As GSA, we support the work and the position of WTO, ensuring that rules of international trade are respected. The termination of the Grain Deal, which had contributed to the export of 32 million tonnes of food products in the last years, brings along a series of consequences, such as increased prices for grains and oilseeds. These goods are used in the production processes of many companies that we are representing. The termination of the initiative can result in shifts in supply and demand dynamics in the global grain market. Shippers should be prepared need to adapt and to explore alternative markets. Also, considering corporate social responsibility, we see the implications for food security in developing countries, impacting the work of the World Food Programme. Below is the message from the WTO Director-General Ngozi Okonjo-Iweala, on 17th of July 2023.

“The abrupt termination of the implementation of the Black Sea Grain Initiative is a matter of grave concern. I share UN Secretary-General Antonio Guterres’s deep regret and disappointment. Global food security should not become a casualty of war. Ukraine and the Russian Federation are important suppliers of food, feed, and fertilizer to international markets. People in poor countries struggling with food and energy price inflation stand to be hit hardest by the termination of the initiative: prices for future delivery of wheat and corn are already rising. Therefore, I urge all parties to make every effort to come back to the negotiating table.”

“Through the shocks of the COVID-19 pandemic and the war in Ukraine, open and predictable international markets for staple grains have been an indispensable source of resilience and food security among members at all income levels. At the World Trade Organization (WTO), we will continue to urge members to dismantle export restrictions and facilitate the flow of food from surplus countries to those facing deficits”.

Please read this News Item at:
https://www.wto.org/english/news_e/news23_e/dgno_17jul23_e.htm