Background document to the 99^th WTO regular meeting of the Committee on Agriculture

"COVID-19 and Agriculture"

Submission by the World Food Programme (WFP)

The following submission, dated 6 September 2021, is being circulated at the request of the World Food Programme (WFP).

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Food insecurity estimates for 2021 remain critical

1.1.  Looking back on the past year, the coronavirus pandemic looms large. The worst global health crisis for more than a century, COVID-19 caused the deepest global recession in generations. Lockdowns, border closures and social distancing, which aimed to curb the virus's spread, caused supply chains to break down, businesses to shut and markets for goods and services to evaporate. In 12 months, the pandemic pushed 124 million people into extreme poverty — the first increase in global poverty in two decades.^[1]

1.2.  High food insecurity projections remain confirmed for 2021. Across the 80 countries where WFP is operating, up to 270.5 million people are estimated to be acutely food insecure or at high risk in 2021. The root causes of their food insecurity are mainly conflict, economic shocks, natural disasters, exacerbated by the socio-economic fallout resulting from COVID-19. Nearly 120.7 million additional people are facing food insecurity today compared to before the pandemic, an unprecedented and alarming increase of 81%.^[2]

1.3.  According to the latest Hunger Hotspots analysis, jointly undertaken by WFP and the Food and Agriculture Organization of the United Nations (FAO), acute food insecurity continues to rise globally at an alarming rate. Its growth is not only in scale but also severity: overall, over 41 million people worldwide are on the brink of famine or famine-like conditions, requiring immediate life and livelihood-saving assistance.^[3]

1.4.  Besides, food prices increased steadily from June 2020 to May 2021, as measured by the FAO Food Price Index (FFPI). Despite a weakening in June 2021, food prices were more than 30% higher year on year. High international food prices, together with elevated freight costs are likely to increase the global food import bill in 2021, especially in developing countries, where the demand for imported foodstuffs is on the rise.^[4] WFP is concerned about the impact this trend will have on vulnerable people.

WFP and WTO joining efforts to strengthen the response to food insecurity

1.5.  As the frontline agency responding to emergencies caused by conflict, climate shocks, pandemics and other disasters, WFP's mandate is to assist the most vulnerable populations, delivering life-saving food assistance and working with communities to improve their access to food, nutrition and build resilience.^[5]

1.6.  In 2020, WFP provided food assistance to over 115 million people in more than 80 countries, an all-time annual record.^[6] Figures for 2021 remain high, with the biggest plan of work in WFP's history to assist 139 million people worldwide. Already in the first quarter of the year, WFP reached 67 million people, 3 million more than the same period last year.^[7]

1.7.  WFP also supports smallholder farmers – who produce most of the world's food and are critical in achieving a zero-hunger world –, connecting them to markets and purchasing their surplus production.^[8] By adopting smallholder-friendly procurement, WFP contributes to strengthening local economies and supporting the increased resilience and productivity of rural communities – one of the pillars of its hunger eradication strategy.^[9] Therefore, in-line with the "do no harm" principle mentioned in the WFP procurement policy,^[10] WFP's food purchases are carried out when and where supplies exceed the demand, thus not putting at risk the food security of supplying countries.

1.8.  As WFP strives to provide timely life-saving food assistance, it is of paramount importance to ensure well-functioning food supply chains. That is why WFP welcomes any measure adopted by World Trade Organization (WTO) Members to facilitate the smooth movement of WFP's humanitarian food assistance. In particular, WFP is very grateful to the 81 WTO Members  who voluntarily committed not to impose export restrictions on WFP foodstuff by signing the Joint Statement on Agriculture Export Prohibitions or Restrictions Relating to the World Food Programme. This concerted effort contributed to creating a more conducive environment for WFP food procurement. During the first half of 2021, WFP was confronted with only few instances of export restrictions or surcharges. It is our hope to see more WTO Members joining the above-mentioned commitment. The relevance of such actions has also been underscored by the United Nations Conference on Trade and Development (UNCTAD) in its 83^rd Policy Brief, recommending that WTO Members agree not to impose export restrictions "on food aid to countries in an emergency situation".^[11]

1.9.  The forthcoming WTO 12^th Ministerial Conference represents a key opportunity for the WTO to contribute to the achievement of Sustainable Development Goal (SDG) 2 on "Zero hunger". In these unprecedented challenging times, we are all called to join efforts to ensure that life-saving assistance reaches the hands of crises-affected populations when and where needed. WFP therefore welcomes any action in support of the proposal to exempt its food purchases from export restrictions, which would make a difference for the food security of millions of children, women and men.

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