– Strengthening Food Security through Trade, Investment, and Resilient Supply Chains
LONDON, England – The Commonwealth Secretariat has launched the 2024 Commonwealth Trade Review, highlighting the critical role of trade and investment in bolstering food security across its 56 member states.
Released just ahead of the Commonwealth Heads of Government Meeting (CHOGM) in Samoa, the report reveals record-breaking figures in intra-Commonwealth trade, while providing key insights into the future of food security.
2024 Commonwealth Trade Review
Commonwealth trade and economic growth
In 2022, the Commonwealth’s combined GDP reached US$14 trillion for the first time, with projections estimating it could rise to $20 trillion by 2029.
The Commonwealth also saw a strong post-COVID rebound in international trade, while its trade advantage has been resilient. Intra-Commonwealth trade hit a record-breaking $854 billion in 2022 and is expected to surpass $1 trillion by 2026. Foreign Direct Investment (FDI) flows between countries within the Commonwealth reached $172 billion in 2022.
Speaking at the launch, Commonwealth Secretary-General Patricia Scotland KC, said:
“Next week, many of us will gather in Samoa for our much-anticipated Heads of Government Meeting and the theme of this year’s CHOGM is ‘One Resilient Common Future: Transforming Our Common Wealth.’ To achieve this vision, we must ensure that trade and investment are inclusive, resilient, and sustainable, leaving no one behind.
:Our Trade Review demonstrates the Commonwealth’s resilience and the immense potential of intra-Commonwealth cooperation. By focusing on strengthening trade and investment ties, particularly in the food sector, we can help build more secure, sustainable, and resilient food systems across our member states.”
Food security and trade
The report echoes the international call for greater collaboration to achieve Sustainable Development Goal 2 on Zero Hunger, where progress is significantly off track. More than two-thirds of Commonwealth members, particularly least developed countries and small states are net importers of essential food products and rely on international trade for their food and nutrition security.
In 2022, Commonwealth countries imported $224 billion worth of food and exported $263 billion globally. Intra-Commonwealth food trade, valued at $53 billion, or 24 percent of their total food imports, plays a crucial role in ensuring food security, particularly for the Commonwealth’s developing nations and small island states.
The analysis presents new evidence of the trade-enhancing effects of Commonwealth membership, which is 22 percent higher for food trade between member countries compared to non-members, with strong effects for exports of fruits and vegetables, cereals, and fish products, which are critical for food security. This increases to 33 percent when Commonwealth countries are part of the same trade agreement.
The report also highlights significant growth in processed food trade, with processed food imports accounting for 47 percent of the Commonwealth’s total food imports, amounting to $105 billion in 2022. It urges more investment into the production and trade of healthier, more nutritious foods, thereby alleviating the hidden costs on public health systems and the environment. Furthermore, food-related greenfield FDI announced in Commonwealth countries between 2005 and 2023 totalled $70 billion.
In a video message for the launch, World Trade Organization director-general Dr Ngozi Okonjo-Iweala remarked:
“The Commonwealth’s 2024 Trade Review provides valuable insights into Commonwealth trade and highlights key areas for future growth, aiming to use trade as a tool for development. One of the most encouraging trends in the report is the remarkable post-COVID recovery of intra-Commonwealth trade, which reached a record USD 854 billion in 2022, accounting for slightly under 3 percent of global trade. This demonstrates the existing and growing importance of intra-Commonwealth trade.”
Policy recommendations and looking ahead
The Commonwealth Trade Review offers policy recommendations aimed at addressing food security challenges. These include enhancing collaboration in food trade, investing in sustainable food systems, and tackling food loss and waste. With Commonwealth food imports projected to double to $486 billion by 2033, the report emphasises the need for targeted efforts to ensure the resilience of global food supply chains.
The 2024 Commonwealth Trade Review provides critical insights ahead of this year’s CHOGM, as leaders and policymakers gather to discuss ways to strengthen trade, drive economic resilience, and achieve Sustainable Development Goals across the Commonwealth.
Key Statistics
Commonwealth Trade Advantage: 21 percent lower trade costs between Commonwealth countries, on average;
Commonwealth GDP: $14.2 trillion (2022), projected to reach $20 trillion by 2029;
Intra-Commonwealth Trade: $854 billion (2022), expected to surpass $1 trillion by 2026;
Intra-Commonwealth Stock of Foreign Direct Investment: $1.7 trillion (2022);
Food Imports: $224 billion (2022), projected to reach $486 billion by 2033;
Intra-Commonwealth Food Trade: $53 billion (2022);
Global Greenfield FDI in Commonwealth Food Sectors: $70 billion (cumulative 2005-2023).
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