By: Staff Writer
October 29, 2024
The Economic Commission for Latin America and the Caribbean (ECLAC) in their recent report, International Trade Outlook for Latin America and the Caribbean, 2024 highlights the role of trade in building food security.
ELCAC said: “The quest for food security is embodied in target 2.1 of the Sustainable Development Goals: by 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round. However, the successive crises that have buffeted the world economy in recent years have caused setbacks in the pursuit of this target worldwide.”
The report also said: “The cost of accessing a healthy diet increased by around 26% worldwide and in the region between 2017 and 2022, as a result of the various shocks that have forced up the prices of food and its inputs. Latin America and the Caribbean is the region in which accessing a healthy diet is most costly: US$ 4.56 per person per day in purchasing power parity (PPP), which is 15% above the world average. The cost of accessing a healthy diet is especially high in the Caribbean, where it amounts to US$ 5.16 PPP per person per day (30% above the world average). As a result, in 2022, half of the Caribbean population would have been unable to access a healthy diet, compared to 26% in South America and Central America and Mexico.
“International trade plays a crucial role in food security. Imports provide access to food that is impossible or cost-prohibitive to produce locally, whether because of climate conditions or a lack of available land or technology. They can also supplement local production during temporary shocks, such as pest infestation, conflicts or extreme weather. Moreover, the income generated by exports can be used to purchase food, whether produced locally or imported.”
ECLAC also noted that the value of the region’s exports of goods will increase by 4%, due to a 5% expansion in volume, as well as a 1% drop in prices.
In the case of imports, their volume will grow by 4% while their prices will decrease by 2%, which will result in a projected increase in their value of 2%.
Although the outlook is for recovery this year, ECLAC indicated that there are significant challenges for trade in the region, given the geopolitical tensions and protectionism of some nations.
The report also said: “Over the past decade, Latin America and the Caribbean has faced stagnating per capita income growth (just 0.1% annually for the period 2014–2023) and sluggish growth in the volume of goods exports (1.6% annually for the same period). In that context, services exports could be a new driver of external sector growth. Indeed, global and regional services exports, in particular modern services that can be provided digitally, grew faster than goods exports between 2010 and 2023. In 2023, regional services exports surpassed pre-pandemic levels, totalling US$ 221.7 billion.”