Other trade -related aspects for cooperation  ................................ ................................ .. 12 
5   REFLECTIONS ON WAY FORWARD  ................................ ................................ .............  13 
ANNEX  ................................ ................................ ................................ ...........................  14 
 
  
 
1 This draft document provides a mapping  of the trade and trade policy aspects of the circular economy 
based on the work of the TESSD Working Group on Circular Economy -Circularity since 2022. The document will 
be revised and further developed based on the comments by Members and discussions in t he Working Group.  INF/TE/SSD/W/27  
 
- 2 - 
 
  1  INTRODUCTION  
1.1.  The role of trade in contributing to a circular economy has been a priority in Members' 
discussions in TESSD. In the 2021 TESSD Ministerial Statement, Members agreed to i dentify and 
compile best practices, as well as explore opportunities for voluntary act ions and partnerships to 
ensure that trade and trade policies are supportive of and contribute to achieving a more resource 
efficient circular economy .2 As foreseen by the TESSD Work Plan of February 2022, Members 
pursued more in -depth discussions in four  informal working groups, including in the Working Group 
on Circular Economy -Circularity.  
1.2.  In 2022, the Working Group held two meetings on 18 May and 4 October. At the May meeting, 
Members heard business perspectives  on the challenges and opportunities rel ated to the circular 
economy as well as those to improve e -waste recycling, and shared their national experiences on 
how a circular economy approach was supporting sustainable development and climate change 
goals. At the October meeting, Members discussed trade -related policy issues related to waste, end  
of life, and reverse supply chains.  In addition, Members also shared national experiences and 
discussed their priorities for the Working Group at plenary meetings  31 March and 19 July .  
1.3.  At the High-Level St ocktaking event on 2 December 2022, Members agreed to pursue 
sector -specific discussions and welcomed the proposition to  pursue a mapping exercise to build a 
broader understanding of the trade aspects of the circular economy which are relevant to each part  
of the life cycle.3 In the first two meetings in 2023 on 17 March and 11 May, Members discussed the 
specific trade issues associated with circularity in batteries and renewable energy (solar and wind), 
and considered presentations by the Secretariat on t he mapping of measures related to the circular 
economy in the WTO.  
1.4.  The objective of this draft document is to provide an overview of the trade and trade policy 
aspects of the circular economy based on the work of the TESSD Working Group on Circular 
Economy -Circularity since 2022. In particular, the following mapping will cover: (i) initiatives and 
experiences shared by Members; (ii) measures  relating to the circular economy in notifications and 
trade policy reviews  (TPRs)  from the WTO Environmental Database , and (iii) trade aspects  of the 
circular economy  based on presentations , analytical work  and discussions  in the Working Group .  
2  INITIATIVES AND EXPERIENCES SHARED BY MEMBERS  
2.1.  During 2022 and 2023  Members shared initiatives and national experiences aimed at  advancing 
the circular economy, including how a circular economy approach was supporting sustainable 
development and climate change goals . 
Table 1. Circular economy initiatives and experiences shared by Members  
Experience Sharing  
Canada  – Right to Repair, Food Waste Reduction Challenge, and regional efforts  
• The Right to Repair aims to extend the lifetime of products such as home appliances and 
electric appliances rather than purchasing new ones.  
• The Foo d Waste Reduction Challenge aims to reduce food waste and increased food 
availability, lower costs for consumers and businesses and reduced emissions, and 
strengthen our food systems.  
• Regional efforts with  the United States already in recovered paper materials and other 
recovered materials will be critical to building circular supply chains in North America. It is 
worth noting that there is currently work underway under the Canada -Mexico -United States 
Commi ssion for Environmental Cooperation to study recycling infrastructure and circular 
trade.  
 
