This workshop focused on key issues related to Regional Trade Agreements (RTA) and the environment. It had three main objectives: (i) to take stock of current experience and insights on RTAs and the environment from different stakeholders, and to establish a stakeholder dialogue on this topic; (ii) to investigate how RTAs can serve as a vehicle to advance a resource efficient and circular economy transition; and (iii) to explore the potential of RTAs in addressing the nexus of illegal trade and environmental crime

1. International trade and
the circular economy in
Latin America and the
Caribbean
Nanno Mulder
UN Economic Commission for Latin America
and the Caribbean
OECD, June 10th 2021

2. https://www.unido.org/api/opentext/documents/download/20394875/unido-file-20394875

3. 1. Movement towards the circular
economy (CE) in Latin America
and the Caribbean

4. Movement towards the circular economy in LAC
o Background: LAC is one of the worst hit regions by the pandemic; has one
of lowest recycling rates, but one of highest rates of resource extraction.
o The CE aims to minimize natural resource extraction, reducing the demand
for raw materials exports by the region, contributing to SDGs 15 (life on
land) and SDG 13 (climate action)
o ECLAC promotes the Big Push for Postpandemic Sustainability based on a
new development strategy, focusing on six strategic sectors including CE
o The CE represents an opportunity for intrasectoral diversification, domestic
value addition and job creation assisted by international trade
o Each subregional bloc could develop its own commercial circuits to achieve
scale economies to promote the CE

5. Source: https://www.paiscircular.cl/consumo-y-
produccion/definen-importancia-de-las-redes-
sociales-y-medios-de-comunicacion-en-la-
cobertura-de-la-economia-circular/
International trade
considerations are
only recently
appearing in national
CE strategies

6. 2. Role for trade to speed up the
transition to the CE
The current HS only traces trade in waste and scrap

7. Trade in waste is
concentrated in markets
that have a CE strategy
o European Union and China are main
players in waste trade.
o EU: main exporter and importer,
exports what cannot be treated
internally (capacity or costs)
o China: net importer of waste to be
converted into secondary raw material
(2018 restrictions).
o Latin America and the Caribbean
respresents only 3% of global X and M
o Risks for countries that do not have
adequate technologies (human health
and environment) to deal with waste
0
10
20
30
40
50
60
North
America
Latin America
and the
Caribbean
Asia European
Union (28)
Rest of the
world
Regional shares in global exports (%)
2002-2003 2011-2012 2017-2018
0
10
20
30
40
50
60
North
America
Latin
America and
the
Caribbean
Asia European
Union (28)
Rest of the
world
Regional shares in global imports (%)
2002-2003 2011-2012 2017-2018

8. Latin America: small but
diversified waste trade
o Most external waste trade is between Mexico
and the United States
o Waste exports to the region represented 10 per
cent in terms of value and 19 per cent in terms
of volume of total shipments
o Intrarregional waste trade is diversified in all
mega-sectors.
o Opportunity to promote intra-regional trade to
take advantage of proximity, scale economies
and reuse of secondary raw materials (in
addition to environmental and social benefits).
0
200
400
600
800
1000
1200
1400
1600
1800
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Minerals and metals Agro and food
Wood, paper and cardboard Chemical and plastic
Textile and leather
Intrarregional waste trade
(millon tons)

9. 3. Regional cooperation to speed
up the transition towards the CE

10. AIMS
o Promote regional cooperation
o Enhance public-private-academic partnerships
o Empower the role of consumers in the CE
o Share best practices
o Mobilize financing for the CE transition

11. nanno.mulder@un.org