Trading more food: Implications for land use, greenhouse gas emissions, and the food system

► The study analyses the impact of increased trade on economic and environmental indicators. ► Global costs of food production decrease and the food scarcity index increases with a lower rate. ► Deforestation, mainly in Latin America, leads to significant amounts of additional carbon emissions. ► Non-CO2 emissions will increase most in China due to comparative advantages in livestock production. ► With the generated economic benefits it is possible to compensate for increased emissions and deforestation. The volume of agricultural trade increased by more than ten times throughout the past six decades and is likely to continue with high rates in the future. Thereby, it largely affects environment and climate. We analyse future trade scenarios covering the period of 2005–2045 by evaluating economic and environmental effects using the global land-use model MAgPIE (“Model of Agricultural Production and its Impact on the Environment”). This is the first trade study using spatially explicit mapping of land use patterns and greenhouse gas emissions. We focus on three scenarios: the reference scenario fixes current trade patterns, the policy scenario follows a historically derived liberalisation pathway, and the liberalisation scenario assumes a path, which ends with full trade liberalisation in 2045. Further trade liberalisation leads to lower global costs of food. Regions with comparative advantages like Latin America for cereals and oil crops and China for livestock products will export more. In contrast, regions like the Middle East, North Africa, and South Asia face the highest increases of imports. Deforestation, mainly in Latin America, leads to significant amounts of additional carbon emissions due to trade liberalisation. Non-CO2 emissions will mostly shift to China due to comparative advantages in livestock production and rising livestock demand in the region. Overall, further trade liberalisation leads to higher economic benefits at the expense of environment and climate, if no other regulations are put in place.