Trade has played a vital role in human existence since the Neolithic period when foods, seeds and tools were exchanged through social networks and trade routes that connected our ancestors. Today, global food markets continue to connect people and countries and play a critical role in our agrifood systems. They facilitate the movement of food from surplus to deficit regions, share the food diversity and thereby contribute to global food security and nutrition.
Together with an increasingly interconnected worldwide economy, food markets have become more globalized and complementary. Between 2000 and 2022, the volume of food trade more than doubled. This surge reflects a world where more countries trade food with each other, with emerging economies becoming important players and low-income countries being better integrated into global food markets. Without a doubt, this significant expansion of food trade affects the availability, accessibility, affordability and diversity of foods in domestic markets and has important implications for our daily diets.
The 2024 edition of The State of Agricultural Commodity Markets (SOCO) explores the intricate linkages between food trade, diets and nutrition. Trade can affect diets and nutrition through many channels and its effects can be heterogeneous as, by its very nature, trade is intertwined with economic growth, demographic shifts and societal interactions. The report provides comprehensive evidence of how trade affects supply and price, two essential elements of the food environment, which, in turn, can influence dietary patterns and contribute to nutritional outcomes.
Today, in most high- and upper-middle-income countries, dietary patterns and lifestyles have contributed to a high prevalence of overweight and obesity. Many low- and lower-middle-income countries are also experiencing rapid shifts in dietary patterns and an increasing prevalence of overweight and obesity, while many have not yet been able to eradicate undernutrition. As a result, these countries are burdened with various forms of malnutrition including undernutrition, micronutrient deficiency, overweight and obesity all co-existing within the same country, community or household.
Healthy diets and good nutrition are necessary throughout the life course for survival, health, growth, development and all aspects of well-being. Eating a diet that is adequate in nutrients, diverse across food groups, balanced in energy, moderate in unhealthy food consumption and safe helps us to grow, stay healthy and live active lives. The aspiration to end hunger and all forms of malnutrition, while promoting sustainable agrifood systems, is at the core of Sustainable Development Goal 2 (Zero Hunger). With the Sustainable Development Goals intrinsic to FAO’s work, in 2021, the Organization adopted the Strategic Framework 2022–31, developed to support achieving the 2030 Agenda for Sustainable Development through the transformation to MORE efficient, inclusive, resilient and sustainable agrifood systems under four pillars – the “four betters”. One of the pillars, better nutrition, aims to end hunger, achieve food security and improve nutrition in all its forms through increased access to and consumption of healthy diets.
Food trade impacts nutrition through its effects on the availability, diversity and prices of foods. It can also have indirect impacts on nutrition through its effect on incomes, as trade can facilitate the structural transformation of the economy and growth.
Openness to trade can significantly increase the diversity of foods available for consumption in a country, a prerequisite to achieving healthy diets. Not all countries are endowed with adequate natural resources such as land and water to efficiently produce a wide variety of foods in sufficient quantities to meet the dietary needs and food preferences of their populations. As countries import foods that they are not able to produce efficiently, trade generates economic gains and, at the same time, it expands the variety of foods in a country, contributing to the diversity of foods available and potentially to nutrient supply. Indeed, the report finds that between 2010 and 2020, the average supply per capita of micronutrients across countries increased largely due to the expansion of trade. At the same time, food prices tend to be lower in countries that are more open to trade.
The contribution of trade to food availability, accessibility and affordability can inform the discussions on policy approaches to trade openness as compared with food self-sufficiency. The expansion of global food trade has been influenced by multilateral trade rules that have shaped a freer, fairer and more predictable trade environment, which, along with an increasing number of regional trade agreements, has promoted trade in food.
With the global rise in obesity affecting all world regions, there has been a growing emphasis on global guidelines and national policies in many countries. The report delves into the ongoing debate about the role of trade in undermining diet quality, and discusses the relationship between trade liberalization and regional trade agreements.
SOCO 2024 also examines the intersection of trade and nutrition policies such as food labelling and taxation and provides policymakers with an understanding of how such measures can support nutrition objectives in the changing landscape of global agrifood systems.
Regional trade agreements, which aim at deepening economic integration, are pivotal in shaping trade dynamics and the composition of food imports. The report accentuates that at a national level, there is scope to enhance policy coherence between trade and nutrition sectors by, for example, establishing mechanisms to facilitate collaboration between trade policymakers and those responsible for nutrition measures when negotiating and implementing trade agreements.
This edition of SOCO offers robust evidence and valuable insights for policymakers and other partners, enabling them to take practical steps towards enhancing access to nutritious food and enabling the consumption of healthy diets for improved nutrition. Achieving policy coherence between trade and nutrition sectors is imperative for addressing all the dimensions of sustainable development. Strengthening capacity among policymakers and partners can promote effective collaboration. FAO is steadfast in its commitment to collaborative efforts to advance the 2030 Agenda for Sustainable Development and the Sustainable Development Goals, striving towards the four betters: better production, better nutrition, a better environment and a better life – leaving no one behind.
Qu Dongyu |