2 TESSD Ministerial Statement on Trade and Environmental Sustainability - WT/MIN(21)/6/Rev.2 . 
3 Informal Summary by the Co -convenors - INF/TE/SSD/R/15 ; and Statement by the TESSD Co -
convenors - INF/TE/SSD/W/21 . INF/TE/SSD/W/27  
 
- 3 - 
 
  Experience Sharing  
Chile  – Producer Responsibility Law  
• In force since 2016, it makes producers of priority products responsible for financing the 
management of waste generated by products that are sold on the domestic market for 
seven  priority products: technical and electronic equipment, batteries, packaging,  
newspapers and magazines, tyres, batteries, oils and lubricants.   
Colombia  – National Circular Economy Plan  
• The strategy prioritises action on six material or resource flows: industrial materials and 
consumer goods; packaging materials; biomass; energy; water and building materials. The 
objective of the framework is to increase the recycling rate from 8% to 12.5% by 2022. 
Through Extended Product Responsibility programmes, more than 500,000 tonnes of 
special waste have been recovered.  
Costa Rica – National Bioeconomy Strategy  
• The strategy aims to build a knowledge -based, green  and resilient competitive 
decarbonized economy based on the principles of a circular bioeconomy and 
decarbonization of production and consumption processes.   
European Union  – Circular Economy Action Plans , EU Eco -design Directive and proposal for an 
Eco-design for Sustainable Products Regulation, and Waste Legislation (including Directive on 
batteries and accumulators, Directive on packaging and waste; Directive on end -of-life vehicles), 
Batteries Directiv e 
The measures aim , inter alia,  to improve product design to avoid the use of hazardous chemicals 
or materials, reducing  the environmental impact of a product from conception.  
• The Eco -design Directive covers a broad scope of products and aims to keep prod ucts as 
long as possible in the lifecycle. The proposal for an Eco -design for Sustainable Products 
Regulation will strengthen and/or introduce provisions concerning aspects such as product 
repairability, durability, and availability of spare parts, among o thers.  
• Regarding waste, the EU objective is to bring back into the economic cycle secondary raw 
materials and recycle waste while promoting the uptake of extended producer responsibility 
(EPR) schemes.   
• Regarding batteries, the EU reached a provisional po litical agreement on a law to make 
batteries in the EU market more sustainable and circular, replacing the existing Batteries 
Directive. The new regulation aims to ensure sustainability throughout the lifecycle of 
batteries, from sourcing to recycling. The  law introduces gradual sustainability 
requirements, higher collection targets, and mandatory recycling. Further detailed rules 
will be adopted from 2024 to 2028.  
Japan  – Japan Partnership for Circular Economy (J 4CE) 
• A domestic circular economy partnership was launched in 2021 to deepen the 
understanding about the circular economy, promote collaborative efforts and strengthen 
public -private alliances among a wide range of companies and stakeholders. A summary 
of 139 go od practices was published by Japanese companies with regard to the circular 
economy in September 2021.  
Korea, Republic of – K-Circular Economy Implementation Plan  
• This plan was formulated with the participation of stakeholders and experts from academia, 
civil society, and industry. It incorporates promotion of biodegradable plastics and 
renewable materials, and eco -friendly designs which facilitate re use and re -production . 
Further, the plan also includes eco -friendly designs.  
Maldives – Ocean Preservation  
• Preserving the oceans is a national priority due to is economic importance, as the source 
of 60% of its GDP. Banning eight varieties of single use plastics since 1  June, 2022, aims 
to reduce energy use and waste, while leading to value creation for plastic product 
collection through partnerships with industry.   INF/TE/SSD/W/27  
 
- 4 - 
 
  Experience Sharing  
Saudi Arabia  – Circular Carbon  Economy Program  
• The program promotes circularity through circular approaches aiming to address both 
material wastes and emissions flows and could contribute to sustainable global trade by 
promoting solutions adapted to country's individual needs, circumstances, and priorities. 
Carbon removal could be an additional step i n the circular cycle beyond the cycle of 
reduction, reusing, and recycling and could have positive effects on the extraction of natural 
resources by reducing emissions.  
Switzerland  – Plastic and Electronic Recycling Rules (e.g. Environmental Protection Ac t, Ordinance 
On Beverage Containers); Chemicals Risk Reduction Ordinance  
• National system to recycle PET,  beverage containers made from aluminium and glass bottles 
through a federal regulation and minimum threshold of recycling (a tax will be introduced only 
if the recycling threshold is not met). Waste bottles that cannot be recycled are incinerated to 
produce electricity and heat. For electric and electronic equipment, an advance recycling 
contribution is included in the purchase price.  
• The C hemicals Risk Reduction Ordinance (ChemRRV) in Switzerland governs the regulations 
for batteries. Within its Annex, there are specific provisions concerning the recycling of traction 
batteries. Additionally, the annex includes regulations on battery labell ing, requirements for 
the return and collection of batteries, mandatory fee payments, and reporting obligations.  
United States  – Sustainable Materials  Management and National Recycling Strategy  
• The concept of sustainable materials management (SMM) aims at  the systemic and productive 
use and reuse of materials over their life cycles, with limited impacts on the environment.  
• The National Recycling Strategy aims to create a more resilient and cost -effective national 
recycling system. And create more equitabl e access to recycling services reduce waste while 
promoting recycling and trade in recycled materials.  
Note: This Table includes initiatives and experiences shared in meetings in 2022 (based on TESSD Summary 
Report 2022 - INF/TE/SSD/R/14) , as well as those mentioned in the firs t two meetings in 2023.  
 
