New Barriers to Agricultural Trade
A new trade barrier mechanism has emerged: public sentiment. This mechanism imposes the safest and most legally defensible trade barriers for any country. Public sentiment operates without specific government policy, thereby preventing large-scale trade conflicts.
This barrier influences public acceptance or rejection of products from other countries by creating narratives that appear in the media and ongoing public discourse.
One sector with significant potential to be affected by public sentiment is agriculture. Global agricultural trade volumes have continued to increase over recent decades. Agriculture is also the most sensitive sector in international trade negotiations and is more protected than other economic sectors due to its low competitiveness and frequent market distortions.
**Economic Issues**
The US-China trade war has generated negative sentiment in both countries. During the trade war, Chinese grain import prices rose, causing increased domestic price volatility. Meanwhile, most American farmers expressed positive perceptions about the end of the trade war with China.
On a larger scale, negative sentiment in agriculture poses a threat to regional trade agreements. This can be seen from the perception of American business people who suspect that imported agricultural products receive government support, enabling them to be sold at low prices (dumping).
**Social Issues**
One reason for rejecting foreign products is humanitarian concerns. Many countries have responded to the humanitarian crisis between Israel and Palestine by refusing to import food from Israel. This phenomenon has significantly impacted the sales of many Israel- and US-affiliated food companies, particularly in Muslim-majority countries. A country's cultural norms can also hinder agricultural trade.
For example, durian is associated with disgust by Canadian consumers. Canadian media perpetuate unfavourable perceptions by describing durian as disgusting, unpleasant, and smelling like a hockey bag. Consequently, importing durian into Canada is quite difficult, and the fruit is rarely available in the domestic market.
Religious doctrine can also be a factor in rising public disapproval of products from other countries. Products from Danish food companies were boycotted in Saudi Arabia following the publication of cartoons of the Prophet Muhammad in the Jyllands-Posten newspaper.
Muslim consumers continued to perceive foreign food companies as belonging to one social group with a single identity — "Danish people". Consumers also encouraged others to join in boycotting Danish products.
**Political and Security Issues**
Negative feelings towards security drive consumer preferences to support certain economic protectionism measures, such as targeted export controls and restrictions on inward and outward investment. Attitudes towards agricultural trade with hostile nations can deteriorate due to security concerns.
Security issues have impacted Qatar's access to food imports from its neighbouring countries. In a statement released on 5 June 2017, the foreign ministries of Bahrain, Saudi Arabia, the United Arab Emirates, and Egypt announced the severance of diplomatic relations with Qatar and the imposition of land, sea, and air embargoes.
The blockade caused grocery store shelves in Qatar to empty as consumers rushed to purchase food products. However, this was short-lived, as the government quickly reconfigured the country's food supply chain and sought new global food and agricultural trading partners, namely Iran and Turkey.
**Health Issues**
Health concerns are increasingly influencing public perceptions of international food and agricultural goods. For example, European Union consumers have been highly vocal in their rejection of genetically modified organism (GMO) products due to potential health hazards. Health concerns also focus on harmful contaminants in imported food.
EU consumers reject palm oil due to its high saturated fat content and contaminants produced during oil processing. Furthermore, EU media continue to disseminate information regarding the negative health impacts of palm oil.
**Environmental Issues**
These issues arise because agriculture is considered harmful to the environment and a contributor to climate change, including through deforestation, pollution, and emissions. Several recent campaigns in the EU have been launched to raise public awareness about the negative impacts of palm oil production on irrational land-use change, peatland conversion, biodiversity loss, deforestation, greenhouse gas emissions, and other environmental damage in Asia, Africa, and Latin America.
Many franchise stores have introduced "palm oil-free" labels on their products or eliminated palm oil from food products. This phenomenon is the result of proactive civil society opposition to palm oil, the spread of public sentiment by the media, and the adaptation of business strategies to new consumer preferences.
**Strategy**
Memoranda of understanding represent an important step in ensuring the smooth and secure conduct of economic transactions amid public sentiment. State visits and other follow-up actions have a significant impact on the trading system and are crucial for maintaining bilateral relations. An excellent illustration of the benefits of diplomatic efforts is China.
Through these diplomatic measures, China has maintained its continuity and the stability of its trading system amid unfavourable conditions affecting the country. The benefits of diplomacy can be seen in the opinions of individual African citizens regarding Chinese trade, which are shaped more by economic advantages than by ideological hostility.
