The World Bank and IMF are urging countries to remove trade restrictions

Trade restrictions will lead to rising prices and hunger, say leaders of several international organizations.

The coronavirus pandemic, supply chain disruptions and the war in Ukraine have severely disrupted food, fuel and fertilizer markets, heads of international organizations including the World Bank and International Monetary Fund said in a joint statement .

Specialists call for a number of measures to reduce economic risks, in particular, to remove trade restrictions, which, according to the authors, lead to higher prices.

In June, the number of people suffering from severe malnutrition reached 345 million in 82 countries, according to the World Food Program, the document said. About 25 countries have imposed food export restrictions that have affected more than 8 percent of the world’s food trade, and fertilizer prices have doubled in the past year.

To prevent further deterioration of the situation, the leaders of international organizations propose to take the following steps:

• provide immediate support to vulnerable populations;

• promote trade and international food supplies;

• increase production;

• invest in climate resilient agriculture.

The authors of the statement note that the economic crisis of 2008 taught the world that the introduction of global trade restrictions directly leads to higher food prices.

“The removal of export restrictions and the introduction of more flexible inspection and licensing methods will help reduce supply disruptions and lower prices,” the experts said.

The statement was signed by World Bank CEO David Malpass, UN Food and Agriculture Organization CEO Qu Dongyu, IMF CEO Kristalina Georgieva, WFP Executive Director David Beasley, and World Trade Organization CEO Ngozi Okonjo-Iweala.

Earlier, the results of grain talks in Istanbul were known.

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