3  MAPPING  OF MEASURES IN THE WTO  
3.1.  To inform the mapping exercise of the Working Group, the WTO Secretariat has carried out a 
mapping of measures that relate to the circular economy at the WTO, helping Members build a 
broader understan ding of the aspects of trade and trade policy which are relevant to each part of 
the lifecycle.  In particular, t he mapping identified measures related to the circular economy 
contained in notifications and trade policy reviews  (TPRs)  from the WTO Environmental Database .4 
3.2.  The mapping classified measures by circular economy activity/objective, which cover reducing 
resource consumption and waste generation, promoting the use of biocycles and sustainable 
materials, encouraging the substitution of non -renewable resources; supporting repair and 
remanufacturing practices, promoting reuse and recycling, facilitating waste -to-energy conversion, 
managing hazardous substances and waste in an environmentally sound manner, fostering 
technology and research deve lopment in the circular economy field, and enhancing transparency 
relating to material composition.  
3.3.  More specifically, the above -mentioned 11 activities and objectives have been defined for the 
purposes of the mapping as follows:  
• Reduce: Increasing  efficiency in manufacturing a product, or use  of product , by consuming 
fewer natural resources and materia ls. Example: a measure which supports the installation 
of new equipment that delivers reduction in raw materials, water, or waste with the aim to 
enhance material efficiency ( G/SCM/N/372/GBR ).    
 
• Biological cycles: Processes like composting and anaerobic digestion but only for materials 
that can be safely returned to the biosphere.  Example: a measure that encourag es the 
development of the production of biodegradable plastic bags  (G/TBT/N/UKR/210 ).  
 
4 The dataset with the mapping  by the Secretariat  will be  available on the TESSD website for Member s. INF/TE/SSD/W/27  
 
- 5 - 
 
   
• Substitute: Switching from one product to another with the latter offering the same  
functionali ty through a different product or service . Example: a measure that bans single -use 
plastic products where alternatives are easily available and affordable ( G/TBT/N/EU/642 ).    
 
• Repair: Fixing and maintenance of defective product so it can be used with its original 
function.  Example: measures aimed at promoting repair for parts of manufacturing 
machinery ( G/SCM/N/372/USA ).   
 
• Remanufacturing  - Refurbishment : Using parts of a discarded product in a new product with 
the same function, and as -new-condition.  Example: measures that set out standards t hat 
apply to remanufactured products ( G/TBT/N/MEX/311 ).   
 
• Reuse: Product is still in good condition and fulfils its original function for the sam e purpose 
for which it was conceived, or a slightly alternative function.  Example: a measure that 
provides discounts on levy apply for certain  activities which include repurposing for reuse of 
e-waste ( G/SCM/N/372/AUS ).    
 
• Recycling: Process of recovering materials from waste to be reprocessed into new products, 
materials, or substances whether for the original or other purposes.  Example: measures th at 
promote recycling of waste from lead and copper extraction ( G/SCM/N/186/EEC/Add.22 ).  
 
• Hazardous substances and waste management: Limiting impact of hazardous substances 
such as, for e.g., mercury content of  batteries. Waste management includes collection, 
transport, disposal and recovery of waste, including the control of these operations and 
after-care of disposal sites . Example: a measure to impose an i mport and/or export licensing 
for import and/or export  of hazardous wastes  from lead -acid batteries ( G/MA/QR/N/KAZ/1 ).   
 
