India keeping tabs on WTO pact for plastic pollution

India is closely watching the efforts by 76 members of the World Trade Organization (WTO), including China, the UK, the US and the EU, to arrive at an outcome on plastics pollution by early next year. In a draft submitted on environmentally sustainable plastics trade, these countries have sought monitoring and regulation of plastics trade, and transparency in trade flows across the life cycle of plastics in internationally traded goods.

Officials said India's per capita usage of plastics is low and the country has already banned single-use plastic and that Multilateral Environmental Agreements (MEA) of the UN are the appropriate forum for such talks.

"Our stand is that MEAs are the right forum. There is a move from developed countries and we are examining it. We will then take a stand," said an official.


As per the zero draft or the initial outline submitted, the 76 members have sought amendments in the Harmonized System for more effective monitoring and regulation of plastics trade, supporting the timely implementation of the binding agreement on plastic pollution by 2024, promoting the adoption of non-plastic substitutes, and facilitating the trade of green goods and services.

Industry has raised concerns of such a move becoming a non-tariff barrier, which could eventually hit India's exports.

"There is a risk that the WTO's move to tackle plastic pollution and circular economy for plastics could create other potential trade barriers by the developed countries," said Deep Kapuria, chairman, The Hi-Tech Group.

He said it could lead to the implementation of new standards and frameworks that could make it more difficult for Indian exporters to meet the requirements of developed countries

India's plastics exports in FY23 were worth $7.7 billion.

"India should be careful as our share in global plastics exports is slightly above 1% and per capita plastic consumption is 15 kg as against the US' above 100 kg and Italy's 40 kg," said a representative from the plastics export industry.

Any changes to the way plastics are produced, used, or disposed of could have a ripple effect throughout the industry as it may add costs and may result in supply chain constraints, Kapuria cautioned.

At a recent Plastics Dialogue at the WTO, Australia, Barbados, China, Ecuador and Morocco pushed for a consensus for a ministerial statement at the upcoming ministerial conference.