Geopolitical tensions are heightening between the United States and China following the visit of US House Speaker Nancy Poloski to Taiwan, and this could have devastating consequences in the Caribbean region as it relates to food security, says agriculture economist Omardath Maharaj.
Speaking to Guardian Media yesterday, Maharaj said the Caricom region must begin making adjustments in terms of food, feed, fuel and fertiliser needs.
He said countries like the US and China, from which T&T imports food and agricultural products, may withhold products shortly.
“Traditional food exporting countries may revisit their export strategies and internal policies towards building reserves to maintain food and nutrition security of their populations. It puts Trinidad and Tobago, and other Caricom members—more than 18 million people, in an awkward and exposed position,” Maharaj said.
He noted that Pelosi’s visit to Taiwan must be observed very carefully by the developing world, especially Small Island Developing States in the Caribbean.
“The visit is an apparent violation of the commitments in the three communiqués between China and the USA. The communiqués played a crucial role in the establishment of relations between the countries and continue to be an essential element in the dialogue between the two. These, along with the Six Assurances and Taiwan Relations Act,” Maharaj explained.
He added: “International news media are reporting possible provocations which may lead to war. China slams the visit as ‘extremely dangerous’, with Beijing leaders considering the action as ‘playing with fire’ amid heightened US-China tensions.”
Noting that world peace, inclusive development, global logistics and food systems are already volatile due to the pandemic effects, Russia’s invasion of Ukraine and other political, social and economic struggles, Maharaj said: “A casualty of this threat created by the USA could be food and nutrition security.”
Maharaj said between 2014-2018, China exported almost US$360 billion in food and agriculture products to the world.
“Food and agriculture product exports represented an annual average of 3.14 per cent of total Chinese exports. Of all China’s exports to Caricom, food and agriculture products constitute an annual average of 3.21 per cent for the same period or US$ 88 million,” he said.
Similarly, he said the USA exported almost US$723 billion in food and agriculture products to the world. Food and agriculture product exports represented an annual average of 9.27 per cent of total American exports.
“Of all USA’s exports to Caricom, food and agriculture products constitute an annual average of 21.04 per cent for the same period or US$2.5 billion,” he added.
Maharaj said these food and agriculture products represented an annual average of 18.21 per cent of total Caricom imports or US$5.5 billion.
Because of this dependency, he said the Caribbean has to relook its policies and rethink its strategies.
Saying he was also worried about recent reports of diminished import cover, Maharaj said reduced foreign revenue and reserves in the face of maintaining our import dependence is a challenge.
“The potential for increased food prices and lessened quantities on the global market is gaining momentum with restrictions, production and product sourcing, transportation and evolving food safety issues. While higher prices may ease elastic demand, we depend on many imported, basic staple food products, especially rice, fruits, vegetables, dairy products and meats including seafood,” he said.
He expressed hope that regional leaders will develop a plan at the upcoming Agri-Investment Forum and Expo to be held later this month.