• Waste -to-energy: Process of treating waste that creates energy in the form of electricity, 
heat, or fuel. Example: measures that promote w aste-to-energy production facilities  
(G/SCM/N/343/USA ).  
 
• Technology/Research: Supporting research and development of technology for circular 
economy . Example: a measure that supports research for material recycling in electric 
vehicles ( G/SCM/N/372/EU/ADD.27 ).   
 
• Transparency on material composition: Contains d etails regarding material composition, as 
well as transparency regarding end -of-life activities such as recy cling and waste sorting.  
Example: measures that set out r equirements for the end -of-life management  of batteries 
(G/TBT/N/EU/775 ).  
3.4.  In addition to assigning measures to circular economy activities and objectives, the mapping 
also assigned measures to six lifecycle stages (raw material extraction; design; production; 
packaging and distribution; product use; end of life and waste disposal) and nine sec tors 
(agriculture/food; batteries; construction & buildings; electronics; manufacturing or multiple 
sectors;  plastics & packaging; renewables; textiles; and vehicles).5 It should be noted that one 
measure can be assigned  to more  than one  activit y/objectiv e, lifecycle stage or sector . 
3.5.  The analysis finds a  total of 520 measures in notifications made by Members to the WTO 
between 2009 and 2021 that relate to the circular economy  (Table 1). Measures were notified by 
some 85 Members, with the top 20 Members accounting for close to 77% of the 520 measures. More 
than three quarters of measures related to the circular economy are found in notifications under two 
agreements, namely the  Agreement on Subsidies and Countervailing Measures (SCM ) (214 
measures or 41%) and the Agreement on Technical Barriers to Trade (TBT ) (180 measures or 35% ). 
A good number of measures are also found in notifications on i mport licensing procedures  (IL) (62 
or 12% ) and q uantitative restrictions  (QR) (30 measures or 6%) .  
 
  
 
5 Descriptions of the six lifecycle stages are included in the Annex.  INF/TE/SSD/W/27  
 
- 6 - 
 
  Table 2. Measures by notifying Member and Agreement  
Member  SCM TBT IL QR SPS GP Other  Total  
United States of 
America  103 12 0 0 0 0 0 115 
China  30 17 1 0 0 0 0 48 
Korea, Republic of  9 9 11 0 2 0 0 31 
European Union  0 21 0 0 1 0 1 23 
Hong Kong, China  3 1 11 7 1 0 0 23 
Philippines  0 1 17 0 0 0 5 23 
Australia  14 1 2 3 0 0 1 21 
France  0 17 0 0 0 0 0 17 
Japan  0 4 0 0 0 7 1 12 
Mauritius  0 2 5 4 0 0 0 11 
Finland  9 0 0 0 0 0 0 9 
Romania  9 0 0 0 0 0 0 9 
Thailand  2 7 0 0 0 0 0 9 
Seychelles  0 1 2 5 0 0 0 8 
United Kingdom  5 3 0 0 0 0 0 8 
Canada  3 3 0 1 0 0 0 7 
Uganda  0 7 0 0 0 0 0 7 
Estonia  6 0 0 0 0 0 0 6 
Türk iye 0 3 0 0 1 0 2 6 
Viet Nam  3 3 0 0 0 0 0 6 
Other Members  18 68 13 10 9 0 3 121 
Total  214 180 62 30 14 7 13 520 
Source: WTO Environmental Database.  
Note: 520 measures related to the circular economy were found  in notifications of 85 Members under 12 
agreements.  
 
3.6.  Figure 2 provides the mapping of measures by circular economy activity/objective and type of 
measure. The large majority of measures relate to downstream stages of the lifecycle, with recycling 
being the most frequent activity followed by hazardous substan ce and waste management. A good 
number of measures also relate to reuse and repair which are found in the middle stages of the 
lifecycle, while measures that relate to substitute tend to be more upstream. The analysis of 
measures by circular economy activi ty shows that w hile there are a good number of measures that 
have circular economy aspects or elements, only few measures notified to the WTO have a specific 
focus on the circular economy.  
3.7.  The large majority of measures related to the circular economy take  the type of either support 
measures or technical regulations and conformity assessment procedures and appear relevant 
across most activities along the lifecycle. Another relatively frequent type of measures are bans or 
licences which tend to more frequent  at the end of life of products, and some other activities such 
as reuse and substitute.  INF/TE/SSD/W/27  
 
- 7 - 
 
  Figure 1. Measures by circular economy activity /objective and type in notifications  
 
Source: WTO Environmental Database.  
Note: The number o f measures by activity/objective and type sum to more than 520, since one measure can  
be assigned to more than one activity/objective, and can consist of more than one type of measure. In 
particular, 520 measures were assigned to 740 circular economy activ ities/objectives and covered 633 types of 
measures.  
 
