The Global Trade Outlook released by the United Nations Conference on Trade and Development on Thursday shows that from supporting responsible production and consumption to promoting circular patterns and sustainable alternatives, trade must be the solution to plastic pollution, rather than the source of the problem.
The report points out that by 2023, global plastic production will reach 436 million tons, with trade volume exceeding $1.1 trillion, accounting for 5% of the total global commodity trade.
Although plastics are driving global growth in various industries, they have come at a heavy cost to the Earth's environment and ecology. It is shocking that 75% of the plastic produced by humans so far has become waste, mostly flowing into the ocean and ecosystems.
The report emphasizes that such pollution not only threatens food security and human health, but also has a particularly severe impact on small island developing states and coastal areas with weak response capabilities.
The rise of non plastic alternatives is significant, but their potential still needs to be fully unleashed
The report states that in 2023, the global trade volume of non plastic alternatives will reach $485 billion, with an annual growth rate of 5.6% for developing economies. These alternative materials are mostly derived from natural resources such as minerals, plants, or animals, and can be recycled or converted into compost.
However, to expand the scale, the international community still needs to address many challenges, including tariff and non-tariff measures, restricted market access, and insufficient regulatory incentives.
Tariff policy intensifies plastic price advantage, inhibits the development of natural alternatives
The United Nations Conference on Trade and Development warns that the average most favored nation tariff rate for plastic and rubber products has decreased from 34% to 7.2% over the past thirty years, and this policy tilt has to some extent contributed to the price advantage of fossil based plastics.
In contrast, the average most favored nation tariff rate for non plastic alternatives such as bamboo, natural fibers, and seaweed is as high as 14.4%. This tariff difference may hinder investment in the substitute sector, suppress the innovation vitality of developing countries, and delay the global transition away from fossil based plastics.
Fragmentation of regulation hinders effective governance
The report points out that 98% of global plastic production comes from fossil fuels, and if not controlled, its carbon emissions and environmental damage will continue to intensify.
To this end, many countries have implemented non-tariff measures such as bans, labeling requirements, and product standards to restrict the circulation of harmful plastics.
However, the current regulatory requirements are uneven and even contradictory, resulting in a fragmented regulatory system and high compliance costs. Small and medium-sized enterprises and low-income exporters are struggling to participate in sustainable trade and benefit from it in this context.
The highly anticipated global plastic convention is about to settle its dust
The global action to end plastic pollution by 2040 is gaining new momentum. From August 5th to 14th, countries will gather in Geneva to participate in the final round of intergovernmental negotiations led by the United Nations, aimed at developing a legally binding international instrument to combat plastic pollution.
The convention will cover the entire lifecycle of plastics - production, consumption, and waste disposal - within a fair and comprehensive framework
This is also a crucial opportunity to integrate trade, finance, and digital systems into a coordinated global response plan.
On the eve of key negotiations, the United Nations Conference on Trade and Development emphasized that a successful convention must include the following elements: reform of tariff and non-tariff measures to support the development of sustainable alternatives; Increase investment in waste management and recycling infrastructure; Using digital tools to achieve product traceability and customs compliance; And ensure policy synergy between the WTO Agreement, the United Nations Framework Convention on Climate Change, the Basel Convention, and relevant regional frameworks.
