Reliable, predictable, and stable supply chains are essential to US global competitiveness and continued economic growth. However, a single break or inefficiency in the chain can lead to increased costs and delays for companies and lower quality goods for consumers. Recognizing the importance of global supply chains to conducting business, the US Chamber of Commerce will host its Fifth Annual Global Supply Chain Summit: Building Tomorrow’s Networks Today on May 17. The summit is dedicated to advancing some of the most pressing issues of today and new ones on the horizon.
A major topic of discussion will be the recent ratification of the World Trade Organization’s Trade Facilitation Agreement (TFA). The TFA is specifically designed to reduce red tape, eliminate outdated regulation, and modernize border processes around the globe. The goal is to create greater efficiency in cross-border trade, which will go a long way in improving access to international trade for small- and medium-size businesses. The agreement is expected to reduce the costs of trading goods worldwide by approximately 15 percent.
A more efficient border today creates opportunities for US exports tomorrow. Once the TFA is fully implemented, the agreement will have a positive impact on nearly every industry. Consider this: Speeding up the border process creates market opportunities for farmers to get their perishable foods across global borders before they spoil. Greater border efficiency will mean less spoilage, lower costs, and greater food selection for consumers around the globe. A recent report by Chicago senior fellow Andrea Durkin highlights that agribusinesses and the agriculture community must take advantage of the TFA.
The report’s premise is that global demand and opportunity will occur outside the United States. For instance, the African food and agriculture market is expected to reach $1 trillion by 2030. Asia constitutes more than 40 percent of total US agricultural exports. And emerging markets already make up 20% of US agriculture exports and that continues to grow. Demand for high-value agricultural and food products is increasing fastest in the lower-middle-income and low-income countries at approximately 17%. While growth of these markets is staggering, they will not reach their full potential unless cross border supply chain issues are addressed.
The TFA creates countless opportunities for US companies, particularly the agricultural community, so the United States must ensure it is implemented appropriately. This is truly a win-win situation for both international development and US economic opportunity. So let’s get it done.
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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