Geneva: The global plastic trade in 2023 exceeded $1.1 trillion, accounting for 5% of global goods trade, with a staggering 75% of plastics becoming waste, according to a report released by the UN Trade and Development (UNCTAD) on Thursday. The report highlights significant environmental implications, as much of this waste leaks into oceans and ecosystems, posing threats to public health, food systems, and long-term development, especially in small island and coastal nations.
According to Anadolu Agency, the global plastic production reached 436 million metric tons in 2023. The report points out that the average Most Favored Nation (MFN) tariffs on plastic and rubber products have drastically decreased from 34% to 7.2% over the past three decades, rendering fossil fuel-based plastics relatively inexpensive. Meanwhile, natural alternatives such as paper, bamboo, natural fibers, and seaweed face higher average MFN tariffs of 14.4%, discouraging investment in these sustainable options.
The absence of a comprehensive international treaty governing the composition, design, production, trade, and disposal of plastics is a critical issue highlighted in the report. With 98% of plastics derived from fossil fuels, emissions and environmental damage are anticipated to increase without coordinated multilateral action. Efforts to address these issues have been fragmented and incremental since the late 1980s.
Countries are implementing non-tariff measures (NTMs) like product standards and labeling regulations to limit dangerous plastics, but inconsistencies between these standards delay commerce in safer products and increase compliance costs. Small companies and low-income exporters, in particular, struggle to navigate these regulations, hindering their ability to engage in sustainable trade.
In 2023, global trade in non-plastic natural substitutes reached $485 billion, with developing countries seeing an annual growth rate of 5.6%. However, high tariffs, limited market access, and weak regulatory incentives impede the expansion of these sustainable alternatives.
To combat plastic pollution, the agency recommends reforms in tariffs and NTMs to promote sustainable substitutes, investment in waste management infrastructure, digital tools for traceability and customs compliance, and policy coherence across international organizations like the World Trade Organization (WTO), United Nations Framework Convention on Climate Change (UNFCCC), Basel Convention, and regional frameworks.