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IAMO Policy Brief 50 analyzes the growing geopolitical tensions and new trade barriers exerting pressure on the global agricultural trade, and highlights the central role of geopolitical stability, international cooperation, and transparency for strengthening the resilience of the trade system.
After the Second World War, a new global trading system emerged, shaped by the principle of trade liberalisation, that has led to unprecedented prosperity. In particular, agricultural trade, which accounts for some eight to 10 per cent of global goods trade, has played a key role in reducing hunger and malnutrition in the Global South. But now political priorities are changing, and geopolitical rivalries, sanctions, export bans, tariffs and a growing number of non-tariff trade barriers risk undermining the rules-based trading system. Words like ‘sovereignty’, ‘de-risking’ and ‘friendshoring’ are becoming more prominent in public discussions around the supposed securitisation of global activities. These concepts promise stability and reliability through greater state intervention and tighter control of trade relations. However, in reality they are likely to have the opposite effect, eroding the flexibility that gives markets their resilience in times of crisis. Trade risks are real, but state intervention is not the answer.
What is needed above all is geopolitical stability. Avoiding wars and (trade) conflicts will ultimately depend on the political will and diplomatic skills of the governments involved. Cooperation rather than confrontation will ensure that we have the strong and sustainable global economic and trading structures needed to support growth and prosperity. This is paramount when it comes to fighting hunger and poverty in the Global South, says Thomas Glauben, Director at IAMO.
IAMO Policy Brief 50 “The securitisation of global (agricultural) trade: Not more but less reliability!” was published in German and English. The issues can be downloaded free of charge on the following website: www.iamo.de/en/iamo-policy-briefs.
About IAMO
The Leibniz Institute of Agricultural Development in Transition Economies (IAMO) analyses economic, social and political processes of change in the agricultural and food sector, and in rural areas. The geographic focus covers the enlarging EU, transition regions of Central, Eastern and South Eastern Europe, as well as Central and Eastern Asia. IAMO works to enhance the understanding of institutional, structural and technological changes. Moreover, IAMO studies the resulting impacts on the agricultural and food sector as well as the living conditions of rural populations. The outcomes of our work are used to derive and analyse strategies and options for enterprises, agricultural markets and politics. Since its founding in 1994, IAMO has been part of the Leibniz Association, a German community of independent research institutes.
Leibniz Institute of Agricultural Development in Transition Economies (IAMO)
Theodor-Lieser-Str. 2
06120 Halle (Saale)
Germany
www.iamo.de/en
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