Connecting the Dots: Insane Trade and Climate Chaos

Imagine a world where food routinely gets shipped thousands of miles away to be processed, then shipped back to be sold right where it started. Imagine cows from Mexicobeing fed corn imported from the United States, then being exported to the United States for butchering, and the resulting meat being shipped back to Mexico, one last time, to be sold. Imagine a world in which, in most years since 2005, China has somehow managed to import more goods from itself than from the USA, one of its largest trading partners.

This may sound like the premise of some darkly comic, faintly dystopian film – albeit one geared towards policy wonks. But it’s no joke – in fact, it is the daily reality of the global economy.

The above examples are all instances of ‘re-importation’ – that is, countries shipping their own goods overseas only to ship them back again at a later stage in the production chain. And these are far from the only instances of this head-scratching phenomenon. In the waters off the coast of Norway, cod arrive every year after an impressive migratory journey, having swum thousands of miles around the Arctic Circle in search of spawning grounds. Yet this migration pales in comparison to the one the fish undertake after being caught: they’re sent to China to be fileted before returning to supermarkets in Scandinavia to be sold. This globalization of the seafood supply chain extends to the US as well; more than half of the seafood caught in Alaska is processed in China, and much of it gets sent right back to American grocery store shelves.

Compounding the insanity of re-importation is the equally baffling phenomenon of redundant trade. This is a common practice whereby countries both import and export huge quantities of identical products in a given year. To take a particularly striking example, in 2007, Britain imported 15,000 tons of chocolate-covered waffles, while exporting 14,000 tons. In 2017, the US both imported and exported nearly 1.5 million tons of beef, and nearly half a million tons of potatoes. In 2016, 213,000 tons of liquid milk arrived in the UK – a windfall, had not 545,000 tons of milk also left the UK over the course of that same year.

On the face of it, this kind of trade makes no economic sense. Why would it be worth the immense cost – in money as well as fuel – of sending perfectly good food abroad only to bring it right back again?

The answer lies in the way the global economy is structured. ‘Free trade’ agreements allow transnational corporations to access labor and resources almost anywhere, enabling them to take advantage of tax loopholes and national differences in labor and environmental standards. Meanwhile, direct and indirect subsidies for fossil fuels, on the order of $5 trillion per year worldwide, allow the costs of shipping to be largely borne by taxpayers and the environment instead of the businesses that actually engage in it. In combination, these structural forces lead to insane levels of international transport that serve no purpose other than boosting corporate profits.

The consequences of this bad behavior are already severe, and set to become worse in the coming decades. Small farmers, particularly in the global South, have seen their livelihoods undermined by influxes of cheap food from abroad; meanwhile, their climate-resilient agricultural practices are actively discouraged by the WTO and ‘free trade’ agreements. And food processing and packaging – both critical for food that’s going to be shipped a long way from where it was produced – account for a significant proportion of the global food system’s greenhouse gas emissions.

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One thought on “Connecting the Dots: Insane Trade and Climate Chaos”

  1. I guess this process provides a lot of jobs for middle men, like those in the shipping industry, the governments, the commodities and stock brokers, the oil companies. From a customer/consumer point of view, it means food is less fresh and that countries with different standards, such as bans on certain herbicides or pesticides or GMO products for their own countries may still get food from less restrictive countries. Who would know?

    I’ve noticed a decline in the quality of food the past few years. Food rots before it ripens, seems to go bad faster, apples, tomatoes and cucumbers are waxed (or greased), so the skins (which usually contain most of the nutrients) must be removed.

    I’m so glad someone is paying attention to this stupidity, but what to do about it? The people we pay to protect us are some of the worst perpetrators of this global poisoning.

    Liked by 1 person

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