Circular Economy and International Trade: Applicability of FTA Rules of Origin to End-of-Life Batteries
Bibliographic record
Abstract
Purpose - The purpose of this study is to examine the applicability of Free Trade Agreement (FTA) rules of origin to end-of-life (EOL) batteries within the framework of the circular economy. In particular, this study aims to analyze how recycling, reuse, and remanufacturing of EOL batteries are treated under preferential trade agreements, and to identify limitations and policy implications for Korea and other economies pursuing sustainable trade strategies. Design/methodology/approach - This study adopts a qualitative and legal-institutional analysis based on FTA texts, HS classification rules, and policy documents. Comparative analysis is conducted across major FTAs (e.g., Korea-US FTA, Korea-EU FTA, Korea-Canada FTA, RCEP) to examine the treatment of waste, scrap, and remanufactured goods. In addition, policy reviews of Korean legislation such as the Framework Act on Carbon Neutrality and Green Growth (2022), the Act on Transition to a Circular Economy (2024), and the proposed Act on Fostering the End-of-Life Battery Industry (2025) are incorporated to contextualize domestic strategies. Findings - The analysis reveals three key findings. First, EOL batteries recycled for material recovery are generally recognized as “wholly obtained goods” under most FTA provisions, thereby eligible for preferential treatment regardless of the origin of input materials. Second, reused or remanufactured batteries retain their original function and HS classification, and thus rarely meet the wholly obtained criterion or the product-specific rules of origin (PSR), creating structural limitations in FTA utilization. Third, some agreements (e.g., Korea-US FTA, Korea-Canada FTA) introduce exceptions for remanufactured goods, but the scope remains narrow and fragmented across agreements. Overall, the current rules of origin reflect a linear economic paradigm and fail to fully accommodate the characteristics of circular economy products. Research implications or originality - This study contributes to the emerging literature on the intersection of the circular economy and international trade by highlighting how FTA rules of origin interact with recycling, reuse, and remanufacturing practices. The findings underscore the need for revising origin criteria to better reflect circular economy realities, such as explicit definitions of remanufactured goods and expanded recognition of reused products. For Korea, strengthening institutional support for the EOL battery industry and aligning FTA rules with circular economy objectives are crucial for enhancing trade competitiveness and achieving sustainable growth.
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How this classification was reachedexpand
Full frame machine prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.
Distilled classifier scores by category (both heads)
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.010 | 0.022 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.001 |
| Bibliometrics | 0.002 | 0.002 |
| Science and technology studies | 0.004 | 0.016 |
| Scholarly communication | 0.007 | 0.007 |
| Open science | 0.001 | 0.003 |
| Research integrity | 0.002 | 0.002 |
| Insufficient payload (model declined to judge) | 0.004 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from itClassification
machine, unvalidatedMachine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.
How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".