3.8.  In line with the analysis by circular economy activity/objective, Figure 2 shows that the large 
majority of measures relate to a products’ end of life or wa ste disposal, while a relatively similar 
numbe r of measures relate to the different stages further upstream in the lifecycle.  
Figure 2. Number of measures by lifecycle stage  
 
Source: WTO Environmental Database.  
Note: The 520  measures related to the circular economy are assigned to 645 lifecycle stages .  
 
3.9.  The 520 measures apply to 580 sectors, the majority of which are specific sectors (58%) while 
a good number of measures apply to manufacturing horizontally or multiple sector s (42%). Figure 
3 shows the number of measures assigned to specific sectors and their composition in terms of 
0 50 100 150 200 250 300 350 400 450Transparancy on material compositionReduceRemanufacturing / refurbishmentTechnology / ResearchWaste to energyBiological cyclesSubstituteRepairReuseHazardous substance and waste managementRecycling
Support Technical regulations and conformity assessment Bans, licences Other
347
84 7862
4133
End of life /
waste disposalProduct use Design Packaging and
distributionProduction Raw material
extractionINF/TE/SSD/W/27  
 
- 8 - 
 
  economy activity/objective.  The highest number of circular economy -related measures are found for 
the plastics and packaging sector, to be followe d at some distance by the electronics, renewables, 
batteries and vehicles.  
3.10.  While measures relating to recycling appear prominent across all sectors, Figure 3 also 
illustrates sector  differences and distinctive linkages with circular economy activities. For instance, 
repair measures are most prominent in the sectors of vehicles and electronics , likely indicating a 
focus on extending product lifespans and promoting maintenance practices. Similarly, the battery 
sector has a relatively high number of number of  measures relating to  hazardous waste 
management, highlighting the requirement  for proper disposal and handling of battery waste. The 
plastics and packaging  sector  is characterised by a relatively high number of substitute measures , 
indicating efforts to e xplore sustainable alternatives. The relatively high number of waste -to-energy 
measures  in the renewable sector can be explained by measures applying to biofuels.  
Figure 3. Number of measures by sector and circular economy activity /objective  
 
Source: WTO Environmental Database.  
Note: Around 242 measures are related to manufacturing horizontally or multiple sectors, which is not shown.  
The Figure only shows the number of measures for specific sectors.  
 
3.11.  Besides notifications, the WTO  EDB also includes measures contained in TPRs. The analysis 
finds that between 1999 and 2021, a total of 199 measures in TPRs relate to the circular economy.  
These 199 measures correspond to 259 activities and objectives. The majority of the measures relat e 
to recycling. A good number of measures also relate to hazardous substances and waste 
management, reuse, reduce and waste -to-energy.  
0 20 40 60 80 100 120 140 160 180TextilesConstruction & BuildingsAgriculture/FoodVehiclesBatteriesRenewablesElectronicsPlastics & Packaging
Recycling Hazardous substance and waste management Reuse
Repair Substitute Waste to energy
Biological cycles Reduce Remanufacturing / refurbishment
Technology / Research Transparancy on material compositionINF/TE/SSD/W/27  
 
- 9 - 
 
  Figure 4. Measures by circular economy activity / objective  in TPRs  
 
Source: WTO Environmental Database . 
 
