The increasing
adoption of trade-related sustainability measures has intensified the focus on
transitioning to a circular economy. A notable example is the European Union’s
(EU’s) Battery Regulation (2023), which promotes circularity in the battery
sector through stringent requirements on minimum recycled content, recycling
efficiency, and material recovery. While these measures seek to enhance
resource efficiency, they present significant challenges for developing
countries, many of which lack the financial resources, waste management
infrastructure, and technological capacity required for compliance. This paper
examines the WTO compatibility of two key provisions of the EU Battery
Regulation: (1) the minimum recycled content requirement under the Technical
Barriers to Trade (TBT) Agreement and (2) the waste battery shipment obligation
under the General Agreement on Tariffs and Trade (GATT). Specifically, it
assesses whether these measures constitute de facto discrimination against countries
with less-developed waste management systems and are more trade restrictive
than necessary. Drawing on this analysis, the paper argues that World Trade
Organization (WTO) panels must integrate the principles of Common but
Differentiated Responsibilities and Respective Capabilities (CBDR-RC) and duty
to cooperate when evaluating the WTO compatibility of trade-related
sustainability measures. Doing so would prevent such measures from unduly
restricting trade opportunities for developing nations while fostering a just
transition toward sustainability.