GENEVA, CH.- Environmental disasters related to the effects of climate change have put the spotlight on the debate on the creation of more forceful global policies and responses to safeguard supply chains.
The most recent case was in Brazil, where heavy rains between April and May of this year caused severe flooding in Rio Grande do Sul , a state in the south of the country. In just four days, the expected rainfall for the entire season was recorded.
The consequences for the population were shocking, with more than 200 deaths recorded, more than half a million people displaced and more than 60,000 placed in shelters.
But there were also negative effects on trade and supply chains. At least 70% of the rice consumed nationwide, an important staple in the Brazilian diet, is produced in this part of the Latin American country, and at the time of the heavy rains, 20% of production was under water, with large volumes of unharvested grain being lost, including some reserves stored in silos.
Speculation was rampant and the price of rice rose by 30 to 50 percent. The response of Luiz Inácio Lula da Silva’s government was to reduce the import tariff on rice to zero , in order to supply itself mainly from neighbouring countries, causing annoyance to local producers but also disrupting trade in that region.
“Here’s the problem, sometimes governments facing natural disasters of this kind need to step away from their normal regulatory framework,” said Guilherme Patriota, Brazil’s ambassador to the World Trade Organization (WTO), who participated in the conference Towards trade, sustainability and supply chain resilience: lessons from recent climate emergencies , held at the Public Forum 2024 .
Brazil is not the only country that has had to deal with these bitter experiences. Pakistan , which was also hit by unusually heavy rains this year, presented a proposal at the last WTO Ministerial Conference calling for the creation of a response mechanism for such situations, which should focus on balancing supply chains and trade.
“(It is about) having a mechanism that provides countries with the means and the comfort to deal with these emergency situations,” said Patriota.
The Pakistani initiative highlights the common but differentiated responsibility of all countries in climate change, which is linked to global pollution from industrial activities. “But perhaps some countries should do more ,” said the Brazilian ambassador.
These types of initiatives are only just beginning to appear in the forums of multilateral organizations or in global conferences aimed at addressing the problem of climate change .
Daniel Ramos, legal officer and secretary of the WTO Dialogue on Plastic Pollution, said that three projects are currently being analyzed at the WTO that have to do with measures related to combating climate change through modifications in the way global trade is conducted.
He also indicated that just at the last Conference of the Parties (COP) of the United Nations , the “day of trade” was held, where the relationship that this activity has with climate change was raised and the efforts that must begin to be developed to trigger the necessary adjustments by nations in humanitarian assistance with respect to the supply of essential inputs .
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