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🌱 Why Trade Must Join the Fight Against Plastic Pollution 💱🚯

Why trade must join the fight against plastic pollution: Discover how global trade policies are fueling plastic waste and why reforming tariffs and regulations is essential for a sustainable future, as outlined by UNCTAD’s 2025 report.

Author

Green Glow
August 01, 2025

Plastic pollution has become one of the most visible and destructive environmental challenges of our time. With 436 million metric tonnes of plastic produced in 2023 alone, and over 75% of all plastics ever made becoming waste, the impact on oceans, ecosystems, and communities — especially in developing countries — is staggering.

What is less obvious, however, is how global trade systems fuel this crisis. According to a July 2025 report by the United Nations Conference on Trade and Development (UNCTAD), plastic pollution cannot be effectively addressed without reforming the international trade landscape. Trade policy — including tariffs, subsidies, and non-tariff regulations — must become part of the solution.

Table of Contents

The Trade-Plastic Paradox

Trade has played a major role in the proliferation of plastic. In 2023, plastics accounted for over $1.1 trillion in global trade, roughly 5% of total merchandise trade. This makes plastic not just a pollution problem, but an economic one.

UNCTAD points out a dangerous imbalance: the average global tariff on plastic and rubber products has fallen from 34% in 1995 to just 7.2% today, making fossil fuel-based plastics artificially cheap. In contrast, eco-friendly alternatives — such as paper, bamboo, seaweed, or natural fibers — face average tariffs of 14.4%. These tariff disparities penalize sustainable innovation while incentivizing the continued use of cheap, polluting plastic.

The Rise of Eco-Alternatives – and Their Trade Barriers

Sustainable plastic substitutes are on the rise. Global trade in these products reached $485 billion in 2023, growing at a rate of 5.6% annually in developing economies. These substitutes are often biodegradable, compostable, or recyclable, making them far less harmful to ecosystems.

Yet, several barriers prevent these products from gaining real market share:

  • Tariff disadvantages that make them more expensive than plastic

  • Limited market access for exporters in developing countries

  • Weak regulatory support and fragmented compliance frameworks

These obstacles don’t just stifle progress — they entrench inequality, since many eco-alternatives are produced in countries least responsible for plastic waste, yet most vulnerable to its effects.

The Role of Non-Tariff Measures — Fragmented and Costly

Many governments have introduced non-tariff regulations — including bans, product labeling rules, and environmental standards — to limit plastic use. While this is encouraging, the lack of harmonization across countries creates confusion and high compliance costs.

Small businesses and exporters from low-income countries often struggle to meet overlapping, inconsistent regulations. As a result, they are locked out of sustainable trade opportunities — an issue that must be addressed in future agreements.

Toward a Global Treaty: A Turning Point for Trade and Environment

In 2022, the UN launched negotiations for a legally binding international treaty to end plastic pollution. The final round of talks is taking place in August 2025 in Geneva. UNCTAD sees this treaty as a critical opportunity to align environmental and trade policies globally.

Key proposals include:

  • Tariff reforms to reduce or eliminate duties on sustainable substitutes

  • Investment in circular economy infrastructure and waste management

  • Digital tools for traceability and customs compliance

  • Policy coherence across institutions like the WTO, UNFCCC, and Basel Convention

If successful, this treaty could become a blueprint for integrating trade and environmental goals — and set a precedent for addressing other global crises through trade reform.

Conclusion

Plastic pollution is not just an environmental emergency — it’s an economic failure. We are subsidizing destruction through outdated trade structures, while blocking the very innovations that could lead to a sustainable future.

It’s time to rethink trade policy not as an obstacle to sustainability, but as a key lever for achieving it. That means:

  • Rebalancing tariffs to favor eco-friendly products

  • Supporting exporters in the Global South

  • Harmonizing regulations to reduce costs and confusion

  • Embedding environmental goals into every layer of trade negotiations

As the world prepares for a historic agreement on plastic pollution, the message is clear: Trade must not just follow — it must lead the fight against plastic pollution.

FAQs

How is global trade connected to plastic pollution?

Global trade significantly impacts plastic pollution by making fossil fuel-based plastics widely available and artificially cheap due to low tariffs and high trade volumes. These economic incentives drive overproduction and overconsumption of plastic.

Why are sustainable alternatives disadvantaged in trade?

Sustainable plastic substitutes face higher average tariffs (14.4%) compared to plastic products (7.2%), making them less competitive in global markets. Regulatory fragmentation and lack of support also hinder their growth.

What role does the UNCTAD 2025 update play in this issue?

UNCTAD’s July 2025 report highlights the urgent need to align trade policy with environmental goals. It supports using tariff and non-tariff measures to promote sustainable alternatives and calls for integration of trade in the upcoming global plastic pollution treaty.

What are non-tariff measures, and how do they affect trade in plastics?

Non-tariff measures include bans, labeling requirements, and product standards. While designed to reduce plastic pollution, their inconsistency across countries increases compliance costs, especially for small exporters.

How can a global treaty help?

The treaty aims to create a legally binding framework that covers the full life cycle of plastics. It would harmonize global regulations, encourage sustainable investment, and support developing nations in transitioning to eco-friendly alternatives.

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