Food Security and Global Trade

Show Notes

Food Security and Global Trade: Impacting the supply of agricultural goods.

Panellists:

Emily Rees, President and CEO, CropLife International

Marion Jansen, Director, Trade and Agriculture Directorate (TAD), OECD

Moderator:

Rem Korteweg⁠, Senior Research Fellow, Clingendael Institute

This podcast episode was recorded on 30 June 2023.

The 2023 edition of the AIG Global Trade Series explores the extent and impact of regionalisation on the global trade landscape. With Russia’s invasion of Ukraine leading to export restrictions on both Ukrainian grain and Russian fertilizer, food prices - and subsequently inflation - rose significantly. The IMF notes that food insecurity has been rising since 2018 as a result of increasing climate shocks, regional conflicts and the COVID-19 pandemic, which disrupted food production and distribution while driving up food prices.  While particularly affecting developing economies - which are generally more dependent on food imports - there are also serious concerns in the developed world about food security, including the issues of climate impact and new trade measures.

What are the most important factors shaping the global trade in agricultural goods? How is this impacting on greater food security? And can the frictions, the restrictions and imbalances in the trade in agricultural goods be addressed multilaterally?

The Global Trade Series is a collaboration between AIG and the following international organisations with leading expertise on global trade: the ⁠Aspen Institute Germany⁠; ⁠Chatham House (UK)⁠; ⁠CEBRI - the Brazilian Center for International Relations⁠; the ⁠Clingendael Institute⁠ (The Netherlands); ⁠Institute of International Economic Law at Georgetown University Law Center ⁠(US); ⁠ISPI - the Italian Institute for International Political Studies⁠; the ⁠Jacques Delors Institute⁠ (France); ⁠RIETI - the Research Institute of Economy, Trade and Industry⁠ (Japan) and the ⁠St. Gallen Endowment for Prosperity through Trade⁠ (Switzerland). 

The views and opinions expressed in this podcast series are those of the speakers and do not necessarily reflect the official policy or position of American International Group, Inc. or its subsidiaries or affiliates (“AIG”). Any content provided by our speakers are of their opinion and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything. AIG makes no representations as to accuracy, completeness, correctness, or validity of any information provided during this podcast series and will not be liable for any errors, omissions, or delays in this information or any losses injuries, or damages arising from its use.

What is AIG Global Trade Series?

Back to the Future: a New Era of Managed Trade?

Globalisation’s next chapter is being written, driven by concerns about supply chain risks. The global trade in goods is increasingly seen through a security prism in capitals around the world and governments are developing new policies to reduce unwanted dependencies, seek new sources of leverage and guarantee supplies. Trade links are being reordered as policymakers scramble to secure access to strategic materials and positions in global value chains. Meanwhile, geopolitical turbulence and climate ambitions are giving rise to industrial policies, sanctions and a growing use of subsidies.

From investment screening to quotas to export controls, policymakers are proposing an increasing number of tools and policies to steer trade and investment flows. But despite worries about protectionism and fragmentation, trade continues as the private sector manages risk by embracing diversification. Elections in the US, EU, Mexico, UK, Indonesia, India and elsewhere may also lead to a reordering of the global politics of trade. Has the global trade system entered an era of managed trade? What will it mean for regional approaches to trade, and what does it mean for multilateralism and the WTO? Ultimately, the main question could be: who is in the driving seat in this brave new world for trade?