4  TRADE ASPECTS OF THE CIRCULAR ECONOMY  
4.1.  This section provides a  mapping of the trade aspects of the circular  economy  that have been 
identified  throughout the discussions in  the Working Group in  2022 and 2023. This is an illustrative 
mapping of trade-related  issues, rather than an exclusive list,  recognizing  that trade policies for a 
circular economy need to flexibly respond to emerging and evolving business trends . Table 3 
provides an overview of the trade aspects that are further map ped out below.  
Table 3. Overview of trade aspects of the circular economy  
Classifications and data for circular 
goods  Definitions and classifications for circular goods  
Data and statistics  
Standards and regulations  Standards  
Product design  
Transparency and traceability  
Trade facilitation and promotion  Trade facilitation  
Implementation and digitalization of Basel Convention's 
Prior Informed Consent procedures  
Environmental goods and services  
Trade restrictions and waste management  
Capacity building and technical 
assistance  Trade facilitation and customs capacities  
Standards infrastructure  
0 20 40 60 80 100 120 140 160RepairRemanufacturing / refurbishmentBiological cyclesSubstituteTechnology / ResearchWaste to energyReduceReuseHazardous substance and waste managementRecycling
Support Technical regulations and conformity assessment Bans, licences OtherINF/TE/SSD/W/27  
 
- 10 - 
 
  Other trade -related aspects for 
cooperation  Support measures for a circular economy  
Knowledge and technology  
 
4.1  Classification s and data for circular goods  
4.1.1   Definitions and classifications for circular goods  
4.2.  A key challenge in facilitating circular trade relates to the difficulty faced at the customs when 
differentiating  and verifying  between different types of waste materials, secondary materials, 
second -hand goods, goods for refurbishment and remanufacturing, and end -of-life goods. Existing 
Harmonized System (HS) codes lack the necessary granularity and differentiation needed to 
effectively address the trade of goods related to the circular economy. HS codes only rarely 
distinguish between new or used goods and between second -hand goods intended for circular 
economy from other types of second -hand goods. They also do not distinguish  whether products are 
made from virgin or recycled materials.  
4.3.  Improving and harmonizing classification systems within HS codes and waste classification 
system s will likely be of benefit in this respect . Such improvement and harmonization may include 
develo ping shared exemptions, ex -outs or specific codes for tariff classification of goods for circular 
economy and ensuring that hazardous and non -hazardous wastes are appropriately distinguished. 
To effectively balance waste regulation and promote a circular e conomy, classifications may be 
defined in a manner to match the intended purpose of the products. By doing so, the waste destined 
for treatment and disposal could be classified separately from materials intended for the circular 
economy.  
4.1.2   Data and statisti cs 
4.4.  Accurate data and statistics are the basis for better understanding and monitoring of the 
cross-border circular economy. Current data gaps with regard to circular trade make it difficult to 
comprehend trade -related challenges and opportunities in a circ ular transition. Improving and 
harmonizing classification systems within HS codes and waste classification system will also 
contribute to this purpose . 
4.2  Standards and regulations  
4.2.1   Standards  
4.5.  Standards, regulations and conformity assessment procedures can help  identify and promote 
goods  and services that support the  circular economy . While the WTO is not a standard -setting 
organization , it can play a n important role in enhanc ing transparency and cooperation in this area. 
Members could consider principles set out under  the WTO Agreement on T BT when developing 
standards or mutual recognition , to ensure that these do not become barriers or pose challenges to 
the advancement of the circular economy. Exploring the integration of circularity within existing 
trade ag reements, as well as developing new policies and program mes, such as digital product 
passports could also promote circular trade.  
4.6.  Standards are needed to ensure that product safety, performance and reliability are sufficiently 
considered throughout a products lifecycle. Developing  international standards or achieving 
harmonization or  mutual  recognition  of standards regarding the circ ular economy would be  important  
for enhancing circularity. Standards applying to materials previously categorized as waste (like 
electronic waste and retired batteries) may not currently incorporate or consider elements of 
circularity. Recovered materials from scrap, end -of-life products, and parts for use in new products 
may be inhibited due to existing standards which were originally designed for environmental 
protections.  
4.2.2   Product design  
4.7.  Product design can be an enabler of better cir cularity by making products easier to repair, 
refurbish, remanufacture , recycle  etc. Practice  exchanges, cooperation and  potential harmonization INF/TE/SSD/W/27  
 
- 11 - 
 
  of circular design policies can contribute to promote the dissemination of products designed for 
circularity . Standards can support design for circularity which defines the durability, repairability, 
upgradability, and recyclability of products, as well as the material containing recycled material . 
Aligning eco -design standards across countries could promote the entry of envir onmentally friendly 
products into multiple markets, which in turn can support scaling of circular economy business 
models . 
4.2.3   Transparency and t raceability  
4.8.  Transparency and traceability in value chains can ensure safety in secondary markets, 
stimulate market development and  support  circular trade  in diverse sectors . Information on material 
composition provided in labelling or other instruments such as product passports facilitate the 
products' end -of-life management in secondary markets, including by providing  information on how 
products could be safely managed, recycled, or disposed.  For example, the development of battery 
passports can enhance traceability and life cycle assessment. Clarifying definitions and classifications 
of circular economy products and d eveloping appropriate standards and regulations  also contribute 
to better transparency and predictability .  
4.3  Trade facilitation and promotion  
4.3.1   Trade facilitation  
4.9.  Trade facilitation is an essential aspect of promoting circular business models and ensuring the 
smooth flow of goods across borders. However, there are various impediments that need to be 
addressed to enable the efficient implementation of circular trade practices. A key challenge is the 
perceived burden of heavy and time -consuming proce dural requirements involved in shipping end -
of-life products for their circular  use. These issues include, but are not limited to, delays for shipping 
(hazardous) waste trade, delays for remanufacturing trade, limited end -of-life visibility, challenges 
to find shipping firms that are willing to ship certain types of second -hand materials, all of which can 
hinder the adoption of circular business models.  
4.10.  Developing effective verification processes to classify circular goods with greater accuracy can 
help prevent misclassification of goods, reduce revenue fraud, and maintain regulatory compliance 
while supporting the circular economy. Furthermore, s uggestions to reduce impediments to trade 
include, inter alia , providing for simplified procedures between tru sted parties, implementing fast -
track or green lane procedures under the WTO Trade Facilitation Agreement, developing streamlined 
trade permit systems, utilizing Authorized Economic Operator (AEO) programs, and adopting 
national single windows. Further, re ducing regulatory barriers will also support greater facilitation of 
circular trade. For instance, regulatory barriers result in the increase in transportation fee for 
disposal, waste and used batteries.   
4.3.2   Implementation and digitalization of Basel Conventi on's Prior Informed Consent 
procedures  
4.11.  Waste and trade rules apply to circular trade. The Basel Convention aims to control  the 
transboundary movement of hazardous waste. Trade in controlled waste, which includes hazardous 
waste, is either banned or subject  to Basel Convention's prior informed consent (PIC) procedure. 
Better coordination, digitalization and automation of PIC notification procedures could streamline 
and expedite regulatory processes, promote efficiency by complementing customs procedures, and  
enhance transparency at the border.  
4.3.3   Environmental goods  and services  
4.12.  Promotion  and facilitation of trade  in environmental goods  and services can help spread 
technological solutions for the transition to circular business models. A broad range of goods and  
services are needed to improve resource and energy efficiency, replace traditional inputs with 
renewable or recovered goods and manage solid and hazardous waste. Addressing various 
regulatory and non -tariff barriers as well as  rationalizi ng high tariffs a nd complex rules of origin  
requirements  can help promote trade in environmental goods related to the circular economy.  INF/TE/SSD/W/27  
 
