Circular economy may also entail challenges and risks.

Trade can play a role in creating a more circular economy.

To date, only developed countries have implemented circular economy initiatives.

The lack of proper consideration given to the constraints faced by small and medium sized enterprises, especially those in developing countries, to meet circular economy requirements.

The inability of trade regimes to distinguish between unwanted waste on the one hand, and goods, components and materials flowing in and out of circular economy processes, on the other.

The use of ineffective or inappropriate standards and labelling requirements.

By opening and facilitating trade to scale up circular economy solutions through negotiations.

By improving the collective understanding of how trade interacts with the circular economy through policy dialogue.

By building trust and confidence among trading partners to ensure mutually beneficial circular trade through peer review.

By strengthening the trade capacity and infrastructure in developing countries to participate and benefit from a circular economy through Aid for Trade.

Trade can facilitate access at lowest cost to critically important technological solutions for a circular economy, from waste sorting machines and devices that break down hard-to-recycle materials to the critical inputs needed to produce biodegradable plastics.

Trade can give circular businesses improved access to a larger supply of recovered goods, components and materials for recirculation, along with access to a larger consumer base, thus allowing them to decrease costs through vital economies of scale while strengthening the incentive to invest in eco-design and innovation, reverse logistics and other building blocks of circular business models.

Trade can help ensure that circular economy activities such as reuse, repair, refurbishment, remanufacturing and recycling happen in the best possible locations in terms of cost, quality, skills and other location-specific advantages.

The circular economy model reflects a "take-make-discard" approach.

UNEP (United Nations Environment Programme) treaties contain a universally agreed definition of a circular economy.

Interest in circular economy approaches is increasing.

The reduction of waste is a key objective in circular economy initiatives.

Designing and producing goods to make them less polluting and more durable.

Recovering goods (or their components) after their first use for second-hand use, repair, refurbishment, remanufacturing or recycling.

Sharing and leasing existing assets.

Reduce resource use throughout the product lifecycle.

Renewable or recovered inputs.

Minimize waste.

Replace virgin material inputs with bio-based.