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

This policy brief explores the complex relationship between international trade and sustainable agriculture, highlighting that while agri-food systems contribute 31% of global GHG emissions and drive 80% of deforestation, trade is essential for the 80% of the world population relying on food imports. The author argues for a shift from production-enhancing subsidies to market-correcting ones and suggests utilizing WTO mechanisms—such as the SPS Committee and the Trade and Environmental Sustainability Structured Discussions (TESSD)—to coordinate global efforts toward sustainable food systems.

• The global agricultural sector is currently failing to provide food and nutrition security, with the number of people affected by hunger estimated between 720 and 811 million, primarily in Africa and Asia.
• Agri-food systems are significant drivers of environmental degradation; in 2019, they accounted for 31% of global greenhouse gas emissions. Additionally, agricultural production is responsible for 80% of global deforestation and 70% of freshwater use.
• International trade is essential for food security as approximately 80% of the world's population lives in net food importing countries or relies on imports. Trade acts as a buffer against climate-induced production shortfalls, though 'thin markets' for staples like rice and maize leave importing countries vulnerable to external shocks.
• The global agricultural trade landscape is characterized by high corporate concentration. As of 2017, three companies controlled 50% of the global seed market, four corporations held 68% of the agrochemical and pesticides markets, and four traders managed over 90% of the global grain trade.
• Trade in agricultural products has shifted toward processed and semi-processed goods, with some categories increasing their share of total exports by up to 160% since 1990. This trend is driven by urbanization and income growth in middle-income countries, while traditional exports like wheat and coffee have stagnated.
• The document identifies several policy options for promoting sustainable agriculture through trade, including the use of 'market-correcting subsidies' (decoupled income support) linked to environmental requirements, and the implementation of mandatory labelling schemes to influence consumer behavior.
• The World Trade Organization (WTO) lacks a single dedicated forum for sustainable agriculture, but the Trade and Environmental Sustainability Structured Discussions (TESSD)—endorsed by 74 countries representing 84% of global trade as of November 2022—provides a critical avenue for policy dialogue.
• The WTO's Sanitary and Phytosanitary (SPS) Committee is being positioned as a forum to make trade a contributor to sustainable food systems, following a November 2021 proposal by the EU, Norway, and Switzerland.

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} }