- 12 - 
 
  4.4  Trade restrictions and waste management  
4.13.  Trade facilitation and restrictions  are two sides of the same coin. Appropriate trade restrictions  
addressing  environmental and health risks as well as illegal waste trade are the basis  for facilitating 
circular trade . Meanwhile, there may be room for rationalizing  trade restrictions so as not to hinder 
the efficient flow of circular goods.  In fact , a significant percentage of globally traded waste and 
scrap attracts export restrictions, which  limit the movement of these materials.6 Many countries also 
prohibit imports of used goods for dir ect reuse. Such restrictions may be rationalized to minimize 
adverse effects such as disrupting global supply chains, disincentiv izing scrap collection, hindering 
resource availability, and affecting the uptake of circular trade.  
4.14.  At the same time, it is i mportant to ensure that trade in waste and scrap are exported to 
markets with appropriate recycling capacities  and prevent unwanted or illegal waste imports into 
developing countries . Second -hand goods also tend to have shorter lifespans compared to new 
products, implying that the country importing a second -hand good is likely to have to burden its 
disposal as waste. Developing countries may often lack proper waste management infrastructure, 
including collection systems, recycling facilities, and treatment plants. Insufficient infrastructure 
would make it challenging to establish effective circular economy practices and manage waste 
efficiently. Further, the composition of waste in developing countries is often mixed, making it 
challenging to separate and re cycle different materials effectively.  Meanwhile, rationalization of trade 
restrictions and enforcement may potentially facilitate exports of circular goods from developing 
countries to markets with appropriate recycling capacities, contributing to circula rity of potential 
waste.  
4.5  Capacity building and technical assistance  
4.5.1   Trade facilitation and customs capacities  
4.15.  Developing and least developed countries (LDCs) face challenges in enforcing the Basel 
Convention and the WTO TFA due to various constraints incl uding, inter alia , limited capacity of 
customs officials to identify  and distinguish between hazardous waste and circular goods, as well as 
fiscal and technical limitations in upgrading customs systems. Building the capacities of customs and 
strengthening infrastructure for trade facilitation agencies could promote the shi ft towards risk -
based customs control and release processes which support minimizing the risk of unwanted waste 
imports while facilitate imports of legitimate circular economy goods. It could help customs with 
identifying circular goods, monitoring reman t rade to prevent mislabelling or illicit activities, and 
implementing preferential tariff schemes. Developing countries may also benefit from engagement 
in trusted trader template processes.  
4.5.2   Standards infrastructure  
4.16.  Strengthening national and regional stan dards infrastructures — including the capacity for 
conducting internationally -recognized inspection, testing, and certification — helps to build trust 
along supply chains by allowing domestic companies to demonstrate compliance with the 
transparency, trace ability and other requirements that are needed for a circular economy to operate 
safely and efficiently at a global scale.       
4.6  Other trade -related  aspects for cooperation  
4.6.1   Support measures  for a circular economy  
4.17.  Support measures can foster the uptake of circular economy models and technologies. For 
example, financial incentives and other support measures can encourage the adoption of circular 
economy practices, traceability and accountability along the lifecycle , the use of recycled materials , 
investment in technologies for circularity, including recycling, trade of sustainable products, and 
foster entrepreneurship in the sector. Transparency  and practice exchanges on Members ' policies 
 
6 According to the OECD, 40% of copper, 30% of aluminium, and 20% of iron in globally traded waste 
and scrap attract export restrictions in the form of export prohibitions, quotas, ta xes, and nonautomatic export 
licensing requirements.  INF/TE/SSD/W/27  
 
- 13 - 
 
  for promoting a  circular econ omy can strengthen  further trade -related international cooperation for 
enhancing a cross-border circular economy.  
4.6.2   Knowledge and technology  
4.18.  Dissemination  of knowledge and technology is an accelerator of cross -border circular 
economy.  For instance, innovativ e technologies, together with the exploitation of scale economies, 
are important for effective  and viable recycling and remanufacturing processes . Promoting 
technology and knowledge transfer, along with fostering cooperation, could support circular 
managem ent of material flows and the extension of material lifetimes. Mechanisms to enhance 
cooperative exercises, particularly in areas such as technology acquisition and utilization , could be 
considered . 
5  REFLECTIONS ON WAY FORWARD  
5.1.  To be added based on Members' discussions and as the document is being further developed.  
 
_______________  
 
  INF/TE/SSD/W/27  
 
- 14 - 
 
  ANNEX  
The following six lifecycle stages have been used in the mapping:  
 
• Raw material extraction: Process of extracting crude or virgin materials that are used in 
product manufacturing or processing.  
 
• Design: Decisions made at the design phase influence how long something lasts, what it is 
made of, if it can be repaired, and what happens to it at the end of life.  
 
• Production: Processes or methods that converts input s like raw material or semi -finished 
goods to make finished product or services.  
 
• Packaging and distribution: Packaging and distribution will provide information on material 
composition.  
 
• Product use: Product use includes consumption, maintenance, and repair of products.  
 
• End of life and waste disposal: Reduce, reuse and recycle are c aptured by different elements 
of end of life, while waste disposal is limited to incineration and landfills.  
 
 
 
__________  