Emerging Trends in International Trade
Over the past two decades, international trade agreements have been presented as a catalyst for Central American development, facilitating access to international markets and modernizing the agrofood sector. However, the experience has shown unintended consequences: dependence on imported inputs, overexploitation of land, water scarcity, and value chains that exclude small producers.
Today, the dynamics of international trade—including processes at the World Trade Organization (WTO)—demand greater coherence between economic development, environmental sustainability, and territorial justice. Simultaneously, the region faces severe climate impacts: prolonged droughts, floods, loss of forest cover, and rural migration. The key question is: how can Central American food systems be redesigned without jeopardizing their trade integration?
What Does Circular Food Systems Imply?
Circular food systems aim to close nutrient and energy cycles, reduce losses, revalue waste, and regenerate local ecosystems. This approach breaks from the linear model of produce-export-consume-dispose and promotes a transition towards territorial resilience and regenerative value addition.
However, many trade agreements still prioritize economies of scale and primary exports without offering incentives for circular practices. Sanitary standards, cross-subsidies, and market access criteria tend to favor intensive and centralized production models, excluding sustainable initiatives of small and medium scale.
According to PNUMA (2024), 11.6% of food produced in Latin America is lost or wasted, while millions of tons of agricultural waste go unused. In Central America, this waste presents an opportunity: these surpluses could be transformed into inputs for biofertilizers, animal feed, or new productive chains with regional identity.
Meanwhile, the private sector faces significant challenges due to technical barriers for differentiated products: those grown using regenerative practices or with local identity. As Europe advances with regulations on deforestation and environmental labeling, those who fail to adapt will be left behind. The region risks being trapped between outdated agreements and increasingly demanding markets.
Adapting to circular food systems does not mean reversing the path of international trade but rather rethinking its foundations and incorporating circular economy criteria into future negotiation rounds. It’s about acknowledging that there are already farms, cooperatives, and local networks advancing—almost silently—towards fairer, more human, and less disposable models. Perhaps true development is not measured solely by exported tons but by closed cycles without breaking community ties or biodiversity in the process.
Key Questions and Answers
- What are the current challenges in Central American food systems? The region faces issues like dependence on imported inputs, overexploitation of land, water scarcity, and value chains excluding small producers. Additionally, severe climate impacts pose threats such as prolonged droughts, floods, loss of forest cover, and rural migration.
- How can circular food systems help? Circular food systems aim to close nutrient and energy cycles, reduce losses, revalue waste, and regenerate local ecosystems. This approach can transform agricultural waste into valuable inputs for biofertilizers, animal feed, or new productive chains with regional identity.
- What barriers does the private sector face in adopting circular practices? The private sector encounters challenges due to technical barriers for differentiated products grown using regenerative practices or with local identity. Furthermore, regulations on deforestation and environmental labeling in markets like Europe may exclude those who fail to adapt.
- Is adapting to circular food systems incompatible with international trade? No, it means rethinking the foundations of international trade agreements and incorporating circular economy criteria. This approach recognizes existing local initiatives advancing towards fairer, more human, and less disposable models.
