At this session, the speaker will argue that our future hinges on a set of elements that receive scant attention even from those whose fortunes rely upon them. The speaker will outline why our electronic gadgets, the most powerful armies and indeed the fate of our planet depend on producing sustainable supplies of rare metals. He will outline some of the  new environmental, economic, and geopolitical consequences of supply chains and discuss the dynamics of the rare metal markets which are vastly different than traditional commodities traded on open exchanges. The speaker will also address some of the security of supply issues arising from China's role as the dominant consumer and producer of most of the world’s minor metals. Finally, the discussion will also include what countries and companies can do to ensure resilient supply lines.

Attendance at this event is by invitation only. 

This year marks the 30th anniversary of the fall of the Berlin Wall. The wall, which stood between 1961 to 1989, came to symbolize the ‘Iron Curtain’ – the ideological split between East and West – that existed across Europe and between the two superpowers, the US and the Soviet Union, and their allies, during the Cold War. How significant was the Berlin Wall during the Cold War – was it more important physically or psychologically?

The Berlin Wall was important physically, as well as psychologically, because Berlin was the only city that was divided physically by the Cold War between the Soviet Union and its allies in the Eastern Bloc and the West.

Given the disparity that quickly emerged between the two sides in economic wealth, freedom of expression and so on, the fear was that, without that wall, there would've been a unification of Berlin in a way that the Soviet side would have lost.

But it was also very important psychologically because it became the symbol of the division between two ideologies that saw each other as inimical to each other.

That meant that if you wanted to visualize the Cold War, and the separation between the capitalist, democratic system of the West and the communist, command-and-control system of the East, Berlin offered a place where you could physically walk from one world, through a checkpoint, into the other. The whole Cold War could be reduced to this one nexus point.

Because of its psychological as well as its physical significance, the fall of the Berlin Wall quickly became the symbol of the collapse of the communist ideology it had shielded.

Since the fall of the Berlin Wall, European countries have reportedly built over 1,000 kilometres of walls – the equivalent of more than six times the total length of the Berlin Wall – along their borders.

Why has Europe been building more walls and how effective have they been? Have they been used more as symbols to appeal to political bases, and if so, has it worked with voters?

The walls that have been built in Europe recently have been for a very specific reason. This was the huge influx of migrants and refugees to Europe in 2015, through what was called the ‘eastern Mediterranean’ or ‘western Balkan route’, from Turkey to Greece and on through the Balkans, Serbia and Hungary to northern Europe – in what was Europe's biggest migrant and refugee crisis since the Second World War.

What’s interesting is that for Viktor Orbán and the Hungarian government, which was on the frontline of the flow of migrants and refugees, building a wall was a way of reasserting its sovereignty. 

Like many other countries along the ‘migrant route’, they resented that the rules under which people could migrate into Europe were flouted by northern European governments which were willing to accept large numbers of migrants and refugees.

By accepting them, they kept attracting more, and so Orbán was worried that, at some point, Germany might say ‘We can’t take anymore’ and they’d be left in Hungary.

It’s important to remember that the communist states of central and eastern Europe were kept in aspic by the Soviet Union – they existed in a hermetically sealed environment without immigration. As a result, they didn’t experience the rise of multicultural societies of the sort that emerged in Britain, Belgium, France and Germany, where immigration persisted throughout the Cold War period.

The countries of central and eastern Europe were delighted that the Berlin Wall collapsed because it allowed them to unify with western Europe. They had been vassal states of the Soviet Union during the Cold War, and by joining the EU, they re-discovered personal freedom and re-gained national sovereignty. They thought they had become masters of their own future again.

But they suddenly found they were on the frontline of a new movement of people that wanted to get into the same world that they’d entered some 15 years earlier. And, as hundreds of thousands of migrants and refugees began arriving, they suddenly realised they were in a union that did not respect their sovereignty.

So, for them, putting up walls was a sovereign act against a European Union that didn’t seem to take their sovereignty seriously.

Has it worked? Definitely. The flow of migrants has been reduced drastically. This is partly because the EU paid Turkey to hold back the over three million migrants based there. But the walls also acted as a physical and psychological deterrent. 

It also worked politically. It allowed Viktor Orbán and other European parties that took the sovereigntist line to strengthen their appeal to voters – voters like to know that governments can do certain things like protecting them and their borders.

