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International Trade in the Realm of the Circular Economy
Abstract
A circular economy advocates the use of resources for the longest time possible and to further regenerate materials when such resources are at the end of their service life. The movement towards a circular economy brings structural changes in an economy, and this, in turn, can potentially impact the international trade regime. Consequently, the aim should be to achieve material circularity among various countries of the world. While transiting towards a circular economy, nations introduce superfluous trade restrictions and at times enter into trade disputes with trade partners. It is imperative that circular economy policies and trade policies are reciprocally supportive. International cooperation on circular economy value chains should thus be explored for coordination of quality standards of materials, promoting demand for second-hand goods and secondary raw materials, removing unnecessary regulatory barriers, and to avoid environmentally harmful activities.
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