Jean-Marie Paugam, Deputy Director-General, World Trade Organization (WTO)
Lawrence Haddad, Executive Director, Global Alliance for Improved Nutrition (GAIN)
Food trade is not a luxury — it is a must. Over 30 countries would face starvation if international food trade were to come to a halt. While the risk of food insecurity is severe for less developed countries that rely upon trade, dependence on trade for food security is also a concern for wealthier nations. Gulf Arab nations, facing severe water shortage, import 80-90 per cent of their food, Singapore imports 90 per cent, and Haiti imports 50 per cent. Globally, 25 per cent of food production is traded internationally.
Today, nearly 5,000 trillion kilocalories are traded daily — more than double the amount in 2000 — while daily per capita food trade has increased from 930 kilocalories to 1,640 kilocalories in the last 25 years. The sector’s value has reached US$ 2.3 trillion, cementing its critical role in the global economy.
The benefits of trade are often viewed in economic terms, but its human impact — on malnutrition in particular — cannot be ignored. Malnutrition stunts development, weakens immunity, and deteriorates bone and muscle health.
This year’s WTO Annual Agriculture Symposium on 9 December 2024, in which the Global Alliance for Improved Nutrition (GAIN) and a number of other intergovernmental agencies participated, highlighted the intricate link between trade and nutrition.
Trade is vital for global nutrition security. In 2010, the diversity of foods available for consumption via trade was almost 60 per cent greater than the variety produced domestically; by 2020, this had risen to nearly 90 per cent. Access to a broader range of foods supports healthier diets and better health outcomes.
Trade decisions can have far-reaching consequences. Since the outbreak of the war in Ukraine, disruptions to sunflower oil supplies have led to skyrocketing prices. As a result, Indonesia, facing understandable domestic pressures, interrupted its palm oil exports. The downstream impact on importing economies included the suspension of Bangladesh’s edible oil fortification programme. This illustrates how policy changes in one region can inadvertently cause nutritional deficiencies thousands of miles away.
A 2022 study in the journal Nature Food quantified the stakes: international trade in nutritious foods such as vegetables, fruits, legumes, and nuts contributed to a reduction in mortality from non-communicable diseases of 1.4 million deaths globally.
The question is how trade can be leveraged to maximize its positive impact on nutrition. One solution lies in aligning trade policies with health goals. High tariffs on nutritious foods or subsidies for unhealthy products undermine public health. Trade policies should incentivize healthy food choices and discourage unhealthy ones.
Progress is already being made. GAIN has successfully advocated for the reduction of import duties on vitamin and mineral mixes in Pakistan, enabling fortification programmes to resume. And there are many other examples of a successful alignment of trade policy and nutrition goals. In 2024 Nigeria cut tariffs from 20 per cent to 5 per cent on maize, brown rice, wheat and cowpeas. Fiji had previously reduced tariffs on certain imported vegetables and fruits from levels as high as 32 per cent to 5 per cent, explicitly promoting healthier diets. Similarly, Samoa and Tonga have introduced taxes on fatty meats and sugary drinks.
The WTO Agreement on Sanitary and Phytosanitary Measures and the Technical Barriers to Trade Agreement empower governments to ensure the safety of imported food and to use nutrition and warning labels, as well as other tools, to raise consumer awareness and combat misinformation. Other agreements, such as the Trade Facilitation Agreement, reduce red tape and expedite customs procedures, minimizing food and nutrient losses by speeding up supply chains.
The impact of the WTO rulebook on nutrition cannot be underestimated. By helping its members to understand the effects of trade policy on nutrition, the WTO can play a key role in driving the transition toward healthier and more nutritious food systems. Together, we must trade away malnutrition from the face of the earth.
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