What is hypocritical, however, is that many of the governments in western Europe which criticized the Hungarian government for building its wall have actually been rather grateful that they did so as it slowed down the flow of migrants to their countries.

Then there’s the additional hypocrisy of the EU criticizing Donald Trump for building his wall with Mexico when Europeans are benefitting from theirs in Hungary.

Two years before the fall of the Berlin Wall, former US president Ronald Reagan challenged Soviet leader Mikhail Gorbachev to ‘tear down this wall’ declaring ‘across Europe this wall will fall. For it cannot withstand [freedom].’

32 years later, building a wall along the US–Mexico border has become a cornerstone of the current US administration under Donald Trump who has pledged to build a ‘big beautiful wall’. How does this reflect the political evolution of the US and what effect does that have across the rest of the world?

President Reagan talked about tearing down the Berlin Wall as a symbol of the Cold War. He knew that the fall of the wall would undermine the Soviet Union. 

President Trump is way beyond the Cold War. Building a new wall is his response to the growing sense of economic dislocation that segments of America, like Britain and other parts of Europe and the developed world, have experienced on the back of the rise of globalization, which was partly the result of the end of the Cold War but also the rise of China.

The spread of globalization, the declining earning power of many workers in the West, advances in technology which have taken away many high-earning jobs, the eight years of austerity after the global financial crisis – these are all factors driving Trump’s thinking. 

Have inflows of Mexican immigrants or immigrants through the Mexico border been the principal driver of economic insecurity?  No.  What you’ve got is Trump promising to build a wall as a symbol of his administration’s determination to protect Americans.

So I’d say the US–Mexico wall is another symbolic – or psychological – wall. Trump’s wall is supposedly about stopping illegal immigration but there are still plenty of ways to come through the border posts. It’s principally an exercise in political theatre.

From the Great Wall of China to Hadrian’s Wall, walls and fences of all sorts have been used throughout history for defence and security, but not all of them have been physical.

So-called ‘maritime walls’, as well as ‘virtual walls’, are also increasingly being enforced which, today, includes border forces patrolling seas and oceans, such as in the Mediterranean Sea or off the coasts of Australia, and border control systems controlling the movement of people. Politically how do these types of barriers compare to physical ones?

You could argue that the Mediterranean Sea, and the European border forces operating within it, still act as a physical wall because they constitute a physical obstacle to migrants being able to move from the South across the Mediterranean Sea into Europe. 

So I don’t see this maritime wall being much different to the physical walls that have been built to try to stop migrants – just like any other border patrol, the Italian navy is preventing NGO vessels carrying migrants, who have been stranded at sea from docking at Italian ports. 

In this sense, you could argue that the Mediterranean Sea is a larger version of the Rio Grande between the US and Mexico which also incorporates physical barriers along its shores.

I think the more interesting walls that are being built today are virtual walls such as regulatory walls to trade, or with the internet, new barriers are being built to digital communication which affect your capacity to access information. 

In the end, all these walls are manifestations of national sovereignty through which a government demonstrates it can ‘protect’ its citizens – whether they are successful in this objective or not.

The border between Ireland and Northern Ireland, and the presence of enforcement mechanisms along the border, has become a key issue in the Brexit negotiations. How much of the debate over this is about the symbolism of the border against its economic implications?

The Irish border carries great symbolic importance because it reflects the reality of the separation of two sovereign states.

On the island of Ireland, the British and Irish governments have wanted to minimize this reality to the greatest extent possible. They even went as far as removing all types of barriers as part of the Good Friday Agreement.

This is the same sort of fiction the European Union created when it removed any physical manifestations of the existence of borders between those member states in its Schengen agreement on borderless travel.

By removing physical manifestations of the border, the UK was able to reduce some of the popular support for Irish unification as well as support for the IRA’s campaign of violence and terrorism to try to force the same outcome. 

Brexit has thrown a huge spanner into this arrangement. If Brexit is going to mean the entire UK not being in the EU’s customs union then some sort of border would need to be reinstated.

The British government proposed to do all the checks behind the border somewhere. The EU’s view was, ‘Well, that’s nice for you to say, but this border will become the EU’s only land border with the UK, and you cannot guarantee that people won’t be able to smuggle things through.’

On the other hand, recreating a border of some sort, whether physical or not, would reignite the differentiation between the two nations – running counter to the spirit of the Good Friday Agreement.

