ECOSOC Forum on Financing for Development Follow-Up 2026 in-depth review: International Trade as an Engine for Development Interactive Discussion

Trade has long been a cornerstone of economic development. Furthermore, it is a powerful catalyst for food security and resilience. Global trade helps address structural imbalances between where people live, where land and water are available, and where key inputs- such as energy and fertilizers - are produced. By combining these factors efficiently, food can be produced year-round, across regions, in ways that are both economically viable and environmentally sustainable. Trade also helps countries cope with extreme weather events, allowing access to global food supplies when floods or droughts disrupt domestic production.

In today's interconnected agrifood systems, trade goes well beyond physical goods. It enables the flow of technology and knowledge: improved seeds, fertilizers adapted to local conditions, digital services, artificial intelligence for agriculture, and early-warning systems that help farmers anticipate shocks and adapt to climate and market risks. These exchanges underpin productivity growth and long-term development, particularly in food-import-dependent and resource-constrained countries.

The current crisis in the Middle East is a stark reminder of the importance of keeping trade flowing. As often happens, we truly value trade when it is disrupted. Disruptions to energy and fertilizer supply chains are raising costs, reducing input use, lowering yields, and undermining farmers' livelihoods. While all countries are affected, the most vulnerable have the least capacity to absorb these shocks.

FAO therefore reaffirms the need to maintain open and predictable trade in food and agricultural inputs, especially fertilizers. Fertilizer scarcity ahead of upcoming cropping seasons - particularly in the Southern Hemisphere - could have serious global consequences if not addressed. Maintaining trade channels open is not only an economic necessity, but a moral imperative to protect livelihoods and stabilize agrifood systems in a time of profound uncertainty.