Mediterranean Economies 2023
DOI: 10.1401/9788815411167/c5
Moreover, only 30 per cent of
the land in the region is suitable for agriculture [Mandour 2021]. Figure 11 depicts
the actual status of water stress in the MENA region. With the exception of few
areas along the Nile, the North African coast, and some areas in Iraq, MENA
countries suffer from high to extremely high water stress (fig. 11). Due to these
natural constraints, the potential for increasing agriculture in the region is
limited. Given that agriculture uses about 80 per cent of the total water supply in
many MENA countries, enhancing water management may help with increasing
agricultural output [Woertz 2017].
¶{p. 166}
¶
Quality of
Infrastructure and Connectivity. Maritime transport accounts for 80
per cent of global trade by volume and more than 70 per cent by value, and is one of
the main transport modes used by developing countries [UNCTAD 2017]. The MENA region
ranks among the regions with the best maritime connectivity at the global level,
with an index value of 0.18 (like North America, Europe and Central Asia, and South
Asia). The region also performs better than East Asia and the Pacific, Latin America
and the Caribbean, and Sub-Saharan Africa. Thanks to the availability of ports along
the African North Coast and the Suez Canal in Egypt, in addition to the
liberalization of maritime services in MENA countries, maritime connectivity is
fairly advanced in the region. However, despite this high connectivity, trade
facilitation remains an issue. Indeed, the procedure to clear imported and exported
goods from the ports can be lengthy and costly given the long time to export and to
import, which increases their respective costs.
Conclusion and Outlook
Food insecurity is one the central
global challenges facing developing countries, including MENA economies. Eradicating
food insecurity is at the core of the Sustainable Development Goals Agenda (SDG2). It is
also one of the preconditions to achieve other SDGs. Against this backdrop, trade policy
is found to matter for food security. An open international trade system can enhance the
efficiency of global food production, increase food affordability, and improve food
utilization from a nutritional perspective. However, open food trade policies must be
coupled with domestic policies to ensure equal access to and affordability of food at
the household level. They must also be accompanied by an international cooperation
framework that puts smallholder farmers at the heart of export promotion interventions,
increase their inclusion in the global system, and improve their resilience to global
market shocks.
The MENA region is one of the most
exposed regions to global trade in food. The region is a net importer of food,
especially staple grains. MENA food systems were heavily impacted by supply chain
disruptions and price surges following the COVID-19 pandemic and the Russian war on
Ukraine. They must ¶{p. 168}also cope with longstanding challenges that
threaten their food security, such as growing population, climate change, degrading
lands, and water stress.
Despite their heavy dependance on
the global food market, MENA countries continue to impose high tariffs (around 14 per
cent) and non-tariff measures on imports. Moreover, the administrative costs of trade
are extremely high by international standards. Lengthy procedures also represent a
threat to time-sensitive food items. Finally, trade agreements at the intra-Arab level
and bilateral agreements between MENA countries and the EU either exclude agriculture
from liberalization or undermine trade in food through the excessive use of NTMs.
MENA countries can improve their
food security outlook with the help of several strategies. The first strategy is to
adopt a more open trade policy through the elimination of tariff and non-tariff
measures, especially on strategic food imports. Our findings suggest that the most
restrictive NTMs are imposed on food items for which MENA countries are net importers,
including meat, cereals, malt, and wheat. Restricting imports of strategic foods has
adverse effects on the affordability and availability of these items and all related
products along the value chain. From a utilization point of view, the affordability of
diverse sources of micronutrients due to liberalization could help tackle both
malnutrition and overnutrition in the region. Additionally, trade facilitation through
the automation and computerization of customs and the streamlining of behind-the-border
administrative procedures is also necessary to reduce the time and cost to trade.
The second strategy is to work on
the modernization of the agricultural sector to increase productivity and output, and to
tackle rural poverty. In this regard, MENA countries should adopt a strategy of
agricultural self-reliance, where the revenues generated from the export of high value
crops can sustain the imports of food staples [Battat and Lampietti 2015]. Indeed,
several MENA countries have significant capacities in the production export of food
items such as fruit and vegetables, with a share of food exports in total merchandise
exports that is well above the average for low-and middle-income countries. Increasing
productivity in agriculture can also be achieved though the liberalization of trade in
inputs, including seeds and equipment, and encouraging the use of new technologies in
the agricultural sector. ¶{p. 169}
Moreover, governments should
invest in research and innovation, and encourage climate smart agriculture [Martens
2017].
The third strategy to achieve food
security is the deployment of non-trade related policies to enhance access to food at
the national level. As demand for food grows with the growing population in the region,
MENA countries should work on enhancing access to food through the expansion of safety
nets through targeted food subsidies or conditional cash transfers to protect vulnerable
groups from food price fluctuations (ibidem). Another important
action is to tackle rural poverty by providing support to farmers against potential
losses from local and global shocks [Brooks and Matthews 2015], and by working on
integrating smallholders into the food global value chain [Keulertz and Byiringiro
2022].
At the regional level, several
actions could be deployed to enhance trade, and consequently, food security. These
include the harmonization of standards and regulations to lower trade costs between MENA
countries, and between these countries and one of their major exports markets, the EU.
Adopting international standards and investing in food safety authorities are also two
necessary actions to boost trade in food, given the significance of rejections
(especially those related to SPS measures) both at the intra-MENA level and at the
EU-MENA level. As mentioned before, boosting high-value food exports could help generate
sufficient revenues to ensure imports of other critical food items.
Finally, boosting regional trade
requires modern infrastructure that connects MENA countries, especially roads and
railroads. The MENA region has one of the worst road and railroad networks worldwide. At
the same time, trade in time-sensitive products like food requires swift transport,
logistics, and storage facility. Therefore, investing in regional road networks that
connect MENA countries should be at the core of any regional trade strategy.
Note