The only solution available to Prime Minister Boris Johnson has been to put the border down the Irish Sea.  While this means that Northern Ireland will no longer be an obstacle to the UK signing new, post-Brexit, free trade agreements with other countries, it has betrayed the Conservative Party’s unionist allies, for whom it’s essential that the UK’s borders include and not exclude them. 

By the end of the Cold War there were just 15 walls and fences along borders around the world, but today, there are at least 70. How effective, do you think, building barriers are as a political and military strategy to defence and security issues given their financial – and human – cost?

Physical barriers can be an effective form of protection – or imprisonment. 

The separation wall between Israel and the Palestinian territories has reduced the level of terrorist violence being perpetrated in Israel, but the cost has been the impoverishment of many Palestinians, and is another nail in the coffin of a two-state solution.

Yet many Israelis are saying that, maybe, being entirely separate is the best way to achieve peace between the two sides.

However, the walls around the Gaza Strip have not prevented, for various reasons, the Hamas government from developing rockets and firing them into Israel.   

You could argue that the border between China and North Korea, which is severely patrolled, has been a tool of continued political control protecting the Kim Jong-un regime from collapse – as has its virtual border preventing internet penetration.

Similarly, the virtual border the Chinese government has created around its own internet, the ‘great firewall’, has been very effective both economically – allowing Chinese internet platforms to develop without the threat of competition – and also as a form of political control that helps the Chinese Communist Party retain its monopoly on power. 

So walls in all of their shapes and forms can work. They are like sanctions – sanctions are easy to impose but difficult to remove. Walls are easy to build but they’re difficult to break down. 

But my view would be that they still only work temporarily. In the end, walls serve their particular purpose for a particular period, like the Berlin Wall, they end up outliving their purpose.

You have to be alive to the fact that, whether that purpose was a good or bad purpose, there will be a moment when walls end up protecting the interests of an ever-narrower number of people inside the wall, while they cease serving, if they ever did, the interests of the growing number on both sides. 

It’s ironic that the fall of the Berlin Wall in November 1989 was not the main marker of the end of the Cold War. It began earlier that year, with the intensification of people protesting in Poland, Hungary and Czechoslovakia.

Once Hungarian troops dismantled the fence separating them from Austria in May 1989, thousands of Hungarian citizens simply walked out of their country, because by then, the wall between the East and West only existed in their minds.

Then, once East Germans also realized that Mikhail Gorbachev and the Soviet regime had lost its willingness to defend the Berlin Wall, it collapsed. 

So it is interesting that we’re marking the end of the Cold War with this anniversary of the fall of the Berlin Wall, which of course, did divide two halves of one country, making its fall all the more poignant and powerful. But the end of the Cold War really began with the fall of the invisible wall in people’s minds.

On 12 December 2019, the United Kingdom will go to the polls in a fifth nationwide vote in only four years. This is expected to be one of the most unpredictable general elections in the nation’s post-war history with the anti-Brexit Liberal Democrats and Nigel Farage’s Eurosceptic Brexit Party both presenting a serious challenge to the UK’s established two-party system.

This webinar will discuss the UK general election and will unpack some of the reasons behind its supposed unpredictability. To what extent will this be a Brexit election and what are the other issues at the forefront of voters’ minds? And will the outcome of the election give us a clear indication of the UK’s domestic, European and wider international political trajectory?

Please note, this event is online only. Members can watch webinars from a computer or another internet-ready device and do not need to come to Chatham House to attend.

In 2018, Iceland joined the Wellbeing Economy Alliance, a network of countries developing frameworks to measure social, economic and environmental factors in an attempt to move beyond GDP being the sole measurement of economic success. Other governments and organizations supporting this approach include New Zealand, Scotland and the Organisation for Economic Co-operation and Development (OECD).
 
Against this backdrop, the prime minister of Iceland and 2019 Chatham House Prize nominee, Katrín Jakobsdóttir, shares insights into her government’s approach and her personal and political motivations for embarking on the wellbeing economy project.

The new European Commission has finally started its work this week. In a world increasingly defined by great power competition and deprived of the certainties of a strong transatlantic partnership, this might well be the first commission where foreign and security policy issues will be equally important to internal EU ones.

Amid an escalating Sino-American rivalry, there is a growing realization in Brussels that something has to change in the way the EU thinks and acts internationally.

