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Monday, April 13, 2026

Updated Monday, April 13, 2026 at 18:53:45 PM

Water resource management and international trade

The WTO warns that water demand will exceed supply by 40% by 2030 and urges reform of agricultural subsidies

Newsroom Wednesday, January 21, 2026 Reading time:

Jean-Marie Paugam, Deputy Director-General of the WTO, defended the trade of "virtual water" in Berlin as a strategic solution to global water stress and called for aligning agricultural policies with food security at the next ministerial conference.

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International trade as a key to water and food security

 

During the 18th Foro Mundial para la Alimentación y la Agricultura held in Berlín, Jean-Marie Paugam, Deputy Director General of the OMCPaugam warned that global water demand could exceed supply by 40% by 2030. He urged ministers to use trade to balance water stress and ensure food security.

 

In his address to the Conference of Ministers of Agriculture, the representative of the Organización Mundial del Comercio (OMCThe report highlighted a direct and inseparable correlation: water security is the fundamental basis of food security. The estimates presented by the organization are alarming if current resource management practices continue. To mitigate this risk, Jean-Marie Paugam He pointed out that international trade is not just an economic mechanism, but a key management tool in the face of growing scarcity.

 

Key data on water stress and the multilateral agenda

 

Indicator / Event Data / Date Global Impact Projected Water Deficit 40% by 2030 Gap between supply and demand if current practices continue. Production at risk. More than 50% Percentage of global food production in water-stressed areas. Next key summit: March 26-29, 14th Ministerial Conference of the OMC en Camerún.

 

The concept of "virtual water" and trade distortions

 

The Deputy Director-General highlighted that more than half of global food production takes place in regions already suffering from water stress. In this context, the research supports the role of the trade in embodied water in agricultural products, a phenomenon technically known as "virtual water"This mechanism allows regions with abundant water resources to supply water-intensive goods to areas with scarcity, thus supporting the world food security efficiently.

 

However, Paugam He emphasized that trade distortions and harmful agricultural subsidies undermine the efficient use of water. According to the executive, reforming this type of support through agricultural negotiations is essential. OMC It is not just a trade issue, but a global governance imperative.

 

Towards the 14th Ministerial Conference in Cameroon

 

In preparation for the 14th Ministerial Conference of the OMC, which will take place from March 26 to 29 in Camerún, Jean-Marie Paugam He called on members to advance reforms to agricultural support. The goal is to align national policies with long-term food security and the responsible use of resources.

 

The executive urged building on recent achievements, such as the historic Acuerdo sobre Subvenciones a la Pesca and the elimination of agricultural export subsidies. Finally, he urged the agriculture and trade ministers to work together to shape the future of global food systems.

 

Key points and frequently asked questions about Trade and Water Security

  • What is "virtual water" according to the OMC?
    It is the water incorporated into traded agricultural products. Its exchange allows regions with abundant water to supply water-intensive goods to arid areas, balancing global resources.
  • What water scarcity forecast does the organization have for 2030?
    If current usage practices continue, it is estimated that global water demand will exceed available supply by 40%.
  • What is the objective of the meeting? Camerún in March?
    Advance reform of agricultural subsidies that distort the market and promote policies aligned with the responsible use of resources and food security.
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