d e z T ori r h a ut d A e e P ur s o o l cl i s c Di y c a bli n u P d F o o d d S e z e ri c o h u ut r A it e y r u s o cl s Di c bli u P DIRECTIONS IN DEVELOPMENT d e Trade z ri o h ut A e r u os Trade Policy and Food Security cl s Di c bli Improving Access to Food in Developing Countries u P in the Wake of High World Prices G ills o n a d n e Ian Gillson and Amir Fouad, Editors d z F ri o o u h ad ut A e r u s o cl s Di c bli u P 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 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 17 16 15 14 This work is a product of the staff of The World Bank with external contributions. 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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
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