The role of international trade in accelerating the transition to a circular economy is receiving increasing attention in the global policy arena and academic literature. It is a complex area of study encompassing domestic policy, international trade governance, multilateral environmental agreements, material flow analysis, and Just Transition. Due to the expansiveness and interconnectivity of the topic, this article conducts the first systematic literature review on the intersection between a just circular economy transition and international trade. A total of 69 articles were reviewed spanning academic and grey literature. The article identifies and discusses the predicted adverse impacts and benefits of the global CE transition. One striking finding of the review is the prevalence of competing claims across the literature, which will potentially lead to the design of ineffective policy actions. This contradiction of claims is indicative of the significant knowledge gaps in terms of mapping and understanding the complex trade flow dynamics associated with the CE transition. It also presents the most common recommended actions covering immediate policy actions and further research. Policy actions include the development and harmonization of CE standards and definitions, upgrading the Harmonized System of codes structure and customs processes to better enable trade in CE goods and services and mainstreaming circular economy objectives in free trade agreements. Further research is required on how to ensure a Just Transition, the role of global trade in terms of remaining within the planetary boundaries and achieving the SDGs; and improving trade flow modelling. New research is also required on the impacts of geopolitics, technological innovation, and CE finance on circular trade.

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Circular Economy and International Trade: a Systematic Literature Review

The global challenges related to pandemics and political disputes are one of the hardest front confronted by international development cooperation and becomes the challenge for regional integration initiatives. During the phase of pandemic it is the matter of great concern for all the governments not only to identify possible outcomes to minimize long term losses to their economies but to facilitate the residents for their recovery to challenge the issues of maintaining their livelihood, poverty, employment and through provision of global public goods.The impact of Trade agreements is long-term on a country's economic outlook. China-Pakistan FTA-I entered into force w.e.f Oct.10th, 2009 and bring zero rates on 35.5% of tariff lines and the CPFTAII entered into force w.e.f. Jan-2020 and in terms of tariff lines, China liberalized 1026 new tariff lines. Under CPFTA, China’s tariff on 313- priority tariff lines were eliminated that which cap over $8.7 billion worth of our International exports and over $64 billion worth of imports from China. As a result, though trade with China has increased manifold, still it could not achieve desired results. Additionally, domestic and global economies are passing through an extraordinary time when the world is confronted by pandemic uncertainties and economic threats convoluted by the Ukraine war crunch, where national preferences shaping against globalization. In this background, we need to fast find solutions to these issues and explore how bilateral agreements can be leveraged for enhancing trade ties for sustainable economic growth. This study examines the trade response using export and import data, which indicates the intensity of trade reciprocity by analyzing pre, and post-CPFTA conditions. This study, therefore, aims to comprehend the role of the China-Pakistan Free Trade Agreement (CPFTA) in Pakistan’s trade regime and its contribution to the economy. The study has compared the imports and Pakistani exports to China during and after the CPFTA-I based on Pakistan’s annual GDP growth rate while for due short period of time from 2019 onwards CPFTA-II data is not utilized for analysis. The resulting analysis will be used to recommend measures to increase trade with China and other regional countries, address non-tariff impediments to maximize utilization of the FTA, and address bottlenecks for the implementation of the Free trade agreement and the results foreshadow forthcoming mutual trade in fields of technology, investment, Agriculture, Blue growth and CPEC between both nations.

Leveraging cpfta for national economic growth amidst global crises

The current global pandemic illustrates that existing trade agreement models, including free trade agreements (FTAs), present challenges when countries must deal with exogenous shocks. As economies reopen worldwide, the time is ripe to re-conceptualize trade agreements and align them with the United Nations Sustainable Development Goals (SDGs) in order to afford a recovery that is both inclusive and equitable. This team report draws from New Market Lab’s program on FTAs and the SDGs. The report incorporates reforms, targeted mainly at FTAs, that could better leverage international trade to drive sustainable development. The report’s recommendations will examine some of the mainstays of FTAs (e.g., trade facilitation, intellectual property rights, and investment) and integrate under-represented topics (e.g., gender, small and medium-sized enterprises, and circular economy), addressing gaps from a sustainable development perspective and thereby ensuring an inclusive road to recovery.

Fabiola Madrigal

Papers

Reconceptualizing Free Trade Agreements Through a Sustainable Development Lens