FAO – Evolution of Global Agrifood Trade and Trade Policy and Implications

The report by FAO "Evolution of Global Agrifood Trade and Trade Policy and Implications" explores the interplay between global agrifood trade, malnutrition, and policy options for enhancing nutrition outcomes. The global prevalence of undernourishment has been rising since 2017, with over 3 billion people unable to afford a healthy diet. Despite the rapid growth in agrifood trade, malnutrition remains a critical issue. The report examines how trade impacts nutrition, revealing that agrifood trade significantly shapes caloric and nutrient supply for many countries. However, increased imports of foods high in sugar, salt, and fats pose challenges to nutritional diversity. Trade policies, such as import tariffs, have only modest effects on food prices and consumer incentives. The report suggests that to improve nutritional outcomes, a combination of domestic policies and non-tariff trade measures should be explored, beyond using import tariffs alone. This includes considering food subsidies, food taxes, and other strategies to encourage healthier consumption patterns.