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BIR International Environment & Trade Councils: Free Trade vs. the Reality of the Circular Economy

11/23/2025 15:54
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BIR International Environment & Trade Councils: Free Trade vs. the Reality of the Circular Economy

At the International Environment Council and the International Trade Council sessions of the BIR Autumn Convention in Bangkok, Thailand, on October 27–28, discussions centered on the rise of global protectionism and the long-term sustainability of resource circularity. Both sessions underscored the extent to which institutional frameworks — including tariffs and environmental regulations — are increasingly determining the international competitiveness of the recycling industry.

International Environment Council (October 27): Structural Challenges and Regulatory Pressure on Europe’s Recycling Industry

At the International Environment Council on October 27, chaired by Olivier François, BIR’s Market Development Officer for the European Division (Belgium), discussions focused on the mounting pressure facing Europe’s recycled plastics sector, caught between an influx of low-priced imports and export bans introduced under environmental regulation. He noted that Europe remains the only region in the world to have successfully established a mature recycled plastics market — a success that has paradoxically attracted cheap imported resins, triggering plant shutdowns and bankruptcies across the region and eliminating nearly one million tons of production capacity.

Mr. François also voiced concern over the European Commission’s proposed European Steel and Metal Action Plan (SMAP), which could restrict exports of recycled metals such as steel, aluminum and copper. He cautioned that such measures risk distorting the global supply–demand balance.

The session’s first speaker, Olatz Finez Maranon, BIR Trade & Environment Policy Officer (Belgium), stressed that SMAP currently lacks legal force but urged industry players to monitor “upstream policy signals” as future measures may include export volume caps, levies and amendments to circular economy legislation designed to expand domestic secondary-material markets.

Mr. François later referenced China’s proposal to the International Organization for Standardization (ISO) in the summer of 2025 to develop a recycled steel classification. ISO has since launched a technical report and is now examining a potential pathway toward formal standardization. In response, BIR has formed a task force, highlighting that the existing European EFR and U.S. ISRI/ReMA specifications were not reflected in the proposal.

The next speaker, Alev Somer, BIR Director of Trade & Environment (Belgium), called for technical expert participation in the ISO discussions, noting misalignment with current international standards. Ms. Somer additionally reported significant disruption stemming from the Basel Convention amendment governing the transboundary movement of electronic waste: since January 2025, all electronic scrap — hazardous or not — has been subject to the Prior Informed Consent (PIC) procedure, requiring approval from exporting, transit and destination countries. Even non-hazardous motors and shredded scrap (B1010 and B1050) are being classified under Y49 in some jurisdictions, resulting in customs complications across Asia. BIR has argued within the Basel working group that the amendment is having consequences “well beyond its original intent” and is advocating for corrective measures.

Ms. Somer further noted that BIR is intensifying data-driven policy advocacy through initiatives including collaboration with UNITAR on the Global E-Waste Monitor 2027 and joint research with international copper, lead and zinc study groups.

The final speaker, Bianca Mannini, BIR Trade & Environment Policy Officer (Belgium), delivered an update on the UN Global Plastics Treaty. Although negotiations stalled in August, renewed talks scheduled for December may revive momentum. However, participating countries remain divided between the High Ambition Coalition, backing a lifecycle-wide treaty, and the Like-Minded Group, favoring voluntary approaches largely focused on waste management. Mannini reiterated BIR’s commitment to ensuring that industry perspectives — from production and design through to recycling and circularity — are represented in the negotiation process.

International Trade Council (October 28): Protectionism and Free Trade in Sharp Contrast

At the International Trade Council session on October 28, chaired by Emmanuel Katrakis, Public & Regulatory Affairs Director of Galloo Group (France/Belgium), U.S. and European representatives presented contrasting positions on tariff policy.

At the start of the session, Murat Bayram, Managing Director of European Metals Recycling (UK/Germany), argued that while supporting Europe’s steel industry is essential, “protection through tariffs is counterproductive.” He stated that the core challenge lies not within the recycling sector itself but in broader macroeconomic weakness — an abundant supply of recycled steel contrasted with insufficient demand. Mr. Bayram called for cooperation rather than protectionism and proposed incentive schemes that allow the benefits of CO₂ certificates to be shared for products processed and refined within Europe. He also emphasized that high energy prices remain the primary bottleneck for Europe’s steel sector. In contrast, George Adams, CEO of SA Recycling (United States), defended tariffs, asserting that they have helped safeguard the U.S. steel industry. He warned that unrestricted imports of low-priced foreign steel risk “hollowing out” domestic production capacity, which he framed as a national risk. While acknowledging cost increases for downstream sectors such as automotive manufacturing, Mr. Adams argued that industrial resilience is the foundation of competitiveness.

Mr. Katrakis concluded that recycled-steel markets are inherently self-balancing: “When domestic consumption in Europe decreases, exports rise — and vice versa.” He reiterated that export restrictions and taxation are unnecessary and echoed that high energy costs remain the core structural challenge.

Closing Perspective

The BIR Convention underscored the dilemma of a recycling industry positioned between economic security agendas and tightening environmental regulation. As governments reinforce tariffs and export controls to protect domestic industry, global resource circulation — predicated on free and frictionless cross-border trade — is coming under increasing pressure. Europe’s high energy costs and the expanding regulatory landscape surrounding electronic scrap and recycled plastics highlight that these challenges are beyond the scope of national solutions. Progress will require not a binary choice between the economy and the environment, but international coordination, regulatory interoperability and technological collaboration to co-create a functioning circular economy.

This concludes our coverage of the BIR World Recycling Convention held in Bangkok.

 

 

(IRuniverse Midori Fushimi)

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