Trade rules for food security: a Canadian contribution

When it comes to food security, international trade matters. An estimated 15 per cent of the world’s population depends on traded staple foods; in 2014, the value of the world food trade was over US$1.4-trillion. The supply, access and stability of food systems, and the quality of the nutrition people eat, are deeply integrated with international trade. When international markets experience volatility, as happened in 2007, people rioted in 35 countries. International trade is important, but it is in political trouble. When G20 finance ministers discussed trade early in 2016, they vowed to “resist all forms of protectionism.” A year later, in March, they instead committed to “reduce excessive global imbalances, promote greater inclusiveness and fairness and reduce inequality.” Commentators said the statement reflected a watered-down ambition, necessitated by the election of Donald Trump as U.S. president and his administration’s espousal of mercantilist rhetoric. But it could instead be argued that the new rhetoric is evidence of welcome, if belated, recognition by G20 governments that globalization has resulted in significant imbalances, exclusion, unfairness, and inequality that need to be addressed. In some countries, politicians have been sharply reminded by voters that they cannot ignore the concentration of wealth that has accompanied economic expansion. Trump’s brand of xenophobic mercantilism does not offer the hope of more inclusion or less inequality. What is needed is a well-regulated, accountable multilateral trade system that upholds the rule of law and strengthens cooperation among nation states. The system must work for all member states. But the World Trade Organization is paralyzed, and food and agriculture are among the most contentious issues on its agenda. Governments need to renew their purpose and redesign the multilateral trade framework. And any redesign must tackle inequality and exclusion. Canada is well placed to support the redesign and renewal. It understands the importance of agriculture in its economy and culture, and it has made a principled commitment to strengthen global food security. Canada also understands the importance of trade—trade provides almost two-thirds of its GDP, while its “middle power” status is most effective in a multilateral context. And yet, even though Canada encourages developing countries to embrace freer trade, and the government supports that policy through Canada’s international development assistance and its positions at the Bretton Woods institutions, the WTO, and the United Nations, its trade positions are not informed by its investment in global food security. Nor is Canada’s commitment to open trade particularly evident in Global Affairs Canada’s food security strategies. In part this is because the role of trade in food systems is contested. The integration of food systems into international markets over the last two decades has forced significant economic restructuring. Many developing countries have experienced painful dislocations, including job losses, mounting competition for natural resources (especially land and water) and increased dependence on food imports. This import dependency exposed countries to international market risk, as was evident in the period of high and unstable food prices from 2007-2012. Canadians also want more from their food system—more local food, more sustainable production, and greater respect for food workers. Consumers want better nutritional outcomes and guarantees that environmental and labour standards are adequately protected. Canada’s voice at the WTO has been muted in recent years. In part, this is because it did not pursue trade liberalization with the same single-minded dedication of some of its traditional allies. Today, as voters question free trade, that ambiguity can be turned to advantage. As a principled middle power, reliant on international trade and informed by a strong domestic food movement, Canada can give a voice to importers, exporters, and the role of local food systems in its trade negotiations. Countries both rich and poor are heavily invested in a multilateral rules-based system. They want the WTO to thrive, but to thrive the organization needs to renew its mandate. Trade rules must remain predictable and transparent. Crucially, they must also better protect the values that societies hold dear, but that markets ignore. Sophia Murphy is a doctoral candidate at the University of British Columbia and holds a Trudeau and a Vanier scholarship. She is also a senior adviser on trade to the Institute for Agriculture and Trade Policy, based in Minneapolis. She lives in Squamish, B.C. The Hill Times

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Trade rules for food security: a Canadian contribution

Global efforts to govern and facilitate free trade must tackle inequality.

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