Charting a more successful path forward will not be easy. Josep Borrell, the EU’s new high representative for foreign affairs and security policy, during his confirmation hearing, offered a hint as to what might be needed to get there: ‘The EU has to learn to use the language of power.”’

What might this mean in practice?

Four issues illustrate some of the key dilemmas ahead for the EU and its new executive.

Hard power

The most revealing of these concerns hard power.

For a union so addicted to the US security guarantee, and so used to the softer approaches of exercising its influence, this was always going to be a difficult discussion. The recent disagreement between Germany and France over the future of NATO gave a taste of how fraught and complex this discussion can be.

Underpinning it are three fundamental questions. If the EU has to enhance its capacity to defend its interests with military power, how (and how quickly) is it to move ahead, how much additional responsibility will that mean and to what degree will this responsibility need to be shouldered autonomously, potentially distancing itself from NATO or Washington? Moving forward with this agenda while balancing the competing interests of member states and preserving the fragile progress already achieved with initiatives such as PESCO will not be easy.

Discussion and debate among member states should not be discouraged, but the new commission has a role to play in ensuring that such discussion is constructive. Distracting talks about an EU army or a nuclear ‘Eurodeterrent’ should be shelved, with the focus as much as possible on acquiring tangible capabilities, getting the defence architecture right, ensuring operational readiness and spending defence budgets smartly.

How to use power

Great powers have traditionally been able to cooperate in certain areas while competing in others. Given their wide reach, powers like the US have generally not allowed disagreement on one issue to interfere with the ability to work together on others.

If the EU aspires to be a more assertive global player, it will need to grow comfortable with this compartmentalization. For example, if Brussels wants to stand up to Beijing regarding human rights, the South China Sea or issues of acquisition of European infrastructure, this should not mean that cooperation on areas such as peacekeeping, arms control or climate change needs to be blocked.

Footing the bill

Ursula von der Leyen, the new commission president, has announced that she wants an increase of 30% for external action in the 2021–27 Multi-annual Financial Framework (the EU budget). But with the Brexit budget gap looming, and little appetite to increase contributions or reduce the funds allocated to costly schemes, like the Common Agricultural Policy, compromises will have to be made for this to happen.

This will be one of the first key tests for the new commission. Power costs money, not just gestures, and therefore specific commitments already made under the Juncker mandate regarding the European Defence Fund or the new Neighbourhood, Development and International Cooperation Instrument need to be guaranteed, if not expanded.

Internal politics

None of these steps are possible if the internal workings of the EU become too dysfunctional. A stronger stance internationally would make the sometime incoherence of internal EU management more of a liability to the bloc’s credibility. For example, how can the EU advocate for the rule of law beyond its borders while some of its own member states violate the same principles? 

And there remains the perpetual question of how much more power member states are willing to cede – if any – to deliver faster and more efficient decision-making. If the bloc’s reflexes – often slow, consensual and risk averse – are out of place with the role of a modern great power, how does the commission envision introducing decision-making mechanisms, like qualified majority voting, in foreign and security policy matters?

Borrell’s résumé shows his extensive experience in handling critical policy dossiers. He is also expected to travel less than his predecessor, being mindful of the even heavier institutional work ahead, not least in working with a more politically fragmented European Council and a more politicized European Parliament.

Ultimately, learning the language of power might mean that the EU finally deals with the basics of international affairs as a coherent and cohesive actor, rather than as an occasional ensemble. This endeavour clearly lacks a fixed path or destination. But the new commission seems to be mindful that the EU will have to find new ways to use power as the world changes around it. In doing so, it should keep in mind that the language of power is best articulated not with words, but with actions.

Drawing on her experience as secretary of state for defence and secretary of state for international development, Penny Mordaunt discusses how soft power can protect, promote and project Britain’s international interests and foreign policy agenda.

Often defined as the capacity to influence others without coercion or force, soft power differs from traditional military capabilities in favour of more subtle forms of influence rooted in values, culture and civic institutions.

Consistently upholding democratic values and human rights can contribute to a nation’s soft power as much as its cultural icons and legacies.  However, utilising soft power – the power of attractiveness – is not straightforward: the government is only part of a broad mix of institutions and actors with a role to play.

Can the UK develop a long term approach that brings together all of the components of its soft power for a common purpose?

