NEWS
THE BELT AND ROAD INITIATIVE: TURNING ITS ATTENTION TO FOOD PRODUCTS
The Belt and Road Initiative (BRI) is not only boosting vast infrastructure projects. High cuisine, halal products and cutting food tariffs were among the topics discussed at the Belt and Road International Food Expo held in late June.
The Belt and Road International Food Expo (BRIFE) was held in Hong Kong during the last few days of June. This is the first international exhibition as part of the One Belt and One Road Initiative dedicated to the agribusiness sector. Hundreds of participants from 35 countries involved in The Belt and Road Initiative demonstrated local food products and discussed prospects. The exhibition culminated in the holding of the first official summit at which Ministers of Agriculture and Trade decided how to leverage the opportunities offered by BRI.
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EVERYBODY IS INTERESTED IN STIMULATING FOOD IMPORTS AND EXPORTS, WHILE AT THE SAME TIME PREVENTING ANY POTENTIAL SHORTFALL IN FOOD PRODUCTS.
The exhibition and summit were held against the backdrop of an imminent trade conflict between the USA and China. The Trump administration is pursuing an “America First” protectionist policy, while China intends, for example, to impose a 25 per cent duty on soya exports to China. Western media have already nicknamed this precedent the “soy wars”. For China, which imports a third of all its soybeans from the USA, this is a signal to rapidly find more reliable suppliers. The People’s Republic of China will reduce import tariffs (in some cases cutting them to zero) on food imports, including soybeans, from many Asian countries.
All these development open up new opportunities for Eurasian countries, which want to participate in the redistribution of China’s food market. The “soy wars”, investments, trading in food products, and also halal cuisine, were among the issues discussed at BRIFE. The organisers estimated the total market of halal products at USD 2.3 trillion. Moreover 80% of this colossal amount consists of products which cross the border before reaching their consumers. This is a growing opportunity to generate additional revenue and one of the unexpected, but important development factors of BRI.
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