This barrier influences public acceptance or rejection of products from other countries by creating narratives that appear in the media and ongoing public discourse.
One sector with significant potential to be affected by public sentiment is agriculture. Global agricultural trade volumes have continued to increase over recent decades. Agriculture is also the most sensitive sector in international trade negotiations and is more protected than other economic sectors due to its low competitiveness and frequent market distortions.
**Economic Issues**
The US-China trade war has generated negative sentiment in both countries. During the trade war, Chinese grain import prices rose, causing increased domestic price volatility. Meanwhile, most American farmers expressed positive perceptions about the end of the trade war with China.
On a larger scale, negative sentiment in agriculture poses a threat to regional trade agreements. This can be seen from the perception of American business people who suspect that imported agricultural products receive government support, enabling them to be sold at low prices (dumping).
**Social Issues**
One reason for rejecting foreign products is humanitarian concerns. Many countries have responded to the humanitarian crisis between Israel and Palestine by refusing to import food from Israel. This phenomenon has significantly impacted the sales of many Israel- and US-affiliated food companies, particularly in Muslim-majority countries. A country's cultural norms can also hinder agricultural trade.
For example, durian is associated with disgust by Canadian consumers. Canadian media perpetuate unfavourable perceptions by describing durian as disgusting, unpleasant, and smelling like a hockey bag. Consequently, importing durian into Canada is quite difficult, and the fruit is rarely available in the domestic market.
Religious doctrine can also be a factor in rising public disapproval of products from other countries. Products from Danish food companies were boycotted in Saudi Arabia following the publication of cartoons of the Prophet Muhammad in the Jyllands-Posten newspaper.
Muslim consumers continued to perceive foreign food companies as belonging to one social group with a single identity — "Danish people". Consumers also encouraged others to join in boycotting Danish products.
**Political and Security Issues**
Negative feelings towards security drive consumer preferences to support certain economic protectionism measures, such as targeted export controls and restrictions on inward and outward investment. Attitudes towards agricultural trade with hostile nations can deteriorate due to security concerns.
Security issues have impacted Qatar's access to food imports from its neighbouring countries. In a statement released on 5 June 2017, the foreign ministries of Bahrain, Saudi Arabia, the United Arab Emirates, and Egypt announced the severance of diplomatic relations with Qatar and the imposition of land, sea, and air embargoes.
The blockade caused grocery store shelves in Qatar to empty as consumers rushed to purchase food products. However, this was short-lived, as the government quickly reconfigured the country's food supply chain and sought new global food and agricultural trading partners, namely Iran and Turkey.
**Health Issues**
Health concerns are increasingly influencing public perceptions of international food and agricultural goods. For example, European Union consumers have been highly vocal in their rejection of genetically modified organism (GMO) products due to potential health hazards. Health concerns also focus on harmful contaminants in imported food.
EU consumers reject palm oil due to its high saturated fat content and contaminants produced during oil processing. Furthermore, EU media continue to disseminate information regarding the negative health impacts of palm oil.
**Environmental Issues**
These issues arise because agriculture is considered harmful to the environment and a contributor to climate change, including through deforestation, pollution, and emissions. Several recent campaigns in the EU have been launched to raise public awareness about the negative impacts of palm oil production on irrational land-use change, peatland conversion, biodiversity loss, deforestation, greenhouse gas emissions, and other environmental damage in Asia, Africa, and Latin America.
Many franchise stores have introduced "palm oil-free" labels on their products or eliminated palm oil from food products. This phenomenon is the result of proactive civil society opposition to palm oil, the spread of public sentiment by the media, and the adaptation of business strategies to new consumer preferences.
**Strategy**
Memoranda of understanding represent an important step in ensuring the smooth and secure conduct of economic transactions amid public sentiment. State visits and other follow-up actions have a significant impact on the trading system and are crucial for maintaining bilateral relations. An excellent illustration of the benefits of diplomatic efforts is China.
Through these diplomatic measures, China has maintained its continuity and the stability of its trading system amid unfavourable conditions affecting the country. The benefits of diplomacy can be seen in the opinions of individual African citizens regarding Chinese trade, which are shaped more by economic advantages than by ideological hostility.