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Ending Plastic Pollution: The Critical Role of Trade in the Solution

Emily Manifold by Emily Manifold
August 4, 2025
in Environment
A A
Ending Plastic Pollution: The Critical Role of Trade in the Solution

Plastic pollution washes ashore along the Panama Canal. © Shutterstock

As global awareness of plastic pollution grows, the role of trade in addressing this pressing issue is becoming more evident. With the latest Global Trade Update revealing that plastic production skyrocketed to 436 million metric tons and the value of traded plastics exceeded $1.1 trillion in 2023, it’s clear that the trade sector must become a part of the solution rather than a contributor to the problem.

The alarming statistic that 75% of all plastics produced have turned into waste, predominantly polluting oceans and ecosystems, highlights the urgent need for action. This pollution poses significant risks to food systems and human health, particularly impacting small island nations and coastal developing countries that often lack the resources to manage such challenges.

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Interestingly, the traded volume of plastics has surged by 48% over the past 18 years. However, this growth comes at a substantial environmental cost. Over the past three decades, tariffs on plastic and rubber products have dramatically decreased from an average of 34% to just 7.2%. This substantial reduction has made fossil fuel-based plastics far cheaper and more accessible, while non-plastic alternatives, such as bamboo and seaweed, face tariffs averaging 14.4%. Such disparities in trade policy hinder the development of sustainable alternatives and limit investment in innovative solutions.

Regulatory frameworks are also crucial in this context. With 98% of plastics derived from fossil fuels, unchecked emissions are poised to exacerbate environmental damage. Countries have instituted various non-tariff measures (NTMs) like product bans, labeling requirements, and standards to combat plastic waste; however, inconsistencies in these regulations lead to fragmentation and increased compliance costs, particularly impacting small businesses and low-income exporters seeking to engage in sustainable trade.

Amid these challenges, a global treaty to combat plastic pollution is gaining momentum. Scheduled for negotiation between August 5-14 in Geneva, the United Nations-led discussions, known as INC-5.2, aim to develop a legally binding international agreement addressing plastic pollution comprehensively. This treaty seeks to address the entire lifecycle of plastic—from production and consumption to waste management—integrating trade, finance, and digital systems into a cohesive response.

Ahead of these crucial talks, UN Trade and Development emphasizes the need for a successful treaty to incorporate critical elements such as tariff and NTM reforms to facilitate sustainable alternatives, investments in waste management and circular economy infrastructure, digital tools for traceability and customs compliance, and coherence across various international agreements.

The stakes are high, and the potential for positive change through global collaboration in trade and environmental policy could set the stage for a more sustainable future. As negotiations progress, it’s imperative that all stakeholders recognize their role in the fight against plastic pollution and work towards fostering a healthier planet for generations to come.

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