WTO and UN Advises Govts to Improve Access to Fertilizers

According to the United Nations (UN) and the World Trade Organization (WTO), world economies have to improve accessibility, specifically for developing nations, for fertilizers to reduce a looming international food crisis.

In a joint study, the two international organizations advised the G20 governments to utilize “all” possible policy measures to tackle the ongoing global fertilizer crisis.

The study’s recommendation comes in light of the increasing global prices of fertilizer that have been affecting international food production with the Russia – Ukraine war.

“The study recommends, in particular, that G20 governments keep food, feed, and fertilizer markets open and minimize disruptions to trade in fertilizers, including refraining from export restrictions inconsistent with WTO rules,”  mentioned the WTO.

“It stresses the need to ensure access to fertilizers for the most vulnerable countries, including through mobilizing international financial support and leveraging risk management tools, such as fertilizer contract swaps to hedge against extreme price volatility.”

The study estimated that the international fertilizer storage would continue up until 2023, which threatens food security and international agricultural production, specifically in countries like Africa, which rely on imported farm inputs.

The FAO and the WTO both appealed to G20 governments to avoid imposing additional export restrictions and to possibly retract any remaining fertilizer export restrictions.

Governments part of the G20 were likewise urged to lessen their tariffs to the more vulnerable nations, to “relieve critical domestic fertilizer shortages” while enhancing affordability and access.

“In response to rising global demand for fertilizers and rising domestic prices, several key suppliers have introduced export restrictions, placing further upward pressure on international fertilizer prices, especially since late 2021,” mentioned the study.

Source: Business Mirror