Disclosed is a composition comprising an aliphatic-aromatic copolyester consisting essentially of a dicarboxylic acid component that includes a terephthalic acid component and a linear aliphatic dicarboxylic acid component, a glycol component consisting essentially of a linear aliphatic glycol component and 0 to 4 mole percent based on 100 mole percent total glycol component of a dialkylene glycol component and at least one additional component; starch; water; and polyol plasticizer. Also described are shaped articles such as films which exhibit greater than expected tear strength and methods for preparing the films.