Europe’s Circular Economy Strategy Needs Global Integration

While the Circular Economy Act seeks to reduce reliance on imported minerals and cut waste, the European recycling sector has faced a sharp contraction since 2025. Brussels currently treats circularity as an internal market issue, yet the reality of value chains demands a foreign policy and trade-first approach. Without incorporating producer countries into the design of digital product passports and recycled-content standards, the EU’s regulatory ambitions may clash with the realities of global trade.

Programs like the EU-funded SWITCH2CE are revealing that circularity is often stalled by mismatched customs rules and waste regulations. In Bangladesh, for instance, the garment industry relies heavily on informal waste pickers, a segment frequently underestimated by EU policymakers. Similarly, pilots in Egypt demonstrate that environmental mandates fail without clear economic incentives and long-term trade assurances from European brands. To make these systems functional, the EU must move beyond unilateral rulemaking and harmonize data standards directly with its international partners.