May 18, 2016

Growing Food for Growing Cities: Facilitating Regional Trade

Rupak De Chowdhuri/REUTERS

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.

     
Check out previous posts detailing the report's recommendations: 
 

About

The Global Food and Agriculture Program aims to inform the development of US policy on global agricultural development and food security by raising awareness and providing resources, information, and policy analysis to the US Administration, Congress, and interested experts and organizations.

The Global Food and Agriculture Program is housed within the Chicago Council on Global Affairs, an independent, nonpartisan organization that provides insight – and influences the public discourse – on critical global issues. The Council on Global Affairs convenes leading global voices and conducts independent research to bring clarity and offer solutions to challenges and opportunities across the globe. The Council is committed to engaging the public and raising global awareness of issues that transcend borders and transform how people, business, and governments engage the world.

Support for the Global Food and Agriculture Program is generously provided by the Bill & Melinda Gates Foundation.

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