FAO UPDATE TO THE TBT COMMITTEE
INFORMATION PROVIDED BY THE FOOD AND
AGRICULTURE ORGANIZATION
OF THE UNITED NATIONS (FAO)
This document contains information provided by FAO
for consideration at the TBT Committee meeting of 12-14 November 2025 under
Agenda Item 6.a on Updates by Observers.
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1 Background
1.1. The 2024 edition of The State of Agricultural Commodity Markets
(SOCO), a flagship report of the Food and Agriculture Organization (FAO),
explores the complex interplay between food trade and nutrition. It presents
new insights into how trade can shape a country's food environment, influence
dietary patterns, and affect nutritional outcomes. Trade enhances food
availability and diversity, supports the more equitable distribution of
nutrients, and lowers food prices —particularly in low- and middle-income
countries. Not all countries have the resources, such as land and water, and
favourable climate to produce sufficient quantities of diverse foods to support
nutrition. By facilitating food imports, trade broadens consumer access to a
variety of foods, which is essential for achieving balanced and nutritious
diets.
1.2. However, the report also underscores that trade can have
heterogeneous impacts across countries. While it can help fill nutritional
gaps, trade also accelerates the nutrition transition - characterized by a
shift from traditional, staple-based diets to those higher in processed and
ultra-processed foods rich in fats, sugars, and salt. These dietary shifts have
contributed to the rising burden of overweight, obesity, and diet-related non-communicable
diseases (NCDs), highlighting the need for complementary policy measures that
promote healthier food choices.
1.3. One such policy tool is nutrition labelling, particularly
front-of-package labelling (FoPL), which provides consumers with accessible,
simplified information about the nutritional quality of food products. These
labelling policies aim to empower individuals to make healthier decisions.
However, while public health goals drive the adoption of such measures, they
must also comply with international trade regulations.
1.4. Under the framework of the World Trade Organization (WTO), the
Agreement on Technical Barriers to Trade (TBT) supports Members' ability to
regulate for health purposes, provided such measures are appropriately balanced
with trade considerations. It allows for discussions on whether these measures
are necessary and proportionate.
1.5. From 1995 to 2023, WTO members raised 77 specific trade concerns
related to food and beverage regulations, with labelling requirements
accounting for more than two-thirds —52 in total. The 2024 SOCO report examines
these requirements in detail and includes case studies that illustrate how such
concerns have played out in practice. A widely referenced example is Chile's
2016 front-of-package labelling regulation, which required prominent warnings
on high-sugar foods. Several members raised concerns about the measure's
design, potential trade impact, and implementation costs. In response, Chile
adjusted the label size.
1.6. Despite these adjustments, the policy proved effective. Between 2015
and 2017, average per capita calorie purchases declined by 3.5%, and sugar
purchases fell by 10.2%. The labelling requirements also prompted many food
manufacturers to reformulate products to avoid the warning label, demonstrating
the policy's influence on both industry behaviour and consumer choices.
1.7. This case illustrates that well-designed public health measures—when
grounded in evidence and aligned with trade obligations—can achieve meaningful
nutrition outcomes without creating trade barriers. SOCO 2024 also underscores
the importance of coherence between trade and nutrition policy objectives. As
more countries consider adopting similar regulations, transparent policymaking,
intersectoral coordination, and constructive dialogue at the WTO will be
essential to ensuring that nutrition goals are advanced in a way that is both
effective and consistent with international trade commitments.
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