The Transition to a Circular Economy: Win-Win for All?

With the increasing recognition of the role of trade policies in supporting sustainability approaches, countries are adopting a wide array of trade measures aimed at greening the industrial sector, and one such example is the transition to a circular economy. A transition towards a more resource-efficient and circular economy is closely intertwined with international trade. As circular economy is gradually turning into a global endeavour with dozens of national circular roadmaps being launched, it is crucial to examine how circular economy approaches interact with the economic and trade diversification objectives of developing countries. Circular economy policies and trade policies need to be aligned so that the transition to the circular economy at the global level does not create unnecessary barriers to trade for developing countries. In this context, the broad objective of this paper is to discuss the potential implications of trade rules linked to circular economy for developing countries.