The Director-General of the World Trade Organization (WTO), Ngozi Okonjo-Iweala, addressed the World Food Forum, emphasizing the critical role of trade in ensuring global food security. She highlighted the collaboration between the WTO and the Food and Agriculture Organization (FAO) in food and agriculture sectors.
Okonjo-Iweala underscored that "trade — and the World Trade Organization — are vital parts of an agrifood system that can deliver good food for people now and in the years ahead." She pointed out challenges such as climate change, which threatens food security by affecting water and land management, biodiversity loss, and deforestation. According to her, 55% of global food production occurs in areas with water insecurity.
She noted that agricultural production is often distorted by trade restrictions and subsidies. The OECD reported that support to individual producers averaged USD 630 billion annually from 2020 to 2022, which sometimes leads to environmentally harmful practices.
Trade's role in addressing these issues was also discussed. Okonjo-Iweala stated that "about one in four calories consumed worldwide is traded," highlighting how agricultural trade has grown five-fold from 2000 to 2022. This growth has contributed to making food more affordable globally.
The Director-General shared examples like Ethiopia sourcing wheat from Argentina and the United States after its traditional sources were cut off due to war in Ukraine. She also mentioned a forthcoming report from the Global Commission on the Economics of Water about 'virtual water trade' as a way to mitigate water-related pressures.
In terms of policy reform, she stressed that "the WTO provides a negotiating forum where members could lower trade barriers and reduce trade-distorting support." However, she acknowledged slow progress on updating global agricultural trade rules but expressed determination not to give up on this effort.
Recent achievements at WTO include commitments made during their 12th Ministerial Conference in 2022 to refrain from imposing export controls on humanitarian purchases by the World Food Programme. Additionally, an Agreement on Fisheries Subsidies aims at easing pressure on marine fish stocks crucial for many people's livelihoods.
Finally, Okonjo-Iweala emphasized continued collaboration with FAO through various initiatives aimed at supporting member countries. She concluded by advocating for a multilateral trading system complemented by domestic policies enhancing competition while providing essential public goods like research or efficient water management needed for sustainable productivity improvements worldwide.