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OECD Workshop on Regional Trade Agreements and the Environment Session 2.1 - Lim

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OECD Workshop on Regional Trade Agreements and the Environment Session 2.1 - Lim

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This workshop focused on key issues related to Regional Trade Agreements (RTA) and the environment. It had three main objectives: (i) to take stock of current experience and insights on RTAs and the environment from different stakeholders, and to establish a stakeholder dialogue on this topic; (ii) to investigate how RTAs can serve as a vehicle to advance a resource efficient and circular economy transition; and (iii) to explore the potential of RTAs in addressing the nexus of illegal trade and environmental crime

This workshop focused on key issues related to Regional Trade Agreements (RTA) and the environment. It had three main objectives: (i) to take stock of current experience and insights on RTAs and the environment from different stakeholders, and to establish a stakeholder dialogue on this topic; (ii) to investigate how RTAs can serve as a vehicle to advance a resource efficient and circular economy transition; and (iii) to explore the potential of RTAs in addressing the nexus of illegal trade and environmental crime

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OECD Workshop on Regional Trade Agreements and the Environment Session 2.1 - Lim

  1. 1. Trade policies for a green and circular economy: Insights from WTO’s Environmental Database Aik Hoe Lim Trade and Environment Division WTO Secretariat
  2. 2. Outline 1 1.What role can trade policy play in the transition towards a circular economy? 2.Interface between trade and circular economy-related policies 3.Relevant notifications from WTO’s Environmental Database
  3. 3. Role of trade policy 2 • Allowing global supply chains to work in reverse • Circular economy approaches require that supply chains work in reverse to collect and process products at end-of-life so that materials can be kept in use • Scale up circular economy solutions, promote access to high quality technological solutions • Global value chains allow circular businesses to locate activities in the best possible locations (in terms of costs, skills, quality, etc.) and to reap economies of scale • Address trade-related concerns • Illegal waste trade, technological lock-in
  4. 4. The interface between trade and circular economy policies 3 0 50 100 150 200 250 300 Reuse/repair Remanufacturing Recycling Biological cycles Technology/research Waste to energy Technical regulations Support Bans, licences Procurement Other Number of notified measures related to selected circular economy activities, 2009-17 Source: Homepage | WTO - EDB
  5. 5. The interface between trade and circular economy policies 4 Africa Asia CIS Europe Middle East North America South & Central America, Caribbean Members across regions have notified measures related to circular economy activities Notified measures related to selected circular economy activities, by region (2009-17) Source: WTO Environmental Database, edb.wto.org
  6. 6. Identifying the challenge 5 1. Relevant trade measures • How do trade measures affect the competitiveness of circular economy activities? • What approaches could help reduce the trade costs of circular economy activities while ensuring that those activities result in environmentally sound outcomes? 2. Standards and regulatory cooperation • Are current standards fit for purpose and what types of standards and regulatory cooperation would be needed to improve the efficiency and environmental safety of global markets for the circular economy? 3. Technological solutions • What technologies, as embodied in goods, are needed to support the circular economy, and what trade barriers affect their deployment across borders? 4. Services • What restrictions affect trade in services that are needed for a circular economy? 5. Trade-related capacity building • What are the priority areas to make the transition to a circular economy inclusive?
  7. 7. Finding solutions: Relevant aspects of WTO work 6 Transparency and policy dialogue Peer review Negotiations Capacity building for more efficient and safer circular trade

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