Transformations in agri-food trade are required to promote Sustainable Development Goals

Promoting the Sustainable Development Goals (SDGs) is still important even though the public debate is fixated on the current trade war and its impact on countries’ economic growth as well as worldwide economy. 

Although trade can boost economic growth, there is also concern regarding whether agri-food trade can promote sustainability and the attainment of the SDGs. This is particularly important given that gains from trade are not entirely equitable. Profound systemic transformations are required to enhance the interlinkages between agri-food trade and the SDGs.  

The required transformations at the global, regional and local levels can be multifaceted, interconnected, and subject to evolution over time. One transformation that could be critical for the attainment of the SDGs is technological and institutional innovations in agri-food systems. Over the past century, these have brought dramatic advances in human well-being worldwide in various ways.  

Innovations to low-cost renewable energy 

Investments in renewable energy, particularly in solar parks and hydrogen production, are gaining momentum. A good example is investing in both technological and institutional innovations: Namibia is positioning itself as a leader in low-cost green hydrogen production due to its abundant solar resources. The Namibian government is actively promoting public-private partnerships to leverage private sector expertise and resources, which anticipates over €8 billion in investments aimed at producing hydrogen through solar energy. This initiative may eventually expand to include a terminal for ammonia production, a key ingredient in fertilizer manufacturing. This would enable Namibia to become self-sufficient in producing fertilizers that are needed for agricultural intensification, thereby creating an agri-food surplus that can be traded in the region. 

Achieving the SDGs in a holistic way 

Effective implementation of SDGs in agri-food trade requires a multifaceted approach, including policy coherence, stakeholder engagement, and practical application of knowledge. The trade-offs among various SDGs further complicate this relationship.  

An example of a trade-off is the fact that expanding agricultural production to meet global demand can lead to deforestation and loss of biodiversity. For example, increasing palm oil production often results in significant environmental degradation, impacting ecosystems and carbon storage. However, the expansion of palm oil production has contributed to income generation and employment in Malaysia and Indonesia. Therefore, environmental provisions for agri-food trade that are effective in deterring damage to the ecosystem because of expanding trade and agricultural production would help to achieve the SDGs more comprehensively. 

Gains from trade are shared equitably 

The case of international agri-food trade provides a more compelling case in properly understanding the heterogeneities in how the gains can be shared—in terms of wages, consumption and welfare as well as the quality of jobs available. Particularly for agri-food trade, these issues are murky because of the dynamics concerning land ownership, ownership rights, and the level of female empowerment in agriculture.  

Agri-food trade could promote the SDGs, but the impact depends on how agri-food trade is structured and governed. When agri-food trade is conducted inclusively and sustainably as well as the gains from trade are shared equitably, trade can contribute significantly to the SDGs. We must not forget to pursue the attainment of the SDGs even if we are in the middle of a trade war.