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Perspectives on trade and MRLs

Global Minor Use Summit IV

February 2024, Madrid

Gord Kurbis

Senior Associate

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Agriculture and food trade has tripled in two decades

Source: The State of Agricultural Commodity Markets, FAO, 2022

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Growth in agricultural trade more evenly distributed

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“Emerging economies have become important players and low-income countries are better integrated into global markets.”

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The State of Agricultural of Commodity Markets, FAO, 2022

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Increasing complexity of trade (products, origins, volume)

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Increased importance of contending with MRL issues

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Source: Chatham House, ‘resourcetrade.earth’, http://resourcetrade.earth/

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Global trade liberalization: tariffs decreasing

Source: WTO, https://www.wto.org/english/tratop_e/region_e/region_e.htm

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Tariff reductions correlated with increases in non-tariff trade barriers

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“…yearly use of certain barriers has grown from fewer than 300 measures in 2000 to more than 1,000 in 2020.”

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Source: Asia Pacific Foundation of Canada; ePing SPS & TBT Platform, WTO

SPS and TBT notifications per year in the Asia Pacific, 2000-23

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GMUS III, 2017 Montreal

GMUS IV, 2024 Madrid

  • MRLs will now be removed for the first time to deliberately curtail pesticide use by trading partners
  • Misinformation, disinformation present among consumers but now also informing government policy decisions
  • Threat that ideological concepts of sustainability will enter trade rules and affect pesticide use (‘Sustainable Trade’)
  • Production problems now occurring
  • More value chains are aware of MRL issues, voluntarily restricting approved uses to ensure compliance

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If an MRL is missing, it is not the result of deliberate removal

Pesticide misinformation, disinformation present among consumers

Farm, agriculture groups caution production consequences if pesticides taken away

Taking Stock of what’s changed since last Global Minor Use Summit in 2017

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Food security, sustainability implications from anti-innovation activism

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Consideration is being given to the development of (a) a broader consortium of ag/trade groups on sustainable trade, and (b) a set of principles to advance. Initial principles for discussion/improvement are:

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  • Policymakers should avoid temptations to focus on specific practices or technologies, instead focus on outcomes (e.g., improvements to soil, air, and water quality).
  • Any sustainable trade measures must be aligned with existing WTO principles (least-trade-restrictive, freer, competitive, predictable, etc.).
  • Measures that reduce productivity per unit of land must place the onus on proponents to demonstrate that these will not have the unintended consequence of further encroachment of farmland into ecologically sensitive areas.
  • Measures should not be considered that increase global prices for staple foods. If mitigation is proposed (e.g., by reducing food loss/waste, changing diets), the onus must be on proponents to demonstrate that plans are achievable.

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