Trade and Sustainability in the Agricultural Sector: Options for Multilateral Trade Cooperation

The document examines the tension between global agricultural trade and environmental sustainability, noting that agri-food systems contributed 31% of global greenhouse gas emissions in 2019. It analyzes how current trade distortions, such as high subsidies for emission-intensive commodities like beef and rice, undermine sustainability. The author proposes a framework of trade-related policy tools—including border measures, economic incentives, and regulatory standards—to transition toward sustainable food systems. It specifically evaluates the role of the WTO, suggesting that while existing rules provide some policy space, more coordinated multilateral cooperation through platforms like the Trade and Environmental Sustainability Structured Discussions (TESSD) is necessary to align trade with climate and biodiversity goals.

• Agri-food systems have a significant environmental impact, representing 31% of global greenhouse gas emissions in 2019 and causing 70% of terrestrial biodiversity loss.
• Global agricultural support is estimated at nearly $540 billion annually, with two-thirds of these subsidies considered price-distorting and environmentally harmful.
• Subsidies are heavily concentrated on a small number of commodities; three-quarters of single commodity transfers are focused on rice, maize, pig meat, beef and veal, and milk products.
• Trade in agricultural products is characterized by high corporate concentration, with four traders responsible for over 90% of the global grain trade in 2017.
• The WTO Agreement on Agriculture organizes disciplines around three pillars: market access, domestic support, and export competition.
• Trade can exacerbate environmental degradation in the absence of regulation, as seen in the Kenyan horticulture sector where international trade benefits were accompanied by adverse impacts on lake ecosystems.
• The Trade and Environmental Sustainability Structured Discussions (TESSD) is a plurilateral initiative endorsed by 74 countries, representing 84% of global trade, aimed at advancing policy dialogue on environmental sustainability.
• Removing fiscal subsidies to agriculture could reduce greenhouse gas emissions by an estimated 11.3 million tonnes of CO2 by 2030.
• The document identifies several policy tools to promote sustainability, including removing tariff protection on high-footprint goods, implementing mandatory due diligence for deforestation-free supply chains, and providing payments for environmental purposes.

APA

Bellmann, C. (2022). Trade and Sustainability in the Agricultural Sector: Options for Multilateral Trade Cooperation. Forum on Trade, Environment, & the SDGs. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Trade-Sustainability-in-the-Agricultural-Sector.pdf?dm=1678347530

Chicago

Bellmann, Christophe. Trade and Sustainability in the Agricultural Sector: Options for Multilateral Trade Cooperation. Forum on Trade, Environment, & the SDGs, 2022. https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Trade-Sustainability-in-the-Agricultural-Sector.pdf?dm=1678347530.

Wikipedia

{{cite report |last1=Bellmann |first1=Christophe |title=Trade and Sustainability in the Agricultural Sector: Options for Multilateral Trade Cooperation |publisher=Forum on Trade, Environment, & the SDGs |date=December 2022 |url=https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Trade-Sustainability-in-the-Agricultural-Sector.pdf?dm=1678347530 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bellmann2022trade, author = {Bellmann, Christophe}, title = {{Trade and Sustainability in the Agricultural Sector: Options for Multilateral Trade Cooperation}}, institution = {Forum on Trade, Environment, \& the SDGs}, year = {2022}, month = dec, url = {https://lyrical-cormorant.files.svdcdn.com/production/assets/images/Publications/TESS-Policy-Brief-Trade-Sustainability-in-the-Agricultural-Sector.pdf?dm=1678347530}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }