Trade and Food Security in Arab Countries

325 Pages·2014·5.81 MB·English

by  World Bank Group

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in the Wake of High World Prices
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Trade Policy and Food Security

Directions in Development
Trade
Trade Policy and Food Security
Improving Access to Food in Developing Countries
in the Wake of High World Prices
Ian Gillson and Amir Fouad, Editors
© 2015 International Bank for Reconstruction and Development / The World Bank
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Attribution—Please cite the work as follows: Gillson, Ian, and Amir Fouad, eds. 2015. Trade Policy
and Food Security: Improving Access to Food in Developing Countries in the Wake of High World Prices.
Directions in Development. Washington, DC: World Bank. doi:10.1596/978-1-4648-0305-5. License:
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ISBN (paper): 978-1-4648-0305-5
ISBN (electronic): 978-1-4648-0306-2
DOI: 10.1596/978-1-4648-0305-5
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Trade Policy and Food Security • http://dx.doi.org/10.1596/978-1-4648-0305-5
Contents
Acknowledgments xv
About the Authors xvii
Abbreviations xix
Overview Introduction 1
Drivers of World Food Prices 4
High Food Prices versus Food Price Volatility 5
The Role of Trade Policy in Boosting Food Security 6
International Experience with Trade and Food Security 8
References 10
Chapter 1 Long-Term Drivers of Food Prices 13
John Baffes and Allen Dennis
Introduction 13
Explaining Long-Term Price Trends 15
Discussion 18
Assessing Post-2004 Price Movements 24
Conclusions and Further Research 32
References 33
Chapter 2 The Role of Biofuel Policies on Grain and Oilseed Prices 37
Harry de Gorter, Dusan Drabik, and Erika M. Kliauga
Introduction 37
Measuring the Support and Trade Distortion Caused
by Biofuel Policies 42
The Impact of Biofuel Policy Compared to Other
“Perfect Storm” Factors 50
The Role of Sugarcane-Ethanol in Brazil on Grain
and Oilseed Prices 53
Concluding Remarks 55
Notes 58
References 60
Trade Policy and Food Security • http://dx.doi.org/10.1596/978-1-4648-0305-5   v
vi Contents
Chapter 3 Price Transmission from World to Local Grain Markets
in Developing Countries 65
Sergiy Zorya, Stephan von Cramon-Taubadel, Friederike Greb,
Nelissa Jamora, Carolin Mengel, and Nadine Würriehausen
Why It Matters 65
How It Works 66
Stylized Facts Pertaining to Recent Cereal Price
Transmission 68
What Can Be Done to Enhance Food Price Transmission? 77
Annex 3A: Literature Review 79
Annex 3B: Prevalence of Different International Prices
in the Literature 81
Notes 83
References 83
Chapter 4 Trade Policy Responses to High and Volatile Food Prices 87
Ian Gillson and Christina Busch
Introduction 87
Trade in Food 88
Higher World Food Prices and Their Trade Effects 92
Trade Policy Responses 94
Opening Food Trade in the Pursuit of Food Security 106
Trade and Transport Facilitation to Promote Access
to Food 110
Policy Measures to Support Food Security 111
Notes 114
References 114
Chapter 5 The Welfare Effects of Changes in Food Prices 119
Maros Ivanic and Will Martin
Introduction 119
Effects of Food Price Changes on National Income 120
Effects of Food Price Changes on Poverty 121
Policy Implications 127
Conclusions 130
Annex 5A: Agricultural Imports and GDP 131
References 132
Chapter 6 Food Security and the World Trade Organization 135
Clem Boonekamp
Introduction 135
Trade and Food Security 136
The WTO and Other Forums 137
Conclusion 149
Trade Policy and Food Security • http://dx.doi.org/10.1596/978-1-4648-0305-5
Contents vii
Notes 150
References 151
Chapter 7 Regional Trade of Food Staples and Crop Inputs in Africa 153
John C. Keyser
Introduction 153
Current Trade of Food Staples 154
Regional Trade of Seed and Fertilizer 162
The Benefits of Minimizing Trade Barriers 167
Opportunities to Improve Trade Conditions 175
Conclusion 184
Notes 185
References 186
Chapter 8 The Grain Chain 189
Michelle Battat and Julian Lampietti
The Importance of Food Trade for Arab Countries 189
Trade Policy Implications for Food Security 192
Procurement Strategies to Manage Wheat Trade Risks 193
Effect of Wheat-Trade Logistics on Food Security
in Arab Countries 195
Role of Strategic Reserves as a Food Security Policy 201
Conclusion 206
Notes 206
References 211
Chapter 9 How Can Latin America and the Caribbean
Contribute to Global Food Security? 215
Nabil Chaherli and John Nash
Introduction 215
Recent Performance of Latin America and the Caribbean
in Agricultural Markets: Overall Good News 216
The Enabling Environment for Agricultural Trade:
Potential Constraints and What Can Be Done
to Overcome Them 221
The Future: How Can LAC Help Feed the World? 232
Notes 235
References 236
Chapter 10 Trade Policy and Food Security in Latin America 239
Ekaterina Krivonos and Rogerio Da Paixao
Introduction 239
Food Prices and Food Security in Latin America and
the Caribbean 240
Trade Policy and Food Security • http://dx.doi.org/10.1596/978-1-4648-0305-5
viii Contents
Evolution of Food and Agricultural Trade 244
Policy Responses to High Food Prices 249
Country Case Studies: Policy Responses to the
Increase in Food Prices 250
Effects of the Trade Policy Measures on Consumer
Prices for Main Food Staples 255
Conclusion 265
Notes 270
References 270
Chapter 11 Using Trade to Enhance Food Security in Southeast Asia 273
Hamid R. Alavi and Aira Htenas
Introduction 273
State of Rice Production and Trade in the ASEAN Region 274
Objectives and Features of Food Security Policies in
the Rice Market in Southeast Asian Countries 274
The Effects of Food Security Policies on Production,
Consumption, and Trade 279
Enhancing Regional Trade Coordination to Improve
Food Security 286
Conclusion 288
Annex 11A: State Trading Enterprises (Parastatals) in
Selected ASEAN Countries 289
Notes 295
References 296
Boxes
3.1 Interplay between Transport Costs and Policy Measures in Price
Transmission in Ethiopia 67
4.1 The Russian Federation’s Export Ban on Grains 101
4.2 Zambian Government Imports of Maize during the Southern
Africa Food Crisis 103
4.3 The Middle East and North Africa Region Faces High
Trade Costs in Food 103
4.4 Quantifying the Effects of NTMs on Trade in African
Food Staples 104
4.5 Open Border Policies for Trade in Food 106
7.1 Difference between a Technical Regulation and a Standard 177
7.2 Costs of Regional Trade on the Ghana-to-Nigeria Corridor 180
7.3 Harmonized EAC Dairy Standards as a Potential Trade Barrier 183
7.4 Poor Use of Trucks 184
8.1 Regional Cooperation: Jordan Could Import Wheat through
Nearby Mediterranean Ports 199
Trade Policy and Food Security • http://dx.doi.org/10.1596/978-1-4648-0305-5