
On April 26, the Council launched a new report, Growing Food for Growing Cities: Transforming Food Systems in an Urbanizing World, at the Global Food Security Symposium 2016. Each week, we will highlight one of the report’s recommendations on the Global Food for Thought blog. Watch for a new post each Wednesday, and join the discussion using #GlobalAg.
If farmers are to feed cities in Africa, Asia, and Latin America, efficient regional trade of agricultural products will be essential. But too often, food staples and perishable goods are delayed at national borders or are barred from crossing entirely.
These barriers to trade prevent small-scale farmers from fully participating in markets for their goods. Such barriers likewise inhibit US companies from making investments in the agriculture and food sector and impede growth of businesses. Even as US food companies build their production capacity in Africa and Asia to meet growing demand for products from urban consumers, their ability to source their products within the region can be impeded or prevented entirely due to the costs of moving food across regional borders.
The expansion of cross-border trade creates opportunities for small-scale farmers to become small commercial growers, moving from informal production to formal value chains and markets where economies of scale can be achieved. When combined with access to information about markets such as the spot price for their crops, increased profitability can fuel a virtuous cycle. Profitability creates incentives for small commercial farmers to maximize production for market and provides the means to invest in quality inputs and care for their soil, further improving productivity.
The United States can build countries’ regional trade capacity through its trade policies. Such leadership is already under way through a myriad of efforts. The US Trade Representative (USTR), USDA, and the Department of Commerce all play significant and important roles in US trade policies with low-income countries. USAID operates three regional trade hubs in Africa.
And, in 2013, the administration launched Trade Africa, a partnership between the United States and sub-Saharan Africa to increase internal and regional trade within Africa and expand trade and economic ties among Africa, the United States, and other global markets. But much more must be done. Farmers and traders must be able to move food staples and perishable foods across borders cheaply, safely, and efficiently. US agribusiness and food companies must be able to work within regional contexts if investment is to be a possibility.
The United States must leverage its trade relationships and expertise to facilitate better regional trade in the following ways:
- Promote transparent legal and customs infrastructure, harmonization, standardization, and implementation of procedures and efforts to reduce corruption to help accelerate regional economic integration.
- Encourage use of regional food balance sheets to inform national policies and avoid unnecessary protectionism.
- Establish and designate the position of US Department of Agriculture (USDA) undersecretary of trade and foreign agricultural affairs.
