With great power comes great responsibility: The EU and the Black Sea Region take leadership of the global wheat market

Osama Ahmed, Thomas Glauben, Maximilian Heigermoser and Sören Prehn

No 314669, IAMO Policy Briefs from Institute of Agricultural Development in Transition Economies (IAMO)

Abstract: Income growth, changing consumer preferences and technological progress are having a transformative effect on global food trade and, in particular, wheat markets. This is evidenced by two main developments: First, the growing demand for wheat in Asia and Africa is increasingly being met by the European Union (EU) and the Black Sea Region (BSR), which have replaced the United States (US) as the major players on the global wheat market. Second, and as a consequence, the Euronext futures market, which reflects the supply and demand fundamentals in the EU and the BSR, is becoming more important for international wheat price discovery. In light of these two changes, the EU and the BSR must take more responsibility for ensuring global food security and combating hunger and malnutrition. To achieve this, greater international cooperation is required, in particular between the big Western and Eastern economic powers. Unrestricted international trade is vital to ensure sufficient supply of food worldwide, while escalating economic sanctions and countersanctions endanger food security, especially in import-dependent regions. Public debate on trade and economic sanctions must therefore be more objective and better take into ac- count both regional and global needs.

Keywords: Food Security and Poverty; International Relations/Trade (search for similar items in EconPapers)
Pages: 4
Date: 2021
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Working Paper: With great power comes great responsibility: The EU and the Black Sea Region take leadership of the global wheat market (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iamopb:314669

DOI: 10.22004/ag.econ.314669

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