Global trade in agricultural products is suffering from the US trade measures and countermeasures from China, among others. This is according to the World Trade Organization (WTO).
International trade in agricultural products thrive with stable and predictable rules adhered to by governments, as a publication by the Agricultural Market Information System showed earlier this month.
China and Canada register complaints
The trade war is a source of great concern within world trade negotiations, from which the American government has previously distanced itself. China and Canada have already registered complaints at the world trade talks about the trade measures taken by the US.
Within the WTO consultations, many countries have emphasised the importance of resolving trade conflicts through dialogue and cooperation within the WTO framework.
Retaliatory tariffs escalate tensions
The imposition of tariffs by the US has provoked reactions from several trading blocs. For example, the European Commission decided to impose additional levies on – among other things – corn, rice, wheat, vegetable oils, poultry meat and beef, fruit, vegetables, nuts, eggs, dairy and sugar from the US.
Within the US, the Department of Agriculture has allocated US$10 billion to support agriculture as it faces higher prices and market uncertainties.
Price increase drives trade value
The Association of Southeast Asian Nations (ASEAN) states that it is important that international trade rules are respected, partly because of the importance of the food sectors and agriculture.
The WTO’s Global Trade Outlook and Statistics shows that prices played a small role in the value of global agricultural trade growth last year. Trade in agricultural products rose 3% in value, roughly equal to the 4% global increase in the average price of agricultural products in US dollars, according to World Bank statistics. This price increase was mainly a result of higher prices for coffee, tea and cocoa, which rose by an average of 64% last year. Excluding coffee, tea and cocoa from the statistics, prices fell by 8%, which may have increased trade in most agricultural products.
