The United States and the European Union are looking at how to improve food supply chains with export restrictions from nations accentuating global problems, the EU’s trade chief told CNBC.
The recent move by the United States and the European Union comes after India banned wheat exports on Saturday, just days after saying it was aiming for record shipments this year, as a scorching heatwave curtailed output and local prices reached an all-time high amid strong export demand.
The Indian government said it would still allow exports for letters of credit that have already been issued and on the request from countries that are trying “to meet their food security needs.”
G-7 foreign ministers warned over the weekend that the war in Ukraine is increasing the risk of a global hunger crisis. This is because Ukraine has been unable to export grains, fertilizers, and vegetable oil, while the conflict is also destroying crop fields and preventing a normal planting season.
This has increased the reliance on nations from other parts of the world for these products. But some of these countries, concerned about supplies for their own citizens, have imposed restrictions on exports.
The planned meeting will be held under the joint Trade and Technological Council, or TTC, which was formed in 2021 to rebuild transatlantic ties following the Trump administration’s trade tariffs and disagreements.