What are the key sources of Britain’s soft power? How has Brexit affected perceptions of Britain internationally? And with the UK’s departure from the European Union now confirmed, how should we think about its soft power in the future?

There are two well-established ideas in trade. Individually, they are correct. Combined, they can lead to a conclusion that is unfortunately wrong.

The first idea is that, across a range of economic sectors, the EU and the US have been engaged in a battle to have their model of regulation accepted as the global one, and that the EU is generally winning.

The second is that governments can use their regulatory power to extend strategic and foreign policy influence.

The conclusion would seem to be that the EU, which has for decades tried to develop a foreign policy, should be able to use its superpower status in regulation and trade to project its interests and its values abroad.

That’s the theory. It’s a proposition much welcomed by EU policymakers, who know they are highly unlikely any time soon to acquire any of the tools usually required to run an effective foreign policy.

The EU doesn’t have an army it can send into a shooting war, enough military or political aid to prop up or dispense of governments abroad, or a centralized intelligence service. Commission President Ursula von der Leyen has declared her outfit to be a ‘geopolitical commission’, and is casting about for any means of making that real.

Through the ‘Brussels effect’ whereby European rules and standards are exported via both companies and governments, the EU has indeed won many regulatory battles with the US.

Its cars, chemicals and product safety regulations are more widely adopted round the world than their American counterparts. In the absence of any coherent US offering, bar some varied state-level systems, the General Data Protection Regulation (GDPR) is the closest thing the world has to a single model for data privacy, and variants of it are being adopted by dozens of countries.

The problem is this. Those parts of global economic governance where the US is dominant – particularly the dollar payments system – are highly conducive to projecting US power abroad. The extraterritorial reach of secondary sanctions, plus the widespread reliance of banks and companies worldwide on dollar funding – and hence the American financial system – means that the US can precisely target its influence.

The EU can enforce trade sanctions, but not in such a powerful and discriminatory way, and it will always be outgunned by the US. Donald Trump could in effect force European companies to join in his sanctions on Iran when he pulled out of the nuclear deal, despite EU legislation designed to prevent their businesses being bullied. He can go after the chief financial officer of Huawei for allegedly breaching those sanctions.

By contrast, the widespread adoption of GDPR or data protection regimes inspired by it may give the EU a warm glow of satisfaction, but it cannot be turned into a geopolitical tool in the same way.

Nor, necessarily, does it particularly benefit the EU economy. Europe’s undersized tech sector seems unlikely to unduly benefit from the fact that data protection rules were written in the EU. Indeed, one common criticism of the regulations is that they entrench the power of incumbent tech giants like Google.

There is a similar pattern at work in the adoption of new technologies such as artificial intelligence and the Internet of Things. In that field, the EU and its member states are also facing determined competition from China, which has been pushing its technologies and standards through forums such as the International Telecommunication Union.

The EU has been attempting to write international rules for the use of AI which it hopes to be widely adopted. But again, these are a constraint on the use of new technologies largely developed by others, not the control of innovation.

By contrast, China has created a vast domestic market in technologies like facial recognition and unleashed its own companies on it. The resulting surveillance kit can then be marketed to emerging market governments as part of China’s enduring foreign policy campaign to build up supporters in the developing world.

If it genuinely wants to turn its economic power into geopolitical influence – and it’s not entirely clear what it would do with it if it did – the EU needs to recognize that not all forms of regulatory and trading dominance are the same.

Providing public goods to the world economy is all very well. But unless they are so particular in nature that they project uniquely European values and interests, that makes the EU a supplier of useful plumbing but not a global architect of power.

On the other hand, it could content itself with its position for the moment. It could recognize that not until enough hard power – guns, intelligence, money – is transferred from the member states to the centre, or until the member states start acting collectively, will the EU genuinely become a geopolitical force. Speaking loudly and carrying a stick of foam rubber is rarely a way to gain credibility in international relations.

This article is part of a series of publications and roundtable discussions in the Chatham House Global Trade Policy Forum.

PLEASE NOTE: THIS EVENT HAS BEEN CANCELLED.

There is a widespread sense that liberal democracy is in crisis but little consensus about how to understand it. While some attribute this crisis to the rise of populist figures, movements and parties, others see populism as a response to a deeper hollowing out of democracy during the last several decades. Some blame the development of digital technology – in particular the emergence of social media – while others argue that the correlation between the development of digital technology and the perceived corrosion of democracy is exaggerated or that it has facilitated greater participation in politics from traditionally under-represented demographics in a way that was not previously possible.

