Agricultural Commodities Trade And Sustainable Development

The State of Agricultural Commodity Markets 2022 (SOCO 2022) discusses how trade policies, based on both multilateral and regional approaches, can address today’s challenges for sustainable development. Trade policies in food and agriculture should aim to safeguard global food security, address the trade-offs between economic and environmental objectives, and strengthen the resilience of the global agrifood system to shocks, such as conflicts, pandemics and extreme weather. The report discusses the geography of trade, analysing food and agricultural trade and its patterns across countries and regions, its drivers and the trade policy environment. Comparative advantage, trade policies and trade costs shape the patterns of trade in food and agriculture. When comparative advantage plays out in the global market, trade benefits all countries. Lowering tariff barriers and reducing trade costs can promote trade and economic growth. Both multilateral and regional trade agreements can facilitate the process of making trade an avenue for growth but the gains of trade are distributed unevenly. When global environmental impacts, such as climate change, are considered, a multilateral approach to trade can help expand the reach of mitigation measures.

The In Brief version of the FAO flagship publication, The State of Agricultural Commodity Markets 2022, contains the key messages and main points from the publication and is aimed at the media, policy makers and a more general public.

The State of Agricultural Commodity Markets 2020 (SOCO 2020) aims to discuss policies and mechanisms that promote sustainable outcomes – economic, social and environmental – in agricultural and food markets, both global and domestic. The analysis is organized along the trends and challenges that lie at the heart of global discussions on trade and development. These include the evolution of trade and markets; the emergence of global value chains in food and agriculture; the extent to which smallholder farmers in developing countries participate in value chains and markets; and the transformative impacts of digital technology on markets. Along these themes, SOCO 2020 discusses policies and institutions that can promote inclusive economic growth and also harness markets to contribute towards the realization of the 2030 Agenda and its Sustainable Development Goals.

This study is part of a series of UNCTAD publications that focus on policies in three countries, Guatemala, Vanuatu and Malawi, aimed at upgrading and diversifying specific agricultural sectors of rural economies in developing countries with a view to raising living standards among small-scale farmers in a context of female empowerment and food security and above all, sustainable development. The study analyses three agricultural sectors in Guatemala – potato, cocoa and cardamom - in terms of opportunities derived from trade of primary and processed products. The focus is on the growing trend among consumers in high income countries for artisanal, fair-trade, organically grown, single-origin products that allow niche market penetration by integrating into their traded products a narrative on the history and lives of local farming communities where the primary product is cultivated. The study bears in mind the heavy costs to implement Voluntary Sustainable Standards, internationally-accepted certification systems, or consumer-driven specific standards set by retailers, looking at domestic sales opportunities, for example within Guatemala’s growing tourism sector, which also allows farmers to hedge against price fluctuations in international markets. According to the study’s sustainability analysis, the strategies presented are aligned with sustainable development goals, integrating environmental, social welfare, gender equality, a more equitable distribution of income, and, more diversified income opportunities. Outcomes are expected to be positive overall, but the study nevertheless advises care in implementation to minimise any unforeseen and potentially negative long-term impacts, for example on issues such as staple food production. It further cautions on possible perverse consequences whereby, without successfully integrating small-scale farmers in the product value-chain, the strategies’ principal beneficiaries may rather be intermediaries. This report concludes with a set of recommended sustainable development policies that take into account food security and the importance of agriculture not only for small-scale farmers but for Guatemala’s economy as a whole.

With trade recognized as a means of implementation under Agenda 2030, policy-makers will need to ensure that trade, and policies affecting trade and markets, are taken into consideration as part of their efforts to achieve SDG 2. The five targets that set out the level and ambition of SDG 2 (ending hunger; ending all forms of malnutrition; doubling the agricultural productivity and incomes of small-scale food producers; ensuring sustainable food production systems; and maintaining genetic diversity), as well as trade itself, often constitute distinct policy priorities for governments. Trade and related policy measures that may be designed to achieve one target can potentially have unintended negative consequences that undermine the achievement of other targets, both within the country where the measure is applied and in the trading partner countries. It is therefore important that policy-makers identify and recognize areas in which difficult tradeoffs may be needed between competing policy objectives, and identify possible ways in which these can be addressed. Furthermore, while the different targets set out under SDG 2 are mutually interdependent and inter-related, it is important to address the trade policy dimension of each component individually as part of a broader plan of action.

The process of food production and distribution has grown into a global corporate system in recent years. This has caused significant impacts on sustainability on an international scale, particularly for developing nations. Establishing Food Security and Alternatives to International Trade in Emerging Economies is a pivotal reference source for the latest scholarly research on agricultural trade relations and trade liberalization in the context of developing countries. Highlighting a range of pertinent topics such as crop productivity, rural development, and value-added agriculture, this book is ideally designed for academics, researchers, graduate students, and practitioners interested in the current state of global food markets.

This timely book provides an accessible insight into how the concept of sustainable development can be made operational through its translation into legal terms. Understood as a multidimensional legal principle, sustainable development facilitates coherent international law making. Using this notion as an analytical lens on the WTO Agreement on Agriculture, the book considers the unresolved question of what a sustainable and coherent agricultural trade agreement could look like.