Plastics are now a cornerstone of global trade and the economy, yet their environmental costs are staggering. In 2023, global plastics trade exceeded $1.1 trillion (323 million metric tons), with over 78% of production traded internationally. Alarmingly, 75% of all plastic ever produced ends up as waste, and much of it crosses borders, disproportionately impacting coastal developing nations and Small Island Developing States.

The UNCTAD report calls for trade policy to be a central tool in combating plastic pollution, complementing the ongoing negotiations for a Global Plastics Treaty under the UN Environment Assembly’s mandate.

Key challenges:

• Plastics, mostly fossil-fuel-based, contribute to greenhouse gas emissions and biodiversity loss.
• Non-plastic substitutes exist but face double the tariffs of conventional plastics, undermining market competitiveness.
• Waste management capacity, especially in developing countries, is insufficient and outdated.

Policy recommendations:

1. Rebalance tariffs and trade measures to make sustainable substitutes more competitive.
2. Promote regulatory convergence for plastics and alternatives, ensuring transparency and mutual recognition of standards.
3. Scale up investments in waste management, recycling, and sustainable product innovation.
4. Foster coherence between trade policies and environmental agreements.
5. Leverage digital customs tools like ASYCUDA for traceability and reduced trade costs.
6. Enhance data systems to close gaps in plastic production, trade, and waste statistics.

UNCTAD highlights that trade measures, when aligned with environmental and investment policies, can be powerful levers for a just, global transition away from plastic pollution.

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