Launching the Chatham House research paper The Future of Democracy in Europe, this panel will discuss how liberal democracy is evolving against the background of social and technological change. What are the challenges to liberal democracy in Europe? How should we understand the impact of technology on how democracy in Europe functions? Given the plurality of democratic structures and institutions across the continent, how can democracy in Europe be reinvigorated? And what role can citizens' assemblies and referendums play in making democracy more responsive to citizens?

This event is open to Chatham House Members only. Not a member? Find out more.

For further information on the different types of Chatham House events, visit Our Events Explained.

Labour leadership candidate, Lisa Nandy, reflects on the party's foreign policy priorities and makes the case for a foreign policy underpinned by internationalism.

In recent years, the Labour party has struggled to reach cross-party consensus on its foreign policy agenda. While the current leadership election offers the party an opportunity to debate and redefine its position on issues such as immigration, security and Brexit, the extent to which Labour can reconcile its factionalism remains unclear. As Labour undergoes a process of reflection, what kind of foreign policy agenda should the party rally behind that will also appeal to voters outside of its traditional base?

Can the Labour party be unified on its approach to international issues? Is an internationalist foreign policy an attractive choice for voters? And as Brexit tensions persist, what might the party's framework be to ensure new trade deals and partnerships align with fundamental Labour priorities such as workers' rights?

In the past few weeks, European Union member states have implemented measures such as social distancing, school and border closures and the cancellation of major cultural and sporting events in an effort to curb the spread of COVID-19. Such measures are expected to have significant economic and political consequences, threatening near or total collapse of certain sectors. Moreover, the management of the health and economic crises within the EU architecture has exposed tensions and impasses in the extent to which the EU is willing to collaborate to mitigate pressures on fellow member states.

The panellists will examine the European Union's response to a series of cascading crises and the likely impact of the pandemic on individual member states. Can the EU prevent an economic hit from developing into a financial crisis? Are the steps taken by the European Central Bank to protect the euro enough? And are member states expected to manage the crisis as best they can or will there be a united effort to mitigate some of the damage caused?  

This event is part of a fortnightly series of 'Business in Focus' webinars reflecting on the impact of COVID-19 on areas of particular professional interest for our corporate members.

Not a corporate member? Find out more.

In the last 100 years, global economic crises from the Great Depression of the 1930s to the 2008 financial crash have contributed to significant political changes in Europe, often leading to a rise in popularity for extremist parties and politics. As Europe contends with a perceived crisis of democracy - now compounded by the varied responses to the coronavirus outbreak - how should we understand the relationship between externally-driven economic crises, political upheaval and democracy?

The panellists will consider the parallels between the political responses to some of the greatest economic crises Europe has experienced in the last century. Given that economic crises often transcend borders, why does political disruption vary between democracies? What can history tell us about the potential political impact of the unfolding COVID-19-related economic crisis? And will the unprecedented financial interventions by governments across Europe fundamentally change the expectations citizens have of the role government should play in their lives?

This event is based on a recent article in The World Today by Hans Kundnani and Pepijn Bergsen who are both researchers in Chatham House's Europe Programme. 'Crawling from the Wreckage' is the first in a series of articles that look at key themes in European political discourse from the last century. You can read the article here. 

This event is open to Chatham House Members. Not a member? Find out more.

In a new event in the Sustainable Transitions series, the speaker will present an update of Sino-Russian gas cooperation.

To give a comprehensive account of their impact on global liquefied natural gas (LNG) supplies, he will discuss the following points:

• Gas is scheduled to start flowing from the Power of Siberia I (POS) on 2 December 2019. But what is the background of development of POS 1 and what is its current status and prospects? 
• What are the chances of exporting gas through the proposed Altai pipeline? Why is the Mongolia export route so significant? And how will it affect the Central Asian Republics and in particular Turkmenistan’s gas export to China? 
• What are the implications of both POS I and Altai gas via Mongolia route in the context of global LNG supply?
• What are the prospects for multilateral pipeline gas cooperation in northeast Asia?
• What are the implications for other Arctic onshore LNG supply, in particular, for Novatek's Yamal LNG and Arctic LNG 1 and 2 to China on top of POS 1 and Altai gas?

