Sharon FrielNational Centre for Epidemiology and Population Health The Australian National University

3rd People’s Health Assembly, Cape Town 8th July 2012

Trade, food and health inequity

What do we want?

People-centred food systems

Amended, Lang and Heasman (2004) Food Wars: the global battle for mouths, minds and markets

Fairness in

What have we got

IFPRI, Global Hunger Index 2010

1 billion undernourished people in the developing world

two billion people are overweight

1. Liberalisation of international food trade

2. Increased foreign direct investment

3. Globalised advertising and marketing

3 drivers of dietary change

Bilateral Investment Treaties explode

Slide: Richard Baldwin

Proliferation of new generation RTAs – broader scope and deeper integration

UNESCAP 2010, Asia Pacific Trade Investment Report 2011

1. Nutritional quality and quantity of imports

2. Foreign direct investment – convenience creep

3. Limitations on domestic policy instruments

4. Reduce tax-revenue base of governments to fund nutrition health and social programs

Four trade-related pathways of concern for nutrition and health equity

• In 2004 mutton flap consumption was about 600 g per week per adult and comprised 18% of total meat consumption

• Draft legislation for import quota to any product that had >40% energy from fat• Under WTO trade rules quotas are perceived as highly trade distorting• WTO accession negotiations resulted in postponement of legislation

Quantity of mutton flaps imported into Tonga, 1980–2007

Thow et al 2010 Food Policy 35: 556–564

1. Nutritional quality and quantity of imports

2. Foreign direct investment – convenience creep

3. Limitations on domestic policy instruments

4. Reduce tax-revenue base of governments to fund nutrition health and social programs

Per capita sales of unhealthy food and beverage commodities, 1997–2010, projected to 2016

Stuckler et al (2012) Manufacturing Epidemics: The Role of Global Producers in Increased Consumption of Unhealthy Commodities Including Processed Foods, Alcohol, and Tobacco. PLoS Med 9(6): e1001235. doi:10.1371/journal.pmed.1001235

Stuckler et al (2012) Manufacturing Epidemics: The Role of Global Producers in Increased Consumption of Unhealthy Commodities Including Processed Foods, Alcohol, and Tobacco. PLoS Med 9(6): e1001235. doi:10.1371/journal.pmed.1001235

Soft Drink Consumption(volume per capita)

1% higher GDP per capita 0.90%***

(0.19)1 percentage point higher urban population (% of total)

0.018%*

(0.0068)

Free Trade Agreement with the United States

55.4%*

(24.2)

Number of Countries 35R2 0.74

FTAs, Soft Drink Consumption, 35 low- and middle-income countries, year 2010

Top 10 manufacturers of packaged foods

Stuckler et al (2012) Manufacturing Epidemics: The Role of Global Producers in Increased Consumption of Unhealthy Commodities Including Processed Foods, Alcohol, and Tobacco. PLoS Med 9(6): e1001235. doi:10.1371/journal.pmed.1001235

Three quarters of world food sales involve processed foods, for which the largest

manufacturers hold over a third of the global market.

1. Nutritional quality and quantity of imports

2. Foreign direct investment – convenience creep

3. Limitations on domesticpolicy instruments

4. Reduce tax-revenue base of governments to fund nutrition health and social programs

Thailand Snack Food Labelling

Technical Barriers to Trade Dispute

• 2006 Proposed Traffic Light System X

• Proposed Warning Label

• 2007 Label:“Should consume small amounts, and

exercise for a better health.”

changed to

“Should take less, and exercise for a better health”

1. Nutritional quality and quantity of imports

2. Foreign direct investment – convenience creep

3. Limitations on domestic policy instruments

4. Tariffs: reduce tax-revenue base of governments to fund nutrition health and social programs

Pacific Agreement of Closer Economic Relations (PACER PLUS)

Oxfam 2009

• Elimination of substantially all import tariffs between PICs and Australia and New Zealand

• Most of the increase will be in PIC imports not exports

Education Health PACER revenue lossCook Islands 14 11 6Fiji 29 14 3Kiribati 14 9 15PNG 10 6 2Samoa 22 17 12Tonga 13 14 19Vanuatu 23 11 18

Government Expend as % Total Budget

Global food prices, 1990-2012

FAO 2012

2002-2004=100

Food commodity speculationTrends in rice futures (2000–08)

Pace and Costello (2008). Food commodity derivatives: a new cause of malnutrition. The Lancet Vol 371 May 17

Thank you