Later this year, between November 30 and December 1, the 13th annual G20 Summit will take place in Buenos Aires, Argentina, which marks the first time that this meeting takes place in South America. The yearly gathering of the Group of 20 (G20) brings together the leaders of the world’s twenty largest and most developed economies, plus multilateral institution such as the European Union. On a regular basis, the G20 facilitates reunions amongst high-level government officials and heads of government from North America, the European Union, and the BRICS nations, amongst others. Together, the G20 economies account for more than 80% of the world’s gross production and more than 60% of the world’s total population. Therefore, the group, through its regular meetings, seeks to coordinate international economic and financial policy in order to foster sustainable growth and common prosperity. This year, the rotating Presidency of the G20 is being held by Argentina, following Germany’s G20 hosting last year in Hamburg. Moreover, this year, Spain, the Netherlands, Chile, Jamaica, Singapore, and Rwanda have been invited as guest countries to take part in the gathering.
Empowering Agricultural Output in Developed Markets
In order to capitalize on the potential of agribusiness, G20 nations need to diversify their agricultural production beyond major commodities such as soybeans and wheat. In addition, these economies should reduce trade barriers and agricultural subsidies in order to ensure the real global competitiveness of the crops that they are producing and exporting. Lastly, agricultural operations in G20 nations should incorporate agroforestry practices that diversify their output and help ensure the long-term sustainability of their farms. Furthermore, as agricultural sectors in the industrialized world incorporate niche crops as well as fruits and vegetables alongside their commodity production, they will both diversify the global foodstuffs supply and boost their profits.
Another key issue that G20 nations need to address as it relates to the agribusiness sector is the threat brought about by global climate variations. National economies should seek to minimize their carbon footprints by reimagining and transforming both their manufacture and agriculture sectors. For instance, the large amounts of funds currently allocated towards production and crop-specific subsidies should be re-allocated towards securing affordable insurance against natural disasters, such as flooding, earthquakes, and hurricanes. This policy approach will facilitate a more level playing field within the agricultural free market, while also protecting farmers and producers against the inherent risk presented by global climate variations.
Simultaneously, new markets for agricultural products continue to open up worldwide, particularly throughout Asia and Latin America. The sustained growth of East and South Asian economies has led to competition for commercial access to those markets. These economic dynamics have created a wide array of political ventures aimed at Asian and Pacific Rim integration, such as the Latin American Pacific Alliance and the revised Trans-Pacific Partnership (TPP without the United States).