Attendance at this event is by invitation only.

The pressure of the coronavirus pandemic is adding to a widely held misconception that trade in food products is bad for the environment due to the associated ‘food miles’ – the carbon footprint of agricultural products transported over long distances.

This concept, developed by large retailers a decade ago, is often invoked as a rationale for restricting trade and choosing locally-produced food over imports. Consuming local food may seem sensible at first glance as it reduces the carbon footprint of goods and generates local employment. 

However, this assumption ignores the emissions produced during the production, processing or storage stages which often dwarf transport emissions. Other avenues to address the climate change impact of trade are more promising.

Demystifying food emissions

In the US, for example, food items travel more than 8,000 km on average before reaching the consumer. Yet transport only accounts for 11 per cent of total emissions with 83 per cent – mostly nitrous oxide (N2O) and methane (CH4) emissions – occurring at the production stage.

US Department of Agriculture data on energy use in the American food system echoes this finding, showing that processing, packaging, and selling of food represent ten times the energy used to transport food.

In practice, it may be preferable from an environmental perspective to consume lamb, onion or dairy products transported by sea because the lower emissions generated at the production stage offset those resulting from transport. Similarly, growing tomatoes under heated greenhouses in Sweden is often more emissions-intensive than importing open-grown ones from Southern Europe.

Seasonality also matters. British apples placed in storage for ten months leads to twice the level of emissions as that of South American apples sea-freighted to the UK. And the type of transport is also important as, overall, maritime transport generates 25 to 250 times less emissions than trucks, and air freight generates on average five times more emissions than road transport.

Therefore, air-freighted Kenyan beans have a much larger carbon footprint than those produced in the UK, but crossing Europe by truck to import Italian wine might generate more emissions than transatlantic shipments.

Finally, one should take into account the last leg of transport. A consumer driving more than 10 km to purchase 1 kg of fresh produce will generate proportionately more greenhouse gas (GHG) emissions than air-freighting 1 kg of produce from Kenya.

Shifting consumption towards local foods may reduce GHG emissions in sectors with relatively low emissions intensities but, when non-carbon dioxide emissions are taken into account, this is more often the exception than the rule.

Under these circumstances, preventing trade is an inefficient and expensive way of reducing GHG emissions. Bureau et al. for example, calculate that a global tariff maintaining the volume of trade at current levels until 2030 may reduce global carbon dioxide emissions by 3.5 per cent. However, this would be roughly seven times less than the full implementation of the Paris Agreement and cost equivalent to the current GDP of Brazil or 1.8 per cent of world GDP.

By preventing an efficient use of resources, such restrictions would also undermine the role of trade in offsetting possible climate-induced production shortfalls in some parts of the world and allowing people to access food when they can’t produce it themselves.

Reducing the climate footprint of trade

This is not to say that nothing should be done to tackle transport emissions. The OECD estimates that international trade-related freight accounted for over 5 per cent of total global fuel emissions with shipping representing roughly half of it, trucks 40 per cent, air 6 per cent and rail 2 per cent. With the projected tripling of freight transport by 2050, emissions from shipping are expected to rise between 50 and 250 per cent.

Furthermore, because of their international nature, these emissions are not covered by the Paris Agreement. Instead the two UN agencies regulating these sectors – the International Civil Aviation Organization and the International Maritime Organization – are responsible for reducing these emissions and, so far, significant progress has proven elusive.

Regional or bilateral free trade agreements to further stimulate trade could address this problem by exploiting comparative advantages. Impact assessments of those agreements often point towards increases in GHG emissions due to a boost in trade flows. In the future, such agreements could incorporate – or develop in parallel – initiatives to ensure carbon neutrality by connecting carbon markets among contracting parties or by taxing international maritime and air transport emissions.

Such initiatives could be combined with providing additional preferences in the form of enhanced market access to low-carbon food and healthier food. The EU, as one of the chief proponents of bilateral and regional trade agreements and a leader in promoting a transition to a low-carbon economy could champion such an approach.

This article is part of a series from the Chatham House Global Trade Policy Forum, designed to promote research and policy recommendations on the future of global trade. It is adapted from the research paper, Delivering Sustainable Food and Land Use Systems: The Role of International Trade, authored by Christophe Bellmann, Bernice Lee and Jonathan Hepburn.